focus:dairy & ingredients · 2015). tara holds a b.comm from university college galway and a...

Issue 7 2016

Irish beef on Breeders’ Cup menu

Ireland as an FDI location

Organic export success

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Issue 7 2016

T he past year has been one for the ages. We have witnessed unexpected political developments – notably in the UK and the US – which are likely to have a global impact. Set against the backdrop of wider global uncertainty, these developments have contributed to

difficult trading conditions throughout the world. However, the Irish agri-food community's ambition and drive for continued growth has not been dampened. The industry's sights remain firmly fixed on the targets set out in Food Wise 2025 to increase the value of Irish food and drink exports by 18 per cent by 2025.

An agenda of new market exploration continues at both industry and Government levels. In 2016, the Minister for Agriculture, Food and the Marine, Michael Creed led trade missions to Asia – taking in China, Vietnam, Korea and Singapore – and, most recently, to North Africa. Ireland's growing global footprint was also marked by the opening of two new Bord Bia (Irish Food Board) offices in Singapore and Warsaw.

While Ireland's food industry explores new opportunities for its outputs, there is a determined commitment to maintain the traditions for which the country is recognised internationally. Bord Bia's Origin Green sustainability programme continues to gain ground within the industry, extending, in 2016, beyond primary producer and processor level to include retail and foodservice providers. Work has also begun on communicating the Origin Green message to consumers for the first time.

As an island, Ireland is well-used to weathering many storms and, while market volatility is rocking the boat, Irish businesses are firm in their determination to drive growth in food and drinks exports and are confident in the future potential of the industry. In our focus on dairy and ingredients, David Owens, sector manager, dairy ingredients, Bord Bia, talks about the sector's resilience. We also speak with Paul Simpson, sales and marketing director of Dairy Concepts, which blazed a trail recently at Sial, Paris, as well as reporting on the recent win by ingredients company Marigot. We also interview Dawn Meats about the company's recent parternship at the Breeders' Cup in the US.

As always, we have the latest news from across the industry.

Enjoy!

Oonagh O’MahonyEditor

editorial

3Issue 7 2016

contents

4 Issue 7 2016

contents

Issue 7 2016

Irish beef on Breeders’ Cup menu

Ireland as an FDI location

Organic export success


FOCUS: DAIRY & INGREDIENTSIreland’s roadmap for dairy growthAward-winning innovationIreland at FiE and NI

Editor: Oonagh O’Mahony

Contributors: Jane Cowen, Kennas Fitzsimons, Matt O'Keeffe, Shauna Rahman

Design: Barry Sheehan

Production: Ciarán Brougham, Michael Ryan

Chief Executive: Rebecca Markey

Advertising Executive: John Sheehan

Accounts: Tricia Murtagh

Administration: Sue Nolan

Publisher: David Markey

Copyright IFP Media 2016.No part of this publication may be reproduced in any material form without the express written permission of the publishers.

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IFP Media,

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Republic of Ireland.

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13 Irish beef takes centre stage at Breeders’ Cup Dawn Meats recently partnered with Bord Bia (the Irish Food Board) and

Good Food Ireland to prepare and serve Irish beef for the prestigious Breeders’ Cup World Championships' Taste of the World experience. speaks with Paul Nolan, Dawn Meats, about this exclusive opportunity

6 News• Bord Bia appoints new CEO• Irish whiskey mentoring programme launched• Award-winning US filmmakers document Irish food story• Murphy’s Ice Cream raises €75,000 through

Linked Finance for expansion• Castle Brands tastes success at the Irish Whiskey Awards• Bord Bia raises the stakes in Germany by pairing with Maredo• Iranian market opens

to Irish sheepmeat• Dublin spice company

heats up the competition

contents

5Issue 7 2016

15Issue 7 2016www.irishfoodmagazine.com

Dairy & Ingredients15 Dairy & Ingredients

16 Dairy demand strong despite volatility

A cohesive, sustainable, industry-wide strategy for the dairy sector, backed by Government and permeating all levels of the production chain, as well as an extremely strong product offering, are among the drivers of continued growth in demand for Irish dairy on international markets, according to David Owens, sector manager, dairy ingredients, Bord Bia

18 HiE & NI 2016We profile the Irish companies attending this year's Health Ingredients Europe (HiE) and Natural Ingredients (Ni) show in Frankfurt

20 The cream of the crop: sustainable dairy farmers honoured

Origin Green recently honoured the work of Ireland's most sustainable, efficient and environmentally friendly family farms. speaks with the winning dairy farmers about the role of sustainability on their farms

22 Ambitious targets in Teagasc's Dairy Roadmap

Teagasc's Dairy Roadmap to 2025 is an optimistic document that highlights a range of potential production efficiencies to reinforce the viability of the sector over the coming decade, writes Matt O'Keeffe

24 Commercialising Irish researchFood for Health Ireland's research is delivering ingredients for commercialisation. Jens Bleiel, CEO of FHI, tells about the consortium's ongoing research work

26 Kerry's transformation journey speaks with Satya Jonnalagadda, director of

Global Nutrition at the Kerry Health and Nutrition Institute, about its progress and its role in the food and drinks industry

28 Aquamin makes a splash with recent award win

Aquamin, a unique marine multi-complex product, produced by Irish company Marigot Ltd, recently took home the award in the Healthy Ageing Ingredient of the Year category at the annual NutraIngredients Awards at Vitafoods Europe 2016

30 Innovative dairy snack emerges from Ireland

Paul Simpson, sales and marketing director, Dairy Concepts, says the response to its Fruchee product at Sial 2016 was a fantastic validation of Diary Concepts' vision

32 Ireland invests in food foundations

Ireland has made strategic investments that make it an attractive location for foreign direct investment (FDI), says Kevin Buckley, manager, Food FDI Europe, Enterprise Ireland

34 North Africa - a growing market for Ireland's agri-exports

As Irish dairy exports continue to soar in Morocco and Algeria, agri-food companies visited these countries on the recent Irish trade mission, to develop current relationships

36 The new face of foodserviceDavid Henke, vice president of research and consulting firm Technomic, identifies key foodservice trends that will be strong in 2017 and beyond

37 Organic success for Flahavan's

Flahavan's won the export award for its Irish Organic Porridge at the Bord Bia National Organic Awards

38 Spotlight on Crumble'n'Crunch

Manufactured in Wexford, Crumble'n’Crunch is a new cheese and toppings range

6 Issue 7 2016 www.irishfoodmagazine.com

newsBord Bia appoints new CEOTara McCarthy has been named the new Chief Executive of Bord Bia. Tara will succeed current CEO, Aidan Cotter, who will retire in January 2017.Tara is currently CEO of Bord Iascaigh Mhara (BIM), having joined the agency in 2015. Prior to this, she worked with Bord Bia for over 20 years, holding a number of senior positions, including senior manager, Consumer Foods Division (2001-2011), and director, Food and Beverage Division (2011-2015). Tara holds a B.Comm from University College Galway and a Masters of Business Studies from UCD’s Michael Smurfit Graduate Business School.Chairman of Bord Bia, Michael Carey said: “On behalf of the Board, I am delighted to announce the appointment of Tara McCarthy to Chief Executive of Bord Bia. Tara has clearly demonstrated her leadership capabilities during a 20-year career in the agri-food industry. The competition for the role was very intense and, throughout the robust process, the panel was hugely impressed by the high calibre of candidates. "Tara is exceptionally well-qualified to take the organisation to the next level, with a deep understanding of the work of Bord Bia.”Tara said: “It is an honour to be asked to lead Bord Bia during what is a very exciting time for the Irish food and drink industry. Our total exports target of €19 billion, as set out by Food Wise 2025, is ambitious, yet achievable, and I am looking forward to working with all stakeholders, including farmers, food manufacturers and producers in order to reach that goal. I want to pay tribute to my predecessor, Aidan Cotter, and I hope to build upon his outstanding work over the coming years.”

Taste. Nutrition.We believe you can’t have one without the other.

If it doesn’t taste great, then it doesn’t matter how nutritious it is. At Kerry, we think of ourselves as the Taste & Nutrition company. We understand that consumers want delicious products made from trusted, authentic foods and flavours. We use our scientific know-how and expertise to help our customers make products that meet these needs, while improving that product beyond taste so it is better, more wholesome and nourishing. This is not a trend. This is the future.

For further information on our global consumer insights, industry expertise and product innovations, visit Kerry.com

Kerry. A world of knowledge in every mouthful.

Irish Food – Kerry T&N Ad.indd 1 15/11/2016 16:01Kerry 210x280.indd 1 16/11/2016 10:07


newsCastle Brands tastes success at the Irish Whiskey AwardsCastle Brands walked away with top accolades at this year's Irish Whiskey Awards, including Irish Whiskey of the Year 2016 and overall winner in the Irish Single Malts (13 years and older) category for Knappogue Castle 14-Year-Old Twin Wood. Castle Brands also won a gold medal for its Knappogue Castle 16-Year-Old Single Malt in the Irish Single Malts (13 years or older) category and a gold medal for Boru Vodka in the Best Irish Vodka category. Straw Boys Vodka from the Connacht Distillery, Mayo won the overall prize for Best Irish Vodka.The Irish Whiskey Awards, which are in their fourth year, recognise excellence and innovation from indigenous producers and distillers. The awards spanned a total of 20 categories and also recognised the best in Irish gin, Irish vodka, Irish liqueur, and craft beer, as well as whiskey bar of the year.

Marianne Courtney of Castle Brands.

‘Educating our future farmers to

become lifelong innovators’

Call us today on 059-9170200or visit www.teagasc.ie

‘Advising farmers to combine innovation with prudent business management’

‘Researching sustainable agriculture & driving

innovation in the agriculture and

food sector’

Corporate-Ad-210x280.indd 1 01/06/2016 14:34:11Teagasc 210x280.indd 1 01/06/2016 14:46


news

Irish whiskey mentoring programme launchedThe Irish Whiskey Association has launched a new mentoring programme intended to unite established global players in the Irish whiskey industry with new entrants to the market. The programme will offer new entrants access to information and support required to produce high-quality Irish whiskey for the global consumer market. The Irish whiskey market is the fastest growing spirits category in the world and has grown by an impressive 200 per cent in the last decade.Participant in the new mentoring programme, Bernard Walsh, chairman of the Irish Whiskey Association and CEO of Walsh Distillery, said: “We know that there is huge consumer appetite for our products globally, we only have to look across the water to Scotland with 108

distilleries in operation to see what’s possible. This initiative is very welcome and the mentor companies are to be applauded for investing their expertise in new project, to ensure high standards are maintained.”The programme will consist of a number of stages and participants will be able to access a new online portal to help them plan their business. There will also be active mentoring services where mentor companies, such as Irish Distillers and Bushmills, will be paired with new entrants. This will address planning, design, construction and commissioning. There will also be a focus on production, highlighting the importance of ensuring that the high-quality, premium nature of the category is maintained.

