ANNUAL REPORT
& ACCOUNTS 2014
Growing the success of Irish food & horticulture
Our Mission: To drive through market
insight and, in partnership with industry, the
commercial success of a world class Irish food,
drink and horticulture industry.
Strategic Objectives:
2. To positively influence attitudes
towards, and knowledge of, Irish
food and horticulture among
consumer and trade buyers in our
target markets.
Bord Bia’s mission is further
articulated through the following
six strategic objectives:
1. To actively contribute to the
success and development of the Irish
food and horticulture industry.
3. To establish Bord Bia as
the top-of-mind source for
authoritative market research and
analysis,providing a link between
market opportunities and the Irish
food and horticulture industry.
4. To lead a collaborative approach
to market development with the
key agencies involved in serving Irish
food and horticulture.
5. To actively respond to significant
market issues that affect the
industry.
6. To deliver value-for-money with
expenditures.
Contents
Our Business
Governance
Finance
Statement of Strategy 2012 – 2014 1
Corporate Statement
Origin Green 2
Beef Sustainability Awards
2
Statement on
Internal Financial Control
48
Statement of Accounting Policies 56
Exports of Irish food and drink
4
Organisation Structure
49
Staff Structure
50
Income and Expenditure
Account58
51
45
Market distribution of
Irish food and drink exports
6
Bord Bia Board
Chairman’s Statement
8
Bord Bia – Consumer Foods Board 52
Chief Executive’s Review 12
Sector Reviews
Meat and Livestock
Food and Beverages
25
29
Small Business & Organic Sectors31
Bord Bia – Dairy Board
52
Bord Bia – Horticulture Board 52
Bord Bia – Meat and
Livestock Board
53
Bord Bia – Quality
Assurance Board
53
Report of the Comptroller
and Auditor General
55
Statement of Total Recognised
Gains and Losses
59
Balance Sheet
60
Cash Flow Statement
61
Notes forming part of the
Financial Statements
62
Marketing Finance Grant
Payments 2014
68
Horticulture34
Services38
Presentation to the Minister for Agriculture, Food and the Marine
In accordance with Section 22 of An Bord Bia Act 1994, the Board is pleased to submit to the Minister
its Annual Report and Accounts for the 12 months ending 31st December 2014.
Michael Carey
CHAIRMAN
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Our Business
Governance
Finance
1
01
Statement of Strategy 2012 – 2014
The Bord Bia Strategic Plan 2012 – 2014 is based on an
inclusive view of the entire industry with the goal of driving
long-term sustainable growth. It has been developed to fully
support the implementation of Pathways for Growth and
Food Harvest 2020 and includes the following priorities:
Building Ireland’s
Reputation
Develop, implement, and
promote a shared vision of
Ireland as a world-leader in safe
and sustainable agriculture and
food production consistent with
a premium positioning in the
marketplace
A Vibrant Home
Market
Support and progress the strong
position that the agri-food sector
currently occupies within the
broader Irish economy
Bord Bia Irish Food Board Annual Report 2014
Enhancing
Competitiveness
Promote industry’s market
competitiveness by championing
an integrated approach,
leveraging existing strengths
and exploiting synergies across
sectors and firms; supporting
innovation; and building
capabilities where necessary
Building Exports
Strengthen and extend the
ability of Irish food and drink
companies, driven through
market insight, to build
profitable share in selected
high-potential export markets
2
Origin Green
Beef Sustainability Awards
At the National Ploughing Championships, the
Minister for Agriculture, Food and the Marine,
Simon Coveney, TD, presented four leading
beef farmers with awards in recognition of their
exemplary role in sustainable beef production.
Twelve farms demonstrating strong sustainability
credentials with regard to carbon footprint, biodiversity
and water management were shortlisted for the
Origin Green Beef Sustainability Awards. The Awards
were organised by Bord Bia, in conjunction with the
Irish Farmers Journal and Teagasc. Winners were
announced in four categories as follows:
•
SUCKLER TO BEEF CATEGORY:
Jonathan Greene, Levitstown, Maganey, Athy,
Co. Kildare
•
SUCKLER TO WEANLING/STORE CATEGORY:
Tim Joyce, Ballinvoher, Turloughmore, Co. Galway
•
WEANLING/STORE TO BEEF CATEGORY:
Pat Murray, Pallas, Gorey, Co. Wexford
•
DAIRY CALF TO BEEF CATEGORY:
William Morrow, Demense, Raphoe, Co. Donegal
An additional Merit Award was presented to
John Kinsella, Garrycullen, Saltmills, New Ross,
Co. Wexford, to acknowledge exceptional
performance in meeting the criteria set out
under Bord Bia’s Quality Assurance Scheme.
Speaking at the presentation of the awards,
Minister Coveney said, “The Irish food industry
has identified sustainability as a strong point of
differentiation on the global market, a vision which
is being articulated through the Origin Green
brand. Credible, measurable proof points are
crucial however, and our beef farmers are at the
forefront in helping our food industry to achieve this
ambitious plan. These awards acknowledge those
farmers who are leading the way by highlighting
the link between environmental sustainability
and efficient beef production at farm level.”
