Exporters capitalising on growth of private label in central Europe

INCREASING numbers of food exporters are capitalising on the growth in sales of private-label goods in central Europe, according to Bord Bia chief executive Aidan Cotter.

With its sights firmly set on the Food Harvest 2020 goals of 50% exports’ growth over the next decade, Bord Bia welcomes the soaring drive of food exports into new markets such as China and Africa.

Crucially, this growth has come at a time when Irish food producers have driven down their production costs. With central European retailers now drifting towards the British private-label model of the likes of Tesco and Sainsbury, the newly trimmed down Irish food exporters seem ideally placed to also build sales among cost-conscious European consumers.

Aidan Cotter said: “When it comes to accessing new markets, most companies can see the attractiveness of coming in under the retailer’s own brand. In the home market, the branded route to market will always be the preferred option, but much of the overseas growth has come from private-label sales.

“The Irish food sector has to look to new markets if we are to grow our sales by 50% by 2020. The UK’s share in our overall exports has gone from 44% down to 40% because there is a shift to Asia and other markets.

“The UK will always be a profitable market for prepared consumer foods, but this category is also growing in France, the Benelux countries and Scandinavia. Our research shows that this drive will continue to be driven by private-label sales.”

Prepared consumer foods, such as frozen goods and readymade meals, offer great added value to the Irish economy, creating sustainable food production jobs. The main challenges facing Irish food exporters are in the logistics of accessing new markets, remaining competitive on price and staying ahead of consumer trends in target markets.

To this end, hundreds of Irish food exporters will get help in developing new export channels at Bord Bia’s Marketplace International 2012.

Scheduled for February 7 in the National Convention Centre, the food producers will take part in thousands of one-to-one meetings with around 380 international buyers. It is expected to secure €15m in new business.

Exports are set to breach an all-time high of €9bn this year. Sales to China are set to grow by almost 20% this year and will exceed €150m (according to the Agricultural Science Association), having topped €100m for the first time last year.