Pictured at the launch of the new Irish whiskey mentoring programme are: David Quinn, technical director, Irish Distillers; Miriam Mooney, head of the Irish Whiskey Association; and Bernard Walsh, chairman of the Irish Whiskey Association and CEO of Walsh Whiskey Distillery.

Award-winning US filmmakers document Irish food storyDaniel Klein and Mirra Fine, award-winning US filmmakers, recently filmed in Ireland as part of the fourth season of their food travel show, The Perennial Plate. The Perennial Plate is a web-documentary series dedicated to socially responsible and adventurous eating.

“Food, people and stories are why we travel, and film is the perfect way to share culture and inspire others to partake in the adventure. With its stunning greenery, rich history, world-renowned chefs and natural beauty, Ireland is the perfect backdrop for our documentary series.”Over the course of their visit, The Perennial Plate created a total of 10 videos on Ireland, which include local vignettes highlighting stories of local producers and a visual montage of Ireland. These videos will be shared with their followers on Vimeo (8.6 million views to date) and YouTube (2.5 million views to date) and Facebook (over 10 million).

Mirra Fine and Daniel Klein with son James.


newsBord Bia raises the stakes in Germany by pairing with MaredoBord Bia (the Irish Food Board) launched an Irish beef promotion this month in partnership with the Maredo steakhouse chain. The Düsseldorf-based market leader describes Irish beef as

“wholesome, juicy and Irish” and ran a month-long promotion offering Irish beef exclusively in all 48 Maredo restaurants. This was supported by a Facebook competition to win a trip to Dublin for Saint Patrick's Day 2017. Irish beef has a track record of sustained growth in the German market, growing sixfold in seven years from €17 million in 2009 to an expected €136 million by the end of this year, with total exports now at approximately 20,000 tonnes. This impressive performance follows a major promotional campaign, developed by Bord Bia, with the key objective of highlighting Irish beef as a premium-quality, grass-fed, sustainably-produced product. A new five-year marketing campaign will be launched in 2017, with a renewed focus on sustainability and the introduction of Bord Bia's Origin Green programme at consumer level. Bord Bia recently organised Irish beef in-store promotions in German hypermarket, Real; Ireland's largest Irish beef customer. In-store promotions will also take place in Kaufland stores across Germany and the 'Irish Beef Food Truck' will trail across Germany over the next few months covering trade fairs and food festivals.

Launching the Irish beef promotion: Manmohan Bedi, manager of the Maredo Restaurant; Michael Collins, Ambassador of Ireland to Germany; and, Donal Denvir, Bord Bia manager, Germany.


news

Iranian market opens to Irish sheepmeatAn agreement was recently reached with Iranian authorities that allows Irish sheepmeat to be exported into Iran. The Minister for Agriculture, Food and the Marine, Michael Creed welcomed the news saying: “I am delighted to see yet another third country market open for Irish meat products, particularly for the sheep sector, which I am very keen to see develop further and deliver more for all levels in that sector.”The agreement means that Ireland now enjoys access for both beef and sheepmeat to Iran, which is the second largest consumer market in the Middle East and North Africa, after Egypt. Iran has a consumer base of approximately 80 million people and, the Minister said, economic growth is expected to intensify following the recent easing of economic sanctions.In 2015, Irish sheepmeat was exported to over 40 countries and value at more than €230 million. Approximately 7.5 per cent of these exports were to non-EU markets. Since 2011, five new markets – Iran, Hong Kong, Oman, Maldives and Lebanon – have opened to Irish sheepmeat exports. The Minister noted that the search for new third-country markets is a top priority for his Department. “We are fully committed to ensuring that Irish meat exporters have access to as many international markets as possible. This search for new markets for Irish food and drink has taken on an added urgency in the context of the challenges posed by possible upcoming UK exit from the EU.”The Minister said the announcement on Iran is another example of achieving the market-access goals in the Food Wise 2025 strategy.

Linked Finance raises €75,000 for Murphy’s Ice Cream in Ireland’s biggest P2P loanMurphy’s Ice Cream, Dingle, Co. Kerry has raised €75,000 through a peer-to-peer (P2P) loan in Ireland. The funds were raised through Linked Finance, an online lending platform over the course of one day and 20 hours, and will be used to help finance the furbishing of a new shop and show factory in Dingle.Murphy’s Ice Cream was established in 2000 by brothers Sean and Kieran Murphy. Over the past 16 years, their business has experienced huge growth with stores across Ireland. In May of this year, Murphy’s Ice Cream began building its brand abroad, exporting ice cream to its first overseas premises in Palma on the Island of Majorca.

“The purpose of our platform is to support great Irish businesses, like Murphy’s, and provide them with access to funding so they can unlock the full potential of their business,” commented Niall Dorrian, CEO Linked Finance.

Linked Finance CEO Niall Dorrian and Murphy’s Ice Cream co-founder Sean Murphy enjoy an ice cream at the company’s shop on Wicklow Street in Dublin.


Irish beef takes centre stage at Breeders’ Cup

Dawn Meats recently partnered with Bord Bia (the Irish Food Board) and Good Food Ireland to prepare and serve Irish beef at the prestigious Breeders’ Cup World

Championships Taste of the World experience in Warner Bros Studio, California. speaks to Paul Nolan, Dawn Meats, about this exclusive opportunity

T he Breeders' Cup World Championships is a prestigious annual series of horse races, which Good Food Ireland describes

as 'the richest two days in sports'. Six years ago, the board of The Breeders' Cup introduced the Taste of the World experience to kickstart the races. “The idea is that only countries that have won The Breeders' Cup down through the years have the opportunity to exhibit at this particular event,” explains Paul. This is the sixth year that Good Food Ireland has been invited to represent Ireland at the much celebrated culinary event and the first time that Irish beef has been served, following the opening of the US market in January 2015.

This year, 15 countries had the opportunity

to showcase their products at the event, with

Ireland the only beef supplier on the menu.

“On past occasions, Good Food Ireland has

been presenting smoked Irish salmon at the

Taste of the World experience. Now that the

US is open to Irish beef exports, it created a

great opportunity that could not be missed

to showcase quality-assured, grass-fed

Irish beef on the menu,” says Paul. “So, this

year, Good Food Ireland, supported by

Bord Bia, and Dawn Meats came together

to provide the beef and organise for two

top Irish chefs – Ed Cooney, The Merrion

Hotel, Dublin, and Martin Shanahan, Fishy

Fishy, Kinsale – to prepare and sample the

product for those attending the function.”

An important opportunity Paul says it was a great coup for Ireland to

be the sole beef supplier at the event and

for Dawn Meats to be the first Irish beef

company to be involved in getting Irish

beef on the menu at the Taste of the World

experience . “We have taken the opportunity

on the basis that, first and foremost, we are

very proud to be approved to supply the US

market. This is an opportunity to present

our beef to a very discerning audience.

"Interestingly enough, the audience will not

only be from the US, it will also be people

from all around the world. You never know

what opportunities may emerge from an

event like this, but it is important that we

are here engaging with a global audience.”

interview


interview

Paul says the exclusive event is well attended by many high profile individuals who have the potential to be advocates for Irish beef once they savour its unique flavour profile. “This is an extremely influential and selective audience from all over the world and this event provides a terrific opportunity to introduce our premium, grass-fed, Irish beef to such a discerning US and international audience. The Taste of the World attracts global media coverage and we are hopeful that this exposure will help us build brand awareness and recognition in this new export market.”The award-winning Irish chefs prepared 1,500 individual servings of grass-fed, quality-assured fillet of Irish beef. Margaret Jeffares, founder of Good Food Ireland, said: “I am delighted that Bord Bia and Dawn Meats have partnered with Good Food Ireland and facilitated this high profile showcase for Irish beef. Many film and TV celebrities, horse breeders, owners and other VIPs from around the world attend this exceptional tasting event featuring cuisine from 15 participating countries."The Good Food Ireland chefs were joined by other international chefs representing the cuisine of Argentina, Australia, Brazil, Canada, Chile, France, Germany, Japan, New Zealand, South Africa, the United Arab Emirates, the UK, the US and Venezuela.

Market opportunities In early 2015, Irish beef secured access to the US market, becoming the first EU country to do so for over 15 years. “To have the US on your list of approved countries is no mean feat,” says Paul. He explains that the accreditation of the US is complimentary to the Irish agricultural food industry. “That US inspectors can come to Ireland and see first-hand what is going on and give us the approval required is in itself a very strong statement. Those things don't happen by accident. We have exceptional indigenous production, produced to the highest standards by some of the best beef farmers in the world. It then comes down to the processing and the marketing that goes behind that. "Bord Bia has been very strong in the area of quality assurance and, more recently, on the concept of sustainability through Origin Green. This reflects two things: our attitude to the planet on which we live and our responsibility to leave it in good stead to the next generation; and, also, the need for efficiency of production, because one of the very basis of sustainability is to produce more with less. "So, to be able to achieve those in parallel, I think, is standing us in good stead. Something like that is particularly appreciated in the US where they see, on one hand, that we are an extensively family-farm and family-business orientated country but, on the other hand, we have reached a stage where the World Wildlife Fund talks about and praises Ireland for its work on sustainability. That's very important.” Since beginning to export to the US market, Paul says business has been good and Dawn Meats' product has been very

well received. “The interesting thing is that people are realising that grass-fed beef has a very pronounced flavour compared to grain-fed beef, which is the main product in the US. So, there is a notable point of difference and people who have purchased it have noted that there is great dining satisfaction from the product. It has been good to get that reaction because this unique selling point has great potential to be built upon.”

A global business Established in the early 1980s and headquartered in Waterford, Ireland, Dawn Meats is one of Europe’s largest family-owned meat processors and exports to over 40 countries worldwide. Paul says Dawn Meats is always examining and appraising its position globally to ensure the company is well positioned in all of its markets. “We can't be in all of the markets all of the time and it's a matter of prioritising and getting our product as high up the value chain as we can.”Dawn Meats currently processes and supplies a full range of farm-assured, quality beef and lamb products and, Paul says, it is the company's priority to find as many premium markets as it can for Irish beef. “We firmly believe that for Irish farmers to have the best possible returns we must be in the high end of the market. Certainly in the US, by having accreditation and doing business there, it strengthens customer confidence in our ability to deliver a product to the highest standard. That is the ultimate goal for us.” Dawn Meats is a committed member of the Origin Green sustainability programme and its endeavours in this field have been recognised with several prestigious awards, including Green Large Organisation of the Year at the Green Awards, and Excellence in Environment from the Chambers Ireland CSR Awards. As the Irish Government, through the Department of Agriculture, Food and the Marine, and Bord Bia, explore more global opportunities for Irish beef, Paul says Dawn Meats is keenly monitoring developments in markets such as China where talks are ongoing. “We continue to examine the potential of full market access to China but while we await progress there we continue to focus our ongoing efforts on getting the very best share of markets already open to us."

