Food industry lifts economy as exports up
THE farming and food sectors saw exports grow 12pc to €8.8bn last year, underlining the importance of the agri-food business to the struggling economy.
Simon Coveney, the minister for agriculture, food and the marine, announced the figures yesterday – but warned 2012 could be bad for the industry due t o world economic turmoil.
He said: ‘There are challenges ahead. Ireland is a small open economy, and volatility in world commodity prices can have serious adverse consequences in terms of lower prices for our produce or higher [cost] prices.
‘Recent trends show 2012 could be very challenging for many sub- sectors as world prices decline and some of our trading partners enter recession.’
He said the future of the sector was also heavily dependent on the outcome of trade and other negotiations both within Europe and between the EU and other global economies.
The agri-food sector exported €8.8bn of produce, a jump of about 12pc on 2010. The figures also showed exports in 2011 were 25pc ahead of the levels recorded in 2009.
The dairy and beverages subsectors boasted particularly positive performances, with exports from the dairy sector up by 17pc.
This growth was in part thanks to engaging new markets. Dairy exports outside of Europe are estimated to have reached more than €930m in 2011.
The exports figures emerged yesterday as part of Mr Coveney’s department’s annual review and outlook for 2011 to 2012.
The primary agriculture and food and drink manufacturing sectors together provided the
‘Tough year ahead due to recession’
main employment for roughly 140,000 people or 7.7pc of those in work here.
There are 1,200 enterprises of all sizes in the sector. These provide the primary outlet for the produce and output of family farms. The goods are exported to 170 markets worldwide.
The review said: ‘In these difficult economic times the sector is leading the way in increasing exports and investing in the rural economy.
‘Much of the employment in the agri-food sector, direct and indirect, is dispersed throughout the country making it particularly important to rural areas.’
The review found the agri-food industry accounts for 67pc of the consumption of Irish raw materials by manufacturing firms here.
It said the sector was valuable to the economy as it had a low reliance on imports and sent few of its profits to overseas owners.
Mr Coveney said the Government intended to help the agri-food sector increase exports to €12bn by 2020. He said: ‘That means increasing the value of primary production in Ireland by a third over the next decade and increasing the value added by our food production by 40pc.’