The value of Irish food and drink exports increased by two per cent in 2003 according to a report today from An Bord Bia.
However, when the strong performance of the euro against sterling and the dollar was taken into account, the underlying rate of growth was 10 per cent. The total value of exports in the sector was €6.67 billion in 2003.
Thirty per cent of Irish food and drink exports in 2003 were within the euro zone. Of the remainder, the UK accounted for almost 40 per cent - down from 46 per cent in 2002 - while the rest of the world accounted for 30 per cent.
Exports of meat and livestock increased by 5 per cent to reach almost €2 billion. A strong performance in beef (up 8 per cent) and live animals (up 33 per cent), helped offset declines in lamb (down 12 per cent) and pigmeat (down 7 per cent).
Following a poor performance in 2002, dairy products and ingredients exports grew by 5 per cent to €1.6 billion. The first six months performance reflected weak worldwide demand. However the second half of 2003 saw a strong increase in demand for ingredients resulting in increased sales to third countries.
Beverage exports rose 8 per cent to €1.02 billion due to strong performances in key markets including the UK and US. Cream liqueurs, spirits and malt beer were the principal product categories.
Commenting on the findings of the annual review and outlook, Mr Michael Duffy, chief executive of Bord Bia said: "The year under review has been tough across all areas of the Irish Food and Drinks sector however, I am pleased to report that the inventiveness and resilience of Irish companies have delivered export growth for the sector as a whole. A 2 per cent growth in exports is a strong result given the market and economic challenges".
"Looking forward to a post CAP environment, cost competitiveness will continue to be an imperative but it must be matched by investment in the marketplace. A clear understanding of consumer needs and the drive towards convenience, new product innovation and development and effective marketing are, together, the elements, which will enhance market penetration for Irish exporters in 2004," Mr Duffy said.