Premium tag will help agrifood sector grow

Ireland’s agrifood business could be worth up to €26bn by the end of next year as the country continues to position itself as one of the world’s premium food producers.

Improved domestic demand allied with the country’s strong export performance will push food and beverage output up 8% to €26bn, and agriculture output up to €8bn by the end of 2016, according to trade credit insurer Euler Hermes.

Irish farmers, however, are struggling at present with the downward trend in global commodity prices and agricultural prices.

Dairy prices are down 29% in the first half of 2015, and meat prices have plummeted 17.5% on an annual basis.

Producers could be well placed to take advantage of changing consumer demands, however, Euler Hermes Ireland country manager, Dean O’Brien said.

“The situation is improved by Ireland’s positive net trade effect, notably its positioning as a premium food product exporter.

"This may reap future rewards too, with the continuing expansion of the global middle-class, forecast to nearly double to 40% of the world population by 2020, and the shift towards finer foodstuffs as people become wealthier.”

Mr O’Brien also warned against the impact of Britain’s potential EU exit which could have particular effect on Irish meat producers .

“In that scenario, the UK may possibly seek cheaper supply, possibly from South American alternatives like Brazil.

“This risk is mitigated by the higher standards expected by European consumers in terms of quality, giving Ireland a good chance of remaining in the race.”