Northern Irish food and drink exports show good growth

Food and drink in Northern Ireland continues to show significant growth particularly in international markets.

Official statistics from the region's Department for Agriculture and Rural Development show that the industry's turnover grew by almost seven per cent to reach £3.99 billion at the start of 2012.

The industry now sells products worth more than £1bn outside the United Kingdom, with the key markets being the Republic of Ireland. The statistics also show increasing sales to other European markets and the rest of the world. The percentage of export sales to total sales increased to just over 28 per cent.

Significantly all the industry's sectors, especially milk and milk products and beef and sheepmeat, showed good turnover growth during 2011. The largest increases were recorded in milk and milk products, beef and sheepmeat and poultrymeat.

Three of Northern Ireland's biggest companies are in these sectors including the Marfrig-owned Moy Park, the region's only £1bn business. Among the most successful in beef and sheepmeat are Dunbia, Linden Foods,and Foyle Foods, and Dale Farm Dairies in milk and milk products.

The rise in turnover to almost £4bn builds on £3.7bn in 2011, up 8.8 per cent on the 2009 level of £3.4bn. Beef and sheepmeat and milk and milk products together account for 49.3 per cent of the industry's total gross turnover, an increase of 1.3 per cent on the 2009 level of 48 per cent.

The statistics also show that two sectors, bakery and fish, have been facing particularly challenging markets.

Employment in the industry remained virtually unchanged over the period at 19.945. The statistics also indicate that the industry's overall contribution to the local economy in terms of salaries and wages and profitability has also increased.

Poultrymeat and beef and sheepmeat are the biggest contributors in value added. Both have strong new product development approaches. Gross and net profitability and margins also increased steadily.

The industry is now the largest contributor to employment and export sales within manufacturing in Northern Ireland, accounting for 29 per cent of manufacturing employment, 21 per cent of manufacturing export sales, and 21 per cent of manufacturing added value.