THE VALUE of Irish food and drink exports last year fell by 12 per cent last year, back to 2005 levels, when a drop of almost €1 billion was recorded, Bord Bia said yesterday.
Bord Bia’s chief executive, Aidan Cotter described 2009 as a “tough and difficult year”. Mr Cotter blamed the weakness of sterling and the global economic downturn for the figure – €7.12 billion for the year.
Mr Cotter and the Bord Bia chairman, Dan Browne, said the prospects for this year pointed to a return to growth in most sectors but the decline in sterling, where 44 per cent of our exports go, was critical. The decline in sterling and price deflation in the marketplace, Mr Cotter said, were responsible for the majority of the reduction in export revenues last year.
He estimated the depreciation of sterling reduced the value of exports to the UK by €400 million, a 15 per cent drop.
He said Ireland’s food and drink exports had come under increasing pressure in the UK market as the year progressed, dropping from 48 per cent in January to 43 per cent by the end of the year.
The share of exports to other EU markets increased to 34 per cent from 32 per cent in 2008, helped by a higher share of beef exports for the continent and a stronger focus on the region by prepared foods manufacturers.
The value of trade to international markets was also adversely affected for much of the year by the weaker global dairy market which showed some improvement by the end of the year.
“The underlying performance of the industry reflected in an estimated volume decline of just 3 per cent was nevertheless impressive when set against these challenges,” said Mr Cotter of the overall figures.
A breakdown of the sectors showed exports of meat and livestock fell 9 per cent to € 2.25 billion, with beef down 13 per cent to € 1.4 billion.
Dairy exports were down 13 per cent to € 2 billion. Exports of prepared foods dropped 15 per cent to € 1.3 billion.
Pigmeat exports recorded a 15 per cent drop to €290 million because of a combination of lower supplies because of the dioxin crisis.
However, the board reported most markets had now returned to relatively normal patterns following the pigmeat recall.
Seafood exports also fell by 9 per cent to €303 million but there was an expected increased demand for organic Irish salmon in the French market.
Exports of edible horticulture and cereal products were down 18 per cent to €218 million, mainly in the area of cereal exports for further processing.
Whiskey exports declined overall by 13 per cent, at just over €1 billion. Exports were hit by a weakness of market for premium drinks and a weaker travel trade.
Bord Bia said it planned to bring 250 international buyers from 18 countries to meet 160 Irish food manufacturers at a major marketing event here in February.