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Why exporting matters for Irish business growth
With a relatively small domestic market, export is a key avenue for growth for many Irish businesses writes our Fractional CFO, Andrew Brolly. Many of the food and agribusinesses surveyed look beyond the domestic market for sales. For 24% of respondents, more than half of their turnover is generated from export.
In 2024, the value of Irish agrifood exports increased by 5% to €17 billion*, maintaining the upward trajectory seen in previous years. This is reflected in our survey, with 56% of respondents seeing a growth in their international sales in the past 12 months.
The story first appeared in our 2025 Food & Agribusiness Report
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"89% of respondents say their international sales have stayed the same or increased in the past 12 months."
Export markets and challenges
Exporting to new markets was identified as one of the biggest opportunities for growth by over one third (34%) of businesses. However, it must be noted that the journey to international sales is complex and even more so in a year that has seen significant geopolitical volatility and tariff threats. Topping the list of challenges to sales outside Ireland faced by food and agribusinesses are market entry and distribution (44%), uncertainty around trading tariffs (38%) and generating sufficient margin from international sales (33%).
The UK (52%) and the rest of Europe (41%) are respondent’s primary export markets, followed by the USA (26%). Ireland has a strong reputation and established customer relationships in these markets. Despite Brexit, the UK has remained the largest single export market for Irish food, drink and horticulture. Exports were worth €5.9billion in 2024, a 7% increase from 2023*. Reasons for this include proximity, language and similar legal, corporate and tax systems. It is also an affluent market. If a company is considering exporting for the first time, the importance of these factors should not be forgotten.
Foreign exchange risk management options for exporters
Exporting companies are exposed to foreign exchange (FX) risk when receiving payments in a foreign currency. Volatility in exchange rates can significantly impact margins and cashflow. Despite this, 21% of businesses surveyed do not actively manage FX risk. There are several strategies available to businesses to manage FX risk:
Quote in Euro, get paid in Euro
Only trading in Euro, with all contracts, invoices and payments made in Euro is a way of avoiding exchange rate risk. While this may not always be possible, it does mean your business will not be exposed to currency fluctuations.
Forward contracts
A forward contract allows a company to lock in an exchange rate for a future date. This provides certainty over the amount receivable in the home currency and protects against adverse currency movements. Forward contracts are widely used for budgeting and pricing stability.
Natural hedging
This involves matching foreign currency inflows with outflows. For example, if a company receives payments in USD, it could source raw materials or services in USD to offset the exposure. While not always possible, natural hedging avoids financial instrument costs.
Options contracts
Currency options give the right (but not the obligation) to exchange at a set rate. They offer more flexibility than forward contracts but come with a premium. This approach suits businesses needing protection without locking in a fixed rate.
Foreign currency accounts
Opening a foreign currency account enables a business to receive and hold foreign payments without immediate conversion. This allows the company to time the exchange based on more favourable rates, if they become available, or to use the currency for future expenses.
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