IRISH SEAFOOD EXPORT VALUE RISES – BUT VOLUME DOWN

Irish seafood export value rises – but volume down. Improved prices helped drive the performance in Irish seafood with export values increasing by 3% (or €17 million) in 2022 to reach €530 million. This was despite a 19% decrease in volumes exported, reflecting the challenging situation faced by Irish seafood exporters in securing supply.

The figures are revealed in Bord Bia’s Export Performance and Prospects report 2022/23 by the Minister for Agriculture, Food and the Marine, Charlie McConalogue, TD reveals the value of Ireland’s food, drink and horticulture exports increased by 22% last year to reach a new record high of €16.7 billion.

Total volumes exported were down an estimated 19%, reflecting the challenging situation faced by Irish seafood exporters in securing supply. The reduction in quotas from the Trade and Co-operation Agreement (TCA), affected some key species, the temporary cessation scheme, less days at sea due to difficult weather conditions, higher costs for marine diesel, energy and labour, and availability of labour a challenge for both fishers and processors, all contributed to lower volumes.

The pelagic sector experienced a difficult year with the cut to the mackerel quota, creating a challenge to secure adequate raw material supplies. This category accounts for 67% of total seafood exports in volume terms. Export values, stood at an estimated €177 million, down 4% compared to 2021, with volumes almost 25% lower at 129,000 tonnes. There was a concerted effort by sector in the first quarter of 2022 to catch a large proportion of the mackerel quota allocation at the start of the season, with 85% landed by the end of April. Lower volumes of mackerel and horse mackerel internationally meant strong demand and more intense competition for raw material, leading to prices increasing by almost 30%. Market conditions were firm for mackerel in Asia with strong prices secured, and many Eastern European customers matched these prices to secure supply. Demand for blue whiting was strong in West Africa with Russian supply precluded. It was also strong in China although Covid-19 related issues left many processors concerned around bottlenecks due to checks and congestion in ports.

Shellfish exports grew in value by 14% to reach €192 million during 2022 against a backdrop of stable volumes. This reflects a 45% increase in shellfish export values since 2020 and demonstrates the strength of demand for Irish seafood. During 2022, the average price per tonne increased by a further 18%. This reflects the strong demand coupled with tight supplies from all exporting countries. Demand for langoustines remained strong throughout the year, although buyers were increasingly cautious of the emerging impact of rising inflation on consumer demand. Sales of langoustines in retail channels in France recorded a good performance, partly due to lack of supply coming from UK. The demand for ‘Speciales’ grade Irish oysters was also strong during 2022, due to the recent crises of Covid-19, Brexit and escalating costs of production. The strategy amongst Irish oyster exporters has been to prioritise regular, long-term customers.

The Irish salmon sector continues to be an important part of the overall seafood category representing 20% of export values despite accounting for just 6% of volumes. Export values were down by 3% while volumes declined by 7%. While conventional salmon prices rose dramatically in the first half of 2022, this increase wasn’t replicated by Irish organic salmon, with most being sold on contract. Challenging growing conditions at sea also had an adverse impact on supplies. The sector remains concerned about the increased supplies of organically certified salmon now available from Scottish and Norwegian producers which is resulting in greater price pressures.

Whitefish export values increased by 5% to €48 million, while volumes fell by 23% to 9,800 tonnes. This reflects the quota cut, the temporary tie-up scheme, increased costs and difficult weather impacting on fishing operations throughout the year. Processors found it challenging to compete for supplies and staff retention remains challenging due to the lack of a guaranteed consistent work and steady supply of raw material.

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