The agri-food and beverage sector plays a very significant role in national economic development. It currently accounts for 7.1% of national gross value-added and 8.6% of employment. It has an annual turnover of €25 billion and its gross output of €20 billion comprises 21% of Ireland’s total industrial gross output. Between 2008 and 2012, the sector’s contribution to national GVA rose from 6.1% to 7.1%.
However, these figures, significant as they are, may actually underestimate the importance of the sector to national economic development. The Deputy should be aware that more than 75% of the expenditure in this sector is on Irish goods and services, compared to 42% for all manufacturing. In addition it has a lower import content and a lower level of profit repatriation than other manufacturing industries. In fact every €100 of exports from the bio-sector (agriculture, forestry, fisheries, food & drink industries) contributes around €48 to GNP while the ‘non bio-sector’ contributes around €19.
Last year, Irish food and drink exports exceeded €9 billion for the first time; this means that over the last three years these exports have risen by 28%, or €2bn, in total. This trend is continuing, the latest CSO figures for food & beverage exports show a 7% rise in the first half of 2013 as compared to the same period in 2012.
The Deputy specifically asked for data on beef, dairy, lamb, pig meat and fishing over the past five years. Exports for these commodities improved from 2008 to 2012 as follows
- Beef - increased by 19% from €1,590m to €1,900m
- Dairy- Increased by 14% from €2,290m to €2,620m
- Lamb- increased by 27% from €167m to €212m
- Pig- increased by 43% from €354m to €507m
- Seafood- increase by 50% from €335m to €501m.
Agri-food is a sector which is confident and ambitious and is enjoying a period of strong success. This success is assisted to a large extent by the implementation of Food Harvest 2020. I lead the strategic committee, comprising the CEOs of the relevant State agencies, which drives the implementation of this report. I am fully committed to achieving the growth targets set out in Food Harvest 2020. Milestones for Success 2013, the 3rd Food Harvest progress report,
published in September, illustrates the excellent progress achieved to date. Headline figures show that we are well on our way towards achieving our 2020 growth targets. We have already achieved a 25% increase in the value of primary agricultural output (the projected 2020 target is a 33% increase). Over the same period we have achieved a 13% increase in the value of our exports and value added has risen by 20%.
In relation to the scope for future development, the Deputy will know that there is a growing global urbanised market. World population will be over 9 billion by 2050 and food production levels must increase by 60-70% to feed this growing population. Ireland has a number of competitive advantages which leave us well placed to meet this growing demand.
