An "exceptional" increase in food and drink exports to Asia last year lifted the value of the agri-food sector, according to Bord Bia.
In its Export Performance and Prospects 2007/2008, Bord Bia said the value of food and drink exports rose by 5 per cent last year, or €414 million to €8.62 billion.
The dairy sector performed best last year, rising by 13 per cent in value to reach €2.36 billion. Almost a third of this increase went to Asia.
"The food and drink sector's solid export performance has been underpinned by the upward pressure on global food prices that emerged during 2007 and that is set to remain a feature of the international marketplace in 2008 and beyond", Aidan Cotter, CEO of Bord Bia said today.
"The high export orientation of the sector, accounting for 10 per cent of the country's merchandise exports, means it is well positioned to exploit these global trends and maintain its contribution to Ireland's economic performance", he said.
According to Bord Bia the agri-food sector is Ireland's largest indigenous industry, contributing 8% to the country's Gross Value Added and a corresponding share of its employment.
Bord Bia said the overall output of the sector amounted to more than €20 billion.
Last year meat and dairy products accounted for 55 per cent of the sector's exports, with prepared foods and beverages accounting for 21 per cent and 17 per cent respectively. The value of Irish meat exports fell back by 3 per cent to €2.38 billion, with 98 per cent of exports now destined for European markets.
Looking forward to 2008, Bord Bia said the prospects for the sector were positive.
"The dominant factor underlying the recent rise in prices would appear to be a supply shortfall induced by poor harvests and drought conditions", according to Mr Cotter.
"Nevertheless it is clear that increasing Asian demand, the use of land for biofuels and climate change are poised to play a growing role in food markets. In particular, the changing market environment is set to further enhance the competitive advantage of Ireland's grass-based dairy and meat sectors", he said.