Food & Drink Exports Food and Drink exports hit record high

Irish food and drink exports reached a record high of €16.7 billion in 2022, despite what was in many respects a challenging year.

THE value of Ireland’s food, drink and horticulture exports increased by 22% last year to reach a new record high of €16.7 billion.

The significant increase in food and drink exports, up €3 billion since last year and almost 30% on pre-pandemic levels (€13 billion in 2019), can be attributed to both increasing unit prices, due to inflation and rising input and operational costs, and an increase in the volume of goods exported. The volume of exports for sectors such as Irish beef and dairy increased in 2022; while prepared consumer foods (PCF) and drinks achieved new milestones in the value of their respective exports. Value-added meat and seafood exports, captured under PCF, reached over €1 billion in 2022. This represented an increase of 30% compared with the previous year, with exports surpassing pre Covid-19 levels by 23%. Within meat, this subcategory represents a vitally important outlet for traditionally lower value cuts.

A profoundly challenging year

Speaking at the launch of Bord Bia’s Export Performance and Prospects report 2022/23, the Minister for Agriculture, Food and the Marine, Charlie McConalogue TD, welcomed the sector’s impressive results in the face of significant global challenges. “I’m proud to announce today’s excellent results, which were delivered amid a profoundly challenging year for the sector, most notably the impact of the war in Ukraine, inflationary pressures on producers and ongoing Covid-19 disruptions to the global supply chain,” he said. “Against the backdrop of this difficult global trading environment, Ireland has continued to maintain its reputation as a world-class sustainable food producer and supplier, while also successfully securing new business in new markets around the world. I would like to congratulate the companies, farmers, fishers and producers who have contributed to this performance, which would not have been possible without the strategic support that Bord Bia provides to the sector.”

The Department of Agriculture, Food and the Marine, estimates that total Irish agrifood exports, including non-edible products not included within Bord Bia’s report, to have been worth €18.7 billion in 2022, representing a 21% year-on-year increase.

Bord Bia Chief Executive Jim O’Toole echoed the Minister’s sentiments and said the industry’s performance in the face of such challenging market conditions has been highly commendable: “Following two years of profound disruption, 2022 brought a new range of cost and sourcing challenges, making this year’s export performance even more impressive. Today’s results are testament to the resilience of one of Ireland’s most important export industries.”

Looking ahead, the Bord Bia Chief Executive said that the industry needs to be responsive to a range of oncoming challenges in 2023, as the challenging trading conditions of this year will endure and evolve: “As 2023 is predicted to be another disruptive year of economic difficulty and challenging supply chains, Bord Bia will continue to be agile and responsive to client and sector needs in what is likely to be a period of ongoing volatility. For Irish food and drink exporters, it will be increasingly important to be aware of how consumers respond to the current cost of living crisis and to position their products accordingly.”

Sectoral highlights

Irish dairy exports were valued at €6.8 billion last year, a year-on-year value increase of 33% or €1.7 billion, driven mainly by Irish butter (up 26% in value) and cheese (up 25% in value). This was followed by the meat and livestock sector, with exports valued at over €4 billion, representing a 15% value increase (+€520 million) compared to 2021. Prepared consumer food (PCF) export values exceeded €3 billion, in a performance that was largely driven by the reopening of foodservice as Covid-19 restrictions lifted in early 2022 across key markets.

Irish drink exports reached almost €2 billion (+22% year-on-year) for the first time, a 25% value increase on pre-pandemic (2019) levels, which reflects the extraordinary recovery and now growth of the sector following difficult years in 2020 and 2021. Improved prices helped drive the performance in Irish seafood with export values increasing by 3% (or €17 million) year-on-year to reach €530 million. This was despite a 19% decrease in volumes exported, reflecting the challenging situation faced by Irish seafood exporters in securing supply.

Finally, exports of Irish horticulture and cereals exceeded €300 million, with mushrooms, largely destined for the UK, accounting for 50% or €152 million (-6% on 2021), while cereals exports were valued at €73 million (+10% on 2021).