The Government reported today that food and drink exports from the Republic dropped by nearly 8 per cent because of the BSE issue and the foot-and-mouth crisis.
Bord Bia said in its annual review that 2001 had been a "very challenging" year.
But it highlighted optimism for this year, with increased sales abroad of beef and live cattle anticipated as key international markets reopen to Irish products. Higher sheep meat prices are also expected following the end of the foot-and-mouth crisis.
Although beef and cattle exports were hit last year, there were increases in foreign sales of prepared foods, pig meat and horticulture items - including mushrooms where sales went up by 10 per cent.
Bord Bia chairman Mr Philip Lynch said the sector's €6.6 billion earnings, despite the difficulties that were confronted and a 7.7 per cent drop, had been encouraging.
But he warned companies would have to focus on quality production and competitiveness to make progress in 2002.
PA