"the asian opportunity: new profitable markets for ireland’s most important indigenous...
TRANSCRIPT
Asia Matters
Asia Ireland Food and Agritech Forum
14 July 2015Cork Institute of Technology, Cork
@asiamatters_biz #AsiaIrlFood @asiabizweek
In Food We Trust
14 July 2015Cork Institute of Technology, Cork
The Asian Opportunity: New Profitable Markets for Ireland’s
Most Important Indigenous Industry
David Meagher Head of Food and Agribusiness, KPMG
The Asian Opportunity: New Profitable Markets for Ireland’s most Important Indigenous Industry
David Meagher
KPMG Ireland
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THE CONTEXT - DRIVERS OF CHANGE IN THE GLOBAL AGRI-FOOD SYSTEM
Productionsystems
Naturalenvironme
nt
Economic and
political environme
nt
Marketdevelopme
nts
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ECONOMIC AND POLITICAL ENVIRONMENT
Population growth
Urbanisation
Middle class expansion
Emerging agricultural regions
Security of supply
Evolving government funding mechanisms
Industry consolidation
Multi national agribusinesses
Professional investment in sector
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NATURAL ENVIRONMENT
Land supply
Future proofing for climate change
Water scarcity
Intensity of production systems
Biosecurity risks and responses
Ethical treatment of stock
Full cost allocation of natural capital
Environmental regulation
Ecosystem biodiversity
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MARKET DEVELOPMENTS
Food safety
Technology – Big Data
Demand for more complex protein
Functional foods and nutraceuticals
Bilateral and multilateral trade agreements
Local food trends and organics
Synthetic proteins
Commodity price volatility
Food wastage
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PRODUCTION SYSTEMS
Labour supply and capability
Production system innovation
Communication infrastructure
Technological developments
Adequacy of supply chain farm to plate
Evolving genetics: animals and plants
Utilisation of technology in production
Substitution of animal for artificial proteins
Supply chain traceability
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SO WHAT?
Pace of change
Complexity
Globalisation
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THE OPPORTUNITY FOR IRELAND – CHINA
Significant population growth
Food exports of over €0.5 billion
Established presence
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THE OPPORTUNITY FOR IRELAND – OTHER S.E. ASIAN COUNTRIES
Indonesia Malaysia Singapore Philippines Vietnam Thailand
Food imports (in $bn) 12.2 13.2 12.4 5.8 6.8 9.2Irish food exports (€m) † 18.1 34.9 31.6 14.7 15.9 13.6Population (m) 255 30.8 5.4 103 92 68Middle class (% by 2030) 25 80 21 22 40 21GDP growth (%) 5.2 4.7 3.9 6.2 5.5 1.0
† Data courtesy of Bord Bia – Irish Food and Drink & ASEAN: ASEAN Market for Irish Products 2013.
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THE OPPORTUNITY FOR IRELAND IN SE ASIA - SUMMARY Growth in middle classes will continue
Different markets consume in different ways
Significant opportunities exist
Careful planning and support is required