Food and drink exports exceeded £5 billion (€6.35 billion) for the first time last year, according to the annual report of An Bord Bia.

This was an increase of 6.3 per cent on 1997, in the face of difficult marketing environments in key sectors such as beef, sheepmeat and pigmeat.

"The main international food story in the first six months of 1999 has been dioxin contamination in Belgium," the board's chief executive, Mr Michael Duffy, said at the publication of the report. "It is a stark illustration of the damage that can be done to the image of a national food industry and the devastating economic consequences which result."

A great deal would be at stake "should a similar situation" arise in Ireland, he added. A £10 billion a year industry with £5 billion in annual exports would be affected.

The sectors exhibiting strongest growth were prepared consumer foods, drinks and edible horticulture. Volume exports of beef, sheepmeat and pigmeat increased, according to the annual report while the overall value decreased due to difficult market conditions.

Live cattle exports to Europe recovered strongly.