Exports of horticulture and cereals from Ireland – mainly mushrooms, primary cereals and amenity horticulture – increased in value by 14% to €271 million in 2021.

This is a sector that is heavily dependent on the UK market with 95% of its products exported there, according to Bord Bia’s Export Performance and Prospects report for 2021-2022, published this morning (January 12).

Mushroom exports – valued at €151 million in 2021 – saw good growth, according to the report, 31% ahead of 2020’s values.

Retail sales for the whole UK market over 2021, in comparison to 2020 were up 5% in value, and 3% in volume.

The largest sector is still prepacked, closed-cup, with an almost 50% share of total mushrooms. Brown, buttons, and portobello mushrooms are performing well, while flat mushrooms are declining, however.

While production has increased in Ireland, responding to the strong demand in the UK market, there have also been more imports from Northern Ireland in 2021, for re-export to the UK.

Excluding this practice, there was an 8% increase in Republic of Ireland (ROI)-produced exports.

Bord Bia has supported industry work in the UK, which focussed on Vitamin D, local produce, and the taste and versatility credentials of mushrooms, it said.

Vitamin D mushrooms, which are only available from Irish and UK producers, have risen in prominence over the last two years, according to the report.

And while this is a small part of the sector, it is growing well, and positions Irish producers as premium suppliers to the market.

Cereals

In 2021, the value of cereals exports was €61.8 million, an increase of 9% year on year, and a 23% increase when compared with 2019. There was a corresponding increase in the volume exported of 1% year on year.

Cereals exports are primarily destined for Northern Ireland.

In 2021, the main cereal growing area was up by 4% on 2020 at 277,000ha. Although spring crop areas were back, yields were higher.

Winter crops saw an increase in area, yield and tonnage. Overall tonnage is estimated to be 2.3 million tonnes, an increase of 22% on 2020.

The overall average price per tonne for cereals increased in 2021, which is estimated to add significantly to the overall value output of the sector for the year.

The straw quality was reported as good and prices will be higher from this year’s crop.

Most Irish cereal is destined for animal feed but there are growing higher-value opportunities that the industry is moving to take advantage of, according to the Bord Bia report.

These exist within the distilling industry and within food manufacturers.

Select whiskey producers are utilising increasing portions of Irish grain in their processes. Within food, there is increasing utilisation of oats within offerings for meat reducers.

These consumers are often invested in and willing to pay more for provenance, and this is a source of potential value growth for tillage farmers in the future.

Amenity horticulture

The amenity horticulture sector relies heavily on the UK for sales. Overall, plant export sales for 2021 were expected to be up in value and volume due to the increased interest in gardening due to the Covid-19 lockdowns, and the general shortage of plants in Europe.

As a result, total value of exports rose to €19.7 million.

Nursery stock is the largest export category within amenity horticulture, accounting for €8 million, followed by foliage at €6 million. Christmas-tree exports account for €3.6 million, while bulbs and flowers were valued €2.1 million.

Looking ahead to 2022

As the UK economy continues to re-open, there will be less working from home, less home cooking, and a lower demand for mushrooms, leading to lower mushroom exports, the report says.

However, demand and exports will still be higher than pre-Covid-19 levels, and the challenge for the industry is to maintain the elevated sales rate of Irish mushrooms.

As part of the response to Brexit and internal market developments in the UK, there is an increased focus on local supplies, with expanding production in the UK, including by Irish companies.

The report notes, however, that there are increasing sales of Polish mushrooms in the UK.

Bord Bia says it is assisting the industry with promotion activity to help build on the long standing relationships with UK retailers.