Paul Nolan, Dawn Meats; Martin Shanahan, Fishy Fishy, Kinsale; Margaret Jeffares, founder of Good Food Ireland; and, Ed Cooney, The Merrion Hotel, Dublin


Dairy & Ingredients


Dairy demandstrong despitevolatility

A cohesive, sustainable, industry-wide strategy for the dairy sector, backed by Government and permeating all levels of the production chain, as well as an extremely strong product offering, are among the drivers of continued growth in demand for Irish dairy on international markets, according to David Owens, sector manager, dairy ingredients, Bord Bia (the Irish Food Board)

M ore than 18 months after the abolition of the EU milk quota, events on the world stage have impacted

international trade and markets in different ways, but for Irish dairy exports the success story remains the same, David tells .

The end of EU dairy quotas in April 2015

marked a watershed in the recent history

of Irish dairy production and 2015 saw a

significant increase in production.

“We have seen volume growth, as we had

expected,” David says. “Milk collections

increased by about 12 per cent last year, so

we reached 6.4 billion litres in 2015. On

the back of that, our dairy exports reached

€3.9 billion, including enriched milk

powders. In value terms, 25 per cent of the

value is destined for the UK, 30 per cent

for other EU markets, and 45 per cent for

international markets.”

The size of the national herd increased

accordingly. The Central Statistic Office

Livestock Survey estimates from June 2016, published in September of this year, show that the total number of dairy cows in Ireland in June 2016 was close to 1.4 million, an increase of around 8 per cent on June 2015. David says that consistent growth in international markets has been evident over the past year.“International markets grew by an estimated 9 per cent, driven by Asia, and we also saw higher growth last year in the Middle East, Africa and North America, so most international markets were relatively strong, volume-wise.“After the UK, China was our second-largest market, with dairy exports to China having a value of about €491 million. Exports to Africa reached €353 million last year. Africa now accounts for 20 per cent of our total international exports outside of Europe.” David was speaking following a trade mission to North Africa led by the Minister for Agriculture, Food and the Marine, Michael Creed, which included a delegation of Irish agri-food exporters.

International appealChina, clearly, is now an important market for Irish dairy. Despite talk of a slowdown in the Chinese economy, David says that the dairy category is in a growth phase in China, with consumers developing their taste for dairy, and consuming more dairy products. “We've seen consistent growth in our exports to China,” David says. “We haven't seen any dip. Obviously, the Chinese market, dairy-wise, is coming from a low base, so as consumption grows we haven't seen any impact. Chinese dairy imports for the 12 months to August 2016 are up 28 per cent, or 498,000 tonnes. That's across fresh dairy, infant formula and dairy powders. Prices may be coming down but we haven't seen a dip in demand in terms of volume. We have seen consistent export growth – we grew last year and we're growing this year.” In addition to China and the UK, there are several other key markets where the appetite for Irish dairy is strong, David explains. Under Origin Green, Ireland's sustainability programme that unites

focus


Government, the private sector and food producers through Bord Bia, three markets identified as priority targets for dairy promotion activities are Europe, China, and the Middle East. “There's also south-east Asia, where Bord Bia has a new office in Singapore; there's increasing focus on the Middle Eastern markets; and Africa is a large-volume market for us, and growing. We already have a good position in the market and it's about reinforcing that position.”On the global stage, some of the challenges for dairy have been well-documented.Teagasc's recent Dairying Roadmap to 2025 points to the positive future prospects for the Irish dairy industry and anticipates that Ireland's milk production will grow significantly over the next decade, but indicates that price volatility will be one of the expected challenges. Since 2013, we have seen huge volatility, David says, and Ireland has demonstrated its capacity to manage that volatility.“Obviously, volatility has been a huge factor, and low prices have been a massive challenge for the industry over the past two years, due to well reported issues in terms of Russian restrictions, China's economy slowing down, and dairy volumes increasing globally. But what we have seen in recent months is that that growth in volume increase has slowed down. We've seen supplies coming back to Europe, we've seen supplies coming back out of Oceania, supplies coming back out of Argentina, so there's a slowdown in the growth of dairy production. And currently dairy prices are increasing globally on the back of these lower volumes. ”

Supporting growthIreland has long been regarded as a template for other food-producing nations across a range of sectors, dairy included. Food Wise 2025, the report of the 2025 Agri Food Strategy Committee, sets out a cohesive, strategic plan for the development of the agri-food sector over the next decade. Food Wise 2025 has harnessed the collective wisdom, foresight and knowledge of leading industry stakeholders and sets a course for the industry of smarter, greener growth over the next decade. In relation to dairy, Food Wise 2025 states that the increased availability of high-quality and safe raw material provides great potential for further developing the dairy processing industry and expanding its capabilities to deliver innovative product solutions to address the demand from global consumers. It remains evident that the sustainability message inherent to the sector in Ireland has a strong resonance.“Countries, globally, are interested in Ireland because we are growing,” David says. “That's because we have a plan in place, in Food Wise 2025. A lot of countries don't have plans in place. So there's a strategy there from the industry, that covers everything from primary research through to farm level through to marketing capabilities across the supply chain. The strategy has Government support. Companies and countries see that as a positive attribute when they come to Ireland, and they see that there is actually a strong focus on sustainability here, and that our growth target is sustainable, manageable and achievable.”David says the strengths that set Irish dairy apart are becoming increasingly well recognised, both at home and abroad.

“We're grass-based, we're extensive, and we have outdoor grazing, which results in a better quality product and high standards of animal welfare. We're building on that through our Sustainable Dairy Assurance Scheme (SDAS), where we're going out auditing each and every single dairy farm. Our target is to have 100 per cent of our 18,000 dairy farmers participating in the scheme. No other country has a scheme like it in the world. So it's providing assurances for customers, around quality and food safety, but also around sustainability, and it's emphasising our commitment to reducing our environmental impact. Ireland, already, within Europe, has the lowest greenhouse gas emissions footprint for dairy production, and we're going further. And that is a key difference between what Ireland is doing and what other countries are doing. Now, other countries and companies are looking at Origin Green and SDAS as a template in terms of where they need to go. But we have the infrastructure already in place and we're doing more than any other country is either currently doing or is capable of doing.“I think medium-to-long-term you will see further growth in Irish dairy production. Irish dairy farmers possibly are more positive than some of their European counterparts. We've always had more ambitious – but realistic – plans for growth, and we expect those to continue because the demand is there within the marketplace. Companies are actively targeting opportunities and are building a position in the market with help from Bord Bia, be it through trade and consumer insight, trade mission activity with ministerial participation, or the various events and programmes on offer. It's about supporting that growth.”

focus

Health and wellness are key consumer trends across the world and between November 29

and December 1, at the Health Ingredients Europe (HiE) and Natural Ingredients (Ni)

show in Frankfurt, global health and nutrition specialists and enthusiasts will have the

opportunity to network and discuss new business ideas. Here we profile the Irish

companies attending this year's event, exhibiting a range of ingredients and expertise

HiE& NI2016

ATLANTIA FOOD CLINICAL TRIALS LTD Atlantia is a dynamic company providing clinical studies expertise for the food, beverage and supplements sector. It delivers comprehensive end-to-end solutions for human intervention studies in functional ingredients in foods and beverages, nutraceuticals, medical foods, dietary supplements and infant formula. The Atlantia headquarters also provides extensive clinical trials, with nine clinic rooms, offices, phlebotomy rooms, interview rooms and a central lab. It has two clinic sites in Cork. Its acute facility can run short feed trials and collect volunteers' blood, saliva or urine samples for parameter analysis. Its new facility has phlebotomy, interview, food preparation, serving and relaxation areas, as well as offices, storage and a small laboratory.Atlantia works with leading European scientists across various partner institutions and provides clients with a range of options based on their needs. It manages all aspects of trials from protocol design through to recruitment, execution, data analysis and report/dossier preparation. It can also provide the specific elements of a trial. Atlantia has a highly flexible structure, with capabilities across the spectrum of functional food and beverage categories, such as dairy, probiotics, proteins, infant-specific foods, vitamins/minerals and medical foods.

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MARIGOT LTDEstablished in 1992, Marigot Ltd is a provider of bioactive marine ingredients. Its range of marine-derived minerals includes Aquamin, and Aquamin Mg. Aquamin is derived from one unique raw material, the red algae Lithothamnion species. Aquamin is an all-natural, allergen-free material, which includes calcium, magnesium and 72 trace-minerals, and can be easily used in food, drinks, and dietary supplements where it is proven to positively impact bone, joint and digestive health. Marigot has researched the material extensively through independent clinical trials which are published in international peer-reviewed journals. Aquamin Mg is an excellent source of magnesium, which is derived from the clean ocean waters around the Irish coast. The company has several manufacturing facilities, with a growing international network of exclusive distribution partners serving the needs of local markets. Marigot ensures that the sustainability of its raw material is forefront of its activities, harvesting only mature forms, calcified seaweed, and leaving ‘live’, young seaweed untouched. Consumer interest in the product continues to grow widening the knowledge base for marine-minerals in nutritional applications. The company has developed its own consumer product offering and is marketed as Osean74.

CARBERYCarbery is a leading global manufacturer of specialty and nutritional dairy ingredients, as well as flavours and cheeses. For over 50 years it has brought innovative and high-quality foods and ingredients to the market; creating great tasting, healthy food experiences enjoyed by people everywhere.Carbery is owned by four Irish dairy co-operatives and their farmers and employs over 600 people at technical, commercial and manufacturing sites across the globe. Carbery’s nutrition business pioneers, manufactures and markets a comprehensive range of advanced whey proteins. Although primarily destined for use in infant, performance, and clinical nutrition, these proteins are also suitable for protein supplementation in mainstream foods and beverages. Carbery is dedicated to advancing scientific research and innovation, in conjunction with key institutes and universities, enabling the delivery of products with real consumer benefits to the marketplace.

KERRY Kerry is a world leader in taste and nutrition serving the food, beverage and pharmaceutical industries, and a leading supplier of added-value brands and customer-branded foods in Europe. Founded in 1972, the company has developed organically and by acquisition, and employs over 24,000 people throughout its manufacturing, sales, technology and application centres across Europe, North America, South America, Australia, New Zealand and Asian markets. The company supplies its products to more than 140 countries worldwide, and has a current market capitalisation in excess of €12 billion on the Dublin and London stock markets. Kerry’s taste and nutrition division provides the largest, most innovative portfolio of taste and nutrition technologies and systems, and functional ingredients and actives for the global food, beverage and pharmaceutical markets.

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A total of 28 farms from across the country were selected as finalists for Bord Bia's (the Irish Food Board) Origin Green Sustainable

Producer Awards. The awards were divided between beef and dairy farmers and eight producers were named winners of their particular category. Bord Bia says the winning, and shortlisted, entries are among the top performing beef and dairy farms in the country, particularly with regard to their carbon footprint, biodiversity and water management. Commenting on the awards, Bord Bia’s CEO, Aidan Cotter, said: “We celebrate Irish farmers as champions of sustainable, quality-assured and world-class food production.”

Continuous assessmentThe Origin Green Sustainable Producer Awards are managed as part of Bord Bia's Quality Assurance Scheme, which sees Bord Bia conduct audits and carbon assessments every 18 months on almost 60,000 beef and dairy farms. It was based on these assessments that Bord Bia identified the winning farms.

