Markets must set out their stall
Bord Bia predicts that overall market numbers can be expected to remain static during 2014 and 2015. But there is potential to grow the numbers significantly by the end of the decade — if the correct actions are taken, it says.
The food board says this makes it an exciting period for the sector, but also a time for watchfulness and foresight.
It recently launched the Guide to Food Markets in Ireland following research last year that found there is much more diversity in the markets than might initially have been expected.
They range from community, farmers, lunch-time, and weekend city markets to co-operatives and country markets. They all aim to allow producers to sell their (usually local) produce directly to consumers in a traditional market environment.
Tara McCarthy, food and beverage director of Bord Bia, said Irish consumers are increasingly sophisticated, becoming more discerning and knowledgeable about the quality and provenance of the food they buy.
“Our research conveyed that nearly 80% of consumers believe that food produced locally results in higher quality products, while 77% are more confident in the safety of food produced in their local area,” she said.
“Consumers are saying they wish to sustain their own local community. Therefore, markets provide an accessible way of connecting producers with consumers.”
Further opportunities for food markets outlined in the Bord Bia guide include consumers’ perception of the link between produce and a healthier lifestyle. A growing interest in ‘street food’ culture, and the theatrical experience created by the producers at the markets are listed as other positives.
Challenges include the perception by some consumers that markets are more expensive than traditional shops. Charges for a pitch at a market versus the sales revenue achieved and weather-related problems are also listed as challenges.
The guide, launched by Tom Hayes, the food minister,characterises the changing food market models in Ireland. It provides practical advice to stallholders and managers on how to set up and manage markets, as well as assessing future trends.
Although consumers are perceived to be willing to pay more for an ‘authentic’ experience, the guide warns that food markets need to recognise that value for money is still a priority.
While customers’ interest in attending markets is growing, the guide suggests that managers would do well to recognise that adding a sense of entertainment to this experience will be important in attracting and building a loyal customer base. Customers expect food markets to be as competitive as the supermarket sector, particularly in the area of primary produce.
The markets are also expected to provide a social and cultural outlet, which might be a challenging square to circle. The use of social media by both market managers and stallholders is expected to grow in importance.
Market managers will also be required to invest some thought into how they can protect and build their brand. As part of this, there will be an increasing drive to ‘food-only’ markets.
This is due to a growing perception that the presence of non-food offerings can lower the standard of a market, if not managed carefully.
High-quality, locally produced art and crafts will continue to play a role in some rural and seasonal markets, but only so long as it is not at the expense of the primary food offering.
Ensuring the place of primary artisan food producers as anchor tenants is important if strong local appeal is to be maintained in food markets. But the guide also points out that food markets should serve diverse audiences.
It suggests that in urban markets in particular, an increased focus on international food and hot food offering can make more sense, particularly on selected days.
The guide states that food markets are about connecting consumers to quality local food produce, but they require constant focus if they are to deliver what the customer wants. It warns that those that do not put resources into re-energising their proposition and improving their structures will struggle to find new consumers and face decline.
Bord Bia chief executive Aidan Cotter said food markets have the potential to be the backbone of local food systems, and integral parts of our economy and identity.
The development of thriving markets requires time and energy, but the rewards for the broader community, whether rural or urban, are considerable.
Mr Cotter said these markets are a source of entrepreneurship, social exchange, local character, and diverse foods, as well as providing income to producers.
“They are an extremely important route to market for Irish food producers, particularly those at start-up stage,” he said.
