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Export Performance and Prospects for 2017

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Export Performance and Prospects for 2017 2017 Export Growing the success of Performance Irish Food, Drink Irish food & horticulture bordbia.ie 2018 & Prospects & Horticulture International UK EU Ireland’s Agri-Food Sector The agri-food sector, which is classified as The Department of Agriculture, Food and the Marine (DAFM) primary production (Agriculture, Fishing and and the Central Statistics Office (CSO) have identified and agreed a number of agri-food categories in the CSO’s trade Forestry) along with food and beverages and statistics. These categories include traditional food products the wood processing sector, is critical to the such as beef, dairy and beverages; along with non-edible items Irish economy accounting for 8.6 percent of such as animal foodstuffs, forestry, and animal hides and skins. total employment. Exports of non-edible agri-food sector goods are estimated by DAFM at around €890 million in 2017. Adding this estimate to the Bord Bia figures for the food, drink and horticulture sectors, which are the focus of this report, suggests that total agri-food sector exports in 2017 amounted to at least €13.5 billion. Stockholm Moscow Dublin Amsterdam Warsaw London Dusseldorf Paris Milan Madrid Shanghai Dubai €13.5bn Singapore Total agri-food sector exports in 2017 amounted to at least €13.5 billion Disclaimer This publication has been produced solely for information purposes and has been prepared on the basis of information which is publicly available, internally generated or from other sources, which are believed to be reliable. Projections and forecasts are, estimates only, based on assumptions involving subjective judgement and based on analysis that may or may not be correct. Reasonable care has been taken in the preparation of the information in this publication and we do not guarantee the accuracy or completeness of the information contained therein. Executive Summary 5 Overview 9 Meat & Livestock 16 Beef 17 Pigmeat 21 Sheepmeat 25 Poultry 28 Live Animals 30 Dairy Products & Ingredients 32 Prepared Consumers Foods 38 Prepared Foods 41 Beverages 44 Seafood 48 Horticulture 54 Edible Horticulture 55 Amenity Horticulture 58 Export Performance and Prospects 2017-2018 Source: Bord Bia Irish Food & Drink Exports €12.6bn Irish food and drink exports are valued at €12.6bn, an increase of 13% 13% increase Growth of c.60% since 2010 or €4.7bn 60% growth 2010 2011 2012 2013 2014 2015 2016 2017 8th The 8th consecutive year of export growth in 2017 2 32% 35% International 35% of Irish food and markets account drink exports are for 32% or €4bn destined for the UK UK – down from 37% – to a value of €4.5bn Intl. EU 33% Other EU markets account for 33% of exports or €4.1bn 180 Irish food and drink is sold in 180 markets worldwide 3 The high levels of demand witnessed in the dairy sector in 2017 look set to continue in 2018 with butter and powders in strong growth mode in key EU and international markets. 4 Export Performance and Prospects 2017-2018 Executive Summary FOOD & DRINK EXPORTS €12.6bn Executive Summary 13% growth Performance and Outlook Destinations for Irish food and drink The Irish food and drink sector recorded the eighth consecutive year of export growth in Exports to the UK rose by an estimated 2017. It was boosted by increased output in 7 percent to some €4.4bn despite the key sectors, rising demand in some major ongoing weakness of sterling. However, markets and, in line with Bord Bia’s Market the share of exports to the UK has ////////////// Diversification Strategy, the emergence continued to fall despite the topline growth of newer markets for Irish Food and Drink figure; the market share for exports to the For the year it is estimated that exporters. For the year as a whole it is UK is now estimated at 35 percent – down the value of food and drink exports estimated that the value of food and two points on last year. increased by 13 percent to €12.6bn drink exports increased by 13 percent, – representing growth of almost (€1.5bn) to €12.6bn – representing Exports to other EU countries have risen 60 percent or €4.7bn since 2010. growth of almost 60 percent or to over €4bn accelerating last year’s ////////////// €4.7bn since 2010. growth rate, in line with Bord Bia’s Market Diversification Strategy. This performance The strongest performers in terms of export was mainly driven by strong dairy exports growth in 2017 were the dairy sector which - which rose by over 40 percent to €1.2bn, comprises a third of the total; followed as well as enhanced growth for seafood by seafood, pigmeat, sheepmeat and live and pigmeat sales and continued strong animals. Strong competition and market presence of beverages and prepared foods. conditions limited growth in the edible horticulture market whilst beef, poultry and Shipments of Irish food and drink to prepared foods also