OPINION: Ireland can become global player in seafood sector

As an island nation surrounded by rich seafood resources, there is a unique opportunity for Ireland to address the global demand for healthy seafood proteins.

Last year, Irish seafood exports grew by 18% to nearly €500m, a particularly impressive performance compared to other Irish food exports. Vast new markets are opening-up in China, Russia, Africa, and South America. Burgeoning middle-class populations in these markets will drive the demand for a widening range of seafood in different formats, including premium and exotic choices.

The big challenge for the Irish seafood sector, and indeed the entire food industry, is how to respond to a world population set to grow to 8bn by 2025.

It is not an exaggeration to say that Irish seafood is about to take off.

The goal is to increase market share and add value while developing competencies in every aspect of the global seafood supply chain. This will enable the industry to increase profits, create new jobs and sustain a vibrant sector at home.

The market opportunities are vast.

There are 90 cities in China with a population over 1m. A few of these cities could take our entire seafood production. Seafood consumption in China has quadrupled in the last 20 years to become the largest seafood market in the world.

What is clear is that demand for seafood will outpace global supply, leading to higher prices, increased competition for raw material and pressure for consolidation, excellence and scale.

Given this changing landscape, and as an island nation adjacent to the abundant fishing grounds, how can Ireland take advantage of this tremendous global opportunity?

Firstly, we need more raw material — we can achieve this in a number of ways, including the development of new salmon farms, harvesting new species such as boarfish, and by attracting foreign landings into our processing plants. Last year, Irish processors managed to attract over 80,000 tonnes, or 25% of total production from foreign vessels.

We can maximise the value of our seafood by developing new products formats to meet the needs of the culinary trade and consumers in emerging markets.

Our steps in eco-certification and DNA testing will underpin consumer confidence, ensuring seafood is safe, sustainable, and traceable, while reducing waste and conserving scarce water and energy.

Alongside these efforts, we are committed, more than ever, to achieving significant scale in the sector. Scaling is important so we can invest in management structures and sustain presence in key markets.

Our analysis of competitors indicates that we need enterprises with a turnover in excess of €50m. Today, we have too many companies in the middle ground.

What we need is a mix of larger companies with the scale and resources to compete in the market place supported by smaller innovative companies with new products ideas.

In line with Food Harvest 2020, our targets and vision is for a scaled sector with a turnover in excess of €1bn, and with five or six companies with revenues greater than €50m each, in the main shellfish, salmon, pelagic, and whitefish categories.

In 2012, a number of companies, working under the BIM Collective scheme, formed joint ventures into the Chinese and French markets. This type of collaborative model is yielding promising results, reducing market entry costs, increasing leverage with buyers, improving customer service, and developing market-led products.

Our success will come from the right combination of products and markets addressed by agile, well-financed enterprises led by strong management teams.

* Donal Buckley is the business development manager of BIM