Agri-food sector ‘must innovate’
She told the Agri Vision 2015 Stakeholders Forum at the Royal Hospital in Kilmainham, Dublin, that the main supermarkets have a large and increasing share of the Irish and European retail sector.
This is increasing the competition between these stores and as a result there is a cost squeezing of food processors.
Ms Coughlan said these retail chains, with their ability to source food products of a given quality trans-nationally from across, and indeed outside the EU, will continue to increase price competition in the Irish and EU retail sector.
Stressing that the market for Irish food companies is now global, she said developments in international food retailing, such as trans-national sourcing and central distribution networks, affect the profitability of sales to Irish, European and wider global retailing customers.
Ms Coughlan said the agri-food industry must develop a culture focused on entrepreneurship, innovation and efficiency to counter the challenges from competitive markets, especially in terms of the cost-price squeeze along the length of the value chain.
It must continue and accelerate the process of structural change at farm and processor level to achieve the most competitive structures possible. It must ensure that the knowledge base and technical skills of the sector are developed to place it in a world leading position.
“We must respond to new consumer demands for safe, convenient and nutritious foods produced in a sustainable and environmentally friendly manner,” she added.
Senior figures in the agri-food and drinks industries reviewed the first year of 2015 Agri Vision Action Plan at the forum.
The plan highlights competitiveness, innovation and consumer-focused marketing as requirements for the further success of the industry which serves 80 million customers worldwide.
Ms Coughlan said the Government is delivering financially on the actions set out in the plan for the industry which recorded exports of over €8 billion last year.
Total funding for the agri package amounts to €8.6bn under the National Development Plan 2007-2013, comprising €6.4bn from the Exchequer and €2.1bn from the EU.
Ms Coughlan said there is often talk about the demise of farming and that the agri-food sector is felt to be waning as an industry.
“I fail to see how the agri-food sector, of which farming is such a vital component, which delivers 9% of gross domestic product and employs, directly and indirectly, almost 9% of the labour force in this country, could be seen in such a light,” she said.
Ms Coughlan said Ireland has a dynamic agri-food industry with deep roots and strong linkages. “We need to make sure that we stay in front,” she said.
The former EU agriculture commissioner Ray MacSharry presided at the forum, which was also addressed by Professor Cees Veerman, former Dutch Minister for Agriculture; Professor Robert Thompson, chairman of agricultural policy at the University of Illinois, and Jens Schaps of the European Commission Trade Directorate, deputising for Commissioner Peter Mandelson.
