Food and drink exports up 12%

The value of Irish food and drink exports increased by 12 per cent, or €1 billion, in 2011 to reach an all-time high of €8.85 billion, according to Bord Bia.

During the first nine months of the year, food and drink exports increased at three times the rate of total merchandise exports. As a result the sector accounted for 25 per cent of Ireland's total rise in export revenue.

Bord Bia chairman Michael Carey described it as "an excellent achievement".

The record rise in exports was driven by high commodity prices on world markets. Agricultural commodity prices reached record levels in 2011, with the FAO food price index recording growth of 26 per cent during the first 11 months of the year.

However, while the increase was driven primarily by value, growth in the volume of product sold was also a factor, with volume accounting for 25 per cent of the rise in food and drink exports.

The dairy and meat sectors were the strongest performing categories, both representing about €2.6 billion or 30 per cent of total food and drink exports.  Prepared foods accounted for €1.5 billion, or 17 per cent of sales, with seafood accounting for €440 million or 4.5 per cent.

"The meat and dairy sectors account for almost two-thirds of total food and drink exports, and indications that breeding herds are expanding, combined with the lifting of milk quotas from 2015, will underpin export growth into the future" said chief executive Aidan Cotter.

The UK remained the primary destination for Irish food and drink exports last year, accounting for 41 per cent or €3.66 billion, of total Irish food and drink exports, an increase of 6 per cent. The EU was the second largest market, buying 34 per cent of Ireland's food and drink exports. This represented a 16 per cent increase on 2010.

The value of exports outside of Europe grew by 20 per cent or €350 million, to reach almost €2.2 billion last year. Among the notable developments during the year was the industry's continued diversification into new markets. Exports to Asia jumped by a third during the period.

Separately, the Irish Dairy Board said today that Kerrygold butter enjoyed record sales growth in the US market last year. Preliminary sales data indicates that 2011 is set to be a record year for the brand in the USA with year-on-year sales up 17 per cent on a constant currency basis.  The brand has reported annual double digit growth over the past ten years.

Bord Bia said that while the immediate prospects for Irish food and drink exports in 2012 remain positive, lower volume output availability in some sectors and softening in global commodity prices are likely to result in more limited growth potential in the short term.

Among the key initiatives that will be continued this year, will be Bord Bia's sustainability certification programme, designed to help differentiate Ireland's exports as a high-quality, 'green' product - a key strand of Ireland's marketing strategy. A sustainability scheme for beef farmers, which measures the carbon footprint of Irish farmers has been in place since May. To date, the carbon footprint of 13,000 farmers has been measures, and a pilot programme for the dairy sector is near completion.

"Ireland has a compelling story to tell in terms of its green and natural environment and our sustainability programme will demonstrate our credentials and differentiate us in a world that is increasingly concerned about climate change and about how we use our natural resources", according to Aidan Cotter.

Next month over 300 international and 100 domestic food and beverage buyers are expected to attend Bord Bia's Marketplace International 2012 in Dublin. Bord Bia is aiming to secure €15 million in new business from the one day event, at which over 175 Irish branded and private label suppliers will meet prospective buyers during 4,500 pre-scheduled meetings taking place throughout the day.