New figures released in the annual Bord Bia Export Performance and Prospects report 2020/2021 show exports of Irish food, drink and horticulture to the UK declined by 5% in 2020, with a value of €4.3bn/$5.2bn (compared to €4.5bn/$5.5bn in 2019). Bord Bia said this was in spite of a period of unprecedented change and challenge that saw the largest disruption to normal market operation, with uncertainty around Brexit and pandemic challenges that saw the closure of the UK foodservice market. Launching Bord Bia’s Export Performance and Prospects 2020/2021 report, Ireland’s Minister for Agriculture, Food and the Marine, Charlie McConalogue, said that the overall volume of Irish exports fell marginally by 2% in 2020, valued at €13bn ($15.8bn).
In 2020, 33% of Ireland’s total food and drink exports headed to the UK, 33% were destined to international markets outside the UK and EU, and 34% went to the EU27. Although dairy continued its global growth trajectory into 2020, exports to the UK were down 13%, to €831m ($1bn). Significant decline in UK foodservice and Brexit contingency planning were contributing factors. Dairy is the most geographically diversified category of all the major Irish food and drink exports. The report said 49% of all dairy exports are destined for markets outside the UK or the EU27. Exports to these markets was the key growth driver in 2020. In terms of product categories, strong growth was achieved in specialized nutritional powders and other powders (including SMP, WMP and casein).
Butter performed ahead of expectations despite significant commodity price decline and the impact of a 25% tariff in the US. Butter exports were worth €961.4m ($1.1674bn) in 2020, the most valuable of all the dairy sub-categories, albeit just marginally ahead of cheese exports at €961.3m ($1.1673bn). Cheese exports to Asia, North Africa and to the EU27 accounted for the largest portions of growth, underlining the success exporters have had in diversifying markets for Irish cheese beyond the UK. SMP prices and demand globally were strong throughout 2020, delivering value growth on the same export volume as 2019, while specialized nutritional powders had a positive year, with growth to traditional and new markets. Exports in this category were worth €956m ($1.16bn).