The UK is Ireland’s largest market for food and drink, with around 40%, or €4.5bn, of our food exports sent there. Overall, the Irish farming and food sector has a higher dependence on the UK market than any other sector in Ireland. It is therefore the most exposed to any negative economic impact of the UK Brexit decision.

Coupled with this, the shared land border between Ireland and Northern Ireland has resulted in the development of a highly integrated agri-food sector, with large volumes of trade annually in live animals, finished products and products requiring further processing.

The effect of Brexit on Irish agriculture will be influenced by two main factors. We first look at the degree of reliance of specific sectors/products on the UK market.

Phelim O’Neill looks at the impact of reduced UK market access due to tariff and non-tariff barriers and what impact that may have on market prices.

Beef

  • The UK is the market for 50% of Irish beef exports.
  • The UK is a high-value market for beef, with prices consistently above the EU average.
  • Irish beef exports of 300,000t to the UK represent almost 10% of the intra-EU beef trade. The displacement of these exports would therefore have a destabilising effect on the overall EU market.
  • With 75% self-sufficiency, the UK is a net importer of beef. Ireland is the main import supplier, accounting for almost 70% of UK beef imports.
  • The sector already has existing viability problems.
  • Dairy

  • Last year, 25% – or €1bn – worth of Ireland’s dairy exports went to the UK.
  • Cheese is Ireland’s largest dairy export in terms of volume and exports and is valued at €800m.
  • Ireland is the only significant exporter of cheddar to the UK and represents 80% of all cheddar imported by the UK.
  • The UK is the only market of significance for Irish cheddar, with around half of cheddar exports (81,000t) sent there. Around 45,000t of other cheese is exported to the UK.
  • Ireland supplies about 60% of UK butter imports (41,000t) and some 26,000t of milk powder.
  • For milk and cream, the UK is a significant net exporter. Ireland imports over 800m litres of milk from Northern Ireland for processing. Of this amount, approximately 120m litres were sold as fresh milk, accounting for 25% of Ireland’s fresh milk market.
  • Sheep

  • Ireland exported 13,000t of sheepmeat to the UK last year.
  • 17.5% of Irish sheepmeat exports or €55m are destined for the UK.
  • In the UK market, almost 90% of UK lamb imports come from outside the EU (New Zealand and Australia).
  • Some 95% of UK exports are destined for EU26 countries, of which France accounts for 50%, followed by Germany at 10%.
  • North-south live trade accounts for 14% to 17% of throughputs from the Republic of Ireland. Half a million lambs come south for processing each year.
  • Tillage

  • The UK takes 88% of all cereal exports but Ireland is a net importer of grains.
  • The geographical closeness of Northern Ireland for some grain-producing counties results in the exporting of their product, including straw, to Northern Ireland, rather than more distant parts of Ireland.
  • On the inputs costs side, Ireland benefits from the mutual recognition of plant protection products and animal health remedies, which are registered in the UK. This significantly reduces the costs and increases the availability of these products on the Irish market. The exit of the UK from the EU presents a significant threat in this area, both from an increased cost and reduced availability perspective.
  • Pigmeat

  • 56% of pigmeat exports, valued at €373m went to the UK in 2018.
  • Ireland exports around 90,000t of pigmeat to the UK, which represents 38% of the total volume of pigmeat exports.
  • Over 400,000 pigs are exported live to Northern Ireland for processing annually.
  • Imports from the rest of the EU account for about 60% of pigmeat consumption in the UK.
  • Poultry

  • 76% of poultry exports by value went to the UK last year valued at €240m.
  • Around 80,000t of Irish poultry exports are destined for the UK market.
  • A high proportion of these exports are offal-type products, which are redirected to international markets once they reach the UK.
  • Mushrooms

  • The UK represents 99% of the value of Irish exports, or over €80m.
  • Ireland exports around 27,000t of mushrooms to the UK.
  • Prepared foods

  • Two-thirds of all PCF exports were destined for the UK market valued at €1.5bn.