Business

North's food and drinks sector now worth £5bn

The north's food and drinks processing sector is now worth an estimated £5 billion
The north's food and drinks processing sector is now worth an estimated £5 billion The north's food and drinks processing sector is now worth an estimated £5 billion

THE north's food and drinks sector is now worth an estimated £5 billion, according to new official figures.

A report from the Department of Agriculture, Environment and Rural Affairs shows the sector is flourishing, and is making a greater contribution than ever to the Northern Ireland manufacturing industry.

Provisional estimates suggest that sales hit almost £5bn (£4.95bn) in 2018, up 2.9 per cent on the previous year's total (£4.81bn).


It follows a 10.6 per cent spike in sales recorded between 2016 and 2017, with gross turnover rising by £463m in the 12-month period.

The latest data also highlights the importance of agri-food to the manufacturing industry as a whole. In 2017 it contributed a third (32 per cent) of total sales, while the sector added a 19 per cent share to the manufacturing industry's GVA (gross value added).

The workforce within the food and drinks processing sector is also on an upward trajectory and now makes up 30 per cent of total manufacturing employment.

It is estimated that full-time employment in the sector stood at 24,818 last year, a jump of 5 per cent on the 2017 figure (23,641). It continues a positive trend of growth in staff numbers, which also grew by 5 per cent in the previous year from a base of 22,539 in 2016.


Britain remains the largest market for the sector and accounted for almost half (£2.34bn) of sales in 2017. The Republic is the most important export market, with sales totalling £716m in 2017 - 15 per cent of overall sales.

Within the food and drinks processing industry, the beef and sheep meat and milk and milk products subsectors continue to be the largest, with the two accounting for around half of the sector's total gross turnover.

That being said, all 10 subsectors traded profitably in 2016 and 2017, according to the data.

NIFDA executive director, Michael Bell welcomed the latest figures, but warned of the imminent threat of a no-deal Brexit on the industry.

"Our food industry is uniquely exposed by Brexit and a recent report from the Department of the Economy estimated that 40,000 jobs would be lost in a no-deal scenario due to our reliance on EU exports. A no-deal outcome must be avoided at all costs and we continue to lobby the UK government on behalf of our members on this pertinent issue," he said.

“Meanwhile, the lack of a local assembly continues to stifle innovation and impede further investment in the sector, as other competing nations forge ahead with productivity improvements. Now, more than ever, we need the Executive to fight our corner."

“If we are to achieve future growth, we need continued access to our important export markets, access to migrant labour, the establishment of a food marketing body, and government backing to foster further automation within the food processing sector," Mr Bell added.