achieved lower levels of international markets grew by 17 percent growth in relative terms to €4bn underpinned by increases in sales of dairy, beverages and prepared foods – Trade insight indicates the demand reflective of Bord Bia’s increased focus on witnessed in the dairy sector in 2017 emerging markets through our enhanced should continue to yield positive returns route to market network. Expansion was with butter and powders in strong growth recorded for the year in the Middle East and €4bn mode in key EU and international markets. Asia and Africa, where it grew by almost Other sectors with good growth prospects 30 percent to over €600m, and the United Shipments of Irish food include beverages and pigmeat. Prepared States which recorded robust growth levels and drink to international foods and edible horticulture will continue to exceed €1bn for the first time. markets grew by some to be susceptible to currency exposure and pressure from UK competitors 17 percent to €4bn. and retailers. 5 Export Performance and Prospects 2017-2018 Executive Summary KEY DRIVERS OF EXPORT PERFORMANCE — 8% Total value of meat and livestock exports increased by 8 percent €$£¥ to almost €3.9bn, more than reversing the decline recorded in 2016. Euro exchange rates remained strong against sterling impacting Meat and Livestock adversely on Irish exports to the UK. The Euro strengthened against most See pages 16-31 global and competitor currencies For the year it is estimated that the value towards the latter part of the year The total value of meat and livestock of poultry exports increased to €295m, putting pressure on exporters to key exports increased by 8 percent to almost up 2 percent – driven by slightly higher international markets. €3.9bn, more than reversing the decline recorded in 2016. This market now equates volumes and improved unit prices. — to 31 percent of all food and drink exports. In terms of route to market, the UK remains The value of the livestock export trade our key export market, still accounting for increased by some 21 percent to €175m, 50 percent of the overall market. reversing the decline in trade reported last 6% year. Increased shipments of cattle and pigs The value of Irish beef exports climbed by 5 to the UK and key continental markets Milk Availability percent to almost €2.5bn, the volume of beef drove this performance as well as the available for export increased to 615,000 re-emergence of the Turkish market for tonnes with the average price increasing live cattle. marginally by 1 percent per tonne. The United Nations Food and Agriculture 4% The volume of pigmeat exports increased by Organisation (FAO) forecasts an overall Beef Exports 3 percent – to 247,000 tonnes, bringing the expansion in global meat trade for 2017 total value of exports to about €712m. Some of 2.5 percent to 32 million tonnes, with Increased export volumes were 56 percent of these exports go to the UK. pigmeat recording the strongest overall recorded in key categories. Milk Thirteen percent of pigmeat exports went growth levels at some 4 percent. Increased availability was over 6 percent higher to China – the second largest market, a four export opportunities were evident across for the first half of the year, while point fall versus 2016. far eastern markets – particularly China, beef export volumes rose by as well as in the MENA area. The FAO 4 percent. Wholesale prices Sheepmeat export volumes rose by 14 meat price index rose by almost 8 percent particularly in the dairy sector were percent to 57,000 tonnes, coupled with a for the first half of 2017 bolstered by positive the foundation for much of the minor fall in prices this yielded an overall price uplifts for pigmeat and sheepmeat year’s performance. growth of 12 percent in value terms to in particular followed by poultry and almost €275m. France and the UK remain bovine meat. — the largest markets. Performance in important value added markets in Northern Europe and Switzerland continued to make 10% gains in 2017. Global Prices Global agricultural commodity prices as measured by the FAO Food Price Index were up almost 10 percent for the year to November, driven largely 5% 3% by a very strong performance in the dairy sector which has seen global prices rise by almost 40 percent versus the same period in 2016. The meat market has also climbed by some The value of Irish beef exports The volume of pigmeat exports 10 percent for the year. climbed by 5 percent to almost increased by 3 percent - to €2.5bn, the volume of beef 247,000 tonnes, bringing the available for export increased total value of the overseas to 615,000. market to about €712m. 6 Export Performance and Prospects 2017-2018 Executive Summary 19% 12% 17% Dairy and ingredients Exports under this Prepared food exports exports for the year heading reported an recorded an estimated reached €4.02bn, a 19 uplift of 12 percent for 17 percent uplift for 2017 percent increase on 2016.
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