“We have an audit every 18 months with Bord Bia and we have everything almost up to standard. At all times we almost get 100 per cent,” says John Joe O’Sullivan who, along with his wife Theresa, won the Small/Medium Herd category. The O'Sullivans graze a herd of 70 cows on 45 hectares for over 300 days a year. The farm was also noted for its commitment to biodiversity, with John Joe also practising his hobby of beekeeping. “We have two hives, so we have enough honey for the house and surplus for friends,” says John Joe. “ In order to keep them we need the flora on the farm. We help them in every way we can and that helps the biodiversity.” John Joe says that the clover in his grass helps the bees survive while, at the same time, reducing the need to spread as much nitrogen fertiliser as the clover

naturally produces nitrogen. John Joe says it was great to be recognised by the Origin Green Awards for his day-to-day work. “It is a bigger achievement when you know that it is for the work that we are doing every day, we didn't have to do anything special for it.”

Farm-to-fork formulaOrigin Green is a unique sustainability programme developed by Bord Bia to internationally demonstrate the commitment of the entire Irish food and drink industry to operating sustainably – in terms of greenhouse gas emission, energy conservation, water management, biodiversity, community initiatives and health and nutrition. Since it was launched in 2011, Origin Green has operated at both

The cream of the crop:sustainable dairy farmers honoured

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Origin Green is the mark of sustainability in Ireland's agri-food industry. The nationwide, voluntary programme is uniting the Irish food and drinks industry in its sustainability efforts

and operates at all levels in the food chain. Recently, it honoured the work of Ireland's most sustainable, efficient and environmentally friendly family farms. As part of our dairy focus,

speaks with the winning dairy farmers about the role of sustainability on their farms

Dermot Sherry

John Hannigan Patrick Brennan

John Joe O'Sullivan


a primary producer and processor level and, in 2016, it expanded its remit to incorporate a retail and foodservice tranche – giving it full farm-to-fork coverage. “We are the first link on the chain,” says Dermot Sherry, winner of the Liquid/Winter Milk category. “If we're not doing it right we can't expect anyone else to. It's back to the farm-to-fork attitude. We are putting the work in on the ground.” Dermot is using grass measurement and management to improve productivity on his farm. Cow numbers this year reached a peak of 118, up from 70 just a few years ago. “As the herd size increases I find it a lot is easier to manage grass, which might sound a bit odd, but most people will say that because you can watch your grass very tightly. If you have excess or a deficit it is easier to change it with heavier stock.” Dermot believes sustainability will be central to the future of the dairy industry. “It is the new future quota. Carbon footprint is the way forward, it's what the consumer wants,” he says. “We are only here for a short time, we have to hand this land on to somebody else. If we don't look at sustainable aspects now I don't know what the future will be for everyone else.”

Integrated messageSince its launch, more than 527 Irish companies, representing 90 per cent of Irish exports, have signed up, while at farm level, Bord Bia has conducted in excess of over 120,000 carbon assessments to measure and help improve the environmental performance of Irish farms.Patrick Brennan, who won in the Carbon Footprint Reduction category, says on-farm sustainability has an important role in supporting export businesses to sell Irish products internationally. He says the removal of quotas has made the market more competitive and sustainability will help differentiate Irish milk in the marketplace. “Things are changing and you have to sell your product, from the producer to the processor and to the end user. The end user wants to know where their product is coming from and they are not prepared to accept anything less. We have a good, green image in this country and we have to work harder at selling it.” Partick milks over 170 cows and has made small changes

resulting in large efficiency gains. Patrick’s attention to detail and tweaks to his system, including his use of water, energy and fertiliser management, which have resulted in a reduction of the carbon footprint of the farm. “There are dual benefits for the farmer, the producer and the environment,” he says. “Our cows are fed grass all year, and silage in the winter, which comes from the grass. We have very little imports or bought-in products. Everything is grown here and is our own feed.” He adds that Ireland's grass-based system gives the industry advantage on the world market. “We have huge advantages. I have been to America, Germany and Holland and our production costs can be achieved by 5c-7c less than any country I have seen.” He says sustainability will also deliver better returns for farmers.

Shared experienceThis message is echoed by John Hannigan, winner of the Large Herd category, who says: “We have the joint lowest carbon footprint in Europe with our grass and that is really something that can drive our industry here. Milk price is the big thing at the end of the day for farmers and if you're not efficient you won't be able to produce for that market. Sustainability ties in with efficiency.” The judges were particularly impressed by John's focus on breeding to build a solid foundation for his farm of over 110 Friesian cows. John makes use of the Economic Breeding Index to use the best bulls for breeding, keeping a close eye on milk solids and fertility. Furthermore, he manages herd health closely. “We have a closed her, which is very important from an animal health perspective. A breeding bull comes in once every second year and that's the only animal that comes in.”John says the sustainability message is being shared throughout the farming community through discussion groups. “Getting hints through the Teagasc advisor and the discussion group is very beneficial,” he says. “From discussion group level everybody puts their cards on the table and what you see is what you get. Everyone is trying to improve.” He adds: “It is very important because we have to target our markets with a high-level product. The better the product the higher we can go with our end product.”

The winners are...BEEF AWARDS – OVERALL CATEGORY WINNERS:Suckler to Beef: Alfie Kirwan’s

suckler herd in Co. Galway

has one of the highest calving

rates in the country and is

now converting to organic

production, encouraged by

demand for this premium,

niche market.

Suckler to Weanling/Store: Neville Myles, from Co.

Donegal, who runs a 70-cow

suckler herd, was recognised

for his quality breeding and

grassland management that

produces high-performing

weanlings.

Weanling/Store to Beef: Tullamore-based Kieran Dooley,

along with his brother Brian

and son Joe, specialise in the

intensive finishing of well-bred

continental young bulls and

heifers, and have a keen focus

on market demand.

Dairy Calf to Beef: Brothers

Pat and Tom Redmond operate

a significant calf to beef

enterprise in Co. Wexford.

Production is coordinated to

finish 10 high-quality Angus-

cross heifers per week, to

supply beef to the family’s two

hotels in Gorey.

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T he opening remarks in the forecasting document say that “future prospects for the Irish dairy industry remain positive” and that

“Ireland’s milk production will grow significantly over the next decade”.

There is a warning, however, that price

volatility will continue to be a feature of dairy

markets. In order to alleviate this volatility,

Teagasc points to increased opportunities

to enter into ‘forward contracts’ or to utilise

‘price risk management tools’. The main

authors of the Roadmap, Padraig French and

Tom O'Dwyer, point to “our grass-based milk

production system as our key comparative

advantage over our international

competitors”.

Adopting best practicesIf we are to maximise this competitive

advantage then Irish milk producers must

adopt best management practices, as

outlined by the State research and advisory

body. Teagasc's target figure for herbage

utilised is given as greater than 10 tonnes

of dry matter per hectare. Most milk

producers have the potential to achieve or

better that target. It is generally recognised that the grass management skills of Irish dairy farmers are already higher than the average livestock farmer and the target Teagasc grass production figure points to the fact that greater efficiencies are still possible in the sector. There is a world-class grass research centre at Moorepark. There are other centres of excellence dotted around the country, including Clonakilty and Ballyhaise, as well as the likes of the Greenfield test farm, located in Clara, Co. Kilkenny. All of those centres advocate and achieve high levels of grass dry-matter production and utilisation. In order to encourage improvements in grass production, the concept of discussion groups has been widely adopted. The lesson of the value of peer pressure and cooperation has been well learned from the experiences of New Zealand dairy farmers. The message is shared, clearly, loudly and regularly: grow more grass, utilise more grass and profit from the results.

High-quality milkOf all the targets set out in the Roadmap, the one where farmers succeed most impressively and where a sizeable proportion match or

exceed the Teagasc target is in the somatic cell counts (SCC) in their milk. SCC is one measure of milk quality. It is anticipated that by 2025, at the latest, all Irish milk will comfortably come within the very high-quality standards advocated by both Teagasc and Irish milk processors. A very intensive campaign is in place, driven by Animal Health Ireland under it's Cell Check Programme to reduce SCC counts in Irish herds.

Driving productivityOther targets set out in the Teagasc Dairy Roadmap highlight the potential for significant productivity gains in the coming years. These include lifting milk deliveries and milk solids per cow, as well as reducing the amount of supplementary concentrate feeding per cow, replacing expensive, bought-in grain feed with farm-produced grass. Thirty-two per cent of dairy farmers producing milk for the processing sector are achieving the Teagasc target yield per cow of 5,573 litres. With improved breeding and feeding, the number of milk producers achieving that target cow yield can at least double by 2025. The dairy genetics already exist with clear advice as to how a herd can be upgraded quickly and effectively.

teagasc

Teagasc's Dairy Roadmap to 2025 is an optimistic document that highlights a range

of potential production efficiencies to reinforce the viability of the sector over the

coming decade, writes Matt O'Keeffe

Ambitious targets in Teagasc's

Dairy Roadmap


The key to success is in adopting best practice in terms of breeding and management.

More cows per producerThere have been ongoing improvements in the numbers of cows milked and managed per labour unit on Irish dairy farms. New technologies in milking systems allied to improved infrastructures around the farms have driven these improvements in labour units per cow. All of this points to opportunities for milk producers to improve efficiencies greatly in the years ahead and this is what is anticipated to happen by Teagasc. At best this should allow milk producers to improve profitability over the next 10 years. If production costs increase significantly, then at least producers have the possibility of offsetting those cost increases with identifiable production efficiencies that would neutralise their cost bases.

Production surgeAll of this is in the context of a quite impressive expected surge in output, as predicted by French, O'Dwyer and co.

teagasc

The predicted increases include a 100 per cent lift in milk solids by 2025 compared to production under quotas. Any fallout in producer numbers will be counteracted by an expected influx of up to 1,500 new entrants. In tandem with this, it is expected that cow numbers will increase to 1.7 million by 2025, with average milk delivered per farm rising to over 570,000 litres with protein and butterfats of 3.6 per cent and 4.24 per cent respectively. At the same time, herd sizes will have increased to at least 100 cows on average. Provided these increases can be achieved using optimum management practices as advocated by Teagasc, then there are very good prospects for the viability of Irish dairy farming. Examining just a few of those figures gives an indication of the efficiency gains that can be achieved. Average labour input currently is 30 hours per cow per year. By 2025, that figure should be down to 22 hours on average. Latest Teagac research is driving towards a 'best-in-class' figure of less than 16 hours per cow per year. So, even with the expected increase in average labour efficiency by 2025, improved management should, if adopted widely, provide opportunities to drive that figure down further.

