Food, drink and horticulture exports were worth a record €7.17 billion last year and would have been greater had it not been for the transfer of the Baileys Irish Cream plant to Belfast.
The out-of-State transfer of part of the Baileys operation led to a 10 per cent drop in beverage exports to €965 million, according to Mr Aiden Cotter, chief executive of the Irish Food Board.
He said the value of exports increased by 3 per cent over the year, despite key challenges .
The most significant growth sectors in terms of value of exports were prepared foods, beef, and dairy products and ingredients, with the sterling and euro areas accounting for more than two-thirds of exports.
"Taking into account the movement of the euro against the dollar and sterling, the underlying growth in Irish exports in 2004 was 5 per cent," he said.
Describing the performance of the industry during the year as "impressive", he said it was important to state that the export figure accounted for over 55 per cent of exports from indigenous Irish companies.
He said the main highlights of the year were that 90 per cent of Irish beef exports now went to the EU, and that 73 per cent of total exports were to the Union.
The sectoral analysis showed that exports of meat and livestock made up the largest single sector at €2.19 billion.
Beef exports increased by 8 per cent and sheepmeat by 14 per cent, and these offset declines in livestock of 21 per cent.
Dairy products and ingredient exports experienced a 6 per cent rise to almost €1.86 billion.
Irish exporters responded well to demand, which remained strong despite the fact that EU enlargement and the implementation of the mid-term review created uncertainty for buyers.
Pigmeat exports increased in 2004 by 6 per cent to €265 million. This was despite lower volumes of export but increased sales to the UK and Japan.
Exports of prepared foods increased by 9 per cent in 2004 to a total value of €1.59 billion. Mr Cotter said this was an area of huge potential growth, assuming increased research and development and market development.
He said exports of beverages fell by 10 per cent in 2004 to €965 million. This was due mainly to the relocation of some production of the Baileys company within the island of Ireland, which masked strong performance from individual companies during the year.
Describing this as a defining period for the industry because of the reform of the Common Agricultural Policy, Mr Cotter said adverse exchange-rate movements and increased competition would pose considerable challenges in the coming year.