New markets paying off for Irish food exports amid Brexit worries
IRISH food and drink exports fell by 2pc in value last year, with booze taking the biggest hit.
The decline was lower than feared due to increases in dairy, pig and sheep meat exports, alongside a boost in sales to Asia, Africa and the Middle East.
Government agency Bord Bia said the results reflected its “decade-long diversification strategy” and a specific focus on markets outside the UK since the 2016 Brexit referendum.
Chief executive Tara McCarthy said the outlook is positive for 2021 and that exporters are “reporting solid order volumes”.
“For Irish food and drink producers, the global supply demand dynamic for their produce remains positive in 2021 despite global challenges and continued uncertainty as we navigate Brexit and our fragile exit from the pandemic,” she said.
Brexit is continuing to bite and climate change is also affecting export values, due to fluctuating commodity prices and consumer demand for more sustainable products, the agency said.
The value of Irish food, drink and horticulture exports fell to €13bn in 2020 from €13.2bn in 2019, according to a Bord Bia report published yesterday. Alcohol, prepared meat and seafood exports were the hardest hit, the agency said, and they recorded declines of 10pc and more.Dairy, Ireland’s largest food export sector, grew 3pc to €5.2bn driven by demand outside the EU.
While dependence on the UK market has declined, it still buys €4.5bn of Irish food and drink exports.
Foreign Affairs Minister Simon Coveney said food and drink producers can draw down more than €1bn allocated to Ireland from the EU’s Brexit adjustment fund to help cope with any loss or disruption caused by the UK exit from the single market.
The fund, worth a total of €5bn, has to be signed off by EU ministers and the European Parliament before any money can be paid out.
All 27 EU countries will benefit from the fund, though only 11 will be allowed to draw down from a €600m reserve for fisheries.
The overall envelope for Ireland is the largest awarded to any EU country and will be hit hardest by the economic fallout from Brexit.
The Netherlands will get just over €757m, Germany €455m and France €420m.
However, Danish, Dutch and French fishermen will net more than their Irish counterparts from the fisheries reserve.
It will be up to the Government to decide who gets individual handouts.