The chief executive of Bord Bia, the Irish Food Board, Aidan Cotter, said yesterday that the food sector produced "exceptional" figures in 2006, when exports jumped to more than €8 billion for the first time.

He said beef exports to continental Europe reached record levels, increasing by 20 per cent, beverage exports accelerated by 26 per cent and dairy exports rose by 6 per cent.

Meat and live animal exports generated €2.3 billion in export sales and beverages rose to €1.3 billion, while prepared foods rose by 10 per cent to €1.6 billion. There was a 6 per cent increase to just over €2 billion in dairy and ingredients exports and fish exports jumped to €346 million.

The only area which showed a decline was horticulture and cereals, at €204 million, down 10 per cent.

Mr Cotter said this was largely as a result of a decline in mushroom imports to the British market where a number of factors including declining demand, the exchange rate and increased competition, had led to the drop.

Britain, he said, remained the sector's largest market, taking 45 per cent of our food and drink exports, but there was a growing demand for Irish products in continental Europe, which last year took 31 per cent of exports.

International markets took the remaining 24 per cent of food exports, but he warned that international competition was growing and would impose pressures on manufacturers.

He said the agriculture and food industry remained Ireland's largest indigenous sector, providing total employment in the order of 155,000. It accounted for more than half of Ireland's indigenous exports and represented almost a 10th of the economy.

Mr Cotter added that total turnover of Irish food and drink was estimated at almost €20 billion for 2006, with a relatively low import content.

Exports to Asia were expected to exceed €300 million for the first time this year and Bord Bia would open an office in China to help achieve its target of doubling exports there by 2009.