The value of Ireland’s food, drink and horticulture exports to the UK increased by 20% to €5.4 billion in 2022, according to new figures released in the annual Bord Bia Export Performance and Prospects report 2022/2023.
The near €1 billion year-on-year increase in Irish food and drink export value can be attributed, says Bord Bia, to the ongoing positive and collaborative partnerships between UK and Irish businesses. Ireland remains a key strategic partner to the UK, meeting the needs of customers to provide high quality, sustainably produced goods that are highly trusted by UK consumers.
Other factors include: increasing unit prices due to inflation and rising input costs, and an increase in the volume of goods exported. Irish food and drink exports continue to flow at a consistent and reliable rate, with available data indicating an increase of 19% in total volume of exports YOY to the UK, from January to October 2022.
In value terms, the UK remains the largest single market with 32% of the share, 34% of Ireland’s food and drink exports go to the EU and a further 34% to international markets. Sustainability remains a core theme as Bord Bia strengthens its supports and standards to reflect this, having celebrated the 10th anniversary of its Origin Green programme in 2022.
Irish exporters have navigated their way through considerable uncertainty in 2022 in terms of the new trading environment with the UK, price inflation across the supply chain, the rise in energy costs at farm level, and more recently a downturn in the British economy. To help Irish food and drink businesses exporting to the UK, Bord Bia said it continues to invest strongly in consumer insight studies and market intelligence. This is coupled with direct customer engagement opportunities that help support the Irish food and drink industry in planning and activating their business strategies in the UK market.
Overview of 2022 exports to the UK
- The value of Irish Prepared Consumer Foods (PCF) to the UK saw a 14% increase in value to €2 billion, with the UK remaining the largest market accounting for 65% of all Irish PCF exports. The growth was led by value added beef and poultry, bakery, confectionery and meal solutions. PCF’s strong trading year can be attributed to the long standing commitment by exporters to provide quality products and high service levels to UK customers.
- Exports of Irish Dairy to the UK increased by 39% to €1.2 billion. The UK remains a key market for cheese and butter which were the top performers accounting for 50% of exports. This positive performance can be attributed to a return to pre-pandemic trading patterns in 2022 and the UK continues to account for 19% of total Irish dairy exports.
- Due to continued strong consumer demand, exports of Irish beef to the UK increased 15% to reach €1.1billion, remaining consistent at 43% of total Irish beef exports. The UK remains the largest single market for Irish beef exports, reinforcing the importance of Ireland as a key strategic partner and supplier of premium quality grass fed beef.
- Irish Horticulture exports to the UK increased by 3% in 2022 to €276 million. Mushrooms account for half of this value and the UK continues to be the most important market for mushrooms with exports valued at €152m.
- Irish Drinks saw a 4% increase to €276 million. Irish Beer exports contributed significantly to this growth increasing 31% YOY. Premiumisation was a strong driver for Whiskey during the same period with value growing by 10% YOY. The UK continues to be a strong market despite the challenges caused for exporters by Brexit, accounting for 14% of total Irish drinks exports.
- Irish Sheepmeat increased 15% year on year to €78 million, driven in part by some of the major Irish lamb processors also having facilities in the region and seeking to optimise utilisation of their operations.
- The UK also continues to play a strong role for the Irish Seafood sector and despite the many trading uncertainties as a result of Brexit, this market performed strongly during 2022 growing by 20% in value to €50 million.
Donal Denvir, Bord Bia general manager, United Kingdom, said: “The strong trading performance of Irish exports once again demonstrates that Ireland continues to be a consistent, reliable and secure partner of the UK food and drink industry.
“The trading challenges we have seen over the last few years seem set to persist in 2023. However, Bord Bia can assure our partners that we will continue to invest in Irish businesses. With our market leading insights, we will continue to provide resources that help to navigate the current climate and capitalise on future opportunities. We are committed to building awareness of the quality and sustainability credentials of Irish food and drink amongst UK consumers and businesses.”
Ministerial reaction
Speaking at the launch of the report, the Minister for Agriculture, Food and the Marine, Charlie McConalogue, TD, welcomed the sector’s impressive results in the face of significant global challenges. “I’m proud to announce [today’s] excellent results, which were delivered amid a profoundly challenging year for the sector, most notably the impact of the war in Ukraine, inflationary pressures on producers, and ongoing Covid-19 disruptions to the global supply chain. Against the backdrop of this difficult global trading environment, Ireland has continued to maintain its reputation as a world-class sustainable food producer and supplier, while also successfully securing new business in new markets around the world. I would like to congratulate the companies, farmers, fishers, and producers who have contributed to this performance, which would not have been possible without the strategic support that Bord Bia provides to the sector.”
Bord Bia Chief Executive Jim O’Toole echoed the Minister’s sentiments and said the industry’s performance in the face of such challenging market conditions has been highly commendable.
“In my first Export Performance and Prospects Report as CEO of Bord Bia, I’m delighted to welcome the highest ever value of exports by the Irish food, drink and horticulture sector. Following two years of profound disruption, 2022 brought a new range of cost and sourcing challenges, making this year’s export performance even more impressive. Today’s results are testament to the resilience of one of Ireland’s most important export industries.”
Looking ahead, O’Toole said that the industry needs to be responsive to a range of oncoming challenges in 2023, as the challenging trading conditions of this year will endure and evolve.
“As 2023 is predicted to be another disruptive year of economic difficulty and challenging supply chains, Bord Bia will continue to be agile and responsive to client and sector needs in what is likely to be a period of ongoing volatility. For Irish food and drink exporters, it will be increasingly important to be aware of how consumers respond to the current cost of living crisis and to position their products accordingly.”
