Bord Bia's review of last year shows that Irish food and drink exports topped €8 billion for the first time, rising by 10% compared with 2005.
The food body said the jump in exports was achieved despite a strong euro exchange rate against the US dollar and competitive pressures in major export markets.
Chief executive Aidan Cotter described the performance as 'exceptional'. Bord Bia also said the results highlighted the importance of brands, highlighting the dramatic growth achieved by Goodfella's Pizzas and Magners cider in the UK.
Beef exports were up 20%, the fifth successive year of increased exports, and had particular success in penetrating continental EU markets. The dairy sector recorded export growth of 6%. Bord Bia said that exports to Asia were expected to exceed €300m for the first time this year, driven by growth in China.
But Mr Cotter warned that trading conditions in the domestic market appear to have deteriorated, with a survey of food companies showing severe downward price pressures caused by intense competition. Bord Bia said this had been combined with higher costs, particularly for energy.
Mr Cotter said the challenge for 2007 was for companies to invest in the development of new products and routes to market which will allow them to compete successfully in what are likely to remain difficult trading conditions.