A sustainable milk production systemThe Teagasc Roadmap summarises Ireland's position as a leading milk producer using sustainable production methods. Our grass-based milk production system will continue to be our key comparative advantage over our international competitors. Milk of a higher quality will be required for the production of higher value products, including infant milk formula. There is the risk of significant reputational damage to the Irish dairy industry in the event of a product failure, so continuing vigilance and regulation will be absolutely necessary. Our dairy farms will become increasingly specialised with many activities outsourced, creating a demand for a larger farm contracting sector. It is recognised that alternative models of land use and management are already emerging and will become more popular. These include long-term land leasing and contracted feed-supply agreements between milk producers and tillage farmers.There is a requirement for an increased number of young, trained dairy farmers and skilled dairy-farm operatives. The Teagasc Roadmap concludes that the family farming model for milk production has served Ireland well and should be maintained into the future.

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L aunched in 2008 as a consortium with key players in the dairy industry and the academic community, and funded by Enterprise Ireland

and dairy companies, FHI’s purpose was to identify milk-derived food ingredients with potential health benefits – thus creating new, intellectual capital and enabling the industry members to develop new products for sale globally. FHI is now in its second phase of funding, with just under two years to go until August 2018. However, Jens says, the consortium is now in a very important phase. “We have identified new components through our intelligent milk mining programme. So, this is a really decisive phase where we try to show in humans how our new components work.”

Commercialising results Two years ago, the first FHI results were made available to its industry partners for commercialisation and, since then, several licenses have been taken on research results across different life stages and needs, including: infant nutrition; sports nutrition; healthy cheeses; and glycaemic management. “With the new components

identified recently, we are setting up 10-12 intervention trials in the next 12-18 months so we should get a whole flood of further results that we can commercialise towards the end of the programme. Then, we will decide, with our industry partners and with Enterprise Ireland, how this model of FHI will continue into the future.”

Real-world adaptationOne key area of research, according to Jens, has been FHI's analysis of Irish milk and its role in infant formula. “There is a big trend in the infant formula industry, manufacturers are trying to reduce palm oil in infant formula because of sustainability concerns around palm trees. We are looking at replacing part of the palm oil content in infant formula with 50 per cent milk-fat.” As well as addressing the sustainability concerns, Jens says the milk-fat composition is more digestible for infants. “We are quite

advanced with that. The results support cow's milk and milk fat from cow's milk as a very suitable ingredient for infant formula. We are now presenting that to companies, demonstrating our research results. Now the interesting piece is that this new fat blend requires the adaptation to the real world, or the existing formulas that are on the market.”Jens says FHI's work demonstrates that cow's milk fat can bring infant formula closer to the gold-standard breast milk. “By using something that is much more natural, namely cow's milk, and through specific processes that we have developed, you can really bring the cow's milk fat closer to fat that you would find in mother's milk.” Jens adds that this is a really interesting development as there is strong interest from global infant formula companies in updating and improving their milk-fat formulation.

In 2006, Food for Health Ireland (FHI) was just a vague idea. Representatives from the dairy industry and Enterprise Ireland thought about developing a collaborative approach to fund nutrition and health research to improve public health. Now, 10 years on, that research is delivering ingredients for commercialisation. Jens Bleiel, CEO of FHI, tells about the consortium's ongoing research work

Commercialising Irish research

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Nutritional interventionAnother area of research at FHI has been its work on glycaemic management. “Diabetes is one of the most prevalent illnesses in the world. Especially in developing countries such as China, India and Arabia, where there are changing lifestyles and dietary habits,” says Jens. He explains: “There is a strong correlation between obesity and diabetes. We know that 80 per cent of all obese people – people who have a BMI of more than 30 – will develop type 2 diabetes in later life. We want to avoid people becoming diabetic because that creates lots of other health problems, including cardiovascular problems.” Jens believes there is an opportunity to engage with people on a consumer level and tackle the issue

through nutritional intervention before they become diabetic patients. Everything that can prevent people developing diabetes is very relevant, he says. “If this can be done through nutritional intervention – through a product that is based on milk – that is much better than medical intervention. It's a very relevant way, through lifestyle and nutritional intervention, to avoid – or at least delay – people becoming sick or developing diseases that then require medical intervention.”

FHI has researched the potential of its milk-derived ingredients to assist in glucose management and is testing two new components that it recently generated – one will be tested in pre-diabetics and one in diabetics. Following this, Jens says, its industry partners will be exploring ways to adapt these ingredients for their products. “Our industry partners have the capabilities of adding ingredients into certain food matrices and these matrices will depend very much on the consumption habits in the target region. In Europe, it could be a functional drink or yoghurt, in the US it could be a dietary supplement or a powder sachet. There are all kinds of possibilities to integrate such an ingredient into a final food matrix. However, that requires more

work because you have to formulate it, you have to see if it is stable, is it still functional, how does it taste, what does it cost etc. This requires intensive application work by our industry partners.”

A unique opportunityWhile similar research is ongoing around the world, Jens says the Irish model, through FHI is unique. “I haven't really come across similar centres or consortiums. The fact that we have five companies working together pre-competitively is pretty unique.” As an Irish research consortium, FHI is part funded by the Irish Government, and works with Irish universities for its research. “They are top class in their respective fields. Our researchers have all of the international contacts and there is a really good exchange between the scientists. We also have an external advisory board, and those members come from other centres or universities and they are top experts in their field as well. Furthermore, we also often present to international companies and get direct feedback for the programme. All of that guarantees that we are not in an academic ivory tower.” Jens says the programme is also distinctive in its agenda, which includes all stages from fundamental discovery to products on the shelf. “That is something that I haven't come across elsewhere.”Jens says the partner companies have also benefited from FHI, not only through the research programme, but also through the possibility to do contract research with the universities under the FHI umbrella. “Since we started FHI we have executed about 50 or 60 contract research projects outside of the FHI consortium using the knowledge and capabilities of FHI. We have trained people doing the research with us, some of them have joined our industry partners and the capabilities we have created along the programme are also available for contract research. All this has proven to be very beneficial for the companies. That's the nice element, that you start a pre-competitive programme that delivers results but there are a lot of side effects and benefits and that is what companies see. We have this network of more than 100 very capable scientists in Ireland and we know exactly who can do what kind of research project. And we can help companies find specific solutions for their day-to-day problems.”

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Kerry's transformation journeyIn 2015, Kerry established the Kerry Health and Nutrition Institute to provide expert insight into the science and policy of health, taste, nutrition and general wellness. One year on, speaks with Satya Jonnalagadda, director of Global Nutrition at the Institute about its progress and its role in the food and drinks industry

T he Kerry Health and Nutrition Institute was established against a backdrop of growing public health challenges. Health

concerns, such as obesity and diabetes are increasingly prevalent across all ages and in all corners of the globe. This has led to a renewed focus on improving the nutritional quality of food. However, according to Datamonitor figures, taste remains the most important factor when choosing food or drink products for 41 per cent of global consumers. Therefore, nutrition cannot be considered in isolation of taste.

A go-to resource“What Kerry does as a business and the role of the Kerry Health and Nutrition Institute are not mutually exclusive. It provides us with another vehicle to communicate and it is another resource in the toolbox that Kerry can offer to its customers, many of whom do not have the nutrition or taste expertise in house.” Satya explains that, as a world-leading taste and nutrition company, Kerry wants to advance the scientific knowledge of taste and nutrition and communicate that knowledge with key stakeholders. She says the Institute will help to cement Kerry as “a leader that people look to” in this space.

“Kerry has been on a transformation journey, from an ingredients supplier to a taste and nutrition company and, as part of that transformation, we were motivated to establish this Institute. It gives us additional credibility in terms of what we are doing in the food industry from a taste and nutrition perspective. It also gives us credibility as the go-to resource for information.”

Guiding principlesThe Kerry Health and Nutrition Institute was established with three guiding principles: • To educate on health and wellness market

trends and to provide knowledge on nutritional considerations across life stages and need states;

• To connect with the global scientific community on regulatory and policy matters, and evolutions in scientific research; and,

• To advance scientific knowledge to help deliver great tasting, nutritious food and beverages, and to advance Kerry’s nutrition research programme

“It’s a virtual Institute but we have physical, human resources that support it on a daily basis. We leverage internal and external experts to write white papers, blogs and news stories, which can be accessed by anyone through the website

of the same name.”The Kerry Health and Nutrition Institute is supported by a Scientific Advisory Council, which is made up of recognised leaders in nutrition science and research. “These external members hail from excellent academic institutions and bring with them a breadth of areas of expertise. We select our advisors based on the needs and focus areas for the Kerry business in terms and our strategy for advancing scientific development. They inform and educate us on these focus areas but also challenge us in terms of how we are approaching projects,” says Satya. The Institute also sponsors and presents at educational scientific sessions and congresses. In August 2016, Kerry was the platinum sponsor of the 18th World Congress of Food Science and Technology (IUFoST 2016) in Dublin. In addition to sponsoring the event, Kerry held two educational panels: 'Too Much of a Tasty Thing - Where Have the Excesses of Salt, Sugar and Fat

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Consumption Left Us?', which addressed the consequences of sugar, fat, and salt reduction; and 'From Infants to Golden Oldies – How Can We Optimise Muscle, Digestive and Immune Health?', which explored the role of proteins across the life span of a person. Satya says these are hot topics within the food and beverage industry that impact Kerry’s customers from a nutrition, taste and policy perspective.

Actionable research and

knowledge“The focus of the Institute is

to translate the science and policy of nutrition and taste into actionable

insights for the food and beverage industry,” says Satya. She explains that the Institute is both internally and externally focused, and serves the interests of a number of key stakeholders. “We have employees all over the world, who are our internal stakeholders that we are educating. From an external perspective, our stakeholders could be our customers, stakeholders in professional organisations, healthcare professionals and other scientists in academia. We wanted to find ways to not only communicate, but also educate these stakeholders about what is happening in the world of nutrition and taste science and how that might translate into the food and beverage industry.”

Open innovationThere are a number of elements driving research at Kerry. “As a taste and nutrition company we are looking to identify new ways of delivering new technologies or ingredients. Some of that happens within the Kerry infrastructure, for example, a new ingredient could be developed in Ireland, or in other parts of the globe where we have Technology & Innovation Centres or it may come from an external source.”Satya explains that external collaborations are essential because of the volume of research and information being generated on a daily basis. “There is no way we could do all of that research internally and stay ahead of the game. That's why it is important for us to collaborate with external experts because they are at the cutting edge of their respective fields.”According to Satya, open innovation has become an increasingly popular approach internationally over the past five to 10 years. “It's not just happening in food. No one group can know it all, and open innovation presents a valuable opportunity. It is important to advance the science and technology in the food and beverage industry. Even within Kerry, we have a group that is looking at those opportunities and evaluating them and seeing what is the right fit.”

Investment in knowledgeHaving successfully established a foothold over the past year, Satya says the Kerry Health and Nutrition Institute will continue to build its knowledge base and expand its network. “We started from a base of zero one year ago and are delighted with the progress made to date in terms of reach and engaging with our target audience. "We’ve had good traction in North America and Europe to date, and would now like to extend that reach to a more global audience, further increase engagement and try out some new communication approaches. It’s an investment not only in our industry but also in our future as an organisation. By staying true to our guiding principles, we are sure the Institute will continue to grow and mature.”