The shortlisted farmers were selected from the
membership of Bord Bia’s Quality Assurance Scheme,
which includes over 44,000 beef farms. The final
winners were decided following farm visits by the
judging panel including representatives from Bord Bia,
the Irish Farmers Journal and Teagasc.
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
44,000
Bord Bia Irish Food Board Annual Report 2014
Finance
THE WINNERS WERE
SELECTED FROM
44,000 QUALITY
ASSURED BEEF
FARMS
3
4
Exports of Irish food
and drink (€m)
The Irish food and drink sector recorded the fifth consecutive year of growth
in exports during 2014 as a result of increased output in key sectors and better
returns for much of the year particularly for dairy, seafood and prepared foods.
For the year it is estimated that the value of Irish food and drink exports
increased by almost 4% to reach €10.425bn. This represents a new high
for exports and marks growth of 45% or €3.2bn since 2009.
2013
2014(p)
Dairy Products & Ingredients
Beef
Prepared Foods
Beverages
Pigmeat
Seafood
Edible Horticulture & Cereals
Poultry
Sheepmeat
Live Animals
0
500
1000
1500
2000
2500
3000
3500
(p) = 2014 figures are provisional
€10.4 bn
EXPORTS EXCEED
€10.4 BILLION FOR
THE FIRST TIME
Bord Bia Irish Food Board Annual Report 2014
Our Business
4%
Governance
FOOD AND DRINK EXPORTS
INCREASED BY 4% TO REACH
€10.425 BILLION FOR THE FIRST TIME
Finance
5
€3.2 bn
EXPORTS IN 2014 WERE 45%
OR €3.2 BILLION HIGHER THAN
THE LEVELS RECORDED IN 2009
2013
2014 (p) 2014/2013
€m
€m
% +/-
Dairy Products and Ingredients
2,935
3,104
+6
Beef*
2,248
2,270
+1
Prepared Foods
1,669
1,810
+8
Beverages
1,158
1,146
-1
Pigmeat
552
570
+3
Seafood
481
527
+10
Edible Horticulture and Cereals
222
225
+1
Poultry
259
310
+20
Sheepmeat
216
218
+1
Live Animals
245
245
–
9,985
10,425
+4
Total Food and Drink
*includes edible offals
Source: Bord Bia estimates
(p) = 2014 figures are provisional
175
Bord Bia Irish Food Board Annual Report 2014
IRELAND’S FOOD AND DRINK
HAS A LARGE GLOBAL REACH –
EXPORTING TO 175 COUNTRIES
WORLDWIDE
6
Market distribution of
Irish food and drink exports (%)
A rise of 45% in the value of trade to Asia led to a shift in the market
distribution of food and drink exports. Significant increases were also recorded
to North America, The Middle East and Africa. This trend outpaced the growth
recorded to European markets and led to a strong rise in the share of exports
destined for international markets.
The share of exports destined for the United Kingdom eased from 42% to 40% in 2014. The value of trade showed
little change at €4.2 billion. Stronger export values for beverages, prepared foods, mushrooms and poultry helped offset
lower beef and dairy values.
Following double digit growth in 2013, the value of exports to other European markets grew at a slower rate than overall
exports in 2014. This reflects strong demand outside of the EU and a more tentative consumer environment across key
European markets. For the year, exports increased by 2% to reach €3.3 billion. This equates to 31% of total exports.
Shipments of Irish food and drink products to International markets showed renewed growth in 2014 as the value of
trade jumped by an estimated 15% to stand at around €3 billion. This leaves the region accounting for 29% of exports.
29%
Int. Mkts
40%
Other EU
United Kingdom
31%
50
40
2013
42% 40%
2014 (p)
32% 31%
30
26%
29%
20
10
0
United Kingdom
Other EU
International Markets
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
Finance
15%
40%
DISTRIBUTION OF FOOD AND DRINK EXPORTS – 2014 VS. 2013 (€M)
2013
THE VALUE OF TRADE TO
INTERNATIONAL MARKETS JUMPED
BY AN ESTIMATED 15% TO STAND AT
AROUND €3 BILLION
THE SHARE OF EXPORTS DESTINED
FOR THE UNITED KINGDOM EASED
FROM 42% TO 40% IN 2014
2014 (p)
5000
4,160 4,200
4000
3,200 3,265
2,625
3000
2,960
2000
1000
0
United Kingdom
Other EU
International Markets
GROWTH IN FOOD AND DRINK EXPORTS TO INTERNATIONAL MARKETS – 2014 VS. 2013 (%)
80
65
70
60
50
40
40
22
30
20
16
5
10
0
Rest of Asia
Bord Bia Irish Food Board Annual Report 2014
China
Middle East
North America
Africa
7
8
Chairman’s
Statement
Building on the strong figures of the previous four years, 2014
again presented a picture of the Irish food and drink industry as
vibrant, resourceful, and strongly focused on achievement in the
export sphere. In a decade that has, to date, delivered more than
its fair share of challenges, the continuous upward surge of Irish
food and drink exports has been little short of remarkable. In
2014, export values increased by 4% to reach €10.425 billion,
meaning that, since 2009 the cumulative export growth enjoyed
by the sector is almost 45% or €3.2 billion. Figures from the CSO
show the industry continues to set the pace for export growth
with Irish food and drink exports growing at five times that of total
merchandise exports over the year.
