Making a World of Difference - Statement of Strategy 2016 2018
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Making a World of Difference Statement of Strategy 2016 - 2018 Growing the success of Irish food & horticulture
2
Contents
1. Preface 6
2. Context: The forces shaping the future 8
• Macro forces of change 10
• Future contours 20
3. A Vision for the Irish Food and Drink Industry 28
• The vision 28
• The strategic pillars & action plan 31
4. Achieving the Vision 38
The plan for achieving it: 38
– Industry-wide actions 39-51
– Sector-based actions 39-51
3
Mission Statement
“To drive, through market insight,
and, in partnership with industry,
the commercial success of a
world-class food, drink and
horticulture industry.”
4
Strategic Objectives
1. To actively contribute to the success and development of the
Irish food, drink and horticulture industry.
2. To enhance the reputation, based on the principles of
sustainable development, of Irish food, drink and horticulture,
among consumer and trade buyers in the marketplace.
3. To be the authoritative source of strategic insight linking
market opportunities to industry.
4. To lead a collaborative approach with the key agencies involved
in serving Irish food, drink and horticulture.
5. To pursue emerging opportunities and actively respond to
significant market issues that affect industry.
6. To deliver value-for-money with expenditure.
5
1. Preface
The performance of the food, and a free trade agreement however, in our environment.
drink and horticulture sector between Europe and North
continues to excel. America is currently under
discussion. Longer life The FAO food price
Irish food and drink expectancy and an ever index, while remaining
exports have now increasing focus on health well above the level of
experienced six years of and wellbeing continue to the previous decade has
rise on the global agenda, come off its 2011 peak
consecutive, sustained
accompanied by growing and has been falling
growth, to reach €10.8 now for four years,
concerns about obesity and
billion by 2016, which lifestyle-related diseases. while volatility, where
is 52% higher and €3.7 weather plays a major
billion more than where Discount retailing and retailer role, requires constant
brands continue to make gains monitoring.
they stood in 2009.
in market share while the rise
in mobile technology offers a The UK remains our largest
And future prospects remain new system of engagement market by a distance and its
bright. The underlying factors and interactions around the population growth is forecast
of population, middle-class world. to be the highest in Europe.
growth and urbanisation will Yet, its proposed referendum
continue to underpin the The perception of Ireland in a on EU membership raises
expansion in global demand marketplace that is placing a new uncertainties. And
well into the future. At the growing emphasis on how and while recent movements in
same time, the lifting of dairy where our food is produced currencies are to Ireland’s
quotas and the continued remains strongly positive. advantage, we remain
broadening of access for our Our grass-based production vulnerable to currency
beef industry remove some of systems, our island status fluctuation when some 70%
the key constraints limiting our and our ocean wealth are key of our exports are to markets
industry’s capacity to exploit strengths that highlight our outside of the Eurozone.
the opportunities generated by green credentials, all now
export markets. underpinned by the unique Indeed, Ireland’s relative
commitment to which our international competitiveness
In the meantime, the farmers and our fishermen, as measured by the
marketing environment has and our food and our beverage Competitiveness Scorecard
continued to evolve. The processors are making under published by the National
Common Agricultural Policy the Origin Green umbrella. Competitiveness Council in
and the Common Fisheries 2015 warns that while we have
Significant challenges remain,
Policy have been reformed, made progress, our ability to
6
compete has been boosted by consumer marketplace.
benign external factors that
could quickly be reversed. ■■ Uncover the opportunities Why a vision?
and challenges that these
The industry’s expertise in contours represent for An important
developing international the Irish food and drink part of Bord Bia’s
markets, evidenced by the industry.
significant expansion to role is to support
markets outside of Europe ■■ Identify key changes in its members by
over recent years, is a major consumer behaviour.
strength. helping them
■■ Outline the actions that make better, more
This statement looks at the need to be taken, for the
trends that will affect the industry and for each informed, strategic
development of the global food sector. decisions. Working
and drink market over the next
ten years — and at what they The statement is designed together towards
mean for the Irish food and to help organisation and its a unified, shared
drink industry. stakeholders respond to
change more effectively and vision is a key part
It builds on Food Wise 2025, thereby safeguard the future of this.
the report of the Agri- of the Irish food and drink
Food Strategy Committee, industry. In an uncertain,
coordinated by the
Department of Agriculture, complex world, it
Food and the Marine (DAFM), is all too easy to be
which sets out the strategic
plan for the development of blown off course
the agri-food sector over the by events as they
Michael Carey, Chairman
next decade.
occur. A vision
Based on original qualitative acts as a ‘guiding
research and discussions
with companies, producers, star’, allowing an
academics and industry organisation to
experts, it sets out a bold but
realistic vision of the industry
Aidan Cotter, Chief Executive
remain focused
in 2025. In particular, it sets and to adapt
out our Statement of Strategy,
our commitment to and plan and respond
for working with the food, drink to changes
and horticultural sectors to
achieve this vision. and ‘external
shocks’ more
More specifically, we:
effectively.
■■ Explore the broad contours
that will shape the global
7
2. The forces
shaping the future
The vision has been developed in the
context of changes in the operating
environment.
These changes can be subdivided into
three categories:
8
Macro dynamics –
These are the social, technological, environmental, economic
and political forces that shape the business environment.
They represent long-term, macro, global forces of change, with
the potential to reshape many aspects of our lives. Given the
magnitude of these shifts, we expect they will be relevant and
influential over the next decade and beyond.
Consumer trends Food contours
These represent sustained shifts in attitudes, These represent some of the major shifts
values and behaviours that drive changes in the global food system — so, the major
in consumer / shopper choices and needs. trends that we see reshaping the way that
These shifts in consumer behaviour are we source, produce and consume food.
shorter term, and typically help to guide us These shifts are often driven by the macro
over the next two to five years. Bord Bia’s dynamics mentioned above, and should be
Consumer Lifestyle Trends Programme tracks important in reshaping the food system over
consumer trends on an ongoing basis. the next five to ten years.