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Aquamin, a unique marine multi-complex product, produced by Irish company Marigot Ltd, recently took home the award for the Healthy Ageing Ingredient of the Year at the annual NutraIngredients Awards at Vitafoods Europe 2016

Aquamin makes a splash with award win

A quamin is a unique marine multi-mineral complex manufactured by natural ingredients producer Marigot. It

provides bioactive calcium, magnesium and 72 other trace marine minerals for the fortification of food, beverage and supplement products. The raw material used in the production of Aquamin is the Lithothamnion seaweed species, which is farmed in the Westfjords of Iceland.

The product was recently named Ingredient of the Year at the NutraIngredients Awards, which recognise “true innovation and cutting edge research in the health foods, supplements and nutrition industries”.

Award winningSpeaking about the win, David O'Leary, commercial manager, Marigot, says: “We are delighted with this award. Marigot continues innovating with Aquamin and our research programme is full of new and exciting study areas, which we are confident will highlight the uniqueness of this truly efficacious product.”Aquamin is the brainchild of natural ingredients producer Marigot, based in

Carrigaline, Co. Cork. The company began its research into Lithothamnion in the late 1990s investigating its potential for bone health and the potential bioavailability and mineral absorption of Lithothamnion and comparing it to other mineral salts such as calcium carbonate and calcium phosphate.

Health benefits“We discovered that the product had its own unique potential to reduce symptoms associated with osteoarthritis. In 2006/2007, we undertook significant human studies looking at the ability of that particular area of joint mobility and osteoarthritis. We compared it to and in combination with glucosamine sulphate and we found that the material on its own actually out-performed glucosamine sulphate on a one-to-one comparison,” David explains. Further research into joint health highlighted Aquamin's ability to aid in the reduction of pain and stiffness, as well as improved walking distances due to the product's anti-inflammatory properties. David says Aquamin also offers benefits for bone health, including inhibition of bone mineral density loss, as well as supporting the mineralisation and maturation of bone cells.

Ongoing researchIn recent years, the company has explored other potential benefits of Aquamin, including digestive heath and the negative impact on gut health associated with high-fat diets. Research into Aquamin's role in gut health has featured in scientific publications and reports on Aquamin's potential have appeared in a number of international journals. “We have over 30 peer-reviewed scientific publications supporting the product and research across the three areas of health we continue to study,” says David. He explains that the company's research is carried out on an international basis. “We work with clinical research organisations and particular centres of excellence associated with universities. We work with Trinity College, University College Dublin, and University College Cork, as well as organisations in the US,” says David.

Seaweed superfoodAquamin is available in various grades depending on the application. Options include a food-grade powder, as well as a variant for soya milk products and low pH juices. David explains that Aquamin fortifies


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and enriches the various foods to which it is applied and offers specific functional properties such as improved viscosity and mouth-feel. “We have customers in the confectionery markets, fruit juice sector, as well as manufacturers of dairy alternative drinks such as rice soy and almond-based drinks. We also have bakery customers using the product in gluten-free foods.” Marigot also produces Aquamin MG, a marine magnesium product, sourced off the Irish coast. The product is available in two forms, Aquamin MG, for dietry supplements in powders and food fortification, and Aquamin MG TG, for capsule and tablets.

Eco-friendly Sustainability and eco-awareness are key factors in how Marigot harvests its seaweed. “We have sourced the seaweed from the north west coast of Iceland since 2007 and we harvest only the mature form of the

material in its fully aged and mineralised, dead state. By doing so, the live plant is allowed to continue uninterrupted and replenish itself. We have mapped the entirety of the deposits in terms of what is available locally in the area that we are licensed to harvest,” David explains. “The sustainability and eco-responsibility that the company has adopted is very strong and at the forefront of our values.”

Global reachMarigot exports 95 per cent of its output and, in 2015, it was also won the High Growth Markets Exporters Award for 2015 from the Irish Exporters Association. Its Aquamin product is currently available in 42 countries and the company has plans to introduce the product to the Middle East and South America. David explains

that Marigot's largest market for Aquamin sales in relation to food products is the US followed by Europe, Korea, Japan, Australia and New Zealand. “Korea is our oldest market in terms of sales, largely due to the fact that seaweed is a whole food there and widely used in various types of nutrition. We've been working with a distribution partner there for many years and they've been very successful in promoting the product's benefits and functional properties within the food and beverage supplement markets,” David adds. David says the win at Vitafoods is an important moment for the company and has helped to boost brand awareness on an international scale, which suggests a bright future for the development and usage of Aquamin. “Winning the award has increased general awareness of the product and piqued the interest of both customers and potential distribution partners, as well as highlighting the significant and important scientifically-proven benefits of the product,” he concludes.


T he concept for Fruchee dairy bars came about through the company founders' own disappointment with the existing

snacking market. “At the time, my business partners and I had 10 children under 10 years and from our personal experience, as parents, we were frustrated with the the lack of snacking options available.”

Paul explains that, unlike other dairy snacks, which fit into either cheese or yoghurt categories, Fruchee is a stand-alone product. “We wanted to take the best of both worlds,” says Paul. “The problem with existing dairy snacks is that, while yoghurt is great and kids love the taste of it, it is high in sugar and very messy. Whereas cheese, pretty much only comes in one flavour and it is high in fat and salt. We were seeking something with the texture of cheese but with the taste of yoghurt.”

Tapping into trends“The three big global trends are snacking, convenience and health, so we needed to make sure that, not only was our product healthy but also the format needed to satisfy

consumer needs in all aspects.” For over five years, Paul and his business partners have been working on the development of Fruchee. Existing technologies, he says, weren't capable of delivering this product and so, Dairy Concepts adapted them to deliver a hybrid cheese and yoghurt product.There are two types of products emerging from the Fruchee technology – Fruchee, which will appeal to adults and Fruchee Friends, which are designed with children in mind. As well as offering a healthier snack option, Dairy Concepts designed the Fruchee dairy bars for easy, on-the-go consumption. Paul explains that the Fruchee range is high in protein, with approximately 18 per cent protein in each 20g serving. He compares this to well-known yoghurt snacks that deliver 3 per cent protein in the same serving. Meanwhile, the sugar content of Fruchee is 3g per 20g serving, which Paul says is half the sugar content of yoghurt products. Furthermore, he say, because Fruchee is a solid product, it offers greater satiety than a liquid yoghurt, which has a very high water content. Furthermore,

Fruchee Friends has added calcium and

vitamin D. “Because children's bones are

growing, they need the calcium for strong

bones during that period.”

The adult and children's products also differ

in flavour. “ The variety titles for adults

are much more dessert like –peaches and

cream, strawberries and cream and chocolate

and cream. For kids it's things like scary

strawberry, cheeky chocolate. Also, when you

compare the two strawberries, the strawberry

flavour that a child likes and wants is not the

same strawberry flavour that an adult likes

and wants. In some ways, the adult flavour is

more akin to an actual strawberry, whereas

the strawberry flavour that kids are used to

might come from confectionary or yoghurt

but they are just a bit different because that is

what appeals to the different groups.”

Market strategyDairy Concepts is building the market

for its adult and children's products from

two different directions. “Because the kids

dairy snack market is well established and

there is a lot of lunchbox consumption, it is

Innovative dairy snack

emerges from Ireland

At Sial 2016, Diary Concepts Ireland launched its Fruchee range of dairy snacks to the world. Being listed in the

Sial Innovations Arena ensured the company attracted a lot of attention at the show and Paul Simpson, sales and marketing director, Dairy Concepts, says the response at

Sial was a fantastic validation of the company's vision

focus


very easy to go straight to the supermarket

and it is easy for parents and shoppers to

understand the role that the product plays

in their lives.” For adults, he says, there isn't

any handheld dairy snack. “The intention

is to start the adult product in foodservice

so we can make them available at the point

of consumption. We think that a great time

when Fruchee will be a high level choice,

ahead of the competitive set, is in an office

canteen because, when you have just had

a sandwich and a packet of crisps, a lot of

people want something sweet afterwards but

a chocolate bar is about 200 calories, whereas

Fruchee is only 60 calories.” Paul says that

as Fruchee establishes itself in foodservice,

there will be sufficient demand for listings in

supermarkets and, similarly, in kids there will

be an opportunity to have it in single serve

in convenience stores, extending it outside

lunchbox consumption.

Globally relevant but locally expressiveMarket adaptation is also central to Dairy

Concept's plans for international growth. “We

are looking for distributors in Europe and to franchise in the rest of the world. From a single manufacturing base in Ireland, we can supply Europe. With a franchise, if you take a market like the US, we would be seeking a partner with whom we could share our IP so they could set up a manufacturing operation in that market. That enables you to deliver lowest possible cost and it also enables you to tailor the product to the tastes of the local market. “We know that strawberry is the best fruit flavour for Ireland and the UK because it is consistently number one in yoghurt. Approximately 60 per cent of children's yoghurts are strawberry-flavoured. Whereas, if you went to Brazil it might be lychee or mango because they don't grow strawberries locally

and it is not a flavour kids are accustomed to. So, it is very important that for the global success of our products and brands, we have to be able to tailor it to local market. We have a saying that it is globally relevant but locally expressive.”

Validating ambitionPaul believes Fruchee has a global appeal, and says the response at Sial confirmed this. “Sial validated that there is demand for product such as Fruchee across the world. This was always our belief based on our desk research, where those global trends of snacking, convenience and health are true and validated.”

He says, being included in the Innovation Arena attracted a lot of people to the Fruchee stand. “The sort of people we knew would be interested in what we are doing are the people who were going there looking for innovation." The response and feedback from the show was a life changing experience, according to Paul. “When you spend five years working on something, to have it validated to such a scale was very satisfying.” Since its launch, Dairy Concepts has secured listings for supermarkets in Ireland and the UK for Fruchee Friends and is in ongoing discussions to supply Fruchee in foodservice channels. Paul explains that the company is taking a very strategic approach to growth.

“Consumers across the world are interested in these kinds of products and we will prioritise the countries whereby there is scale and disposable income, as well as the infrastructure to make the product available to the consumers.” He adds: “It's not about rushing to get a listing tomorrow. It's about getting the right retailer in the right country at the right time. Back to school next September is a good time to launch in any individual market. We are very happy with the quality of the engagement we got both in Europe and internationally, it was very high. So, we are very pleased and we are in the process of following up with those contacts and we expect them to bear fruit in 2017.”

focus

Noreen Lanigan, market manager for France, Bord Bia; Michael Creed, Minister for Agriculture, Food and the Marine; Paul Simpson, sales and marketing director, Dairy Concepts; Ireland’s

Ambassador to France Geraldine Byrne Nason; and Michael Carey, chairman, Bord Bia.


K evin explains that Ireland already has a strong base of FDI in the food industry and Enterprise Ireland – the

Government organisation responsible for the development and growth of Irish enterprises in world markets – is supporting the sector to continue to build on its previous successes to grow the industry further. “In Ireland we have a brilliant

track record in supplying global markets with ingredients or finished products by companies like Pepsi or Coca Cola. In the infant nutrition space, Ireland is an important production location for Nestlé, Danone, Abbott and Kerry as well as for solution providers to the industry such as Dairygold, Glanbia, Lakelands and others. We also have new emerging technologies, so we have an infrastructure here that surprises even the largest companies that visit.”

