Irish food and drinks exports in 2020 – valued at just shy of €13 billion – experienced a 2% drop on the previous year, according to Bord Bia’s annual report, published today (Thursday, November 4).
Dairy and meat and livestock categories experienced slight increases compared to 2019, but horticulture recorded an 11% increase.
This “limited” 2% decline in 2020 occurred, according to Bord Bia, “in the context of the widest disruption to normal market activity since World War 2”.
It attributed the slight decrease in value to a “sustained demand for Ireland’s produce, particularly in the emerging markets of Africa and Middle East”.
Since 2016
Exports of food and drink from Ireland have increased 16% in value since 2016, the year that the UK voted to leave the European Union, according to Bord Bia. The majority of that growth has been to markets in the EU27 or further afield but it is also notable that the value of food and drink exports to the UK has increased to €4.3 billion over that period.
Of the total 2020 value, dairy accounted for €5.1 billion, while meat and livestock grew to €3.4 billion.
The remainder comprised prepared consumer foods, down 6%; alcohol, down 16%; seafood, down 9%; and horticulture, up 11% as already mentioned.
Dairy
The value of dairy exports in 2020 at €5.1 billion represented a 1% increase on 2019’s value. This marked the second year that this category was worth more than €5 billion.
This growth was achieved, according to Bord Bia, despite commodity price reductions for key elements of the export mix, including butter.
Driving this growth was a very strong performance in full fat milk powder and in other key powders including skimmed milk powder, whole milk powder and casein.
Dairy exports to Africa increased 15% to €626 million in 2020 while those to the Middle East (+4.6%) and North America (+5.7%) also increased.
These increases were countered by declines in the value to the UK (-7%) and the EU (-2.4%).
Meat and livestock
The second largest export category in 2020 was meat and livestock, with €3.4 billion marking a 2% increase on 2019.
However, the largest part of that category – beef – experienced a decline in the value of exports. The value of primary beef exports was €1.9 billion in 2020, a 2% decline on 2019.
But this was offset by a strong growth in the value of pigmeat and sheepmeat exports in 2020 with increases of 9% and 12% consecutively on the previous year.
Horticulture – exports rise
The primary constituents here are mushrooms, primary cereals and amenity horticulture.
The category is dependent on the UK as a destination market and this did not change in 2020 with 94% of horticulture exports destined for that market – the same proportion as in 2019.
Mushroom exports increased by 15% in 2020 and were valued at €117 million, despite a 4% reduction in the total volume of exports.
Prepared consumer food
These in 2020 were worth €2.4 billion, a 6% reduction on 2019’s value. This category includes meal solutions, confectionery, non-alcoholic beverages, ingredients and value-added meat, seafood, and horticulture.
Alcohol – exports don’t reflect sales
The closure of the on-trade for extensive periods and dramatic declines in sales in the airline travel channel – again due to covid-19 – reduced the value of exports in this category by 16%, to be worth €1.4 billion in 2020.
The majority of the decline can be accounted for by declines in the value of exports of whiskey (down €149 million), cream liqueurs (down €48 million) and beer (down €52 million).
Declines in exports do not necessarily reflect the decline in sales. A significant volume of whiskey was in place in the US market at the start of 2020 and sales figures have not been as badly impacted as the export figures.
Seafood
Disruption of exports – due to covid-19 – in the shellfish category normally destined for the foodservice channel caused a decline in the value of primary seafood exports in 2020 of 9% to €444 million.