9
Macro Dynamics – Long
term, macro, global forces of
change
101. Shifts in the balance of world economic power
The world economic order
has changed. Economies in
the South and East are now
leaders in terms of GDP.
China is ranked number 2
in the world, Brazil number
7 and Russia and India 9th
and 10th respectively.1
The burgeoning middle
class in Asia is creating new
markets for consumer goods.
Asia’s share of the
By 2030, there will be new middle class
2.7 billion new Asian to more than double
middle-class consumers,
accounting for 90% of from its current 30% to
global middle-class growth. 64% by 2030.
In China around one billion
people - as much as 70%
of the country’s projected
population - could be middle
class.2
Rapid economic growth
in China, India, Indonesia,
Vietnam, Thailand, and
Malaysia will cause Asia’s
share of the new middle
class to more than double
from its current 30% to
64% by 2030 and mean
Asia will account for over
40% of global middle-class
consumption.3
112. Increasing empowerment of women
The future, it seems,
is female. Though
inequalities remain,
women are making huge
strides in education,
employment and
commerce.
■■ Two-thirds of the world’s
781 million illiterate
adults are women. Even
though the size of the
global illiterate population
is shrinking, the female
proportion has remained
virtually steady to around
64%. However, youth Two-thirds of the
illiteracy only has a 5% world’s 781 million
gender gap, with 87% of
female youths with basic illiterate adults are
literacy skills, compared women.4
to 92% of male youths.
However, in tertiary
education women are
outpacing men with only
3 of the OECD countries
with fewer women than
men.5
■■ Women’s participation in
the global labour force has
held steady since 1990,
while men’s has fallen.
However, women are more
likely to be employed in
the services sector and the
informal economy, and are
less likely to occupy senior
positions. For example, just
25 Fortune 500 companies
are run by women.6
123. Global urbanisation
Density is destiny. Urban ■■ The UN predicts that by
living will increasingly be 2030, 3 billion people, or
the norm across the world, about 40% of the world’s
raising issues about quality population, will need
of life and community proper housing and access
dynamics. to basic infrastructure and
services such as water and
■■ By mid-century, two- sanitation systems.8 This
thirds of the world’s translates to the need to
population will live in complete 96,150 housing
cities, compared with units per day with serviced
just over half today. and documented land from
Megacities — cities with now till 2030.9
more than 10 million
inhabitants — are a major
force for the future. The
UN predicts 41 megacities
by 2030, accounting for By mid-century, two-
14% of the world’s urban thirds of the world’s
population.7 Most new
ones will be in newly population will live
industrialised countries in cities, compared
and the developing
world. The list already
with just over half
includes Mumbai, Mexico today.
City, Beijing, São Paulo,
Manila, Karachi and Lagos.
The developing world is
becoming predominantly
urban, with urbanisation
in developing countries
proceeding faster than
in developed countries.
However, the correlation
of the rate of urbanisation
with economic growth
has been weaker. A third
of the urban population
in emerging markets
live in slums, and the
proportion is predicted
to increase by 6 million
people annually through
to 2020.
134. Changing attitudes to ageing
Old age will be reinvented.
Longer life expectancy
will radically alter societal
perceptions and priorities
related to work, leisure and
health.
■■ Global life expectancy
for men and women
has increased by
about six years over
the past two decades.
The 85-and-over
Furthermore, the population is
85-and-over population projected to increase
is projected to increase
351% between 2010 351 percent between
and 2050, compared to 2010 and 2050.
a 188% increase for the
population aged 65 or
older and a 22% increase
for the population under
age 65 10
■■ In North America and
Europe, many people are
working (either through
choice or economic
necessity) past traditional
retirement age, often
part-time. Others see
retirement as a chance to
change direction and do
something more fulfilling.11
■■ Exercise, a healthy diet
and keeping up with
new technologies are
all priorities for older
consumers to stay young.
For example, American
senior citizens (65+)
are the biggest group
of adopters on social
networks.12
145. Changing household structures and family roles
The concept of the
‘household’ will be
more diverse and
unconventional, and this
will also be reflected in
more fluid family roles and
responsibilities.
■■ Over the past half century,
households have changed
dramatically. Fewer adults
marry; more get divorced.
Single-occupant
Single parenthood is more households now
common, as are blended account for 15% of the
families, where children
have only one parent in total worldwide and 31%
common. in Western Europe.
■■ Globally, the number of
households is increasing
as more people live on
their own or in smaller
family units. Single-
occupant households
now account for 15%
of the total worldwide
and 31% in Western
Europe.13 The number of
households in the world’s
major cities is expected to
grow 2.3 times faster than
the cities themselves.14
156. Increasing economic inequality
The disparity between rich
and poor — both within
and across regions — is
growing.
■■ Despite strong economic
growth and the creation of
millions of new jobs since
the early 1990s, income
inequality has widened
in many regions of the Globally, more than
world .15 According to half of consumers
Oxfam, the combined
wealth of the richest 1%
say they’re angry that
will overtake that of the wealth is concentrated
other 99% of people by in the hands of the few.
2016 if the current trend
continues.16
■■ Income inequality in India
has doubled in the past
20 years. China, Russia,
and South Africa have
also become significantly
less equal during that
time period.
■■ Globally, more than half
of consumers say they’re
angry that wealth is
concentrated in the hands
of the few. In the hardest-
hit European markets
(Italy and Spain), the
proportion tops 70%.17
167. Global rise in lifestyle diseases
Across the world, rising
prosperity and modern
conveniences are leading
to a higher incidence of
life-threatening health
conditions such as obesity,
diabetes and heart
disease.18
“Diabesity” is a new term
for the twin epidemics of
Obesity has more
obesity and diabetes. Obesity than doubled
has more than doubled worldwide since 1980.
worldwide since 1980.
Currently, about 347 million
people worldwide have
diabetes, and the disease
is predicted to become the
seventh biggest cause of
death globally by 2030, with
total deaths projected to
rise by more than 50% in
the next 10 years and much
of the growth coming from
emerging markets.19
■■ Changes in nutrition,
labour and leisure are
leading to an increased
incidence of lifestyle-
related conditions.
