Food scarcity opens opportunities for industry
The cost of the global food basket rose 21% to €502 billion, sparking food riots in many parts of the world.
It also warned that the problem of hunger in the world, with 200 million people reliant on aid to survive, is likely to get worse.
The threat of mounting hunger and starvation is a growing threat for an increasing number of countries that are already in the grip of poverty and who have to import much of their food.
The threat of world hunger was raised 200 years ago by the British political economist Robert Malthus, who warned the world would not be able to feed itself due to its growing population.
Despite the growing sophistication of agriculture and the evolution of GM crops, mankind has been losing the race in terms of agricultural output.
According to the UN, over the past 20 years the world’s population has been growing at the rate 1.35% per annum, fractionally ahead of world food output, which has gone up by 1.3% annually over the same period.
The switch to biofuel technology is also inextricably linked with the growing food shortage, while Asia’s accelerating switch from a grain to a meat diet is exacerbating the problem.
It is a curious anomaly that improving living standards are affecting world food supply as more people demand forms of protein — such as meat and dairy produce — that they associate with a higher standard of living.
One statistic highlights the tensions between grain and meat production: an acre of land used to produce rice and beans delivers about six times more protein than beef production land.
Riots have been recorded in various hot spots in the world as hunger starts to affect more people.
EU policy has been deeply affected by the security of food supply, a huge issue after the second world war when food policy was constructed around ensuring reasonable living standards for farmers to guarantee they kept producing the food we needed.
If the statistics on demand are right, then the world will need to harness every single available acre of land to feed the increasing number of mouths on the planet.
Set-aside looks as if it will become a thing of the past and Irish agriculture could indeed be moving into a golden era. This should be good news for the Irish food sector and it will be interesting to see what new strategies Bord Bia outlines when it publishes its new strategy for the sector tomorrow.
In the context of what’s been happening, the Bord Bia’s report — Anticipating Tomorrow — should spell out the options and challenges facing the Irish food and drink industry.
The report will offer four possible future scenarios for 2020, which examine different consumer attitudes and what motivates them to reach for one product over another.
Critically, the report identifies key strategic priorities for the industry that Bord Bia says will facilitate the future survival of groups in a sector that is becoming seriously competitive.
The report will stress the need for the following:
* Strong consumer connections.
* Flexibility, creativity and innovation.
* Visionary leadership.
* Improving efficiency.
* Effective routes to market.
Despite the positive outlook for food and agriculture starting to emerge there are no certainties.
While the future may be bright, it is far from a given. The Bord Bia report should hopefully help hone the debate on future strategy for the food and drink sectors in Ireland.