+45 %
SINCE 2009 THE
CUMULATIVE EXPORT
GROWTH ENJOYED BY
THE SECTOR IS ALMOST
45% OR €3.2 BILLION
Bord Bia Irish Food Board Annual Report 2014
Our Business
INTERNATIONAL CONTEXT
The 2014 Annual Report presents an opportunity
to give substance to these headline figures. At the
heart of the achievement is, of course, the rise and
continued demand for Irish food and drink products in
diverse markets around the world. While this can be
intrinsically linked to the underlying strength of global
agricultural commodity prices, direct correlations
are not as obvious as they may first appear. Indeed,
Ireland’s 4% export growth in 2014 was matched
by a decline of the same percentage points in global
agricultural commodity prices. Ironically, meat, the
one sector that countered the fall in global commodity
prices, was also the sector where price falls impacted
most severely on Irish producers.
That noted, and annual variances notwithstanding, the
FAO index for agricultural commodities prices remains
55% higher than the 2000-2010 average and, despite
some further risks of volatility, particularly in dairy and
cereals, enjoys a broadly positive outlook for 2015.
If the context of growth during 2014 was sustained
demand for Irish food and drink products, the specific
mechanisms through which it was delivered were a
combination of increased outputs and better returns
in some sectors. It is important to recognise, of course,
the myriad of individual achievements that collectively
underpin this picture, and, by implication, the
hundreds of businesses throughout the country where
the hard work of the last number of years has not
only contributed to this story of growth but benefitted
employees, communities and local economies. There is
no other industry with the regional spread and diversity
of the Irish food and drink industry and none that has
so pivotal a role at the heart of local communities and
their economy and environment.
Thanks to the dedication and professionalism
of those who are leading growth in the
sector, we now have an industry that
is leaner, more resourceful and more
ambitious than at any time in its past,
making current successes the platform from
which future growth will be generated.
There was hard evidence of this improved
competitiveness during 2014 when the Forfaspublished Competitiveness Scorecard showed the
competitiveness of the Irish manufacturing sector
continued to improve over the year. In addition, the
IMD’s World Competitiveness Yearbook saw Ireland’s
ranking improved from 24th position in 2011 to 15th
Bord Bia Irish Food Board Annual Report 2014
Governance
Finance
during 2014. Meanwhile, Bord Bia’s annual industry
survey found broad optimism, looking towards 2015,
among food and drink manufacturers. In all, 95% of
those surveyed expected similar or higher export sales
to 2014, with the majority (52%) expecting growth.
While the cost base in Ireland and competition from
other suppliers are continuing concerns, the survey
also found that two major challenges faced in recent
years, promotional pressure from retailers and weak
consumer sentiment, are now giving less cause for
concern. The phrase ‘turning the corner’ may have
been overused in the last few years on matters relating
to the Irish economy, but the survey suggests it has
real resonance at this point in time. The weakening of
the euro in late 2014 and early 2015 should further
help alleviate some competitive concerns, particularly
in the UK and international markets.
The issue of deflation was a major political concern
of the EU towards the end of 2014 and food exports
witnessed a range of permutations over the year,
with countries such as Germany and the Netherlands
showing modest inflation, and the UK, Ireland and
France seeing price deflation as the year progressed.
This contrasts to 2013 when food price inflation was
running at more than twice overall inflation in the
eurozone economy.
STRATEGIC FRAMEWORK
While no long-term guarantees come with success,
and price volatility and the vagaries of international
relations are outside the industry’s control, we can say
with some certainty that each year of growth in our
industry lays the foundations for further achievements
to follow. Bord Bia’s marketing and promotional
activities reflect the range and geographical spread
of the industry itself. As the sector continues to
grow, Bord Bia’s goal is to ensure that awareness
of the exceptional opportunity Ireland represents
as a sustainable, high quality food resource grows
with it. Over the course of 2014, Bord Bia’s threeyear Statement of Strategy 2012-2014 reached a
conclusion, and I believe we can say with confidence
that it has contributed positively to the overall growth
trajectory of the industry and that Bord Bia, as an
organisation, has emerged from it more firmly aligned
to the delivery of the ambitious goals set out in Food
Harvest 2020.
A review of Food Harvest 2020 was undertaken by
the Department of Agriculture, Food and the Marine
during 2014 and its findings made encouraging
reading. By the end of 2013, it became clear that one
of the key performance indicators of the success of
the strategy, an increase in primary output, had to all
intents and purposes been achieved, thanks to the
strong demand for Irish output globally. Of course,
9
10
Chairman’s Statement
this increased output has not come without increased
input costs and the review found that the challenge
of translating growth into a sustainable income for
primary producers remains a pressing one. The decline
in beef prices during 2014 brought many of these
issues to the fore, as a volatile trading environment
impacted on beef producers. Bord Bia has long been
committed to the premiumisation of Irish beef in our
key markets and welcomed the constructive dialogue
between stakeholders that helped alleviate some of
the issues by the end of the year. In the long run,
strong working relationships are central to securing the
best prices for Irish beef exports.
STATEMENT OF STRATEGY
At corporate level, 2014 saw the conclusion of the
three- year Bord Bia Statement of Strategy 2012-2014.