Evidence is mounting that
the high levels of fat, sugar
and salt typically found in
the diets common in more
prosperous countries are
linked to cancer.20
178. Rise in the use of mobile technology
Mobile technologies are
rapidly becoming the
preferred means of Internet
access, especially for
leapfrogging emerging
markets.21
■■ Internet-enabled mobile
devices, including
smartphones, tablets,
PDAs and netbooks, Smartphone
are set to become the subscriptions will
dominant computing
medium of the next
more than double
decade.22 by 2020, reaching
6.1 billion.
■■ Smartphone subscriptions
will more than double by
2020, reaching 6.1 billion.
Almost 80% of these new
subscriptions will come
from Asia Pacific, the
Middle East and Africa.
■■ In many developing
markets, ownership
of mobile phones now
outstrips access to basics
such as electricity and
sanitation. The Middle
East and Africa will have
the strongest mobile data
traffic growth of any region
between 2014 and 2019.
189. Growing climate change impacts
Scientists are increasingly
linking climate change
to extreme weather
events and longer-term
temperature and sea-level
shifts.
Extreme weather events
(such as hurricanes and
tornadoes) are increasing in
frequency and intensity. The
Extreme weather
consequences associated events (such
with these events are also as hurricanes
on the rise in terms of
destroyed property, declining and tornadoes) are
crop yields, shifting water increasing in frequency
resources, rising sea levels
and a variety of health
and intensity.
challenges.
■■ Recent work by NASA’s
National Climate
Assessment centre
suggests that rainfall
levels, droughts, high-
intensity hurricanes and
severe flooding are all
increasing and projected
to continue as the world’s
climate warms.
■■ The moderate global
warming that has already
occurred as a result of
human emissions has
quadrupled the frequency
of certain heat extremes
since the Industrial
Revolution. A failure to
bring greenhouse gases
under control could
eventually lead to a 62-
fold increase in such heat
blasts.
19Future Contours — changes in
the way we source, produce and
consume food
201. New buying habits
Wages and overall standards
of living continue to stagnate
in many markets, even
as the global economy
recovers some of its
previous momentum. Many
consumers are making more
considered and researched
purchases. As the economy
improves, many habits
developed during the
recession will remain and
become new norms. The
continued growth and
success of discounters is
an indication of this. We are
seeing shoppers buying from
discounters but also trading
up in local shops or more
premium supermarkets.
There is a greater polarity in
buying habits.
212. Building trust chains
Consumers continue
to demand greater
transparency and
traceability throughout the
food production process.
High-profile food scares and
scandals worldwide have
eroded public trust and
made people suspicious of
complex supply chains in
the food and drink sector.
Third-party organisations
such as NGOs are becoming
increasingly important to
consumers as they seek
ways to validate their
food and drink choices. In
addition, people are turning
more to family members,
peer networks and familiar
local suppliers for advice
about what they eat and
drink.
223. Increased health concerns
Both organisations and
individuals are increasingly
focused on good health
and wellbeing as people
struggle with lifestyle
diseases, intolerances and
poor nutrition.
At the same time, attitudes
to health are more holistic,
with many people looking
for natural, organic and
preventative solutions.
In parallel, technology is
giving consumers new
ways to pursue their
health and wellbeing goals,
and helping to increase
consumer understanding
of the functional benefits
of ingredients. People are
increasingly looking for foods
that satisfy their personal
health needs — for example,
iron-rich, vitamin-enriched
foods, and sugar substitutes.
234. Reinventing mealtimes
‘Time poverty’ means that
consumers’ involvement in
preparing their own food is
set to decline.
We will see significant shifts
and innovations in food and
drink products and offerings,
routes-to-market and
business models. Despite the
increased time pressure that
consumers face, they still
want to retain a connection
to food preparation and to
retain some ownership of the
process.
There is, therefore, a demand
for more high-quality,
sophisticated, time-saving
solutions that offer both
health benefits and the
chance to be creative in
the kitchen. An example is
the meal assembly ‘kit’ that
comes complete with fresh
ingredients.
245. New retail routes
Consumers are increasingly
open to new ways of
buying food – moving from
the traditional weekly
supermarket shop to more
frequent trips to local
stores, and to online retail.
These changes are driven by
the search for convenience,
bargain-hunting and the
need for specific ingredients/
products that are not
available in all stores, as well
as more emotional desires.
Digital technology has had
a significant impact on
the provision of new retail
routes. Companies are
increasingly harnessing the
opportunity that online and
mobile provide to streamline
the purchase, delivery and
creation of food products.
256. New forms of production
To meet the needs of the
growing global population
and the challenges
presented by climate
change, the agricultural
system will need to evolve.
As growing conditions shift,
new technologies in plant
engineering and farming
grounded in regional
knowledge will cultivate new
resilience. Technological
advances and greater
international collaboration
are enabling a wider variety of
forms of food production.
267. Resource-constrained diets
With rising scarcity of
resources such as water,
energy and arable land the
range of foods we eat, and
where we source our food
from, will have to evolve.
This will entail identifying
new sources of nutrition,
intelligent modification of
local ingredients, and the use
of new technologies, as well
as rethinking our approach to
food waste.
273. A Vision for the Irish
Food and Drink Industry
This statement puts forward a vision for the Irish food and drink industry in
2025 and proposes ways to achieve it. Both the vision and the action plan have
been developed after an extensive and wide-ranging stakeholder-engagement
process.
example the sustainable basis .
