Food sector to be worth a succulent €18bn
Given the way people are turning to foods that improve their health while providing nourishment at the same time it should not be a huge jump for the sector to exploit the changes.
These are plain to be seen on any supermarket shelf or from the rapidly emerging farmer markets spreading across the country as people become fussier about the foods they eat.
Bord Bia’s latest assessment of the challenges the food and drinks sector faces is detailed in a report called Anticipating Tomorrow.
In 2005, Agriculture Minister and Food Mary Coughlan warned the sector would be “outpaced and outstripped” by rivals elsewhere unless more money was pumped into research and development.
At the time she said a culture of R&D, innovation and risk-taking needed to be stimulated in the food industry sector.
She noted the food industry was entering a more demanding era following recent fundamental changes to farmer subsidies. It was a time for the sector to acquire new skills, knowledge and techniques to remain competitive.
With exports topping€8bn last year, up more than €1bn on the previous year, it is not unreasonable to conclude we have taken to this challenge with gusto.
When we look back at where we were 20 or 30 years ago, the range of foods produced locally and by Irish food processors, plus the variety of drinks on the market, is testimony to the fact that we have continued to battle on, sometimes against the odds and often without a proper understanding of the pressures faced by the sector.
Fuel costs alone are crippling for some and the Government keeps extending its hand for VAT.
Notwithstanding the blind indifference displayed by the State, the food and drinks sector has pitted its wits against far bigger and better economies down through the years.
The new assessment of what’s facing the food sector will not discommode too many of the companies committed to providing quality and value for the increasingly demanding consumer.
Having said that, the image of this country being overrun by fast food outlets driven by the worst aspects of US eating habits hardly inspires confidence in the future of Irish food.
However, without getting too technical, Ireland is responding to this challenge.
It emerged yesterday that Tesco is offering 1,200 organically grown products to its broad consumer base.
In a separate development, it emerged Donegal Creameries has taken a decision to convert its 2,500 acres in its An Grianan estate to the production of organic milk and vegetables.
This will most likely lead to the group producing a whole range of branded organic dairy and vegetable ranges over time. Ian Ireland, managing director of the group, yesterday confirmed the creamery’s change in direction.
The decision was taken earlier in the year and is further evidence of how a relatively small player in the Irish food sector is seeking to tap the obvious potential emerging in this growing segment of the market.
Health and care for the environment are identified as two key areas of growing interest to the Irish consumer by Bord Bia.
How our eating habits evolve is never that easy to predict but in its analysis the state body makes it clear that nothing can be taken for granted.
Bord Bia boss Aidan Cotter said it was “more important than ever that the industry is proactive in looking forward, interpreting and adapting to new trends in consumer demands and opportunities presented by technological advances”.
