The pursuit and development of new markets for Irish agri-food exports is a central component of the strategic development of the agri-food sector, as evidenced by its placement right at the centre of Food Wise 2025, the industry’s strategy for development over the coming decade. This work is all the more relevant after the UK’s decision to leave the EU.
Food Wise 2025 outlines the potential for growth in agri-food exports to new and emerging markets, particularly in Asia, Africa and the Gulf region, and our efforts will be focused on developing new opportunities in these markets, as well consolidating our position and deepening our penetration of well established markets in the European Union, including the UK, and the United States.
In the meat sector, the focus is on obtaining access to new markets or improving the terms of access to others. In 2015 we gained access to the US market for Irish beef. In the same year we also got access to the Canadian market for Irish beef and to the Omani market for Irish beef and sheepmeat.
In 2016 we gained access to the Maldives for beef, sheepmeat, pigmeat and poultrymeat. We also gained access to the Iranian market for sheepmeat and we regained access to the Israeli market for beef.
In 2017, the market in Egypt was re-opened to exports of beef from Ireland and we got access to the Chilean market for Irish pork.
On the dairy front, Ireland exported in the region of €4bn in dairy products to nearly 130 countries in 2016. Against the backdrop of EU-agreed trade deals such as those completed with Canada and Japan, my Department continues to prioritise efforts to gain access to new 3rd country markets and, equally importantly, to deepen existing markets for Irish dairy products. In many instances such efforts are on foot of trade missions at Ministerial level.
CSO data for the year to end November 2017 showed that Irish dairy exports were approaching 20% ahead of the same period in 2016, on foot of factors such as improving global prices (which was particularly evident in sectors such as butter), but also as a result of increases in volumes exported across a range of product categories. This demonstrates that our efforts are contributing positively to Irish dairy sector exports.
It is also worth noting that the value of exports to emerging markets in Asia, Africa, the Middle East and Central/South America stood at almost €2.2 billion in 2016. The value of trade to these markets increased by 52% in the period 2012 to 2016. Exports to these markets now account for 19% of total food and drink exports, compared to 16% in 2012. This growth in the share of exports occurred during a period when total food and drink exports jumped by more than 23%.
Growth to emerging markets has been led by Asia, with trade growing by more than 150% to €1.2bn. This in turn has been led by China, which recorded a more than three-fold increase (total €880m v €283m in 2012). Exports to other Asian markets grew by 73% in the same period, to €318 million.
Trade to Africa has held steady around the €500m mark during this period, notwithstanding the challenges faced by those West African countries whose economies are so reliant on a strong international oil price. Encouragingly, exports to North African countries grew by just under 50% in 5 years, helping to counterbalance this impact.
Exports to the Middle East grew by 21%, to €370 million.
The role of trade missions also cannot be underestimated in gaining further market penetration for Irish Agri food products to new and existing markets.
I led a series of very successful Trade Missions in 2017, during which destinations included the Gulf States, the US and Mexico. I also led an extensive trade mission to Japan and South Korea. This was a very opportune time to bring a delegation of Ireland’s food leaders to this part of the world, given that the EU has concluded a Free Trade Agreement with South Korea as well as agreeing an Economic Partnership Agreement with Japan.
My Department is currently making arrangements with Bord Bia and Enterprise Ireland for a trade mission at the end of the February to the US and Canada. This will include participants from across the agri-food sector and will feature extensive trade contacts as well as relevant political engagement. Both of these markets had been identified by my Department as offering huge potential to the Irish agri-food sector.
Such missions help to increase the profile of Ireland as a producer of high quality, safe, and sustainably produced food and beverages.
This and future work will be informed by a market profiling exercise completed by Bord Bia at my request. This exercise identified opportunities in new and more mature markets, and will provide valuable market intelligence both for industry operators and policy makers.
