Closing The Gap - Food and Drink Industry Ireland

ECONOMIC VALUE OF THE FOOD AND
DRINK SECTOR
The food and drink industry is Ireland’s most important
indigenous sector. It has a gross output of over €18
billion and supplies most of our domestic food needs.
Total exports exceed €8.1 billion and the sector
accounts for two thirds of all exports by indigenous
industry.
The industry is closely linked with agriculture in all
regions of the country, and accounts for most of its
output. In this sense, the industry is unique in Ireland,
integrated as it is with the majority of raw materials
produced and processed here and distributed either
nationally or overseas. In addition, the industry is headquartered
here and has developed most of its
intellectual property here also.
As a consequence of this, food and drink is affected
more than any other industry by the business,
regulatory and policy framework in Ireland and the
associated cost base.
Ireland’s food and drink industry has shown an ability
to innovate, add value and develop new export
markets, making an increasingly significant
contribution to the country’s economy. In order for this
to remain the case, policy makers must ensure that the
industry’s competitiveness is not just maintained but
improved.
| THE INDUSTRY AT A GLANCE
• The Irish food and drink industry has a gross output
of over €18 billion
• Under traditional GDP measurements the sector
accounts for over 8% of total GDP and over 18% of
GVA in manufacturing
• The sector employs 46,000 people directly and
60,000 people in distribution and other services
• It purchases over €5 billion worth of agricultural
products from Ireland’s 120,000 farmers annually
• Total employment linked to the sector is almost
230,000
• It supplies the majority of the €11 billion worth of
food and drink products that we consume annually
• It exports over €8 billion worth of food and drink
products to 120 countries worldwide annually and
accounts for €5 billion (66%) of exports by
indigenous manufacturers
• It purchases € 8.4 billion worth of Irish goods and
services – almost 50% of the total sourced by
manufacturing industry in Ireland
• Taking capital flows and links with the domestic
economy into account, the sector is the largest
wealth generator in Irish manufacturing industry
The Food and Drink Industry in Ireland - Competitiveness Indicators • page 4