Qualitative research for food production and the
included: high-quality, natural resources
such as Ireland’s water and
grass, that are core to so much
■■ Interactive stakeholder of its produce and ingredients.
workshops with There is a clear opportunity
participants from food for the industry to continue to
and drink sectors, build upon these strengths –
industry associations and on the passion, skill and
and other relevant dedication of our producers.
partner organisations,
and academic At the same time, we recognise
institutions that the food and drink
industry faces huge challenges
over the next decade. While
■■ A series of interviews the more extreme effects of
with stakeholders from climate change are unlikely to
inside and outside the be seen in day-to-day weather
industry for another two generations,
there is increasing evidence
that extreme weather events
■■ Written submissions across the globe are already
from individual being intensified by climate
organisations change. The consequences for
food production are profound,
and the challenge for the
industry is to transition to
The clear ambition behind a model of production that
the vision is for Irish food fulfills our needs – within
and drink to be recognised planetary limits.
as world-class by consumers
in Ireland and more widely. Passion and innovation are
A key part of this is making central to this mission, with
sure that the qualities that the aim of demonstrating on
help to make Irish food and a global stage the qualities
drink unique are more front-of that make food and drink from
mind-than they are now – for Ireland unique and sustainable.
28“
Ireland: 2025
Customers around the globe recognise that
Irish food and drink is world-class: that it
is high-quality, distinctive, and made by a
diverse range of creative producers from a
unique and fortuitous island location.
And our producers set the global standard
in sustainable production – meeting the
responsibility we all have to the planet, to
society, and to future generations.
We have everything we need for a better,
more sustainable food system. There has
”
never been a better time to act, and to set
an example for the world.
29We believe this Vision is The passion of producers
achievable by 2025. Ireland’s and their commitment to
advantages — its sustainable demonstrating on a global
basis for food production, its stage the qualities that make
climate, its natural resources, Irish food and drink unique will,
its water and grass — make of course, also be decisive.
it a natural leader for food
and drink. This, though, is a The pillars described above
different thing from saying have practical implications
the development of the food for members of the food and
and drink industry can happen drink industry — in both the
‘naturally’. short and long term. At the
beginning of March 2015,
The Vision depends on five in-depth workshop sessions
strategic pillars, each of which were held with stakeholders
supports the growth of the to isolate and identify these
industry. It will be: implications.
The workshops were later
1. Informed by supplemented with further
consumer insight stakeholder and external
interviews and discussions
2. Enabled by valued with Bord Bia — and by a
people, talent and review of recent research on
infrastructure the food and drink industry.
3. Underpinned by The result is an ‘action plan’
Origin Green consisting of both industry-
wide and sector-specific
4. Realised by effective actions. The actions are not
routes to market and meant to be comprehensive
business conversion — or sufficient. However they
can be seen as fundamental
5. Supported by strong and essential steps on the path
brand communications towards a more certain future.
in the digital age
301 A Vision informed by consumer insight
market to expand their growth innovation experiences
The consumer is at the and success in overseas to ensure the Centre is a
heart of the Vision — and markets. state-of-the-art, outward
strategies for business looking and world-class
growth need to be The Centre for Consumer facility.
consumer-led. Insight will be both a built
and globally connected ■■ Enhance investment in
virtual environment - an knowledge sources and
The world will continue to inspirational and creative content management.
evolve in significant ways over place where consumers,
the next ten years. Consumer producers, researchers and ■■ Increase the number of
and market insight will remain all involved in the industry marketing specialists
central as steps along this connect. It will strive to in areas of qualitative
journey are evaluated and ensure the the branding and research, data mining and
progress towards the vision innovation chains will start analysis, and branding and
is achieved. Cementing the with the consumer and end innovation.
role of the consumer in the with the consumer. Its virtual
Vision for 2025 and ensuring capability and leading edge ■■ Communicate benefits
that changes in consumer technology will allow for global to all stakeholders to
behaviour and market accessibility - to build sales maximise engagement.
landscape are anticipated on the domestic market and,
and acknowledged are most critically, build exports.
critical.
Actions:
Building on Bord Bia’s
expertise in this area ■■ Build on our existing
and the work currently expertise in consumer
undertaken to drive business and market insight and
growth through unlocking establish a Centre for
consumer understanding, the Consumer Insight.
establishment of a Bord Bia
Centre for Consumer Insight ■■ Invest in a physical
– a centre of excellence - is space that is creative
key. The Centre for Consumer and inspirational, and
Insight will have as its focus critically, is accessible to
the enhancement of insight international visitors and
alongside consumer-focused consumers who will be
innovation. The Centre for involved in the consumer
Consumer Insight will seek to research. This space will
immerse producers, scientists, be integrated with Bord Bia
academia and retailers in headquarters to minimise
the world of consumers. It additional budgetary
is the critical next step to requirements.
further supporting large
and smaller producers and ■■ Invest in communications
ingredients manufacturers in technology, partner with
the challenges they face, in private enterprise, and,
creating and building brands share intellectual expertise,
and bringing new products to global connections and
312 Enabled by valued people, talent and infrastructure
If the industry is to continue ■■ Establish a Market
to grow, it needs to recruit Placement programme that
the right people — and to assigns Irish graduates to
retain them by making them global target customers.
feel they are valued and that The programme will create
their contribution is being a group of graduates skilled
recognised. in best practice that they
Maintaining and building on will bring back to the Irish
existing programmes such as industry upon their return.
the Bord Bia Fellowship and The placement will also
Origin Green Ambassador serve to raise awareness
Programmes will be essential. and understanding
amongst host companies
Continued investment in of Ireland and its industry
infrastructure is needed to capabilities.
provide the right environment
for a thriving industry.
Actions:
■■ Implement the
undergraduate Language
Bursary Programme to
improve the language
proficiency of graduates
coming from strategically
important degree
programmes to the food
and drink industry such
as agricultural science
and food marketing and
entrepreneurship.
■■ Continue to fund The
Marketing Fellowship and
Food Marketing Graduate
programmes to deliver
high-quality talent to the
food industry.
■■ Build on the Origin
Green Ambassador
programme to engage
with targeted customers
to build awareness and
understanding of Ireland
and the Origin Green
programme.
