New figures released in the annual Bord Bia Export Performance and Prospects report 2020/2021 show that exports of Irish food, drink and horticulture to the UK were held to a marginal 5% decline in 2020, valued at €4.3bn (vs €4.5bn in 2019), despite a period of unprecedented change and challenge that saw the largest disruption to normal market operation, including uncertainty around Brexit and pandemic challenges which saw the closure of the UK foodservice market.
Overview of 2020 exports to the UK
- The UK remains a primary export market for Ireland. In 2020, 33% of Ireland’s total food and drink exports were destined for the UK. 33% were destined to international markets outside the UK and EU, while 34% were destined to the EU27.
- The UK remains the core market for Irish horticulture and cereals exports, and exports to the UK increased 8%, valued at €207m and accounting for over 90% of global exports which was €221m, up 8% from 2019. The primary constituents of this export mix are mushrooms, primary cereals and amenity horticulture.
- The UK represented 44% of primary Irish beef exports – extensive retail channel demand somewhat counteracted the significant decline in foodservice and held a 1% decline to €836m. Overall, the value of primary beef exports was held to a 2% decline to €1.9bn in 2020.
- Primary pig meat exports to the UK increased by a notable 3% to €177m in 2020.
- The live export sector experienced growth in 2020, up 11% to the UK and valued at €107m.
- Covid-19 brought significant headwinds for poultry export prices and the sector was impacted by a 14% decline in exports to the UK.
- Covid-19 and the closure of the UK on-trade has had a significant impact on alcohol exports to the UK, down 12% in 2020, to €199m.
- Although dairy continued its global growth trajectory into 2020, exports to the UK were down 13%, to €831m. Significant decline in UK foodservice and Brexit contingency planning were contributing factors.
Donal Denvir, Bord Bia General Manager for Great Britain, said: “It is really positive to see that Irish exports to the UK remain strong and resilient during this period of uncertainty. Bord Bia has been working tirelessly to support food and drink suppliers in Ireland through the impact of the pandemic and Brexit.
“Notwithstanding what the future brings, the UK will remain the largest single destination for Irish food and drink exports as we continue to navigate challenges in 2021 and beyond. Our geographical proximity, shared language and shared cultural understanding ensure that the UK will remain a key strategic partner for Irish food and drink exports.”
Launching the Bord Bia report, Ireland’s Minister for Agriculture, Food and the Marine, Charlie McConalogue, revealed that the overall global volume of Irish exports fell marginally by 2% in 2020, valued at €13bn.
He commented: “Ireland’s food and drink producers faced many challenges on the domestic and international front last year. Despite this, they found a new level of resilience that saw them hold global exports at €13bn. The marginal dip of 2% is in stark contrast to the towering pandemic challenges they faced including the closure of foodservice, increases in shipping costs, and dramatic consumer behaviour changes as people migrated to working from home.
“As we look to 2021, my Department, along with Bord Bia, are resolutely focussed on supporting our primary producers and manufacturers as they trade through continued uncertainty to support jobs and deliver much needed economic progress.”
Commenting on the outlook, Tara McCarthy, Chief Executive of Bord Bia said: “For Irish food and drink producers, the global supply demand dynamic for their produce remains positive in 2021 despite global challenges and continued uncertainty as we navigate Brexit and our fragile exit from the pandemic. As we start 2021, exporters are reporting solid order volumes which is a direct result of the strength of trading relationships nurtured over many years. That said, the extra costs and complexities of trade with our largest destination market, as new customs procedures interrupt the smooth flow of produce, will cause significant challenges and should not be underestimated.”
She added: “With a return to global economic growth forecast for 2021, we anticipate continued strong global demand for Irish dairy. We expect the global meat supply balance to favour producers, particularly in Asia which has been at the centre of much Irish export growth. All around the world consumers and customers are increasingly demanding credentials around sustainability that Ireland is well-placed to meet as we seek to differentiate ourselves from competitor exporting nations and to navigate gastro-nationalism in key markets.”
