Meat drives Irish food exports

Irish food and drink exports values were up 8% year-on-year in the first six months of 2013, reaching €370m. Beef exports saw the biggest leap, up by 15% to €140m, and accounting for nearly 40% of the total recorded growth.

Pigmeat exports also saw a substantial increase of 9% to €250m, while sheepmeat exports were up 8% year-on-year to €105m and livestock exports increased by 24%.

Bord Bía said the strengthening of the beef market could be linked to strong demand for cattle from its Quality Assurance Scheme, which now covers 85% of Irish beef production, a 7% increase on 2012. It added that applications for the scheme have increased by 135% so far this year, and 36,400 producers are now members. “The sharp rise reflects a doubling of the bonus paid by beef processors for cattle from approved farms,”​ it said.

The board said beef exports had also benefited from a recovery in the UK processed beef market, with Kantar data revealing that UK retail sales of fresh and frozen burgers and grills were up 17.8% year-on-year in the four weeks ending 7 July. This was despite sales in the category dropping 43.5% in the period to mid-April as a result of the horsemeat crisis.

Cattle were also the main driver behind the increase in livestock exports, and Bord Bía said there had been a “sharp recovery” in live cattle exports this year.

The increase in pigmeat export values were attributed to a 10% increase in average pig prices, which offset a 1% drop in volumes. In contrast, sheepmeat exports benefited from increasing volumes, which offset lower lamb prices, the organisation said.

UK importance​

The UK remains the biggest market for Irish food and drink exports, accounting for 41% of total exports in the first half of 2013. Bord Bía said that exports to other EU markets had recovered from a “difficult period”​ in 2012 to account for 33% of total exports to the end of June.

“Stronger competition from European markets resulted in a slight decrease in the share of trade with international markets; however exports to Asia recorded double digit growth increasing by 15% to reach €270 million,”​ it said.

Bord Bía chief executive Aiden Cotter said the performance of food and drink exports was particularly impressive given that overall exports had fallen by 6%.

“Last year, Ireland’s food and drink exports surpassed the €9bn mark for the first time and the prospects for the remainder of 2013 remain broadly positive, with a strong demand for dairy and beef, combined with a more robust prepared foods performance and further steady growth in beverages,”​ he said.

Ireland’s minister for Agriculture, Food and the Marine, Simon Coveney, congratulated the agri food industry for achieving “encouraging results” despite the challenges faced during the year.