The strategy set out to ensure the resources of Bord Bia
were geared towards the implementation of its various
programmes in a way that was clearly aligned with
the objectives of Food Harvest 2020 and Pathways for
Growth. As such it revolved around four priorities:
• Building Ireland’s Reputation
• Enhancing Competitiveness
• Building Exports
• A Vibrant Home Market
As dairy quotas come to an end in 2015,
similar challenges are set to face the dairy
industry and Bord Bia welcomes evolving
mechanisms in the sector to help farmers
manage volatility, and work with greater
certainty and confidence as to their income.
The review of Food Harvest 2020 also found the export
target of €12 billion by the end of this decade to be
on track and may even be substantially surpassed.
It is against this backdrop that the next stage of the
national strategy for the agri-food sector, for the years
up to 2025, is being prepared.
ORIGIN GREEN
Food Harvest 2020 also provided the context for Bord
Bia’s ambitious Pathways for Growth programme
and the development of Origin Green, which has
set the Irish food and drink industry on the path to
becoming a recognised world leader in the delivery of
sustainable, high quality food and drink products. Bord
Bia’s stated goal is that, by 2016, all food and drink
exports from Irish farms and food businesses will be
certified as on the road to sustainability. By the end
of 2014, some 389 companies had signed up to the
programme, with 80 companies, representing 75%
of Irish exports, verified as members. A significant
new element of the programme in 2014 was the
Sustainable Dairy Assurance Scheme (SDAS), which
brings rigorous, independently verified sustainability
measures to the Irish dairy industry and provides a
framework for measuring the continuous improvement
of each of the 18,000 participating dairy farms. The
year also saw international communications around
Origin Green gear up with the placement of 10 Origin
Green ambassadors within major international food
businesses around the world and the development
of an Origin Green partnership with the Guardian
Sustainable Business website. A new video updating
audiences on the Origin Green story and again
featuring Saoirse Ronan is being warmly received
and has been translated into eight languages.
The Chief Executive’s Review will reflect on how Bord
Bia’s many activities during 2014 were advanced under
these objectives.
The next stage of Bord Bia’s strategic plan will evolve
after careful reflection, but will undoubtedly include
continued emphasis on and investment in Origin
Green; the continued channelling of resources to
help companies develop successful new products;
investment in the next generation of leaders through
education; and, any actions that are needed to
enhance Bord Bia’s own capacity to serve industry
within the global marketplace.
CONCLUSION
The Irish food and drink industry enters 2015 buoyed
by strong performances and a range of positive
results in diverse marketplaces. As with every year, it
is impossible to predict what political, economic or
climactic issue might emerge to challenge this picture,
but the ongoing demand for Irish food and drink
products, as well as the increased capacity of the
industry to seek out and grow new markets, is clear.
For a generation of dairy farmers who grew up bound
to the quota system, 2015 will be genuinely historic
and the year represents an exciting opportunity
for growth, although likely weaknesses in global
dairy markets may have a dampening effect on any
immediate exuberance in the sector. In the beef
sector, a recovery in price is expected although the
volume forecast for the year ahead is lower than
2014. Prepared foods and beverage suppliers will, as
ever, face highly competitive market environments,
and continue to succeed by highlighting their quality,
innovation and uniqueness.
Bord Bia Irish Food Board Annual Report 2014
Our Business
What will not be in doubt in 2015 is the
extent to which agri-food forms the backbone
of local communities and the rural economy
in particular. Agri-food accounts for some 8%
of Irish GDP and employs almost 160,000
people throughout the country.
Bord Bia will continue to play its role as champion of
this industry and, although our resources are finite,
our expertise and ambition are equal to that of the
dynamic client base we serve, and we look forward to
continuing to work with them at home and abroad.
As Chairman of Bord Bia, I had the honour of
representing the organisation at many high profile
events throughout 2014 and of seeing, at first hand,
the esteem that Ireland is held in by political and
industry leaders around the world. I have also seen the
determination of those who are working to extend
our industry in new markets. These ambitions are not
driven by simple business acumen, but by a genuine
pride in the quality of our outputs and the conviction
that the principles of sustainability, as espoused by
Origin Green, should be central to future growth.
Throughout 2014, I have been ably assisted by the
Board and the five subsidiary boards and, on behalf
of the industry, would like to thank each and every
member for their invaluable contribution. I extend
my personal thanks for their friendship, support and
good counsel over the year. To those who departed
the boards during 2014, I would like to thank them
sincerely for their services and I look forward to
working with those who joined during the year.
Let me also thank, with great sincerity, the Minister
for Agriculture, Food and the Marine, Simon Coveney
TD, Minister of State at the Department of Agriculture,
Food and the Marine, Tom Hayes, TD, Secretary
General Tom Moran and all the staff at the Department
of Agriculture, Food and the Marine. I would
particularly like to thank Tom Moran, who retired at
the end of the year, for his unwavering support of
Bord Bia during his time as Secretary General of the
Governance
Department of Agriculture, Food and the Marine and
to wish him a long, healthy and happy retirement. I
look forward to working with his replacement, Aidan
O’Driscoll in the years ahead. The successful reopening
of the US market for Irish beef was a happy conclusion
to the Department’s hard work at the end of the
year, and was achieved with the close cooperation
of the Department of Foreign Affairs to whom I also
extend sincere gratitude and thanks. Their ongoing
commitment is helping to build a new environment
for the Irish farming community where fair returns
for an excellent product will provide the basis for a
sustainable income. I would also like to single out His
Excellency, the President of Ireland, Michael D. Higgins,
for thanks. President Higgins is not only patron of
Bloom but also a warm ambassador for the values
and virtues of Origin Green and was a passionate
advocate for the values of the Irish food industry at
many events throughout the world during 2014.
