Bord Bia identifies sustainability’s key challenges and opportunities

EUROPEAN consumer commitment to sustainability issues presents both an opportunity and a challenge to Irish food exporters, according to Bord Bia.

While the green credentials of Irish food is a clear positive, it will be increasingly difficult for exporters to get their unique message across in a market in which further owner concentration is anticipated.

Irish exporters may find it hard to communicate their unique strengths in the context of a market dominated by in-store branding.

Bord Bia’s experts expressed these views based on a paper delivered by Roberto Della Casa, Bologna University and AgroTer (Italy) at the recent Europatat Congress 2011 in Taormina, Italy.

Bord Bia horticulture expert Lorcan Bourke said the concentration of purchasing power into the hands of key leading pan-European retail and foodservice groups represents a great opportunity for many businesses of sufficient scale, seeking to expand their operational base.

However, he added that the line between what is retail and what is foodservice is being blurred with the continued expansion of convenience store formats — the same products can often be developed/modified and sold into both retail and foodservice markets.

“The greatest growth of retail formats across Europe is predicted to be discounters who are predicted to grow a further 27% in sales turnover by 2014,” noted Mr Bourke.

“To be in this marketplace, large-scale suppliers must be aware of the priorities of retailers and foodservice groups,” he said.

“Shoppers are increasingly looking for products that are inbuilt with their ‘own values’ — and retailers are working with their suppliers to ensure this happens,” Mr Bourke added.

As a result, the experts are predicting that both retailers and manufacturers across Europe will continue to demonstrate their ongoing commitment to sustainability.

Recent EU-wide surveys confirm this preference.