Northern Ireland’s food sector continues to grow

The report contains comprehensive data on the values of sales, value added, number of employees and destination of sales for each of the ten constituent subsectors of the food and drinks processing sector for 2020 and 2021. These key statistics are supplemented with fifteen performance indicators for each subsector. Provisional estimates of sales and employment are also provided for 2022. This edition of the report, for the first time, contains experimental statistics on the value and origin of purchases of goods and services made by each of the ten constituent subsectors for processing.

In addition, a time-series of data covering the period 1989 – 2021 has been published on the DAERA website for each of the main variables. These will enable users to identify trends over time in variables of interest to them.

The report's key findings are:

- The total gross turnover of the Northern Ireland food and drinks processing sector is estimated to have increased by 9.5% in 2021 to £5,950 million. Provisional estimates for 2022 project an 8.0% increase to £6,427 million.

- Between 2020 and 2021 the sector's sales increased to all broad markets. Northern Ireland (+£180.3m) and Great Britain (+£162.0m) experienced the largest increases. Great Britain remains the sector's largest market accounting for 47.4% of sales in 2021; a decrease from 48.9% in 2020.

- The food and drinks sector contributed 38.5% to total manufacturing sales in 2021; a decrease from 39.1% in 2020.

- In 2021, the estimated number of direct full-time employee equivalents (FTEs) in the sector increased by 0.6% to 25,116 FTEs. Provisional estimates for 2022 project a 1.5% increase to 25,497 FTEs.

- The sector's contribution to total manufacturing employment was 30.1% in 2021; a decrease from 30.3% in 2020.

- The value added by the sector increased by 4.2% to £1,096 million between 2020 and 2021. This increase was driven by wages (+£50.0m) and depreciation (+£7.6m).

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- Net profit (-£13.0m) decreased by 5.2% in the sector.

- Total purchases by the Northern Ireland food and drinks processing sector is estimated to have increased by 12.3% in 2021 to £4,678 million.

- Total purchases increased by the sector from all broad markets of origin. Northern Ireland (+£304.1m) and Great Britain (+£131.7m) experienced the largest increases. In 2021, Northern Ireland remains the sectors largest market for purchases at 65.7% of total purchases; a decrease from 66.5% in 2020.

Commenting on the DAERA report Michael Bell OBE, Executive Director, Northern Ireland Food and Drink Association (NIFDA) said: “The figures show that food and drink continues to be a key economic driver in Northern Ireland, with total gross turnover increasing by 9.5%, value added increasing by 4.2% and sales continuing to grow.

“However there is some cause for concern. While turnover has grown, the cost of doing business has increased, hampering profitability.

“Northern Ireland food and drink has recently had to deal with three major challenges: Covid, the end of the Brexit transition period, and hyperinflation in feed, fuel and fertiliser prices. Over the period covered by these statistics, Brexit and the pandemic had a particular impact.”

Michael Bell added: “NIFDA members have shown impressive resilience in dealing with each of these major challenges. However industry here is missing several ingredients from the recipe for success. Unlike all our neighbouring regions, we lack support from government in the areas of export marketing, investment in young people through the apprenticeship levy, and capital investment.

“We need targeted investment in food and drink processing to enhance sustainability, encourage further innovation, make efficiencies to limit the impact of inflation, and modernise the industry so it continues to be seen as an employer of choice by the young people who will be future leaders.”

He concluded: “Industry wants to work with the Department of the Economy to help deliver its 10x strategy, but to embrace the benefits of advanced manufacturing, new technologies and innovation, we need investment.”