May I also thank Enterprise Ireland, Teagasc and Bord
Iascaigh Mhara with whom Bord Bia works closely
and the OPW, without whose support, Bloom could
not be the highpoint of the summer that it is. Finally,
let me thank and warmly commend the work of Bord
Bia’s personnel. Their hard work and determination
has made Bord Bia an organisation that punches far
above its weight and I commend Chief Executive Aidan
Cotter for the leadership he has provided over the year.
No matter how many years we may record it, the
strong performance of the Irish food and drink industry
is not something any of us take for granted. The 2014
export performance has shown that the path forward
is undoubtedly a global one. The industry has the
resources, and the commitment, to continue to grow
and Bord Bia will continue to evolve as an organisation
with the capability and the vision to support it on this
exciting journey.
Michael Carey
Chairman
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or on Twitter@bordbia
Bord Bia Irish Food Board Annual Report 2014
Finance
11
12
Chief Executive’s
Review
The enduring success of Ireland’s
food and drink exporters is built
on two key attributes: a uniquely
rich farming environment that is
conducive to quality food production
and an industry populated with
individuals committed to excellence
at every level. In 2014, these
strengths were again confirmed
as a record-breaking performance
brought Irish food and drink export
to €10.425 billion in value, a figure
that represents the fifth consecutive
year of export growth for the sector.
The achievements of 2014 saw many highpoints
and some challenges. From the continuing strong
performance of our consumer food exporters to
the UK, to the exceptional growth in the exports
of infant formula to China, to a trebling of trade
in seafood exports to Egypt, Irish exporters have
shown themselves to be quickly moving beyond any
traditional ‘comfort zone’ the industry might once have
occupied. These strong performances, across a range
of scenarios, also confirm that the renewed confidence
in the food and drink industry as an engine of growth
for the Irish economy has been well founded. Figures
from the CSO show that, while food and drink exports
have grown by 45% since 2009, total merchandise
exports have grown by 5% over the same period.
The prevailing picture in both Europe and the
international marketplace was one of growth,
with some of the strongest performances seen in
markets that represent bright opportunities for the
future. In North America, food and drink exporters
enjoyed an 18% increase, in a year that ended with
the announcement that Irish beef exports to the
US would resume for the first time in two decades.
In China and the rest of Asia there were highly
impressive performances, with growth of 36%
and 58% respectively. The developments in China
come on the back of particularly strong relationship
building between our two countries over the last few
years and credit for what is now becoming a major
scaling up of trade must go to the Department of
Agriculture, Food and the Marine and the Department
of Foreign Affairs and Trade as well as the hard work
of individual companies. Bord Bia is also proud of the
role its presence on the ground is playing and the Food
Hub, established in 2012, has provided an important
gateway for Irish exporters entering the market.
45%
FOOD & DRINK
EXPORTS HAVE
GROWN 45%
SINCE 2009
Buoyed by this strong performance, the industry
nevertheless enters 2015 recognising the challenges
that lie ahead. The strong trade figures for 2014 were,
in many cases, driven by increased output rather than
better returns. Beef, pork and dairy export volumes,
which grew by 13%, 7% and 6% respectively, were
indicative of this as they collectively helped add some
€500 million to the total value of exports.
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
Finance
13
236,896
236,896 HEAD OF LIVESTOCK EXPORTED
For beef farmers, in particular, increased output
came with reduced prices and meant 2014 will be
remembered as a year of frustration. Looking to
2015, the picture appears brighter for the sector
with demand rising again. However, lower volumes
are set to weigh on the potential for growth.
Meanwhile, pressure on global dairy prices is likely
to be the backdrop in which the ending of the quota
system in April 2015 takes place. As against that, a
weakening euro, reduced energy costs, economic
recovery in key markets, as well as strengthening
demand in emerging markets will all play to the
competitive strengths of the industry as it seeks
to retain the momentum of growth in 2015.
SECTOR MARKET PERFORMANCES
The strongest growth sectors for the Irish industry
during 2014 were prepared foods, seafood and
edible horticulture. Exports of prepared foods rose
by 8% to €1.8 billion, while seafood exports rose
by 10% to €527 million and edible horticulture put
in a good performance to grow by 1% to €225
million. The two pillars of the Irish food industry,
dairy and meat, also saw more modest growth. The
dairy sector grew by 6% in value to €3.1 billion. In
meat and livestock, increased export volumes lifted
the sector by 3% to €3.6 billion in value. Poultry and
pork were the strongest performers in percentage
terms, with beef exporters experiencing a more
challenging year. Although beef export volumes
grew by almost 13% the impact was offset by price
falls of 11%. The beverages sector, meanwhile,
had a muted year, with exports falling by 1% to
€1.15 billion as a result of sluggish demand in more
developed markets. The strong performances of
recent years show exporters to be well positioned
across all categories to recover ground quickly
when more favourable conditions emerge.
