The value of Ireland’s food, drink and horticulture exports was down 4% last year compared to 2022, according to Bord Bia’s Export Performance and Prospects Report 2023/24, which was launched today (Wednesday, January 10).
The value of Irish food exports for last year came to almost €16.3 billion, a drop on the 2022 figure of around €16.7 billion, which was a “record breaking” increase of 22% on the 2021 figure.
The figure for 2023 remains 24% higher than the export value of Irish food in 2019.
Bord Bia said that exports were impacted by inflation and the cost-of-living challenge which continued to affect consumer spending last year, in addition to “significant” downward pressure on trade prices.
The food board added that the industry’s ability to retain much of the growth from 2022 represented “a solid performance in a challenging global marketplace”.
Commenting on the final 2023 export value of Irish agri-food, Minister for Agriculture, Food and the Marine Charlie McConalogue said: “We are living through a period of huge flux, with climate change, inflation, geopolitical instability, and cost of living challenges all affecting the global economy and export performance.
“Despite this incredibly challenging environment, Ireland has continued to build on its reputation as a sustainable producer and supplier of high-quality food,” the minister added.
Dairy
The dairy sector, which accounts for almost 40% of overall Irish food and drink exports, saw export value decline by 8% to €6.3 billion in 2023 (€6.8 billion in 2022).
The decline in the value of butter and casein exports was partly offset by increases in the value of cheese, specialist nutritional powders, yoghurt, and whole milk powder.
The value of butter exports declined by 12% to €1.3 billion during the year, while the value of cheese exports increased by 4% to the same figure of €1.3 billion.
These swings left butter and cheese as the joint top two products in the dairy category, each accounting for 21% of the sector’s export value.
Milk collections in Ireland declined by almost 2% on 2022 levels, as poor weather led to difficult grazing conditions. This was the first year of decline since production quotas were lifted in 2015.
Meat and livestock
The value of meat and livestock exports saw a 1% decline to €4.2 billion in 2023, as increases in the value of beef, poultry and live exports were offset by lower value in sheepmeat and pigmeat exports.
The total value of primary beef exports – which represent 65% of all exports in this category – is estimated to have increased by 2% to €2.7 billion. Beef offals, meanwhile, were valued at €140 million, an increase of 3%.
The value of sheepmeat exports, meanwhile, stood at around €440 million in 2023, a decline of about 7%, bringing to an end year-on-year growth in export value since 2014.
Export value of pigmeat decreased by 13% last year, to €475 million, with higher unit prices outstripped by a significant reduction in the volume of pigmeat exported.
The export of live animals was valued at an estimated €265 million during 2023, an increase of 13% year-on-year. Cattle exports accounted for most of the live export trade, with 332,000 animals exported, valued at €190 million.
Other food exports
The prepared consumer foods (PCFs) sector had a strong year in value terms, with sales increasing by about 7% to around €3.1 billion, thanks to increased exports of meal solutions, bakery products, and soft drinks and juices.
Increases in export values were seen across the core categories of meal solutions (+11%), bakery (+10%), soft drinks (+10%), chocolate and confectionery (+12%) and value-added meats (+3%), the latter of which includes value-added beef, which grew in value by 7% to €255 million.
On the other hand, Bord Bia said that the volume growth was muted for PCFs, particularly to the UK market, due in part to the cost of living issue for consumers.
The value of drink exports declined by 8% to €1.8 billion due largely to short-term market factors in the North American spirits sector.
Irish whiskey, which represents almost half of all drink exports, saw sales decline by 14% to €875 million. Irish cream liqueur sales were down 9% to €370 million.
However, beer and cider exports each increased by 11%, to €330 million and €80 million respectively.
Exports of Irish horticulture and cereals were valued at €295 million in 2023, representing a 6% decline on the previous year.
Mushrooms account for almost 50% of total export value in this category, and Bord Bia said that sector had a “reasonable year” in the UK – the main market for Irish mushrooms – where sales increased in value, despite lower volumes.
Prospects for 2024 food exports
The Performance and Prospects Report is partially based on the results of Bord Bia’s exporter sentiment study, which found that 73% of Irish food and drink exporters remain optimistic about expected market growth in 2024.
However, 53% of Irish food and drink companies believe their competitiveness has been eroded over the past 12 months, with energy prices, inflation and labour costs having the biggest impact.
Commenting on the coming 12 months, Bord Bia CEO Jim O’ Toole indicated subdued expectations.
“Looking ahead, market volatility and inflation, although slowly easing, will continue to be two key factors for this year, while input and labour costs remain a risk to competitiveness. As such, the market for Irish food, drink and horticulture exports will remain challenged this year,” O’Toole said.