Irish food and drink exports rose in value by 2 per cent to €6.67 billion last year, the Irish Food Board reported yesterday.
Describing the performance as "robust", Bord Bia chief executive Mr Michael Duffy said growth would have hit 10 per cent had it not been for adverse exchange rate movements during the year.
Thirty per cent of exports were into the euro zone, 40 per cent were into the sterling area, with the rest of the world accounting for 30 per cent, he said.
"When the value of exports is adjusted for the appreciation of the euro against sterling, the dollar and other currencies, the underlying growth in exports is circa 10 per cent," said Mr Duffy.
"While future currency movements remain difficult to forecast, the prevalent view is that the euro will continue to appreciate against both sterling and the dollar for the first half of 2004, making trading all the more challenging for Irish food and drink companies," he added.
Exports of meat and livestock increased by 5 per cent to almost €2 billion, while poultry products saw a 6 per cent rise to €180 million. In the prepared foods category, exports fell 5 per cent to €1.52 billion in 2003 due to adverse currency trends, retail price deflation and increased competition from euro-zone producers.
Dairy products and ingredients exports grew by 5 per cent to €1.6 billion on the back of strong growth in demand for ingredients in the second half of the year.
A good year in Britain and the US for beverages saw this area report a 8 per cent rise in business to €1.02 billion. Cream liqueurs, spirits and malt beer were the principal product categories.
"The food and drinks industry is one of the few remaining truly indigenous sectors of the Irish economy," said Mr Duffy. "It has low import content, very high value added and low levels of profit repatriation. The sector has been a key driver of the economy and it will remain so by successfully meeting the competitive challenges facing companies."
He said most firms had faced up to the changed trading environment and had taken determined measures to be cost effective.
