IRISH PHARMACEUTICAL exports to the US fell 30 per cent in the first six months of the year as the expiry of drug patents had an impact on sales, while the value of Irish agri-food exports also contracted in the period, due to lower commodity prices, according to a report on exports published today.
According to the Irish Exporters’ Association’s half-year review, the Irish pharmaceutical sector experienced a “severe downturn” in exports to the US market in the first half of the year, though pharmaceutical exports to the EU grew by 6 per cent.
The association’s chief executive John Whelan said the figures showed that “Ireland’s over-dependency on pharma exports to the United States was coming home to roost”.
The agri-food sector also contracted during the period in value terms, due to a fall in the price of commodities such as dairy and meat products in the second quarter.
The total value of Irish agri-food exports fell by 4 per cent in the first half of the year, with agri-food exports into the euro zone decreasing by 10 per cent. There was no growth in Irish agri-food sales into the UK, though exports to China doubled during the period.
Overall, Irish manufacturing industries were hit by the euro zone crisis and the general economic downturn, with Irish manufacturing exports to the EU contracting by 5 per cent during the first half of the year.
However, Irish exports to the UK overall returned to growth, boosted by a weaker euro.
Exports to the so-called Bric countries – Brazil, Russia, India and China – fell by 5 per cent in the first half of the year, a trend described by the Irish Exporters’ Association as “disappointing”.
The association strongly criticised the recent closure of the Enterprise Ireland office in Guangzhou in China, describing it as a “retrograde” move.
It called for the reallocation of embassy staff and trade promotion agencies to support Irish exporters who want to expand into emerging markets.
According to the association, Ireland should see exports grow by 2.7 per cent this year, with exports in the services sector increasing by 14 per cent, but manufacturing exports contracting by 2.8 per cent.
Total export growth of 5 per cent is predicted for 2013, though the report noted that risks to the current forecast are “firmly on the downside”.
