Irish poultry exports fell 15%
BordBia's Performance and Prospects report 2021/2022 has shown that Irish poultry exports decreased by 15% to €128 million last year. This decline was due primarily to a fall in trade with the UK, which is Ireland’s major market for poultry. The value of poultry trade to the UK declined by 16% to €74 million last year, reflecting the sector’s high exposure to the foodservice market in the UK, which was significantly disrupted during the year.
European poultry exporters were negatively affected by market access restrictions last year, and progress around re-establishing these trading partnerships will be critical towards rebuilding export performance. These developments were also reflected in overall EU poultry exports, which fell by 5% to 2.2 million tonnes in 2021. The principal markets that reduced import demand from EU suppliers included the Philippines, South Africa, Hong Kong, and the UK.
Bord Bia Chief Executive Tara McCarthy warned that new trends are developing in the market, some of those consisting in longer-term shift in consumer behaviour and attitudes. "There are a number of challenges ahead for the Irish food and drink sector. These include increased supply chain and input costs, which are affecting producers and processors, and the ongoing impact of Brexit, which has yet to be fully implemented. While the transition period ended on December 31, 2020, the UK has not yet started physical inspections of food and drink imports, and this is due to begin at the start of July.
A tightening labour market has been reported by many companies in the agricultural and manufacturing sectors and this is driving increased costs, which it is proving very difficult for producers to recoup from customers.
The increased focus on sustainability brings both challenges and opportunities for the food sector. Consumers want healthy natural food and Ireland can deliver on that demand, but we must also work collectively and collaboratively to reduce carbon emissions to meet our 2030 commitments, and to further embed sustainability within all production, manufacturing, and distribution activities," she said.
According to BordBia's international research, 75% of consumers made efforts in the past year to buy more sustainably produced food. "The Origin Green programme provides Irish exporters with that third party verified record that customers increasingly want. Last year, 71% of Origin Green companies, which are collectively responsible for the vast majority of Irish food and drink exports, said they believed Origin Green provided a competitive advantage for their business," Ms McCarthy added.
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