Bord Bia launched its latest Export Performance and Prospects Report this week, which reflects a 4% increase in exports for 2014 to reach a record high of almost €10.5 billion. Exports grew by 4% in 2014, representing an expansion of 45%, or €3.2 billion, since 2009. The strongest performing sectors were dairy products and ingredients, which exceeded the €3 billion mark (+3%), prepared foods (€1.8 billion, +8%) and seafood (€540 million, +8%).
A further shift in market destinations was recorded, with exports to International markets estimated to have increased by 15% to around €3 billion. This equates to 29% of exports, compared to 26% in 2013. Trade was marked by increases in the value of exports to Asia, to reach €850 million (+45%), as well as significant increases to North America (€740 million, +18%), the Middle East (€330 million, +11%) and Africa (€610 million, +9%). Within this, China recorded a further increase of almost 40% to reach approximately €520 million. China is now Ireland’s second largest export market for dairy, compared to 13th in 2008.
While it remains Ireland’s most significant export market, the share of exports destined for the UK eased slightly, though the value showed little change at €4.2 billion or 40% of export share. Stronger export values for beverages, prepared foods, mushrooms and poultry helped offset lower beef and dairy values.
The value of exports to other EU destinations grew by 2% to reach €3.3 billion, equating to 31% of total exports, reflecting largely static consumer price inflation across the Eurozone.
There are a number of factors that point to 2015 being a more challenging year to maintain recent growth. While the abolition of milk quotas in April 2015 is expected to lead to an increase in milk output, the current weakness of global dairy markets is impacting on price levels, with recent forecasts from Rabobank suggesting this trend will persist well into 2015. Cattle supplies are expected to ease by more than 120,000 – 150,000 head in 2015, which will lead to export volumes falling by around 8%. However, some recovery in cattle prices is anticipated.
The prepared foods and beverages sectors both face competitive market environments, although both have shown a strong ability to diversify over recent years. The export outlook for the seafood sector will depend on product supply.
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Source: BordBia – Food and Drink Exports Rise to €10.5 Billion
