Bord Bia's review of 2005, published today, shows that food and drink exports rose by just 0.7% last year to €7.1 billion.
The body described this as 'a robust performance', as it came against the background of a strong euro exchange rate against sterling and falling prices in some big export markets.
'Irish food and drink exports held up remarkably well in what was an extremely tough and competitive environment,' said chief executive Aidan Cotter.
He said the challenge facing Irish food and drink exporters in 2006 would be to continue investing in new products and routes to market, as trading conditions were likely to remain difficult.
A breakdown of the 2005 figures showed that beverage exports recovered strongly and were the best performing category. Total exports from the sector are estimated to have grown by 5.8% to over €1 billion. Cider, beer, spirits and water exports were all up in 2005.
Meat and livestock exports grew by 2% to €2.1 billion in 2005, representing 30% of total food and drink exports. Beef exports, which account for two thirds of total meat and livestock exports, experienced a small increase, but beef exports to continental EU markets were up 11%. Exports of pork and bacon, and of live animals, increased while the value of lamb exports declined.
Prepared food exports stabilised in 2005 at €1.5 billion, following a strong performance in the previous year.
Bord Bia said this sector has the highest long-term growth potential, but has had to cope with strong downward price pressures and growing competition from mainland European suppliers in its largest market, the UK.
Dairy exports fell by 2% to €1.8 billion, but strong world dairy markets helped contain the decline in the value of dairy product exports. Bord Bia says the prospects for exporters appear more challenging in 2006 due to an expected weakening in world markets as supplies from Australia and New Zealand are set to increase.
