Full impact of Brexit yet to be felt by Irish exporters

Irish food and drink exports reach a record €13.5bn in 2021

Agriculture Minister Charlie McConalogue and Bord Bia CEO Tara McCarthy launching Bord Bia’s Export Performance and Prospects 2021-2022. Picture: Chris Bellew/Fennell Photography.

Irish food and drink exports reached a record €13.5bn in 2021, which is up from pre-pandemic levels of 4% in 2019.

Exports were valued at around €37m every day last year, according to the latest Export Performance and Prospects report by Bord Bia.

One of the most successful Irish exports to a market outside of the EU was Irish whiskey, which increased by 25% compared to 2020. Irish food and drink exports to the US were driven by the rising popularity of Irish whiskey. However, beer exports were down 3% to €346m due to the impact of Covid-19.

Exports of cheese were worth over €1bn, a significant 15% increase compared to 2020. Customers were willing to pay higher prices for Irish cheese, not only in the established markets of the UK and EU, but also in Africa, particularly in north Africa. The value of butter exports closely tracked that of cheese and were worth €997m in 2021. This was a 3% growth on 2020’s value achieved despite a decline in exports to the UK.

Meat and livestock exports increased to €3.5bn in 2021, up 7% compared to pre-pandemic data in 2019. 

However, other Irish exports, such as poultry and pig meat, took a hit in 2021. Poultry exports fell by 15% to €128m in 2021. This decline was due primarily to a fallen trade with the UK which is Ireland’s major market for poultry.

Markets outside the UK

One specific strategy to grow Irish exports was to place more emphasis on markets outside of the UK so Irish exports could minimise the impact of Brexit.

“The success of our strategy to diversify into new markets since the Brexit vote in 2016 is clearly evidenced in this year’s data. Last year, 34% of Ireland’s food and drink exports went to international markets outside of the EU and the UK. Since 2016, the value of Irish food and drink exports has increased by €2.1bn,” said Bord Bia CEO Tara McCarthy.

While showing resilience, the full impact of Brexit has not yet been felt by Irish exporters as the promised inspections of food and drink imports by the UK have not yet been implemented.

Other factors besides Brexit could be set to impact the record number of Irish exports seen in 2021. The cost pressures across the supply chain have been an increasingly urgent issue over the last two years and are now affecting producers and consumers.

Another challenge for exporters is transport. Global shipping is being disrupted and costs have significantly increased. The cost of a single shipping container from Shanghai to Europe increased from $1,000 (€875) in 2020 to just under $7,400 by July 2021.

“Cost increases have been far from limited to shipping. From labour to energy to critical inputs like feed and fertiliser, costs have been rising across the supply chain for Irish producers, processors, and exporters, putting pressure on already tight margins,” said Ms McCarthy.