Role in economic renewal
It was supported within days by a British assessment that the era of cheap food is gone forever, with food prices forecast to remain high over the long term.
Experts at Chatham House, the world-leading institute for debate and analysis of international issues, said underlying fundamentals driving food prices higher have not changed — such as a rising global population that is eating more protein, the food industry’s dependence on expensive energy sources such as oil and natural gas to produce and transport foodstuffs, and global shortages of agricultural land, water and rural labour.
Britain was seen as particularly vulnerable to global food or commodity shortages caused by poor harvests or disease outbreaks — but Ireland, which sends half of its €8.16 billion plus food exports to Britain, is ideally poised to fill the gap.
Further encouragement came in Taoiseach Brian Cowen’s fiscal adjustments statement on Tuesday, when he acknowledged the extreme pressure on Ireland’s exporting companies due to the decline in the value of sterling relative to the euro.
Whether the government can afford to ease that pressure — perhaps with the sterling equalisation support scheme proposed by IFA and the Irish Exporters Association — remains to be seen.
It would be money well spent. According to Bord Bia, a return to food export growth this year requires a more stable exchange rate environment, but there are prospects for recovery in all sectors of the agri-food industry of conditions are right.
The food board outlined plans to lift food, drink and horticulture exports by more than 20%, to reach €10 billion by 2011.
The relative stability of food markets during downturns was emphasised, making it a good bet — even while other sectors of the economy threaten to disintegrate.
Already, the industry has succeeded in diversifying towards continental Europe, which took 33% of our food exports in 2008.
Significant growth potential is seen in the dairy sector, as milk quotas expand, and some buoyancy returns to the market. Opportunities for growth are also seen in prepared foods, beef and alcoholic beverages.
But it was noted that success overseas must start with a strong position on the home market.
Bord Bia outlined a list of priorities for the industry if it is to compete successfully at home and overseas.
Promoting Ireland as a safe and reputable supplier of high quality food requires extra effort to cancel out the impact of the recent pork product recall, as well as sustainability measures which demonstrate and prove Ireland’s commitment to being “natural and green”.
It was envisaged Britain will still be our single largest market, but eurozone opportunities must be grasped.
Rising food imports were putting significant pressure on local processors.
Encouraged by Irish consumer support after the pork recall, Bord Bia will increase its focus on the Irish market.
Innovation in products, packaging, processing and branding are seen as critical.
An Irish beef strategy will be continued in preparation for any future world trade deal.
Support will continue for the small business sector, already producing €475 million in retail selling price terms, and growing at 10% annually.
With 65% of manufacturing exports by Irish-owned firms consisting of food and drink, these priorities assume major importance in the bid for economic renewal.
