Inflation drives up value of Irish food and drink exports to reach record high of €16.7bn, new report shows

The Bord Bia report highlighted that the UK remains the largest single country market for Irish food and drink exports

Dairy remains the largest element within Irish food and drink exports, with over 1.7m tonnes of product shipped to over 130 markets worldwide.

The value of Irish food and drink exports climbed 22% last year to reach a record high of €16.7bn, amid a “challenging” trading environment.

The significant growth in food and drink exports, which climbed 30% on pre-pandemic levels, can be attributed to both increasing unit prices, due to inflation and rising input and operational costs, and an increase in the volume of goods exported, according to a new report.

“As 2023 is predicted to be another disruptive year of economic difficulty and challenging supply chains, Bord Bia will continue to be agile and responsive to client and sector needs in what is likely to be a period of ongoing volatility,” said Bord Bia chief executive Jim O’Toole.

“For Irish food and drink exporters, it will be increasingly important to be aware of how consumers respond to the current cost of living crisis and to position their products accordingly,” he said.

Mr O’Toole made these comments following the publication of Bord Bia’s Export Performance and Prospects report 2022/23.

The report highlighted that the UK remains the largest single country market for Irish food and drink exports, with exports valued at an estimated €5.4bn, an increase of 20% on 2021 levels.

In value terms, Irish food and drink exports to the EU increased by 29% to reach €5.7bn, and for international markets, the value increased by 23% to reach €5.6bn.

Exports to the US increased by almost 40% to more than €2bn, and while China’s Covid restrictions contributed to a decline in exports to the country, growth in the value of exports to the Philippines, India, Malaysia and Japan more than offset this decline, said Bord Bia.

Overall, Ireland’s food and drink exports to Asia increased by 9% to €1.5bn.

Irish dairy exports were valued at €6.8bn last year, a year-on-year value increase. Dairy remains the largest element within Irish food and drink exports, with over 1.7m tonnes of product shipped to over 130 markets worldwide.

This was followed by the meat and livestock sector, with exports valued at over €4bn, representing a 15% value increase compared to 2021.

In 2022, prepared consumer food (PCF) export values exceeded €3bn, in a performance that was largely driven by the reopening of foodservice businesses as Covid-19 restrictions lifted last year across key markets.

Inflation also played a significant role in this value increase, which was up 17% compared to 2021 levels, as volatility in input costs and rising energy prices curtailed new growth opportunities in the UK and European markets.

Meanwhile, Irish drink exports reached almost €2bn for the first time, a 25% value increase on pre-pandemic levels.

Irish seafood export values increased by 3% year-on-year to reach €530m. This was despite a 19% decrease in volumes exported, reflecting the challenging situation faced by Irish seafood exporters in securing supply.

Exports of Irish horticulture and cereals exceeded €300m, with mushrooms, largely destined for the UK, accounting for 50% or €152m, while cereals exports were valued at €73m.

The Department of Agriculture, Food and the Marine, estimated that total Irish agri-food exports, including non-edible products not included within Bord Bia’s report, to have been worth €18.7bn in 2022, representing a 21% year-on-year increase.

“I’m proud to announce today’s excellent results, which were delivered amid a profoundly challenging year for the sector, most notably the impact of the war in Ukraine, inflationary pressures on producers, and ongoing Covid-19 disruptions to the global supply chain.” said Minister for Agriculture, Food and the Marine Charlie McConalogue.