The UK is Ireland’s closest, oldest and
largest market and the industry’s
performance there is often taken as
a bellwether of its overall strength.
In 2014, a relatively nuanced performance saw market
share decline in percentage terms – the UK absorbed
40% of Irish food and drink exports, a figure down
two percentage points from 2013 – however, actual
trading volumes remained firm, as exports hovered at
the €4.2 billion figure. Within this, there were sectoral
variations: beverages, prepared foods, mushrooms and
poultry enjoyed strong performances while beef and
dairy declined, largely as a result of weakening prices.
Bord Bia Irish Food Board Annual Report 2014
In continental Europe, the story of 2014 was one
of continued growth in most markets, albeit at a
slower rate than the blistering double-digit figures
recorded in 2013. Growth across sectors was broadly
distributed, with beef, seafood, pigmeat, poultry
and prepared foods leading the way. The challenge
of deflation has become a vexed one for the entire
eurozone economy and, even where modest price
inflation was seen, food prices fell behind the overall
trend. The efficiency with which alternative routes
to market were secured by the industry outside
Europe was also a noteworthy contributor to the
overall performance. Markets such as France, Italy
and the Netherlands were joined by Poland as the
strongest performers, while overall trade to Germany,
Spain and Sweden fell back. An overall increase of
2% to €3.3 billion means continental Europe now
represents 31% of total Irish food and drink exports.
As our most global indigenous industry,
the geographical spread of Irish food and
drink exports has long been a source of
pride to the sector. Diversification towards
international markets continued during 2014
and was led by a steep rise in trade to Asia.
While still emerging from a relatively low base, the
overall increase of 45% in one year, driven mainly
by exports of premium dairy product to China, is
no overnight success story but rather testament to
the commitment of both government and industry
to building relationships with some of Asia’s most
significant food industry players. It also reflects the
growing reputation of Ireland as a source of the
highest quality foodstuffs, a message into which
Bord Bia has invested considerable resources. The
strong performance in Asia was bolstered by further
positive news in North America, the Middle East
and Africa. The announcement, at the end of 2014,
that the US was to resume imports of Irish beef was
widely hailed and the move opens up a potentially
lucrative market for grass fed Irish beef. In contrast,
exports to Russia fell by more than 30%, as the
EU-wide ban on pigmeat imports escalated into a
full ban on a wide range of agriculture products
and food. All in all, the value of Irish exports to
international markets increased by an estimated
15% to €3 billion or 29% of total exports.
83
83 RETAIL AND
FOODSERVICE
ACCOUNTS
PROMOTE
QUALITY
ASSURED BEEF
14
Chief Executive’s Review
STATEMENT OF STRATEGY
The Statement of Strategy 2012-2014 has, over three
years, provided a structured framework for Bord Bia’s
assistance to food and drink companies. It has also
clarified the alignment and interconnectedness of our
many undertakings and allowed the organisation to
demonstrate a commitment to delivering value for
money and to tangibly measuring, where it is feasible,
the return on investment to the services we offer.
The Statement of Strategy set out four strategic
priorities around which all Bord Bia activities revolve:
1. Building Ireland’s Reputation
2. Enhancing Competitiveness
3. Building Exports
4. A Vibrant Home Market
Through the 2014 Annual Report, I am pleased
to report a year of progress in terms of Bord Bia’s
delivery against each of the four strategic priorities,
and I set out a number of activities that give a
flavour of our commitment to each priority. Through
this, I hope to throw light on the multiple roles
Bord Bia plays as a marketing agency committed
to meeting the needs and goals of the Irish food
and drink industry, but also to demonstrate
the structure that underpins these actions.
The ultimate measure of the success of the
Statement of Strategy 2012-2014 will be
the benefits that have accrued to industry
and I am also pleased to note the high levels
of participation, and the strong positive
feedback, from the Irish food and drink
industry across the range of programmes
and activities undertaken during 2014.
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
Finance
Strategic Priority 1:
Building Ireland’s
Reputation
Reputation is one of the most cherished assets of the
Irish food, drink and horticulture industry and central
to our strategic goal of securing the maximum returns
for the industry in its export markets.
Bord Bia works to develop and promote the reputation
of the Irish industry as dynamic and quality-focused,
with world-leading commitments to safe and
sustainable food production.
Origin Green
Origin Green is the unique programme designed to
take the Irish food and drink industry on a collective
journey of sustainability. Arguably the most ambitious
of Bord Bia’s current undertakings, Origin Green had,
by the end of 2014, some 389 manufacturers signed
up as members. Of these, 80 companies, representing
over 75% of exports, were fully verified members –
meaning their sustainability plans were independently
reviewed and they are now actively, and measurably,
making a difference across a range of sustainability
measures. In the area of primary production, 2014 also
saw significant advances with the roll out of the Bord
Bia Sustainable Dairy Assurance Scheme (SDAS), which
brought the entire dairy industry under the remit
of Origin Green. The initial auditing process for the
country’s 18,000 dairy farms is being carried out over
an 18-month period and by the end of the year 3,217
dairy farmers were certified as members of SDAS and
also members of Origin Green.
