According to Bord Bia the decision by the UK to exit the EU represents a major challenge to Ireland’s agri-food industry. Speaking this morning, Aidan Cotter, Chief Executive, Bord Bia commented “The immediate focus of food and drink exporters concerns the development in the sterling versus euro relationship and how to manage the increased volatility that has emerged following the vote. The resilience of the Irish food sector, the longstanding and strong trading relationship between Ireland and the UK, and the close ties between both countries will help the Irish food industry navigate through these uncertain times.”
“The UK is Ireland’s largest customer for food and drink, accounting for 41% of exports, valued at €4.4bn in 2015, an increase of 7% on the previous year. Despite its continuing and expanding global reach, the UK has continued to represent a growth opportunity for the Irish food and drink industry, driven by a strong economy and an increasing population. The UK is a net importer of food and Ireland as an exporter is considered a perfect match. Bord Bia will continue to support and work with industry to maintain and build on this vital trading relationship” added Mr.Cotter.
With this in mind, Bord Bia’s London office is in close engagement with Ireland’s leading customers across the UK. Meanwhile Bord Bia will host an industry briefing for Irish food and drink exporters in its Dublin headquarters on Wednesday, June 29th. The briefing will provide a timely opportunity for peer to peer networking, sharing of information and customer feedback. Immediate concerns regarding the management of volatility and renewed uncertainty in trading relationships will also be addressed and a panel of industry and financial experts will be on hand to respond to any queries.
Irish Food & Drink Exports to the UK
Food imports into the UK account for approximately one-third of its consumption. Between 2010 and 2015 Irish exports to the UK increased by €1 billion largely driven by increased meat exports, specifically beef. Ireland’s key exports to the UK include Meat and Livestock (€2bln / 271,000 tonnes), Dairy (€960mln), Prepared Foods (€787mln) and Beverages (€366mln). Meanwhile, Edible Horticulture, namely mushrooms, exports were valued at €218mln last year and seafood at €64mln.
The UK accounts for almost 55% of Ireland’s total meat and livestock exports, reflecting the fact that it is the highest priced beef market in the world. It also represents 30% of our total dairy exports, 70% of prepared consumer foods and 30% of beverage exports. In terms of edible horticulture (mushrooms), the UK accounts for over 90% of Irish exports.
“The strong balance of trade that exists between Britain and Ireland is also worth noting” addedMr. Cotter. “Ireland remains the main export market for UK food and drink products, accounting for almost one fifth of trade at €3.1 billion in 2015. The importance of Ireland to UK exporters is demonstrated by the fact that trade was worth more than the cumulative exports to its next two largest markets, France and the Netherlands combined. Since 2010, UK exports to Ireland have grown by €700 million.”