323 Underpinned by Origin Green
built. It is our conviction that ■■ Improve feedback and
Origin Green is rapidly the principles and values advice to farmers by
positioning Ireland as a of Origin Green will, over developing a network
world leader in sustainably time, become more and across all relevant state
produced food and drink. more relevant in consumer agencies and advisory
As the world seeks to choice and establishing our bodies to deliver clear,
expand food production credentials has the potential coordinated advice on
to meet the needs of its to position Ireland as a true how farmers can adopt
growing population, while sustainable food leader of the sustainable practices that
addressing climate change 21st century. deliver both environmental
and working with fixed or and economic benefits.
shrinking resources, it is Transparency and safe
the only way forward. supply chains are a critical ■■ Support national
component of the Origin Green programmes that assist
Tapping into our existing ambition. Consumer trust in in securing farmer
reputation as a grass-based where their food comes from engagement with
green and dynamic food and and how it is made is vital sustainable practices. This
drink supplier, the Origin for manufacturers, retailers should build on initiatives
Green programme shows and, indeed, the reputation such as the beef data
what Ireland’s food and drink of Ireland’s food and drink genomics and knowledge
stands for and what is now industry. Producers recognise transfer programmes.
increasingly setting it apart. the priority that should
■■ Develop a messaging
be given to transparency
programme to
Origin Green is a voluntary throughout the supply
communicate the
programme, which embraces chain – to form a chain of
benefits of Origin Green
farmers and manufacturers trust– starting at the source
membership to farmer
and addresses key of the raw ingredient or farm
stakeholders to ensure
sustainability areas such as of origin. Without safe and
greater adoption and
sourcing, emissions, energy, transparent supply chains,
engagement with the
waste, water, biodiversity and the vision for the Irish food
programme.
CSR activities. Once approved, and drink industry cannot
verified members are entitled be achieved. Indeed, there is ■■ Increase direct engagement
to use an ‘Origin Green’ logo as clear strategic advantage in a and support offered to
part of their trade marketing well-developed trust chain that companies developing
and communications. Already, has credibility in the eyes of their sustainability plans.
over 85% of Ireland’s exports consumers. Recruit additional Origin
are coming from verified Green resources to ensure
Actions:
member companies, proving the required level of
the industry’s commitment to ■■ Maintain Origin Green’s engagement is delivered.
sustainability. leadership in sustainability
■■ Develop a mentoring
by broadening the
The current focus is on Origin programme to work
programme’s scope
Green as a B2B concept. with verified members
and depth in areas such
However, the intention is to help them articulate
as soil health, nutrient
to make Origin Green the their sustainability
management, bio diversity,
platform upon which the efforts to key customers
animal welfare and
broader recognition and and stakeholders and
sustainable feed.
promotion of world-leading gain recognition in the
Irish food and drink will be marketplace.
333 Underpinned by Origin Green
■■ Build on the Origin
Green Ambassador
programme to develop
ongoing relationships
with targeted customers
enhancing awareness
and understanding of
Origin Green and driving
a preference for Ireland
as a sustainable source of
supply.
■■ Continue to build on
the social sustainability
elements of Origin Green
with particular focus on
health and wellness.
■■ Expand the scope of
programmes along the
domestic supply chain
to include retail and
foodservice sectors by
developing charters
relevant to each.
■■ Use consumer insight to
identify and understand
how consumer differences
across geographical
markets will impact on
Origin Green messaging
around sustainability.
344 Realised by effective routes to market and business conversion
■■ Increase market presence ■■ Invest in innovative buyer
A critical pillar of the in emerging markets, contact initiatives and
vision is the development by recruiting additional inward buyer visits across
of efficient and effective overseas staff with all existing markets and
routes to market to particular focus on Asia and introduce them into
achieve business growth, Africa. emerging markets.
which requires stronger
support from state ■■ Assign specialist global ■■ Implement lead generation
agencies and industry account responsibilities at programmes across all
itself. Bord Bia to build Ireland’s geographies to deliver
awareness and reputation market and business
Business development is among key global prospects.
an important priority for customers.
■■ Maintain support for
Bord Bia, in terms of export ■■ Further enhance B2B Marketplace 2018 and
strategy, market and customer communications around broaden the focus on
prioritisation, route to market Ireland as an innovative, emerging markets so that
competencies and in-market competitive sourcing 50% of buyers come from
supports. Achieving the 2025 solution via a dedicated outside the EU.
vision requires a targeted website of Irish industry
customer support programme ■■ Liaise closely with the
and capabilities.
that is delivered by skilled, DAFM to optimise trade
dedicated resources, both in ■■ Invest to build missions to emerging
Ireland and overseas. competencies in business markets to ensure market
development at Bord Bia entry conversion.
Actions: and amongst the supplier
base via understanding of
■■ Invest to step-change routes to market, business
business development protocols and supplier
through increased in- development programmes
market resources. etc.
355 Supported by strong brand communications in the digital age
Further investment is Examining first the importance brands into more globally
needed to communicate of Irish food and drink in an recognised brands is very
the quality and benefits overarching sense, it is core to significant; Origin Green will
of Irish food and drink the vision that ‘Brand Ireland’ be a vital brand and marketing
brands, both domestically is synonymous not just with pillar to help in this journey.
and more widely. There friendly people, popular
are three distinct music and beautiful scenery Actions:
elements to this: but also with great food and
drink. Food needs to become ■■ Undertake a global brand
a core part of the Irish identity, review of Origin Green to
■■ First, the promotion of Irish as it is in countries such as ensure its relevance to a
food and drinks brands at France and Italy. Other useful corporate and consumer
an overall, umbrella level – comparisons are the notion of audience, and evolve
building on the Origin Green ‘Danish design’ and ‘German accordingly. Invest in
platform to continually engineering’ – both of which design, photography,
develop it as a B2B brand encapsulate a core truth about videography, research and
and, over time, a consumer a country and an industry and tracking.
