Ireland - Agricultural SectorsIreland - Agricultural Sectors

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview

Agricultural production is a key driver of the Irish economy. A major livestock producer, Ireland has very limited horticultural and grain production on account of its topography and climate. Ireland manufactures many derivatives and value-added products from its livestock base. However, much of its beef and dairy products are exported. Ireland imports around 80 percent of its animal feed, food and beverage needs. Ireland is deeply concerned about the UK’s exit from the European Union, since there is the potential for additional burdens on trade such as tariffs or certificates from its premier trading partner. Besides receiving a considerable proportion of its groceries from the UK, Ireland imports from EU countries such as Netherlands (beer, cut flowers), France (beer, wine), Italy (wine, non-alcoholic beverages). Major third country trading partners are Chile (wine, apples), Argentina (wine, animal feed), New Zealand (wine, bovine semen). Ireland is a key destination for animal feed ingredient imports from the U.S. However, overall the U.S. is currently not a major direct supplier of food and beverage products. Ireland receives many U.S. products including wine, fresh and dried fruit, and confectionery via inter-UK trade.

Agricultural Food, Feed and Beverage Trade

	2016	2017	2018 estimated	2019 forecast
Total Local Production	15,444.5	16,100.0	17,750.0	19,000.0
Total Exports	12,822.3	14,657.0	15,091.2	15,500.0
Total Imports	8,897.3	9,680.1	10,864.5	11,500.0
Imports from the US	307.0	267.4	383.6	380.0
Total Market Size	11,519.5	11,123.1	13,523.3	15,000.0
Exchange Rates	1USD = 0.90 Eur	1USD = 0.89 Eur	1USD = 0.84 Eur	1USD = 0.89 Eur

(total market size = (total local production + imports) - exports)
Units: $ millions
Source: This table covers Chapters 1 – 23 of the Harmonized Schedule Codes
Total Local Production - Bord Bia Factsheet: 2016; 2017, 2018, 2019 are estimates
Total Exports and Imports – Eurostat
Imports from U.S. - U.S. Department of Commerce, Bureau of Census figures: Exports to Ireland

Leading Sub-Sectors

The most important category for U.S. agricultural exports to Ireland is lightly processed or bulk commodity products destined to be incorporated into rations for Ireland’s livestock industry. As Ireland has very limited capacity to produce grains for animal feed it must import significant quantities. The trade is highly dependent on global prices and local harvest success. It really depends on whether Irish farmers have their own feedstock for animals in any given year or whether there is a need to import. It is also dependent on whether the European Union approval system for genetically engineered crops has kept pace with what is planted in the United States. If the U.S. plants a variety of soy or corn not yet approved for food/feed in the EU, trade in derivatives of these products ceases.

In 2018, over sixty percent of agricultural and food imports into Ireland from the United States were animal feed ingredients. The reduced capacity for U.S. exports of animal feed to China this past year meant that the U.S. shipped more to Europe.
The lines below show Ireland’s import values from the main suppliers for calendar year 2018:

Distillers Dried Grains: United States ($78 million); UK ($22 million); Canada ($18 million)
Other animal feed, including Corn Gluten Feed: Argentina ($59 million); UK ($14 million); United States ($13 million)
Soybean meal: Argentina ($149 million); UK ($37 million); Canada ($30 million); United States ($16 million)
Edible Fats & Oils, Vegetable Saps & Extracts, Essential Oils, Whey, Peptones/Other Proteins, Flavorings and Enzymes are imported to support Ireland’s manufacturing sector with ingredients not readily available in Ireland.
Some grocery items such as sauces, chips, cookies, confectionery are imported directly, as well as fresh produce/nuts not produced in Ireland such as sweet potatoes, almonds, grapes and walnuts.

