The argument for a
single focus export food and drink marketing body for Northern Ireland has
never been stronger. The recent endorsement by the
DETI Minister for its creation
is hopefully an important step in the right direction. As always however the proof of the pudding will be in the eating.
We just have to
look over the fence at our near neighbours in the Republic of Ireland and
Scotland if we are in any doubt about its importance. Under the banner of
Scotland Food & Drink,
their single minded focus has paid dividends. In 2012 the industry’s
turnover hit £13.9 billion – representing the largest increase in turnover of
all growth sectors in Scotland, even out-performing oil and gas. And they keep
growing; initial growth targets were smashed a full six years early and, not
surprisingly, they have now set their ambitions even higher.
Our other Celtic cousins have also reaped the benefits
of a focused and well-resourced marketing strategy, led by
Bord Bia. Their
latest figures show a
4%
increase in exports for 2014 to reach a record high of almost €10.5 billion - the
fifth consecutive year of export growth
representing an expansion of 45% or €3.2 billion since 2009. And remember this
was against the backdrop of some of the most challenging economic times for a
generation.
Northern
Ireland clearly enjoys many of the same ingredients which have led to that
success. Just like Scotland and the Republic of Ireland we are blessed with some of the world’s
most amazing natural resources. Our land, our water, our seas – all provide the
foundation for the raw materials that underpin our strong tradition of quality
food production. Supply chain
integrity is a key credential, as is a newfound hunger to exploit our
potential. We also have a wealth of quality food and drink producers at all
levels. Consider the amazing success of our artisan food companies at the
recent Great Taste Awards in London, where 99 NI companies took 264 awards, far
beyond any other region of the UK - a clear demonstration that we are able to
compete with the best.
But
we are missing one vital ingredient that both our neighbours enjoy: a focused
and well-resourced export food marketing strategy, delivered by a single body
which can take these inherent strengths, package them and present the ‘Northern
Ireland Food and Drink’ stall to global markets.
The opportunity is now truly global. The world’s population is expected
to increase from 7 billion today to 9 billion by 2050. It is estimated that 12%
of the world’s population - 842 million people - don’t eat enough to be
healthy. And by 2030, the world is expected to need 40% more water and 30% more
energy. There is also pressure on our resources like never before. Globally,
food is, and will remain, a critical issue.
The Northern Ireland Food & Drink Association (NIFDA) has long argued that an export food and drink marketing
body should follow the Scottish and Irish model and be a new NDPB funded by
both government and industry to fulfil a range of tasks. These would include
encouraging closer working and collaboration between the industry and
government, and within the industry itself, as well as developing a more
strategic approach to identifying and exploiting key markets and opportunities.
To do that we need a body which can help develop critical mass in key markets
and provide a range of services to accelerate external sales growth with
specific market expertise, knowledge and access support.
That all makes perfect sense and should be the
final destination, even if we have to bite off a bit at a time.
Our unique geographic and
political position represents a distinct advantage, but only if we play our
cards right. GB is a large market and a net importer of food. Our very close
proximity and same food standards, legislation and currency is a major plus.
The presence of major UK retailers in NI and our ability to label our products
as British gives us a distinct advantage compared to other EU competitors
including the Republic of Ireland.
Meanwhile, the developing
economies – BRIC, Africa, Middle East – have a much higher rate of growth with
a growing population and increasing wealth, and they are also net importers of
food. Here we need to establish our supply credentials of quality and product integrity, and ensure
we have the necessary market knowledge as well as meet the necessary import
qualifications/quotas.
In the EU & USA markets, while
there is likely to be relatively low growth there are still huge opportunities for
Northern Ireland producers due to these consumers’ affluence, cultural
awareness and affinity with the island of Ireland, and the reputation we enjoy for
quality food production. Just as the Republic of Ireland has done, we need to
develop a distinct USP and build on that reputation.
Many will now watch with interest to see how Ireland takes
advantage of its position as the first European country to be granted full
access for its beef in the US market after the ban on European beef imports was
lifted in January this year. The ban had been in place for almost 16 years,
since the BSE crisis in the 1990s and should now provide a multi-million euro
boost for the Irish beef industry. No doubt we will see a significant marketing
push on the benefits and USPs of premium grass-fed Irish beef into the
lucrative US beef market. It may start niche, but a slice of the US beef market
is still big business.
While the export potential for NI is very clear, we now also
better understand the importance of a vibrant food and drink sector to the
local tourism offering. Just as Scotland and the Republic of Ireland have
discovered, it is increasingly a key consideration for visitors. A recent survey for Scotland revealed that 49%
of visitors cited ‘trying local food’ as one of the top activities, whilst 66% thought
that the quality of food is important when choosing Scotland as a destination.
There is no doubt that the
Agri-Food Strategy Board has
brought a renewed focus to the importance of our food and drink industry and has
spelt out the scale of the opportunity both home and abroad. We now need a step
change in activity if we are to achieve the targets set out in the ‘Going for
Growth’ report, specifically if we are to raise exports by 75% and create the
15,000 new jobs projected.
EU-backed programmes such as
Access 6 are a credible start: bringing
together NIFDA, IEA and Scotland Food & Drink, it aims to increase export
sales by £19million across 90 regional food and drink manufacturers over a
three year period.
But sales need
support and we must now prioritise the promotion of Northern Ireland food and drink
in export markets to realise our full potential. The risk of doing nothing will
leave us at a distinct disadvantage compared to our closest neighbours and
competitors.
Let’s hope that the
powers that be have firmly put the creation of
a ‘Northern Ireland Food and Drink’ export marketing body on the menu
and
are prepared to pick up the tab.