All‑island food and drink sector key to jobs, growth and food security, new report finds

• Cross-border trade has increased by 85% since 2016

• All island approach necessary for sustainable investment and nurturing cross border supply chain

• While only 3% of UK population, NI supports 10% of UK domestic food supply

Northern Ireland’s food and drink sector, a key production base for the island of Ireland, generates €8.4bn in economic value for the region, supports almost 109,000 jobs, and plays a critical role in food security and economic resilience across the island of Ireland and the UK, according to a major industry report.

The Economic Impact Assessment, commissioned by NIFDA and delivered by EY, highlights the deep integration of food systems North and South, and the sector’s shared importance in supporting jobs, trade, and sustainable growth across the all‑island economy.

The findings were launched recently at an event at EY’s offices in Dublin, in partnership with IBEC, reflecting the importance of cross border collaboration.

A driver of the all-island economy

The report shows that in 2024, Northern Ireland food and drink generated Gross Value Added (GVA) of some €8.4bn (£7.3bn) with strong multiplier effects across the supply chain, services and the rural economy.

The NI industry also supports some 109,000 jobs, extending beyond direct manufacturing and farming roles. It underpins economic activity in logistics, engineering, utilities and professional services while also anchoring jobs in rural and semi‑rural communities.

Michael Bell OBE, Executive Director of NIFDA, said:

“This independent report gives us an up-to-date picture of the role food and drink is playing for the economy and our society. Food and drink delivers billions in economic value, supports tens of thousands of jobs across the supply chain, and plays a unique role in sustaining balanced regional growth. Our industry is feeding the economies across these islands every day.”

Integrated food system across the island of Ireland

The island of Ireland operates as a highly integrated food system, with cross-border trade increasing by 85% since 2016. Supply chains span production, processing and distribution, particularly across dairy, meat and beverages, supported by shared infrastructure and long-established commercial relationships.

In 2024, cross-border food and drink trade reached €3.6bn (£3.1bn), underlining the scale of this integration. The Republic of Ireland is now Northern Ireland’s largest export market, accounting for 39.9% of total goods exports, while 94% of live animal exports are destined for south of the border. With the south’s population projected to approach almost six million by 2050, demand for food is set to rise significantly, further reinforcing the importance of resilient, all-island supply chains.

As for the UK, Northern Ireland accounts for just 3% of the population, but produces around 8% of total UK food output by volume, and more than 10% by value, with the local industry having particular expertise in high‑value, protein‑rich foods that are central to everyday consumption.

Michael Bell added: “These are precisely the areas where strong domestic production is most critical to reducing import reliance, moderating exposure to global supply shocks, and safeguarding affordability for consumers.”

Paul Kelly, Food Drink Ireland Director, said: “Food Drink Ireland welcomes the findings of the NIFDA Economic Impact Study, which underscores the immense contribution of the food and drink sector to the island’s shared economy and its vital role in ensuring regional food security. This report highlights the strategic necessity of a collaborative, all-island approach to productivity and sustainable investment to navigate current global supply chain volatility and protect the cross-border supply chains and jobs supported by the industry.”

Sustainability, resilience and enabling investment

The report also examines the role of Northern Ireland food and drink in meeting sustainability goals. It finds that while agriculture accounts for a significant share of emissions in Northern Ireland, the analysis shows that productivity‑led, sustainability‑linked investment can deliver economic growth and emissions reductions together, while prolonged cost pressure and delayed investment risk eroding value and resilience over time.

Simon MacAllister, Partner at EY, said:

“Northern Ireland’s food and drink sector plays a key role in the all-island economy, underpinning jobs, investment, regional balance and resilience well beyond its own footprint. Our analysis finds that the sector’s future will be shaped less by volume growth and more by productivity, cost resilience and sustained investment across the value chain. The central challenge is not ambition, but delivery and coordinated planning, regulatory and infrastructure processes are essential to unlock the investment needed to secure long term growth, resilience and environmental improvement.”

NIFDA has called on governments across Ireland and the UK to work in partnership with industry to enable investment, improve planning predictability, and ensure policy frameworks support economic growth alongside environmental outcomes.

Michael Bell added:

“Our industry is committed to sustainability and innovation, but businesses need confidence to invest. That means stable policy signals, joined‑up decision‑making and planning processes that recognise the system‑wide benefits of investment. If we want to secure food supply, protect jobs and improve environmental performance, we have to enable economic growth.”