THE value of beef exports fell by around £150 million during 1996 as a result of the BSE crisis.

There was an overall drop in the value of food and drink exports of 8 per cent, with the total falling from £1.45 billion in 1995 to £1.35 billion last year.

A Bord Bia market commentary, issued yesterday, also shows a drop in export earnings in the dairy sector.

A spokesman said export earnings from dairy based commodities fell from £970 million in 1995, to "around £840 million" last year.

A weakening in world prices for dairy based commodities led to intervention playing a stronger role last year than in 1995.

The food and drink promotion agency does not expect significant recovery in the export of beef or of dairybased commodities during 1997.

The BSE crisis has led to a preference for domestic beef among consumers internationally.

Exports of prepared consumer foods, food ingredients and beverages grew by just under 10 per cent or £100 million in 1996.

Commenting on the prospects for 1997 An Bord Bia said Ireland was well placed to take ad vantage of prevailing market conditions for higher added value products, whereas in the case of beef and dairy commodities, markets are likely to remain very competitive".

The decline in beef exports was 15 per cent in terms of value and 5 per cent in volume.

The value of beef exports fell from £950 million in 1995, to just over £800 million.

The overall value of meat exports was down despite growth in the value of lamb, pigmeat and poultry exports during 1996.

Sheepmeat exports grew by 17 per cent to £170 million, pigmeat exports grew by It per cent to £230 million, and poultry exports grew by 12 per cent, to £60 million.

Prepared consumer foods exhibited the strongest export growth of all food categories in 1996, growing by 15 per cent to £550 million. Growth was particularly pronounced in areas of convenience foods, confectionery and processed fish. Britain was the principal market for exporters, accounting for 70 per cent of sales.

An Bord Bia expects exports of prepared consumer foods to grow by a further 15 per cent this year.

Exports of food ingredients grew by almost 5 per cent, while exports of drink increased by 3 per cent.

Research carried out by An Bord Bia found that consumers now require a constant flow of the latest health and safety information about beef, as well as assurances relating to the integrity of the product.

"The issue of growing consumer preference across the market for domestically produced beef at the expense of imported product is of major concern to exporting countries like Ireland," according to the commentary.

"The challenge for exporters like Ireland, whose control systems are unsurpassed around the world, is to continue to vigorously promote the quality and integrity of the product to the consumer.

Meanwhile, the Dunnes Stores executive, Mr Dick Reeves, is to resign from the board of An Bord Bia due to the pressure of business commitments.