Despite Covid-19 and Brexit challenges, new figures released by Bord Bia (The Irish Food Board) show that exports of Irish food, drink and horticulture to the UK in 2021 remained constant in value at €4.4bn compared to the previous year.
Ireland exports about 90% of its food and drink production. Given the ongoing pandemic and the fact that the UK is now operating outside of the EU Customs Union, the performance of the Irish export sector was described as “robust” in Bord Bia’s annual Export Performance and Prospects 2021/2022 report.
Bord Bia has now published new three-year targets to further contribute to the growth in the value-chain of Irish food and drink exports as part of the launch of its new 10-year Statement of Strategy. The plan envisages a major expansion in the value growth of Irish food and drinks exports during the period, including an 11% increase in the value of dairy, meat and livestock exports, and a 14% jump in prepared consumer food exports. The group highlighted that sustainability will be a core theme within the new strategy.
Overview of 2021 exports to the UK
- The UK remains a primary export market for Ireland. In 2021, 33% of Ireland’s total food and drink exports were destined for the UK. 34% were destined for international markets outside the UK and EU, while 33% were destined for the EU.
- Two-thirds of Prepared Consumer Foods (PCF) are exported to the UK and experienced a 1% increase to €1.7bn in 2021.
- Global growth for Irish dairy continued, and exports to the UK increased by 1% to €926m. This performance is positive given the record volumes of product, 460,000 tonnes, moved into the UK in 2020 ahead of expected Brexit related trading conditions. The UK remains the largest market for Irish cheese exports valued at over €360m.
- Beef exports retained strong demand, after a slow start in the first quarter. This was due to contingency planning in case of a no-deal Brexit and subsequent stockpiling in the last quarter of 2020. Volumes, however, increased month-on-month following the easing of Covid-19 restrictions, the opening of foodservice and more experience with the new trading realities. Irish beef exports to the UK were down marginally by 2% to €883m. The UK is still the largest single market for Irish beef exports.
- The UK remains the core market for Irish horticulture and cereals exports. 95% of horticulture exports went to the UK in 2021, which mirrored trade patterns in the previous year. The value of horticulture exports to the UK increased in value by 24% in 2021 to €268m.
- Despite Covid-19 and the closure of the UK on-trade bars and nightclubs for a percentage of the year, alcohol saw a 18% increase to €249m driven by the growth of in-home consumption, leading to strong increases in sales in the off trade and further increases in sales through online channels.
- Sheepmeat has remained consistent with 2020 levels at €68m.
“The continued strong performance of Irish exports clearly demonstrates the reliability and security of the Irish food, drink and horticulture manufacturing base during what has been an incredibly challenging year,” said Donal Denvir, Bord Bia General Manager for the UK.
“Bord Bia has been working tirelessly to support Irish suppliers navigate the effects of the pandemic and Brexit. Equally, we have ensured consistent engagement with UK customers across the retail, foodservice and manufacturing channels to highlight the benefits of sourcing produce from Ireland.
“We continue to remain a key strategic partner and supplier of food, drink and horticulture to the UK not only due to our close geographical proximity but also because we are aligned in quality and sustainability assurance standards.”
Meanwhile, Bord Bia Chief Executive Tara McCarthy stated that the industry’s performance had been extraordinary. “The sector’s ability to beat its 2019 performance and deliver a record year for Irish exports is truly impressive, and Irish food and drink producers and manufacturers deserve huge credit,” she said.
“While we understandably focus on the headline figures, it is worth remembering that within those billions and millions are businesses and farms in every county in Ireland. Businesses that, whether large or small, are run by people who have faced tremendous challenges over the past 20 months, both professional and personal. It is our privilege in Bord Bia to support these wonderful risk-takers, visionaries, and innovators.”
Looking ahead, McCarthy suggested that the industry needed to be cognisant of a number of key trends for this year, which were a combination of emerging issues and a longer-term shift in consumer behaviour and attitudes.
“Notwithstanding last year’s record performance, there are a number of challenges ahead for the Irish food and drink sector. These include increased supply chain and input costs, which are affecting producers and processors, and the ongoing impact of Brexit, which has yet to be fully implemented,” she said.
“A tightening labour market has been reported by many companies in the agricultural and manufacturing sectors and this is driving increased costs.
“The increased focus on sustainability brings both challenges and opportunities for the food sector. Consumers want healthy, natural food and Ireland can deliver on that demand, but we must also work collectively and collaboratively to reduce carbon emissions to meet our 2030 commitments, and to further embed sustainability within all production, manufacturing, and distribution activities.”
