The agricultural sector outperformed all other sectors of Irish exports last year by almost 4 per cent, according to the Department of Agriculture's annual review and outlook, which was published at the weekend.
The report said exports from the agriculture, food and tobacco sector exceeded €8 billion for the first time, an increase of 10 per cent compared with a 6 per cent increase for the rest of the economy in 2006.
The report showed that last year, farmers received just over €2 billion in direct supports from the EU and the national exchequer and a breakdown of the regional payouts to farmers showed Connacht farmers received less than those from any other region.
The average payment to western farmers was €10,903; in Ulster it increased to €12,013; Munster farmers received €16,679 on average; and Leinster farmers received an average of €17,518.
Using 2005 figures, the report said 38 per cent of Irish farmers now have an off-farm job, as do 32 per cent of their spouses, which is a trend being seen all over Europe.
The review also said the farm age profile in Ireland was worsening, with only 8 per cent of Irish farmers now aged under 35 and 24 per cent of farmers here over 65.
In its outlook for this year, the report predicted that because of an overall decline in European production levels, the prices being paid for beef in 2007 should remain steady.
In the sheep sector, it was predicted there should be a rise of 6 per cent in price and pig prices should remain stable. It said there had been a 10 per cent increase in the area of winter wheat planted in Ireland this year.
Commenting on the report, Minister for Agriculture Mary Coughlan said the sector continued to be one of the most important and dynamic indigenous manufacturing elements in the Irish economy, consisting of over 130,000 family farms and around 700 industrial units spread throughout the country.
"It plays a vital role in the Irish economy through provision of direct as well as indirect employment and constitutes the backbone of rural development from both an economic and social perspective. The annual review reflects the level of importance and the wide-ranging nature of the sector," she said.
She said that within the export sector, there were notable increases of 26 per cent for beverages, 14 per cent for beef and 10 per cent for prepared foods. Overall the agri-food industry was estimated to account for 9.8 per cent of total exports, 8.1 per cent of gross domestic product and 8.1 per cent of employment.
The food, drink and tobacco sector, with just over 15 per cent of units located in Dublin, exhibited a wider regional spread than the manufacturing sector as a whole, where a quarter of units were concentrated in and around the capital, and was therefore crucial for maintaining employment and growth in rural areas.