facing endorsement. (The allow a multitude of brands to
Quality Assurance Mark benefit from the halo effect of ■■ Further increase
will embrace the values of this brand awareness. This is consumer demand for
Origin Green as part of this part of our vision for Irish food food with the Quality
process.) and drink. Mark (as it embraces
the values of Origin
■■ Second, is the importance Origin Green has been highly Green) in the domestic
of individual Irish brands successful since its launch market by highlighting
both large and small, as a B2B brand highlighting its unique rational
and the need for greater Ireland’s commitment to benefits of independent
support and promotion of sustainability in its broadest auditing and quality and
these individual brands. sense. As indicated above, a sustainability standards
key Bord Bia priority going and strengthening its
■■ Third, is the recognition forward is significant growth emotional connection with
that Ireland is a world and evolution of Origin Green consumers, thereby driving
leader in the manufacture – taking it from a successful brand leadership and
and production of business-to-business brand differentiation.
ingredients and own label to a broader focus where it
goods. It is, in effect, the resonates also with consumers ■■ Accelerate collaboration
‘intel inside’ equivalent for and becomes synonymous with the tourism sector
many highly successful with Ireland’s reputation for for mutual brand building
branded goods. world leading food and drink. advantage.
At the individual brand level, ■■ Ensure consistency
Bord Bia needs to continue its of message for food
efforts working with producers through collaborative
to create and build strong communication channels.
brands based on consumer
understanding. The level of
investment required to grow
36■■ Explore the potential ■■ Ensure a dedicated resource to help brand
of global Irish food resource for smaller brand owners understand and use
and beverage brands owners by providing access this medium.
distributing the message to best-practice consumer
for food and tourism in marketing. ■■ Dedicate a resource for
international markets. the Bord Bia Branding and
■■ For medium and large Insight and Innovation
■■ Through the Centre for sized brand owners, Workbooks - to work with
Consumer Insight continue continue to support brand and guide food and drink
to support brand owners development and growth producers and help them
to develop and grow their into new markets by embed the rigorous brand
brands on the domestic providing knowledge and development process.
market and international understanding of global
markets. trends and consumer ■■ Continue and expand the
behaviour to maximise the Brand Forum programme to
■■ Help brand owners create chances of success. bring international branding
and articulate their brand best-practice exponents
story through consumer ■■ As digital marketing to Irish companies via
touch points of design, becomes an increasingly speakers at events, brand
packaging and web important route to health measurements,
presence. communicate and influence and dedicated branding
consumers, dedicate a workshops.
374. Achieving the Vision
The actions outlined above will not be
enough to realise the vision set out in this
statement. Action also needs to be taken
at sector level – to address challenges and
develop opportunities specific to particular
parts of the industry.
Here, we provide a snapshot of key food and
drink sectors and outline the main priorities
for each.
38The meat sector
The meat and livestock India. However, the opening Actions:
sector is ideally placed to up of the US market, as
build on the considerable domestic supplies dwindle, ■■ Increasing emphasis
progress made in could present a significant on the sustainability of
diversifying its market opportunity for Irish beef grass-fed animals and
base over recent years. producers.23 the high animal welfare
By 2025 the sector will standards among Irish beef,
have established a clear The Irish sheep industry lamb and pig farms — in
market preference on the continues to broaden and communications with food-
basis of our high quality, diversify its product portfolio service buyers and retailers
sustainable product by shifting away from and with consumers.
offering. This position will trading in carcases towards
help the sector secure developing more value added ■■ Promoting Irish beef as
premium positions with / primal products. Emerging safe, with transparent and
key customers across opportunities in the high value traceable supply chains
Europe and selected markets across Continental – particularly in emerging
international markets. Europe has enabled the markets where trust is a
Irish industry to optimise challenge.
its product and market mix
and seek out the best paying ■■ Developing a strategy to
customers. build a premium position
Meat and livestock exports for beef in the US and key
account for more than one EU markets.
third of total Irish food and
drink exports, and increased
by 2% in 2015, to just over
€3.7bn.
Pigmeat producers have
benefitted from increases
in demand from Asia, but
have been hit hard by the
Russian ban on EU imports,
and profitability is a major
challenge for the sector.
Growth in global beef
production is likely to come
mainly from Brazil and
39Beef
■■ Investigate and develop fed beef in the marketing
The customer profile
viable alternative markets messages for Irish beef.
of Irish beef presents a
for the prime cattle arising
considerable opportunity ■■ Build on the opportunities
from dairy herd expansion.
to drive the reputation of for Irish beef in China, once
Ireland as a sustainable ■■ Build on the launch of Irish market access is secured,
beef producer. This beef in the US, implement driving value for fifth
requires the clear a strategy for the premium quarter products and offal.
articulation of how the positioning of Irish beef as
industry is, through Origin ■■ Increase farmer
sustainable and grass-fed,
Green, working together participation in the
resulting in a growth of
to actively measure and Beef and Lamb Quality
exports to high-end retail
drive our environmental Assurance Scheme
and food-service outlets.
performance in a way that (BLQAS) to 95% in terms
is not matched anywhere ■■ Where new market-access of proportion of output by
across the globe. possibilities are identified, 2025.
support the industry with
■■ Develop a strong
the necessary resources
reputation for the quality
■■ Increase the level of for market and consumer
and environmental
communication and insight.
sustainability of Irish
engagement with and ■■ Develop further and build beef with customers,
between processors and a brand image for Irish competent authorities in
producers in terms of beef capable of securing a target markets and NGOs,
marketplace developments. significant price premium building on the Sustainable
■■ Engage with retail at retail and food-service Beef and Lamb Assurance
customers to develop a market outlets. Scheme (Origin Green),
partnership approach to and optimise use of the
■■ Grow and protect the
the production of Irish beef, brand’s reputation in the
position of Irish beef in key
ensuring a harmonised marketplace.
European markets through
and collaborative approach sustained implementation ■■ Build sustainability criteria
to market specifications, of consumer and trade into the Beef and Lamb
price points and farm marketing campaigns Quality Assurance Scheme
management practices. for premium, grass-fed, (BLQAS) and launch a new
■■ Develop markets for fifth- sustainable and quality- Sustainable Beef and Lamb
quarter products through assured Irish beef. Assurance Scheme.
enhanced marketing ■■ Investigate opportunities ■■ Roll out of the Carbon
capabilities and through for including animal welfare Navigator tool through
enhanced market access. standards and the human the beef data genomics
health benefits of grass- programme.
