State plans to spend €30m on consumer foods sector

THE Government, through Enterprise Ireland, expects to provide some €30 million over the next five years to progressive companies in the prepared consumer food sector.

Tánaiste Mary Coughlan announced the initiative yesterday when she and Agriculture Minister Brendan Smith launched Enterprise Ireland’s strategy for the accelerated growth and international development of Ireland’s prepared consumer foods industry.

The funding will be directed at research and development, innovation and productivity improvement.

Food and Drink Industry Ireland (FDII), the IBEC group that represents the food and drink sector, welcomed the announcement.

FDII director Paul Kelly said it will boost research and innovation and is a vote of confidence by Government in the growth and export potential of the sector.

“Last year prepared consumer food exports were valued at over €1.8 billion, which is a clear demonstration of the contribution of the sector to the Irish economy,” he said.

Mr Kelly said consumer food companies are facing a very difficult trading environment in both domestic and export markets and this initiative will help to improve their long-term competitive position

The Tánaiste said Enterprise Ireland, working in partnership with the other state agencies including Bord Bía, Bord Iascaigh Mhara (BIM) and Teagasc, has identified the prepared consumer foods sector as a key area of growth. Exports from this sector grew by 6% last year, with further growth anticipated this year.

Irish companies such as Green Isle, Rye Valley and Dawn Fresh Foods are already leading the way in the development of healthy, wholesome and tasty convenience foods and the sector offers real opportunity for further success in the future.

Minister Brendan Smith urged Irish food companies to consider partnerships with other food companies and third-level institutions.

“Industry-led research partnerships will create research with commercial applications, and exploit the world leading food science research already taking place in our third-level institutions and food research institutes,” he said.

Dick Lenehan, manager of Enterprise Ireland’s food division, said prepared consumer food is one of the most demanding sectors within the food and drink industry, driven by trends in health and well-being, convenience and quality.

“To remain internationally competitive, Irish prepared consumer foods companies continuously must offer new innovative added-value products in line with consumer and market trends,” he said.

The food industry accounts for some 10% of GDP, exports in excess of €7.5bn and direct employs 46,000.