Despite the challenges of Brexit and the coronavirus pandemic, Ireland’s seafood economy grew by 15 percent in 2021 to be worth EUR 1.26 billion (USD 1.40 billion) – its highest value since 2016 – according to the latest annual “Business of Seafood Report,” compiled by fisheries and aquaculture state agency Bord Iascaigh Mhara (BIM).
The growth was driven by strong exports to the European Union and Asia, which raised Ireland’s total overseas trade value by 11 percent to EUR 674 million (USD 750.2 million), with the country’s seafood balance of trade growing by 45 percent.
Within the domestic market, foodservice purchases increased by 12 percent in 2021, following on from a decline of 53 percent in 2020, while Irish seafood consumption grew by 3 percent to EUR 418 million (USD 465.3 million) thanks to a partial recovery in Ireland's hospitality sector.
Overall investment in the sector increased by 8 percent last year to EUR 454 million (USD 505.3 million).
BIM Chief Executive Jim O’Toole said the key insights from the report were the sector’s success in both identifying and driving opportunities in different markets, along with the increase in value for certain categories.
Irish government support, along with private investment, helped mitigate some of the impacts created by Brexit and the Trade and Cooperation Agreement (TCA) between the E.U. and the United Kingdom, including the reduced quotas for some key species, O’Toole said.
Although the volume landed by Irish vessels fell 7 percent in 2021, the value of Irish landings grew by 2 percent as a result of higher prices.
“The industry continues to adapt. For example, in the seafood-tech sector there are now over 50 companies employing more than 700 people from disciplines including engineering, fintech, and marketing, and we have seen turnover more than double in the past few years,” O’Toole said. “Although we have seen significant growth last year there are further challenges now being encountered with cost increases for fuel, energy, and materials as a result of the conflict in Ukraine. Support to the industry to help withstand this economic shock will undoubtedly be required.”
In 2021, government investment in Ireland’s seafood sector increased 11 percent to EUR 232 million (USD 258.2 million), while private investment was up 5 percent to EUR 221 million (USD 246 million).
However, BIM also highlighted that the price of marine diesel has increased by almost 150 percent since the start of the Ukrainian crisis, while the price of materials and equipment has also “increased steeply.”
"Coming so soon after the economic shocks of COVID-19 and Brexit, the resilience of the sector is going to be tested to the full during 2022 and beyond,” BIM said. “It will require a collective effort from the industry, backed with financial and technical support, to withstand this new challenge and remain profitable.”
Image courtesy of Bord Iascaigh Mhara