Reaping rewards

Ireland is beginning to reap the rewards

of strategic investments in the food and

ingredients industry, says Kevin. “We

have a fantastic infrastructure in Ireland

around food and functional ingredients.

This infrastructure is being translated into

commercial opportunities for all types of

companies, whether it's on the start-up

side or it's established, large multinationals

Ireland invests in food foundationsIreland has made strategic investments that make it an attractive location for foreign direct investment (FDI), says Kevin Buckley, manager, Food FDI Europe, Enterprise Ireland, talking to ahead of this year's Health

Ingredients Europe (HiE) and Natural Ingredients show in Frankfurt

investment


investment

that are coming to Ireland and accessing the know-how that we have here.” Kevin outlines some of the recent strategic investments in Ireland, which he says offer FDI businesses important advantages for research and development (R&D) and processing capabilities. These include: Food for Health Ireland (see more on page 24), which is in its second stage of support from Enterprise Ireland and industry; the APC Microbiome Institute, where APC scientists carry out research on gastrointestinal bacterial community (the microbiome) as a target for treatment and prevention of disease; the Dairy Processing Technology Centre (DPTC) – a consortium of eight dairy companies and nine research organisations that investigates world-class dairy processing opportunities and capabilities; and the Meat Technology Centre (MTC), an internationally leading centre of excellence for meat processing research and innovation.

Setting the agenda Many of these investments represent pre-competitive collaborative agreements between industry and Irish research providers. Kevin says the industry involvement is important as it is the industry that sets the agenda. “Between ourselves and industry, we have committed €45 million expenditure in FHI, which is very significant given the size of Ireland relative to other EU countries. We see that as an opportunity for more value to be created and extracted from protein sources that we are already producing in Ireland. For instance, in the pet-food sector there is huge demand for new protein sources. We are exploring, through the MTC, opportunities in the fifth quarter of animal proteins, which in the past has been waste and a problem, and turning that into valuable ingredients that can be sold globally.”

A strong track record There are approximately 50 companies within the Enterprise Ireland FDI portfolio, spanning the full gamut of sectors from infant formula to the Irish whiskey category. “Of companies that have a significant operation in Ireland, some of those would be manufacturing, some will be doing R&D.

They employ 10,000 people and export about €4 billion worth of products. So they are hugely significant in Irish food exports but also in sourcing raw materials in Ireland and conducting R&D. We are also seeing that companies quite often start off on the R&D front because they see the capabilities that are in Ireland and, once they get embedded, there is an opportunity to build that out into a more integrated system in Ireland.” Kevin says the feedback from potential investors visiting the Irish market is positive. “They really admire how connected the whole system is in Ireland. They are hearing the same message whether they visit the Department of Agriculture, Food, and the Marine, Teagasc, Enterprise Ireland or collaborative companies. There is a very strong message coming from all of the Irish companies around innovation, and it's about collaborations and partnerships.” Enterprise Ireland, Kevin explains, is a “one-stop-shop that sits at the centre of the food industry” that has excellent connections in all of the R&D centres in Ireland, as well as an extensive client base of Irish food processors. So, there are a number of ways that a company can engage with the likes of Teagasc and FHI and they are very open. “It is a very open system where businesses are open to discussing new projects and collaborations. Enterprise Ireland can act to introduce compnaies to the Irish ecosystem around food innovation and, beyond that, Enterprise Ireland also funds collaborative R&D projects and can support feasibility studies.

Track recordThere is always risk attached to investments, says Kevin, and one of those risks is political. Therefore, he notes, political stability is one of the key drivers when companies are making very significant investments. “One of the things we can say is that for 40 years in Ireland there has been a very consistent, business-friendly approach adopted by Government, irrespective of which party they have come from. It's the strategy that has been adopted and kept, even in the worst economic times. The commitment from every Government has been to maintain Ireland as a very financially attractive place to do business and to supply all of the talent

and infrastructure that industry needs to thrive. What we have seen, even in the worst days of the Irish economic crisis, was that international companies invested, and reinvested.”Kevin says there are a number of other attributes that are attracting FDI to Ireland. “They tend to be coming after a number of things, one is that we have a very high level of internationally respected food science in Ireland, as well as the talent around that science, including graduates and very experienced personnel.” Kevin says elements such as Ireland's corporate tax regime, the track record of companies that have already come here, talent on the ground and technology, are evidence of the capabilities that are here. “In the food sector, we have all of those in abundance and also very high-quality and sustainable raw materials.”

A sustainable futureKevin says Ireland has another advantage as a sustainable location for food production, which, he explains, is increasingly important. “Origin Green, which is driven by Bord Bia, is a fantastic exemplar of Ireland's commitment to sustainability and it is something that we at Enterprise Ireland support 100 per cent.”In Food Wise 2025, the Irish food industry outlines a 10-year strategic plan for future growth. “Food Wise 2025 is about creating more value. That means creating new solutions for customers, whether it's customers that are buying ingredients or the finished product. It is about doing something different, using innovation to give yourself a competitive advantage in world markets and that is something that we are very interested in doing.” Kevin says Enterprise Ireland is exploring opportunities and is actively communicating the advantages the country has to offer with interested parties. “We see shows such as HiE ans NI as an opportunity for us to promote Ireland and to put ourselves into the consciousness of potential investors as an ideal location to source first-class, safe, sustainable raw materials, and to turn those into high-value, shelf-stable ingredients that can be supplied to customers around the globe.”


industry

North Africaa growing market for Ireland's agri-exports

As Irish dairy exports continue to soar in Morocco and Algeria, agri-food companies visited these countries on the recent Irish trade mission, to develop current relationships and explore further dairy and livestock export opportunities

T he first ministerial-led Irish-agri-food trade mission to North Africa, which took place at the beginning of November,

was deemed a major success, according to Claudia Saumell, Africa manager, Bord Bia (the Irish Food Board), in not only raising the profile of Ireland and building on its existing agri-food export relationship with both Morocco and Algeria, but also in the creation of new business relationships between the Irish agri-food companies in attendance and key North African importers.

The five-day trade mission, began with

three-day events taking place in the

Moroccan capital of Rabat and Casablanca

where Minister for Agriculture Food and

the Marine, Michael Creed discussed the

collaboration in agriculture and food

between Ireland and Morocco. Minister

Creed conducted high-level meetings with

the Moroccan Minister for Agriculture,

Aziz Akhannouch, the Director General

of ONSSA, which is the Moroccan body

responsible for food safety and also the

Director for the Agency for Agricultural

Development (ADA) in Morocco. The

aim of these meetings was to highlight

the opportunity for both countries to

use the trade mission to build on growth

exports and ensure Ireland continues to

maintain its reputation as a safe, secure

and sustainable country. Minister Creed

also discussed the importance of food

production safety standards and also

the progression of outstanding Irish

applications. The meetings were also a

platform to discuss how to modernise

Morocco’s agricultural model and how

Ireland might cooperate in this regard.

Dairy was high on the agenda in Morocco,

says Claudia, and delegates visited one

of Morocco’s largest food importers and

cheese processors, Copralim, based in

Casablanca, an existing importer of Irish

dairy products from Irish suppliers.

“If you look at 2015,” says Claudia,

“Ireland’s food and drink exports to

Africa reached €535 million – this is a

phenomenal statistic, as it is double the

value of our exports in the past six years.

Dairy accounted for €353 million, 66


industry

per cent of Ireland’s total food and drink exports to Africa. Irish dairy exports to Morocco, particularly butter, cheese and caseins were worth almost €13 million last year, the equivalent of 3,650 tonnes of dairy produce, while Africa in general, accounted for 20 per cent of Ireland’s total dairy exports outside Europe.”

Dairy-driven demandBut, it is not just Morocco importing Irish dairy produce, according to Claudia, Irish dairy exports to Algeria, one of the largest milk powder importers in the world, reached €40 million last year. As the country is deficit in milk, there is very large demand for imports from both public and private parties: on one hand, the State is a very large player and grants significant subsidies to liquid milk processors, which allows a subsidised cost of milk for consumers; and on the other hand, the private processing dairy industry, whose increasing demand for milk powders and cheese is a result of their expansion plans. “Outside Europe, Algeria is the largest export market for Irish cheese, valued at €25.6 million/9,000 tonnes,” she says. “Algeria accounted for 22 per cent of our international cheese exports and overall it is the fourth largest export market for Irish cheese after the UK, Netherlands and Germany. The category has consistently increased in the last year by nearly 4 per cent,

so the potential for other Irish suppliers to

export to Algeria is huge. “Algeria’s close

proximity to Ireland is another advantage

and as one of the largest importers of milk

powders in the world, from Bord Bia’s

point of view, it is key that we continue to

assist the Irish dairy industry to consolidate

their position in that market. Irish dairy

exports have been increasing consistently

particularly in the cheese category. And this

upward trend is set to continue in the next

coming years favoured by the demographic

growth, by the production increase of

Algerian processing industry and by the Irish

output expansion,” Claudia continued.

In Algeria, the trade mission delegates

visited some of the leading Algerian dairy

companies – Tchinlait and Falait – as

well as the state-owned agency ONIL,

responsible for more than a third of total

Algerian milk-powder imports. The

delegates, who included representatives

from dairy ingredients companies like

Ornua, Dairygold and Glanbia, used this

opportunity to further enhance existing

business relationships.

“Trade missions like this one are very

beneficial for the industry as they offer

scope to build up customised events

that help leading Irish dairy companies

to strengthen their ties with Algerian

customers and also give us a perfect frame

to increase awareness of the Irish capability

to new buyers,” says Claudia.

Stocking upThe opportunities on the livestock sector were also very compelling during the trade mission, with Irish livestock and meat exporters joining the dairy companies to secure new market access in both Morocco and Algeria. “Algeria is barely reaching 50 per cent self-sufficiency on meat and livestock, importing more than 50,000 animals a year and Ireland is well-positioned to fill this gap,” says Claudia. “The type of animals that Algerian buyers are interested in, are Charolais and Limousin young bulls, from 400kg. The country imports from France, and Spain. There is also an increasing interest in heifers and plans to develop the country’s meat sector. The challenge here, for the Irish livestock exporters, will be to meet Algerian-buying prices. Again, the trade mission opened up these opportunities.”Being proactive is key to the growth in these areas, says Claudia and the concluding seminar in Algiers showcased the best that the Irish agri-food sector has to offer, to an audience of potential buyers and Algerian ministry officials, also provided further evidence of the positive role and reputation Ireland has in the global agri-food market. “Securing new markets and consolidating and expanding existing markets for our exports is key and this trade mission enhanced the commercial engagement between Irish companies and potential business partners in this region,” she says.

www.irishfoodmagazine.com36 Issue 7 2016

industry

The new face of

foodservice

D avid says the winning restaurant formula for foodservice business in the future is about

creating value. However, value is not only about price, it is about offering consumers a unique experience. This includes high-quality food, positive hospitality experiences, a unique environment and ambience. “Only then do consumers look at price.”