40Sheepmeat
The Irish sheepmeat ■■ Build a strong brand image ■■ Build sustainability criteria
sector has developed for Irish lamb based on its into the Beef and Lamb
an increasing range of sustainable grass-based Quality Assurance Scheme
premium customers for production to secure (BLQAS) and launch a new
high value lamb across outlets and price premium. Sustainable Beef and Lamb
the EU and selected Assurance Scheme.
international markets. ■■ Develop a strong
Origin Green offers an reputation for quality ■■ Increase farmer
opportunity to build and environmental participation in the
on this through the sustainability of Irish Beef and Lamb Quality
clear demonstration sheepmeat with customers, Assurance Scheme
of the sustainability competent authorities in (BLQAS) to 95% in terms
credentials of Irish lamb target markets and NGOs, of proportion of output by
production. Such a focus building on the Beef and 2025.
will help strengthen the Lamb Quality Assurance
market proposition of Scheme (Origin Green), ■■ Explore opportunities in
Irish lamb and act as a and optimise the use of the emerging markets for
differentiator with key brand’s reputation in the adding value to fifth quarter
customers. market place. lamb through market and
consumer insight.
■■ Develop business
opportunities in key ■■ Develop a Carbon Navigator
international markets such tool for sheep producers.
■■ Work collaboratively with as China and the US for
processors, the DAFM, Irish lamb.
Teagasc and Sheep
Ireland to modify the very ■■ Implement generic
seasonal nature of Ireland’s promotion of Irish lamb
sheepmeat supply, and across France, Belgium and
maintain our presence Germany and compete for
and access to markets further EU funding post
throughout the year. 2017.
■■ Increase the perception ■■ Target niche, non-
of lamb as a healthy, traditional, high-end
convenient protein choice markets for value
among younger consumers added, premium Irish
in the domestic market. lamb in Europe, such as
Scandinavia and Germany.
41Pigmeat
The ongoing ■■ Invest and strengthen the ■■ Incorporate sustainability
diversification of Irish position of the Quality Mark criteria into the Pigmeat
pigmeat to International on the domestic market, Quality Assurance Scheme.
markets offers further positioning pigmeat as a
scope to increase the versatile, healthy option ■■ Develop a feedback and
value of exports over among consumers. advice programme on
the medium term. carbon footprinting for
Successfully achieving ■■ Develop and build market pigmeat producers.
a market preference opportunities across
requires the development European and third-country
of a clear proposition markets, in particular in
built around the quality newly opened markets in
and sustainability South East Asia.
credentials of the sector.
■■ Use Origin Green to
distinguish Irish produce,
and develop a preference
for it, in international
■■ On the domestic and export markets.
markets support primary
and secondary pigmeat
processors through
consumer and trade insight
to develop new products
and routes to market.
■■ Work with industry to scope
out an effective marketing
message for pigmeat.
■■ Explore opportunities for
greater use of quality-
assured produce in food
service.
42Poultry and Eggs
Poultry remains the
most popular animal
based protein based
on its convenience,
relative value for
money and innovative
product formats.
While competing in an
extremely competitive
sector, it is well poised to
grow share further up the
meat basket globally.
■■ Support processors
through consumer and
market insight.
■■ Examine the extension of
country of origin labelling to
loose products.
■■ Invest in and strengthen the
position of the Quality Mark
on the domestic market.
■■ Incorporate sustainability
criteria into the Poultry
Quality Assurance Scheme.
■■ Roll out a carbon
footprinting assessment
and improvement
programme for the poultry
sector.
43The Dairy Sector
■■ Ensure the resources are
The grass based nature and longer term outlook for
in place to target / develop
of the Irish dairy sector the industry remains positive, market opportunities
offers a clear point of but potentially volatile.24 for Irish dairy exports in
differentiation for Irish the regions of the world
dairy products. Through The best performing Irish where dairy per capita
Origin Green, the sector dairy categories in 2015 consumption and dairy
can clearly demonstrate its were specialised nutritional deficits are growing.
sustainability credentials dairy powders such as infant ■■ Create a deeper
and how the sector is formula and butter while understanding for the Irish
making a collective effort to spreads, whey, chocolate industry of key dairy growth
further enhance these over crumb and yogurt all recorded regions in South East Asia,
time. Origin Green offers growth. Africa and the Middle East
an opportunity for the dairy through consumer- and
sector to secure a market Of these, the ‘star’ was infant trade-market insight.
preference that can deliver formula, which has benefitted ■■ In areas such as healthy
the markets and customers from industry investment. ageing, nutritional
needed to meet the Irish dairy exports to Asia supplements and
ambitious targets outlined increased by an estimated 11% specialised nutrition, work
in Food Wise 2025. in 2015. Over three-quarters with industry to develop
of this is destined for China products, ingredients
or concepts that meet
which is now the second most
Like meat and livestock, the consumer need.
important market for dairy
dairy sector is core to the Irish exports compared to 13th in ■■ Build on the technical and
food and drink industry — and 2008. market competency of the
to Irish exports. There are farmhouse cheese sector
more than one million dairy Actions: through collaborative
cows in Ireland. programmes such as the
■■ Leverage the Sustainable
‘Cheese Institute’.
The abolition of EU quotas Dairy Assurance Scheme
means Irish milk production (SDAS) and Origin Green to ■■ Ensure 100% participation
is expected to increase to 7.5 promote the sustainability of dairy farmers in the
credentials of the Irish dairy SDAS as an immediate
billion litres, a rise of 50%, by
industry across Europe, priority.
