The release of Bord Bia’s Performance and Prospects report of 2021/2022 has raised expectations for Irish food exports this year. The agency’s summation offers an overview of trade in food and drink over the last 12 months.
Bord Bia forecasts that the outlook appears “broadly positive”, although it affirms there are still “significant challenges” to overcome.
Potential limitations include ‘gastro-nationalism’ in Europe, as well as “a drive to localism” fuelled by consumer perception of a relationship between agriculture and climatic conditions.
The growing demand for sustainability could also impact future production growth, which “will occur in the context of commitments to reduce greenhouse gas emissions”.
The good news for producer nations such as Ireland is that the global supply/demand relationship is set to remain positive, while the UK market could be constrained if the Withdrawal Agreement is implemented in full. This would be a result of the creation of a new barrier of physical checks for exporting companies, as well as “unclear amounts of bureaucracy”.
Bord Bia estimates that beef markets look “relatively balanced” in terms of supply and demand, and that prospects for Irish beef exports to the EU and the UK “remains broadly positive”. Global market demand is expected to remain good, while market demand from Britain and the continuation of free access to that market will influence the demand for Irish beef.
In terms of dairy, weaker European and Oceanic milk output will see buyers looking to Ireland to secure supply in early 2022. Global dairy imports are expected to be up 3.5% this year, according to models by financial services network StoneX.
Higher export of sheepmeat for Irish exporters also looks set to continue, with one potential setback being the risk of declining visibility of lamb on supermarket shelves in major lamb consuming countries within the EU due to supply issues.
The outlook for the global poultry industry shows signs of recovery as economies re-open, but pigmeat prospects remain challenged as the sector is exposed to the increase in input costs being observed globally.
LSL News.