Food, drink exports paint impressive picture
This sector was behind 8.8% of Ireland’s GDP, 8.4% of exports and 9.1% of total employment.
The latest estimated output of the industry is valued at €16.6bn annually.
Up to 678 companies are engaged in the food and drinks sector, employing 47,000 people.
A further 108,200 people are employed in agriculture. Though smaller today in terms of size, in the overall context of the economy, the statistics paint an impressive picture of the state of the industry. Britain accounted for 42% of agri-food and drink exports in 2004, and 31% went to the rest of the EU.
Estimates of export distribution by sector were: dairy products and ingredients (26%), prepared consumer foods (22%), beef and live animals (21%), beverages (14%), pig meat and poultry (7%), sheep and sheep meat (2%), mariculture (5%) and edible horticulture (3%).
In that context it makes sense that Bord Bia sponsors awards recognising excellence in the sector.
This year saw the second Ireland The Food Island Food & Drinks Industry Awards, which were held in Dublin last week. This year’s winner was meat company Kepak, which was honoured for its Global Cuisine initiative.
It was judged to have offered a unique consumer idea and created a market category for fully-cooked meat.
Its product allows the consumer the convenience and quality of a Sunday roast without the lengthy preparation and cooking time.
The citation made at the awards ceremony last week said Kepak was “an example of a company reinventing and adding value” to essentially a commodity-driven end of the food business.
Not only has this lived up to consumer expectations, it would seem, but it was also highly innovative.
The idea comes from the US and germinated when Kepak went there on a fact-finding trip with Bord Bia and hit on a new product category called Heat’n’Serve.
A research project was undertaken in 2002 in conjunction with Enterprise Ireland to investigate the market potential for the product in Ireland and the UK.
In August 2004, a range of meals branded Global Cuisine Ready Roast was launched on the Irish market. The range was extended into Britain in January this year.
Time will ultimately be the true test of how well this category does for Kepak.
However, this is the kind of innovation, driven by consumer focus and forward thinking that the food sector needs if it is to stay at the cutting edge.
It also fits Kepak’s aim to drive growth in the meat industry by delivering what the consumer wants.
It’s a clear message which Bord Bia has been delivering for a number of years.
It’s become a cliché to say that the consumer is king in today’s cash-rich, time-poor society.
Give them what they want and they will respond is the way ahead.
Kepak has been aware of that for some time, as have lots of other Irish companies in the sector.
Over 100 Irish companies took part in this year’s Bord Bia event and the turnout bodes well for the future.
However, there is no room for complacency and the role of public and private-sector agencies in driving innovation is vital to the success of not just the food sector, but Irish business in general.
Kepak generated sales last year of €650 million. It exports 80% of its output, while 12% is in branded goods.
It employs 2,500 people.
The group was set up in 1981 by the late Noel Keating and is headquartered in Co Meath.
Kepak serves markets in Ireland, Britain, Italy, France, Spain and also conducts business in non-EU countries.
It has nine processing sites and six sales offices, from which it drives its business internationally.