2020. The growth, however, will China and the Middle East.
need to be carefully managed. ■■ Roll out of the Carbon
Export sales have been ■■ Position Ireland as a leading Navigator tool through
affected by slower demand in supplier of sustainable Rural Development
China and by the Russian EU dairy products with key Programme Knowledge
customer accounts globally Transfer Discussion Groups.
import ban, and there are fears
through Origin Green.
of milk surpluses. The medium
44The Seafood Sector
The Irish seafood sector Ireland is a leader in organic Irish waters.
is well positioned to aquaculture, producing 20,000
capitalise on the growing tonnes of organic salmon and ■■ Based on the consumer
global marketplace mussels annually. insight/innovation process,
for seafood. With a identify and promote
preference for seafood Climate change means Irish new opportunities and
within many of the waters are now home to ‘new’ customers for added-
emerging markets, Irish species. Boarfish, for example, value and food-ingredient
seafood will continue have migrated north due to products.
to focus on growing key rising sea temperatures.26
emerging markets and ■■ Develop a series of
working to secure higher Actions: programmes that prioritise
value business in core sales, marketing, brand
markets while building ■■ Increase participation development, key account
a vibrant home market in and engagement with management and exporting
for underutilised fish Origin Green among skills in the sector.
species. seafood companies, with
the aim of bringing all ■■ Undertake a market
seafood companies under prioritisation study in
The Irish seafood sector is the programme by the end Asia Pacific to identify the
worth €800m annually and of 2016. most attractive markets
employs around 11,000 people. for the main seafood
Exports rose by 4% in 2015 — ■■ Develop strategies to product groups and invest
to around €560m— and are reduce the level of produce marketing resources
expected to reach €650m by sold in commodity form accordingly.
2020. from 70% to below 50%.
■■ Seek to secure a premium
France, Spain, the UK, Italy ■■ Invest in consumer insight positioning for Irish seafood
and Germany remain the and research in the key in Europe and the US
dominant export markets, growth markets of Asia and using sustainability and/or
accounting for more than 50% Africa — e.g. China and organic credentials.
of values. However, trade to Egypt.
Asia and Africa has increased
dramatically — by 23% and ■■ Support the industry in
14% respectively in 2015. developing innovative
consumer oriented
products from both familiar
species and those new to
45Artisan/Small Food Business
The increased consumer Actions: relationship development
demand for locally with distributors, specialist
sourced food and ■■ Work with retailers to retailers, and other retail
shorter supply chains promote local, Irish artisan and food-service buyers
over the last number products — for example, in the domestic and
of years has created through in-store displays. international markets.
viable and alternative
routes to market for ■■ Support continued ■■ Investment in small-
players in these sectors. participation in food shows, business specific consumer
The combination of the farmers’ markets and and market insights.
entrepreneurial spirit awards schemes.
of the owner managers ■■ Create a sector strategy
with product innovation ■■ Create a pipeline of for small business that
and differentiation and companies growing articulates a market-driven
expansion via local, beyond artisan/small- vision and identifies the
national and international food-business definition needs and opportunities for
markets will represent the via the introduction of both players in the sector, and
pillars for the continued bespoke one-to-one and the platforms for growth
growth of these sectors at group multi-level supports according to their business
home and abroad. across strategic planning, stage – start-up markets/
marketing and marketing market ready/export – and
finance (for example, which sets out the targets
The increasing importance of Superbrands and Step for the development
the sector is evident from the Change Fund). and progression of
following: these companies in the
■■ Introduce a new support timeframe to 2025.
■■ There are around 130 programme for direct-
■■ Shorten supply chains by
farmers’ markets in Ireland, to-consumer producers increasing awareness of the
and around seven in ten aimed at enabling them value of buying fresh local
Irish consumers say they to extend their local and produce.
consciously buy local food regional business reach and
to support the economy.27 resulting in a pipeline for
new entrants to the Artisan
■■ Ireland produced 1,100 Food Market at Bloom.
tonnes of farmhouse
cheese in 2014 and has 30 ■■ Increase the opportunity
artisan chocolate makers. for successful meet-
the-buyer occasions
through market-focused
46Beverages Sector
Ireland’s drinks industry
continues to flourish with and spirits — have helped an Irish whiskey and food
a large number of new offset lower beer and liqueur pairing trail as a major
entrants in the whiskey sales in the Irish alcoholic tourist attraction and to
and craft beer sectors. drinks sector. differentiate Irish food and
Irish whiskey is the drink produce.
fastest growing spirit in Craft beer and spirits
the world and the focus are making a significant ■■ Continue to support,
for the category is on contribution to the economy. protect and promote
expanding market entry There are currently over 60 Ireland’s spirit GIs
opportunities. Generating Irish microbreweries, 40% of (Geographical Indications).
scale is the ambition which export, and the number
for the embryonic craft is expected to exceed 100 by ■■ Facilitate the growth of the
beer entrants to ensure 2020.28 premium drinks category
continued growth. by providing market
Meanwhile, the strong export knowledge for the US
performance of waters and market.
The beverages sector juices has helped the non-
continues to drive the growth alcoholic beverages sector.29 ■■ Develop ‘premium brand’
of the Irish food and drink labels to target newly
industry, with exports of Actions: affluent consumers in Asia,
€1.26bn in 2015. Latin America and Africa.
■■ Support companies to sign
Irish whiskey, though still up to Origin Green. ■■ Support the craft beer
dwarfed by its Scottish rival, and spirits sector through
is the fastest growing spirit in ■■ Assist in doubling whiskey mentoring schemes with
the world, recording average exports from 6 million established companies,
annual growth of 12% over cases to 12 million cases e.g. members of the Irish
the last decade. Whiskey annually. Whiskey Association.
exports continue to drive Irish
beverage exports with double ■■ Emphasise the provenance ■■ Work with the hospitality
digit growth recorded again of Irish products — and sector to raise awareness
in 2015 to reach an estimated the quality of natural Irish about the quality of Irish
€410 million. This was driven resources such as water whiskey through academy
by increased demand from and grain. and training programmes.
North America.
■■ Work with industry and
Whiskey sales — plus the other state agencies
increasing range of craft beers collaboratively to develop
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