389
Bord Bia Irish Food Board Annual Report 2014
Throughout 2014, the message of Origin Green was
shared on a global basis through a targeted and multifaceted campaign. At the vanguard of this messaging
were the 10 global Origin Green ambassadors who are
utilising placements in international food companies
to foster dialogue on sustainability. A partnership with
the Guardian Sustainable Business website and the
launch of the Origin Green sponsored Food Hub site,
meanwhile, gained positive traction among business
audiences internationally, with 40,000+ unique
visitors per month. Video interviews, editorial content,
infographics and gallery images are provided by Bord
Bia as part of the partnership.
In 2014, the Government confirmed
Origin Green will be the leading theme for
the Ireland Pavilion at EXPO Milan 2015
and Bord Bia has played a key role in the
development of Ireland’s participation to
ensure it will be a motivating and resonating
experience for the millions of visitors
expected over the course of the event.
IRISH FOOD & DRINK
MANUFACTURERS ARE
ON A JOURNEY TO
SUSTAINABILITY
15
16
Chief Executive’s Review
38,469
THERE WERE 38,469 QUALITY ASSURANCE
AUDITS DURING 2014
90%
OVER 90%
OF ALL BEEF
AND 70% OF
ALL LAMB IS
PRODUCED
ON QUALITY
ASSURED
FARMS
Quality Assurance
Bord Bia’s quality assurance schemes (QAS) for beef,
dairy, lamb, pork, poultry, egg and horticulture
producers provide assurances to consumers both
domestically and internationally that foodstuffs that
carry the QAS mark are produced to ISO accredited
standards by producers and processors. The standards
are constantly reviewed and renewed, and regular
audits take place to ensure production is in accordance
with the standards. QAS has played an important role
in the Origin Green programme since 2011, when
carbon output measures were first measured as part
of Bord Bia’s Beef & Lamb Quality Assurance Scheme
(BLQAS). Beginning in 2014, the implementation
of the Sustainable Dairy Assurance Scheme (SDAS)
effectively extends carbon emission monitoring to
the dairy industry. The range of information being
collected on beef and dairy farms now includes
greenhouse gas emissions, water, biodiversity, energy
efficiency and socio economic factors. At the end of
2014, there were 47,170 beef and lamb farmers and
3,217 dairy farmer members of quality assurance.
Consumer research undertaken during
2014 indicated that 92% of Irish
consumers are aware of the Bord Bia
Quality Mark with 77% saying that they
would be more likely to buy a food product
having seen the Quality Mark on it.
850,000
98 UNIQUE
IRISH
EXHIBITORS
PARTICIPATED
AT 17
OVERSEAS
TRADE SHOWS
ATTENDED
BY 850,000
VISITORS
Trade events and exhibitions
Bord Bia invests considerable resources each year to
ensure the food and drink industry is represented at
key global trade events and exhibitions, with both a
generalist and specialist focus. In 2014, the message of
sustainability was prominent through the use of Origin
Green branding on Bord Bia stands and exhibition
areas. Highlights of the year included the biennial
SIAL food trade show in Paris, which saw a 40%
increase in Irish participation on the previous show in
2012. A record number of Irish seafood companies
also participated at Seafood Expo Global, the world’s
largest seafood trade fair, in Brussels. Other major
events attended by Irish companies included SIAL
China; TFWA and Sirha in France; Fruit Logistica and
BioFach in Germany; Conxemar in Spain; the Speciality
Fine Food Fair in the UK; PLMA in the Netherlands;
WSWA in the US, and Gulfood in UAE.
Amenity horticulture
Bord Bia supports Ireland’s €631 million amenity
horticulture sector through a range of activities,
the most high profile of which is Bloom (see also
‘A Vibrant Home Market’). The quality of Ireland’s
amenity horticulture outputs were also to the fore
at the Amenity Horticulture Awards which recognise
excellence across the industry and celebrate those who
successfully achieved the standards set out by Bord
Bia’s Quality Assurance Programmes.
Bord Bia supported the International Garden Congress
which brought 230 delegates from 22 countries to
Ireland during August. A gala dinner at the Mansion
House in Dublin was attended by the President of
Ireland, Michael D. Higgins.
Chefs’ Irish Beef Club
The Chefs’ Irish Beef Club enjoyed another successful
year during 2014, with a number of events hosted
throughout the summer months both in Ireland and
overseas. The coordination of events with incoming
visits by European media saw the club gain broad
coverage in European food and farming media outlets.
Inward visits from buyers and media
International visits from both buyers and media form
an important part of Bord Bia’s communications
activities and a range of food-related events, both
consumer and trade focused, create opportunities to
showcase the industry’s credentials and secure valuable
media coverage. Highlights of this programme over
the course of a busy year included a farm visit by
the First-ranked Secretary of the Central Secretariat
of the Communist Party of China, Mr. Liu Yunshan,
accompanied by some 40 guests, including three
Chinese TV news channels; visits from a number of
high profile Chinese importers and distributors of
seafood; and a five-day itinerary designed for a
leading Korean retailer.
Bord Bia, together with Meat Industry Ireland,
hosted a visiting delegation from the US Meat Export
Federation and US Grain Council during 2014, and
there were visits from one of Ethiopia’s leading dairy
importers and a delegation from Abu Dhabi Chamber
of Commerce.