Opportunities

Opportunities exist in all sectors. However, research is needed to identify routes to market and main players.
Sectors showing total import growth in the last three years include: Animal Feed, Sugar Confectionery, Consumer-Oriented Groceries, Alcoholic Drinks. For consumer-oriented products, foodservice, on-the-go and fast-food sectors represent the fastest growing areas. Healthy, clean label ingredients are also required for ready meals, snacking solutions and breakfast cereals.

Web Resources

https://uk.usembassy.gov/embassy-consulates/government-agencies/fas/
https://www.fas.usda.gov
https://www.bordbia.ie/industry/buyers/industryinfo/agri
https://www.agriculture.gov.ie/
https://www.fsai.ie/
https://www.igfa.ie/

For further information about the Irish agricultural market, please contact:

Jennifer Wilson
Agricultural Specialist
FAS/USDA London
Embassy of USA, 33 Nine Elms Lane, London SW11 7US
Tel: + +44-20-7891-3408
Email: Jennifer.Wilson@usda.gov

Leading Sub-Sectors

Flavorings and other ingredients for the food and drink industry is the leading category of food-related imports from the U.S. to Ireland ($120 million in 2017). Ireland is home to processing facilities for the world’s largest soft drink companies.

The next most important category for U.S. agricultural exports to Ireland is lightly processed or bulk commodity products destined to be incorporated into rations for Ireland’s livestock industry. As Ireland has very limited capacity to produce grains for animal feed it must import significant quantities. The trade is highly dependent on global prices and local harvest success. It really depends on whether Irish farmers have their own feedstock for animals in any given year or whether there is a need to import. It is also dependent on whether the European Union approval system for genetically engineered crops has kept pace with what is planted in the United States. If the U.S. plants a variety of soy or corn not yet approved for food/feed in the EU, trade in derivatives of these products ceases. The lines below show Ireland’s import values from the main suppliers for calendar year 2017:

Distillers Dried Grains: United States ($137 million); UK ($48 million); Canada (35 million)
Other animal feed, including Corn Gluten Feed: Argentina ($125 million); UK ($27 million); United States ($25 million)
Soybean meal: Argentina ($77 million); UK (24 million); United States (16 million)
In addition, connected to its livestock dominance, Ireland imports around $2 million worth of bovine semen every year. The U.S. currently has 25 percent market share of this trade, and maybe more since some product may be routed via the UK.
Live horses for the high-end racing industry amount to some $30 million per year in exports from the U.S.
Edible Fats & Oils, Vegetable Saps & Extracts, Essential Oils, Whey, Peptones/Other Proteins, and Enzymes are imported to support Ireland’s manufacturing sector with ingredients not readily available in Ireland.
Some grocery items such as sauces, chips, cookies, confectionery are imported directly, as well as fresh produce/nuts not produced in Ireland such as sweet potatoes, almonds, grapes and walnuts.

Opportunities

Opportunities exist in all sectors. However, research is needed to identify routes to market and main players.
Sectors showing total import growth in the last three years include: Live Animals, Animal Feed, Cereals and Cereal Products, Consumer-Oriented Groceries, Alcoholic and Non-Alcohoic Ingredients for Beverage Industry.
Considerable opportunity exists for animal feed grains in marketing year 2019. Along with most of Northern Europe, Ireland experienced a notable drought that affected grass and cereal production in summer 2018, and inhibited its ability to store feed for the coming winter. In fact, the Irish government has launched a Fodder Import Support Measure in response to crisis in the livestock industry.

Web Resources

https://uk.usembassy.gov/embassy-consulates/government-agencies/fas/
https://www.fas.usda.gov
https://www.bordbia.ie/industry/buyers/industryinfo/agri
https://www.agriculture.gov.ie/
https://www.fsai.ie/
https://www.igfa.ie/

For more information about Ireland’s agricultural sector, please contact:
Jennifer Wilson
Agricultural Specialist
U.S. Commercial Service Dublin
Tel: +44 (0) 20-7894-0464
Email: Jennifer.Wilson@fas.usda.gov

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.