This article was published on The Irish Times website on 10/1/18 and written by Eoin Burke-Kennedy.

The value of Ireland’s food and drink exports rose by 13 per cent to a record €12.6 billion last year, according to Bord Bia’s latest export performance report.

The eighth successive year of growth was driven by a surge in dairy exports, which increased by 19 per cent to exceed €4 billion for the first time.

Dairy exports now account for one third of all Irish food and drink exports.

Beef exports, which are heavily reliant on the UK market, were also up 5 per cent to €2.5 billion despite the Brexit-related weakness in sterling.

There was also strong growth in exports of prepared foods, which rose 17 per cent to €2.2 billion, and beverages, which were up 8 per cent to €1.5 billion.

In its report, Bord Bia noted that the UK remained Ireland’s key export market, but that the percentage share of exports to the UK declined by two points to 35 per cent of total exports.

Nonetheless, it said this reduction disguised the fact that sales still increased for the year by 7 percent to over €4.5 billion.

The Government and Bord Bia view market diversification as key to counteracting the Brexit risk to exports.

Bord Bia’s report shows that exports to other EU countries besides the UK rose by 16 per cent to eclipse €4 billion for the first time, mainly driven by strong dairy exports, which rose by over 40 per cent to €1.2 billion, as well as enhanced growth for seafood and pigmeat sales.

Further expansion was also recorded in the Middle East, Asia and Africa, while exports to the US recorded robust growth to exceed €1bn for the first time. Elsewhere, exports to China, driven principally by dairy and pigmeat, grew by 5 per cent for the year to €700 million, making it Ireland’s third largest food and drink export market.

Speaking at the launch, Minister for Agriculture Michael Creed said: “Industry, in line with my Department’s market prioritisation strategy, is continuing to diversify, with exports to international markets reaching €4 billion for the first time.”

“Trade with the UK, which remains our most valuable market, has grown in overall terms, despite the difficulty presented by Brexit and a weaker sterling,” he said.

Bord Bia chief executive Tara McCarthy, said increased volume in key export sectors, combined with strong market returns, helped boost trade throughout 2017.

On a more cautionary note, she also highlighted the currency risk that remains for all sectors especially those such as horticulture and prepared consumer foods that are hugely dependent on the UK market.

“Sterling volatility, combined with slower economic growth, food inflation and lower wage forecasts, will put further pressure on the UK market as an export destination,” she said.

“While the UK remains our most important market, these prospects provide an additional incentive for Irish exporters to explore new markets within the EU26 and beyond,” she added.