'Eatertainment'In recent years, there has been a growing consumer movement towards shared experiences that offer moments of escapism. David says technology has led to fewer occasions for consumers to engage with each other, so when they do dine out they want to connect with others. “If you're a restaurateur you need to provide, not only a high-quality food and beverage offer but you need to do it in a unique, up-scale environment, with first-class hospitality.”

Taking a standConsumers want to support brands that align with their values and stand for the greater good, says David. “A lot of this involves things like sustainability, animal welfare, corporate social responsibility and a lot of it revolves around transparency."

Big brands acting smallDavid says there has been a backlash against big brands because of the consumer perception of their values. “It is hard for big brands to show values so we see global brands trying to become good local partners.” David says big brands are building value bridges to connect with consumers.

Now, now, now“We have become an on-demand industry. So it is difficult to think of a 'traditional foodservice industry' anymore. There are new and fast growing sections, with delivery and on-demand services offering 'out-of-home' experiences at-home."

Recipe boxesAnother non-traditional segment is that Recipe boxes, which deliver ingredients to prepare one meal, constitute a huge disruptor, according to David. Valued at approximately €2 billion globally, David says they are taking the market share from both foodservice and retail. “It is something that we believe will continue to be a huge disrupter. It will probably be worth more than €10 billion in the next five years.”

Personalisation“Consumers no longer want to be told what they are eating, they want to be entertained and part of that is being able to personalise that experience.” David says fast casual has adopted this trend very well through 'build your own' options where consumers tailor their fast food experience.

Segment blurringFoodservice has competition from non-traditional players, says David, highlighting the growth in offerings from forecourts and convenience markets, as well as an emerging trend for 'groceraunts', where grocery stores invest in restaurants.

Fast food refreshConsumers are gravitating towards better fast food and fast casual was identified as doing better than average on this trend, forcing changes among traditional players who are investing in response.

Day-part transformationFast food restaurants are growing their share of consumers' days by moving into other day parts – breakfast, dinner, and late night. “A lot of times you won't get more lunch sales so you have to focus on expanding the portfolio.”

Healthy optionsDavid says the concept of health has changed. He says there are 'stealth health' terms such as locally grown, fresh, natural and craft, that denote a healthy message to consumers. Furthermore, these messages tie in with other trends in sustainability, traceability and transparency.

The face of the foodservice industry is changing and competition in the category is now coming from non-traditional sources. David says differentiation, based on the trends above, will be central to success in the future.

The global service market is worth approximately €2.7 trillion, David Henke, vice president of research and

consulting firm Technomic, told a recent Bord Bia (the Irish Food Board) foodservice seminar. He said the foodservice industry had undergone a period of change and identified

key trends that will be strong in 2017 and beyond


Organic success for Flahavan's

organics

Flahavan's won the export award for its Irish Organic Porridge at the Bord Bia (the Irish Food Board) National Organic Awards

F lahavan's is a household name in Ireland and it has been building its brand presence across the globe in recent years. The Flahavan

family from Co. Waterford in southeast Ireland, have been milling oats since 1785, making them Ireland’s oldest, family-food company. The company has been building its reputation internationally in recent years. James Flahavan, businesses development manager, says exports currently account for approximately 50 per cent of the company's business, having increased significantly in recent years. Flahavan's produces both conventional and organic ranges under its brand.

Continued growthThe company introduced its organic range of oats in 2002 and now, says Flahavan's managing director, John Flahavan, it is the largest brand of organic oats in both Irish and UK markets. The company's organic range accounts for approximately 25 per cent of Flahavan's overall output. James explains that the majority of organic products worldwide are destined for the European market and, with that in mind, the organics range is going into specific markets where organic categories are well established. It is exporting its organics range to 11 countries in total, including the United Arab Emirates, Russia and South Korea.

John says sales growth for the company has been in double digits as the trend towards organic products has grown. “If you look at the sale of food in general, organic will account for 2 per cent of the grocery market, whereas if we look at our particular sector, the hot oats sector, it's about 15 per cent.” John believes there is even more scope to achieve a higher percentage of organic, particularly within the UK market and elsewhere.

Future opportunitiesExports of Flahavan's traditional oats are also destined for the US market, where, James explains, a key differentiator is the steel-cut tradition that is synonymous with Irish oats. He says the company is also exploring future opportunities in Canada and China.

Organic opportunitiesThe European organics market is valued at approximately €25 billion. Speaking at the National Organic Awards, Aidan Cotter, CEO, Bord Bia said: “Consumers growing interest in health and wellness has bolstered the sector and will continue to provide further growth opportunities for Irish organic suppliers, at home and abroad.” He added: “As part of the European Union, we have access to the second largest organic market in the world, after the US. Europe represents 45 per cent of global organic revenue and it

is expected to reach almost €38 billion by 2020. Bord Bia is fully committed to doing everything in its power to support this sector reach its full potential.”

Winning waysThe other winners at the National Organic Awards were: The Organic Centre, based in Rossinver, which won Best Fresh Product Award for its Organic Salad Bag, a selection of mixed salad leaves with edible flowers and herbs, which the judges noted was a clear winner as it “simply epitomised organic”. The Best Prepared Product Award went to Drumshambo’s Blake’s Always Organic for its Culture Blend Coffee. Ummera Smoked Products won the Best New Product award for its Smoked Organic Picanha Beef made using the rump cap cut of beef, which the judges noted as “exceptional”. Highbank Orchards in Kilkenny picked up the Chefs’ Choice Award, a new category for 2016, for its Orchard Syrup. Mulberry Meadow Organic Farm based in Monaghan won the Innovation Award for its My Organics Living Salad - Salad Bowl Mix. The judges considered the “vibrant” product as unique within the sector. Finally, Galway’s Green Earth Organics received the Direct Selling Award for its 100 per cent Irish Veg Box, which the business sells online, making it easy for shoppers to access locally-grown, organic produce.


spotlight on...

C rumble’n’Crunch is a new, innovative product to emerge from Ireland. The product includes two pots – one containing crumbled cheese and another with complementary toppings – designed to enhance salads, and pizza dishes. Crumble’n’Crunch is available in

three varieties: crumbled goats cheese with beetroot and walnut crumb; mature cheddar cheese with maple, bacon and oat crumb; and cheddar, gruyere, parmesan with paprika and nutmeg crumb.

Aine Kinsella, co-founder of Crumble’n’Crunch, says the product is very unique and offers consumers a 'restaurant experience' at home. “It is the only crumbled cheese product with complementary toppings that we are aware of anywhere. It's very unique, and we are the first to market with a product like this. It's suitable to use in salads, pasta and pizza but we are primarily focused on the salad market.”

Innovative"One of the things that drove us is that there has been very little innovation in the cheese market," says Aine.Crumble’n’Crunch, Aine is changing that, broadening the meal occasions for cheese and offering dining suggestions to consumers. Crumble’n’Crunch is almost two years in the making. It was a participant on Food Works, a Government-supported accelerator programme that helps develop the next generation of scaleable and export-driven Irish food businesses. Aine and co-founder Niamh Duffy developed the recipes for the pots and worked with Teagasc Ashtown to scale it up to pilot stage before engaging a manufacturer. Where possible, it sources Irish ingredients. However, Aine says, that's not always possible. “For example, we use parmesan in one of our mixes so it has to come from the region.” Using Irish ingredients was an important factor in the development of the product, according to Aine, who says the export market has always been in focus. We went looking for something that would get a stamp of Irish and would be export led because the domestic market is quite small.” Aine and Niamh have done background work in the UK, and are also exploring opportunities in Asia and the Middle East. “We are speaking with people who are exporting to Middle East, especially the Dubai region, there are a lot of stores there, such as Spinneys, and we feel our products would be very suitable for those outlets. It's a premium product, targeted at milennials, it's convenient, it's dairy, it's natural, so it has all of the things that people are looking for today.” Aine continues: “Cheese is a very important product in terms of balanced diet, it has all of the nutrients, all of the bacteria, it's a good product for people of all ages and it's just a matter of getting it in the right portion size and formats.”

Calorie controlAine explains that Crumble’n’Crunch offers other benefits for consumers, including calorie control and waste management. “The products are portion controlled. Between 30-35g of cheese is a portion and we try to ensure that customers know how much they are getting in a portion. There are two portions in every pot, so it minimises wastage.” Waste is a significant barrier in the cheese category, according to Aine. She says having two servings in each pot will help reduce waste. The fully-resealable tub also helps to reduce waste by keeping the product fresh for longer.

Manufactured in Wexford, Crumble’n’Crunch – a new cheese and toppings range – was developed with the export market in mind.

Having recently launched in Ireland, the brand is building its reputation and exploring

opportunities internationally

Manufactured in Wexford, Crumble’n’Crunch – a new cheese and toppings range – was developed with the export market in mind.

Having recently launched in Ireland, the brand is building its reputation and exploring

opportunities internationally

Crumble 'n'CrunchCrumble 'n'Crunch

38 Issue 7 2016

Real creamy butter with only half the fat.

Definitely not what you’d expect to find in a tub.

Connacht Gold 210x280.indd 1 10/11/2016 11:07

Today, leading businesses and their customers are increasingly looking for evidence of the care with which their dairy products and ingredients are produced and sourced. Origin Green, Ireland’s world-leading sustainability programme, can uniquely provide the reassurance that is needed. Origin Green operates on a national scale, already encompassing 90% of all dairy farms. Each participating farm is audited and carbon footprinted every 18 months, through a cycle of measurement, feedback and continuous improvement.

Ireland’s dairy industry is rooted in an outdoor-reared, grass based system, with cows free to graze outdoors up to 300 days a year, 24 hours a day. Our rigorous Origin Green programme protects and builds on these natural assets. It’s what the world needs now and it can help your business grow more resilient.

Ireland’s dairy industry. Proof of sustainability from the ground up.

an initiative bySee how our dairy industry delivers for business at origingreen.ie/dairy

161657 OG Irish Food 210x280.indd 1 03/06/2016 14:22

Today, leading businesses and their customers are increasingly looking for evidence of the care with which their dairy products and ingredients are produced and sourced. Origin Green, Ireland’s world-leading sustainability programme, can uniquely provide the reassurance that is needed. Origin Green operates on a national scale, already encompassing 90% of all dairy farms. Each participating farm is audited and carbon footprinted every 18 months, through a cycle of measurement, feedback and continuous improvement.

Ireland’s dairy industry is rooted in an outdoor-reared, grass based system, with cows free to graze outdoors up to 300 days a year, 24 hours a day. Our rigorous Origin Green programme protects and builds on these natural assets. It’s what the world needs now and it can help your business grow more resilient.

Ireland’s dairy industry. Proof of sustainability from the ground up.

an initiative bySee how our dairy industry delivers for business at origingreen.ie/dairy

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focus:dairy & ingredients · 2015). tara holds a b.comm from university college galway and a...

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