January 17, 2013
 

Irish food exports to Asia increase by 75% since 2010

 

 

Bord Bia, the Irish Food Board reports that the value of Irish food and drink exports in 2012 surpassed €9 billion (US$11.85 billion) for the first time, following the Irish food industry's strong performance over the past three years, with exports 28% ahead of 2009 levels.

 

The strongest performing categories were meat and livestock at €3 billion (US$3.98), seafood at €493 million (US$654.37 million) and beverages at €1.26 billion US$1.67 billion).

 

Aidan Cotter, chief executive of Bord Bia stated "despite falling global commodity prices, lower output in some sectors and the continued weakness in consumer spending in established markets, the Irish food industry has delivered another robust export performance. The continued diversification into new and emerging markets, benefitting further from favourable exchange rates, is particularly welcoming with exports to Asia up by 75% since 2010."

 

Bord Bia Chairman Michael Carey added "Many of the major categories recorded increases, led by meat and livestock which increased by €128 million (US$169.90 million); seafood exports increased by 18%, or €75 million (US$99.55 million), while beverage exports recorded growth of €37 million (US$49.11 million)."

 

The combined value of meat and livestock exports increased by 4%, or almost €130 million (US$172.55 million), to almost €3 billion (US$3.98 billion). This equates to a third of food and drink exports and shows growth running at twice that of total exports. A combination of stronger prices in some categories, most notably beef and pigmeat, helped offset lower finished cattle supplies.

 

The value of beef exports is estimated to have increased by 2% despite a drop of 11% in output. As a result, exports were valued at €1.9 billion (US$2.52 billion) helped by a 13% rise in average cattle prices.

 

A rise of 2% in pigmeat production during 2012 combined with a slower domestic consumption and a rise of 10% in average pig prices helped to boost the value of Irish pigmeat exports by 16% or €60 million (US$79.64).

 

The poultry sector continued to face a competition in export markets with little scope for price increases while volumes were marginally higher. For the year, the value of Irish poultry exports is estimated to have declined marginally to reach an estimated €208 million (US$276.08 million).

 

A strong increase in export availability, reflecting a jump of 11% in output and a slower domestic demand in the latter half of the year, helped offset some easing in lamb prices. This led to the value of Irish sheepmeat exports rising by 7% to reach €205 million (US$272.10 million).

 

A drop in the level of live cattle exports was more than offset by a change in the mix of animals exported. Pig exports to Northern Ireland were stable while sheep exports continued to decline. Overall, the value of livestock exports increased by about 6% to €217 million (US$288.03 million).

 

The prospects for the meat and livestock sector in 2013 remain broadly positive with tight supplies across Europe for most species expected to match demand levels. However, feed price developments will play a critical role, particularly in the pig and poultry sectors.

 

Despite the drop in global product prices, the Irish dairy sector performed strongly during 2012. Overall, it is estimated that the value of Irish dairy and ingredient exports for the year fell by around 2% to stand at €2.66 billion (US$3.53 billion).

 

2012 was a difficult year for the global dairy market as a supply response to the strong price prevailing over the previous 18 months led to a significant softening in prices over the course of spring and early summer with product prices easing by 20-25%. Late summer and autumn saw a good recovery in international dairy prices. Since November, the recovery in international prices has slowed considerably with declines reported in US prices in particular. This may reflect a slow-down in import levels in key regions.

 

Milk deliveries in Ireland felt the effects of poor weather most of the year, which impacted on average yields. For the 10 months to October deliveries were running 2.5% lower according to the CSO. Mixed trends were evident among the key export destinations for dairy products during 2012. Shipments to international markets and the UK recorded increases while trade to other European markets declined.

 

The prospects for Irish dairy exports in 2013 remain generally positive with global demand likely to keep exports well ahead of historical averages. Global stock levels, demand in key regions and the relative strength of the euro will largely determine price prospects.

 

Seafood exports in 2012 continued to grow and the value of seafood exports was also boosted by an increase in pelagic prices which were historically high in 2012. The value of seafood exports is estimated to have increased by 18% to an estimated €493 million (US$654.37 million).

 

The prospects for Irish seafood exports in 2013 remain positive with good demand anticipated from emerging markets while core markets across Europe also look set to hold reasonably firm. However, across Europe much will depend on the level of consumer demand, exchange rate developments and movement in fuel prices, which have been impacting strongly on transport costs.