Source: CSO

The seasonally adjusted Irish trade surplus achieved a seven year high in January and went higher in February as merchandise exports increased by 6% and imports by 4% relative to January 2009. Relative to December 2008, exports in January 2009 increased by 8%, while imports increased by 1%. On an unadjusted basis, the value of exports in February 2009 was down 5% on February 2008, while the value of imports was down 23%. The value of exports in January 2009 was down 3% on January 2008, while the value of imports was down 28%, according to the CSO. Food exports to UK down 9%.

The January figures for 2009 when compared with those of 2008 show that:

Exports decreased from €7,120m to €6,932m (-3%) – Electrical machinery decreased by 51%, Computer equipment by 22%, Edible products by 34% and Industrial machinery by 44%.

Medical and pharmaceutical products increased by 15%, Organic chemicals by 10%, Essential oils by 6% and Other transport equipment (including ircraft) by 610%.

Goods to China decreased by 39%, to Great Britain by 13%, to Germany by 14% and to Malaysia by 44%.

Goods to the United States increased by 5%, to Belgium by 4%, to Bermuda by €70m and to Switzerland by147%.

Imports decreased from €5,448m to €3,937m (-28%) – Road vehicles decreased by 71%, Computer equipment by 35%, Other Transport equipment by 43%, Specialised machinery by 56%, Industrial machinery by 34%, Electrical machinery by 24%, Iron and steel by 43%, Telecommunications equipment by 26% and Organic chemicals by 22%.

Power generating machinery increased by 49%, Medical and pharmaceutical products by 6%, Electric current by 101%.

Goods from Germany decreased by 43%, the United States by 25%, Great Britain by 19%, China by 29% and Norway by 55%.

Goods from Argentina increased by 29%, Poland by 10%, Indonesia by 47%, India by 12% and Egypt by 55%.

9% drop in food exports to UK requires immediate government response; Weakness of sterling undermining €3.4bn worth of Irish food and drink exports to UK

Food and Drink Industry Ireland (FDII), the IBEC group that represents the food and drink industry, today warned that the continued weakness of sterling was causing exporters massive difficulties, resulting in a sharp drop in the value of food exports to the UK and significant job losses. Preliminary CSO trade data for February, published today, shows a 9% drop in food exports to the UK compared with the same month last year.

FDII Director Paul Kelly said:“The Government must move quickly to provide grant aid for productivity improvements in the industry, set up a State-backed trade credit insurance scheme and reduce high energy prices.

“The weakness of sterling is having a dramatic effect on the industry's competitiveness in our most important export market, which accounts for 43% (€3.4bn) of Irish food and drink exports. The industry is in crisis with over 2,000 jobs lost already this year. This is a clear indication that sterling weakness is badly hitting the competitiveness of exporters.

The Government needs to take a range of measures urgently, including:

• Getting EU approval to set aside state aid rules and provide grant aid to companies to assist them put in place productivity enhancing measures;

• Establishing up a State-backed trade credit insurance scheme;

• Reducing energy costs, currently the second highest in Europe, to the levels of competitor economies though an emergency review of tariffs and putting in place alternative funding mechanisms for energy infrastructure.

“The food and drink industry is as important to Ireland as car industry employment is to Germany. The Government must act now to protect Ireland's most important industry," concluded Kelly.

Foreign-owned firms are responsible for 90% of Irish exports (merchandise and services); almost half of exports from Irish-owned firms go to the UK.