states the IEA Food & Drink Council

Bernard Coyle - Chairman of the IEA Food & Drink Council stated today 12^th Feb 2010:

"Food exports to the UK remain well below pre-crisis levels, and are expected to remain so throughout 2010, despite the small appreciation of sterling in recent days, and the slight increase in demand (0.1% GDP growth in the UK quarter 4 2009). A realistic outlook for a return to real growth must be considered against the sustained decline in sterling by approximately 30% over the past 2 years, even after taking into account the recent strengthening to �0.88p.

He went on to say:

"The prepared foods sector has worked hard over the past decade to build up a strong position in the UK market which is one of the largest in Europe. This has been severely damaged in 2009 with many exporters withdrawing from the market. This hard won market share is likely to be further damaged in 2010, undoing the good work of the prior decade if the sterling euro exchange rate remains above 0.80p. This sector has shown the highest employment growth in the food and drink industry in recent years."

He added:

"While there are signs of general recovery in international markets, the strength of the recovery is highly uncertain. Credit conditions remain tight and with job security uncertain, savings levels remain high, dampening consumer demand. Pressure on exporters, challenged with above EU and UK average costs for energy, waste disposal and local authority charges will further damage competitiveness in the year ahead."

He concluded by saying:

"The recent evidence of monetary stimulus packages for the food export industries in Spain and the US , will add further to the unlevel competition Irish food exporters are facing. A more extensive funded programme is essential from Government to ensure the sector does not lose out as the return to growth in global markets gets underway."

The IEA Year 2009 report shows:

ENDS

For further information:

Contact: Mr Bernard Coyle: Chairman IEA Food& Drink Council 087 2348538

Or contact the Irish Exporters Association on 01 661 2182