Cluster groups ‘could boost firms’

CLUSTER groups should be set up to promote small- and medium-sized food businesses in Ireland.

Food marketing consultant Conor Hyde made the call in response to the Food Harvest 2020 medium-term Government strategy for the sector.

He said many of the 209 recommendations outlined in the report are very worthwhile, but the success of innovative approaches emerging in similar markets across Europe should also be examined. Mr Hyde, managing director, Bullseye Food Marketing, said the marketing of the food industry in Ireland would significantly benefit from increased regional co-ordination.

“I would advocate a new ‘joined up’ approach that would offer the opportunity for Irish SME food producers to pool their resources and form cluster groups,” he said.

Mr Hyde said this concept has worked extremely well in Britain, where regional food hubs are becoming increasingly predominant. These not only benefit food producers, but also have advantages for distributors, agents and retailers.

Food SMEs particularly in Britain are creating regional alliances where they share sales contacts and distribution leads in foreign markets.

Mr Hyde said Ireland annually exports food and beverage products worth more than €7 billion. That accounts for half of domestic manufacturing exports. But the Food Harvest report makes it clear there’s still room for growth.