The value of Irish food, drink and horticultural exports fell by 4% last year to €16.3 billion, after a record year in 2022 when exports grew by 22%.
Bord Bia’s Export Performance and Forecast report shows that exports were affected by inflation and the cost of living crisis that affected consumer spending.
There was also significant downward pressure on trade prices.
Irish dairy exports, which account for nearly 40% of total food and drink exports, were worth €6.3 billion, down 8% year-on-year.
Butter and cheese were the sector’s two most important export categories – each accounting for 21% of dairy exports and both worth €1.3 billion – and fell by 12% and 4% respectively.
The report reveals that the value of meat and livestock exports stabilized at 4.2 billion euros, as increases in the value of beef, poultry and live exports were offset by a decrease in sheep and pork exports.
Bord Bia said the ready-to-eat consumer foods sector had a strong year in terms of value, with sales increasing by 7% to €3.1 billion, thanks to increased exports of meal solutions, bakery products, soft drinks and juices.
However, volume growth was weak, especially in the UK market.
The report shows that the value of beverage exports fell by 8% to €1.8 billion, largely due to short-term market factors in the North American spirits sector. Beer and cider exports rose 11%.
Seafood sales fell by 14% to €552 million, largely due to lower pelagic and salmon export volumes, while Irish horticultural and grain exports were worth €295 million in 2023, a 6% decline on the previous year. .
According to Bord Bia’s Exporter Survey, the majority (73%) of Irish food and drink exporters remain optimistic about expected market growth in 2024.
It reveals that companies were more positive about the potential for growth in exports to Europe and the United States.
Despite the positive outlook, more than half (53%) of Irish food and drink businesses believe they have lost competitiveness over the past 12 months, with energy prices, inflation and labor costs having the biggest impact.
Looking ahead, market volatility and inflation, although slowly easing, will remain key factors for the year, while input and labor costs remain a risk to competitiveness.
According to Bord Bia, the Irish food, drink and horticultural export market will continue to face challenges this year.