Quality food producers set to benefit from horsemeat scandal, study claims

Quality Irish food producers are likely to benefit from the horsemeat scandal as consumers begin to favour local suppliers, a study shows.

Irish consumers are seeking more information about food producers and traceability, with customers gravitating towards local businesses they can trust, according to the report.

The report, entitled ‘Driving and Mobilising Growth by Leveraging Irish Food and Food Tourism’, was produced by Good Food Ireland and Grant Thornton, and says the €450m sector is set to grow.

It highlights the effect the horsemeat scandal has had on the food industry here, , how labelling deception is widespread across Europe, and how Good Food Ireland businesses expect to grow profits in 2013.

Speaking at the launch at Dublin’s Merrion Hotel, Ciara Jackson, the head of food at Grant Thornton, said: “The report shows that 97% of Good Food Ireland businesses expect higher turnover in 2013, with the horsemeat scandal to play a significant role in driving this growth. The survey also shows strong support for regulation that places renewed emphasis on traceability and provenance.

“Labelling of foodstuffs is an EU-wide problem. The level of complexity, particularly the number of countries horsemeat travelled through to end up in a processed beef burger, is frightening. One positive that has emerged from the horsemeat scandal is that the food-labelling issue has been pushed to the top of EU policymakers’ agenda.”

Some of the report’s key findings from a survey of more than 600 food providers include:

* 97% expect turnover to increase or remain the same in 2013 (2012: 95%);

* 88% expect an increase in earnings (profit) in 2013 (2012: 81%);

* Four out of five achieved earnings expectations last year (2012: Two in three);

* 71% welcome regulation that places renewed emphasis on food sustainability such as traceability and provenance;

* 97% feel that local Irish food is an integral economic driver for their business;

* The main business challenges faced are: Costs and overheads (37%), decreases in consumer spending (16%), and access to finance (10%).

The report also highlights the importance Good Food Ireland businesses place on leveraging their ‘Irishness’ for international growth and attracting interest from tourists, with nearly all focused on their Irish heritage to market their products and services.

Margaret Jeffares, managing director of Good Food Ireland, said: “Good Food Ireland businesses can expect to benefit as consumers increasingly vote with their wallets and choose to buy quality food they can trust.”