Masterchef Italia, meanwhile, filmed the final episode
of its series in Cork, while 10 journalists participated
in a two-day seafood itinerary that focused on Irish
organic seafood production.
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
Finance
Strategic Priority 2:
Enhancing
Competitiveness
Competitiveness is key to growth and Bord Bia takes
an integrated and holistic approach to supporting the
sector as it addresses a range of ongoing challenges.
The strategic focus on competitiveness recognises
the role of leadership, innovation, lean manufacturing
and capacity building, as well as the opportunities
that exist in leveraging strengths and synergies
between businesses.
Throughout 2014, the successful export performance
of the Irish food, drink and horticulture industry
provided the strongest evidence that its resolute
commitment to competitiveness is delivering results.
Pathways for Growth
Pathways for Growth is a five-year multi-disciplinary
programme launched in 2010 and designed to
provide a roadmap for the development of an
innovative, efficient and growth-oriented food, drink
and horticulture industry. Pathways has five key
workstreams, including Origin Green, co-opetition,
innovation & NPD, education and entrepreneurship.
In September, over 120 industry leaders participated
in Bord Bia’s Pathways for Growth seminar, where
Professor David Bell and Mary Shelman of Harvard
Business School, authors of the original Pathways for
Growth report, outlined their updated vision for the
sector, which stressed the need for a continued focus
on adding value.
43
Education
Bord Bia’s multi-tiered education programme is
designed to attract and retain a new generation of
business talent in the food and drink industry. In
January 2014, recruitment got underway to select
20 participants for the sixth Bord Bia Marketing
Fellowship, while the 2013-2014 programme, which
saw 20 Fellows placed in 12 markets around the
globe, concluded later that year. Bord Bia’s education
programme was broadened in 2013/14 to include the
Origin Green Ambassadors Programme. Meanwhile,
the Food Export Graduate Programme, run in
conjunction with IBEC, continued to offer graduates
placements with Irish companies targeting overseas
growth. At a senior level, the Food Industry Strategic
Growth (Alumni) programme was restructured in 2014
and ran over a more concentrated nine-month period
for the first time.
Entrepreneurship
Food Works is an innovative ‘hothousing’ programme
designed to identify and nurture export-orientated
entrepreneurs in the Irish food and drink industry,
and is jointly run by Bord Bia, Enterprise Ireland and
Teagasc. The conclusion of Food Works 2 in June 2014
saw the total number of start-ups that had participated
in the programme rise to 43, with a number of
successful product launches already in the marketplace
as a result. Invitations for participants to Food Works 3
were extended in the latter half of 2014.
43 START-UPS IN THE FOOD
WORKS 2 PROGRAMME
Bord Bia Irish Food Board Annual Report 2014
17
18
Chief Executive’s Review
68
BORD BIA
FACILITATED
68 DISCREET
INSIGHT
PROJECTS FOR
IRISH FOOD
AND DRINK
COMPANIES
Innovation
In April, Bord Bia in partnership with Google Ireland
launched the Digital Food Hub, an innovative
training programme to help Irish food businesses
maximise their online presence and sales. In all, 21
Irish food companies participated in the seven month
programme, which included workshops, training
modules and one-to-one mentoring delivered by
Google digital experts.
Bord Bia’s Consumer Insight and
Innovation team fosters consumer-led
innovation through a variety of offerings
that include foresight4food, which focuses
on consumer insight and innovation,
and Consumer Lifestyle Trends, which
looks at the opportunities that emerge
as consumer priorities change.
Bord Bia’s ethnographic consumer research in China
in 2014 investigated the consumer understanding of
the infant formula category. This research later fed
into the creative element of the Origin Green Dairy
communications campaign in China.
Supports for smaller companies
The Marketing Assistance Programme (MAP)
enables smaller companies to access funding for
important marketing and communications projects.
Following a review of the impact of MAP in 2014,
a dual support scheme was put in place. The MAP
scheme will continue with a funding limit of three
successive years for participants. The new Step Change
Marketing Programme is aimed at food companies
with a turnover of between €100,000 and €5 million.
The scheme will award grants of up to €50,000
towards a significant new activity or project which
will involve a major step change for the company.
Co-opetition
Co-opetition is strategic cooperation with peers in the
food industry in areas such as procurement, market
access and logistics. A notable achievement during
2014 was the agreement between the Irish and the
UK potato industries to submit a joint bid to the EU
to secure matching funding for a potato promotional
campaign to commence during 2015. If successful,
the proposed campaign will see expenditure over
three years of €1 million in Ireland and €3.6 million
in the UK.
Research conducted in conjunction with The Futures
Company aimed to understand how the global
seafood industry will evolve over the next decade.
A debrief on the research was attended by 28 client
companies at the end of the year.
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
Finance
19
Strategic Priority 3:
Building Exports
Bord Bia focuses considerable resources on providing
support to Irish food and drink companies as they seek
to access, compete in and ultimately build long-term
trading relations in export markets around the world.
Whether in the UK, continental EU or international
markets, Bord Bia supports growth though market
intelligence, networking opportunities and marketing
campaigns.
Overseas offices
Following the opening of its Dubai office in 2014 Bord
Bia’s international network of offices, reaching from
New York to Shanghai, now numbers 11 in total and
provides a range of supports across established and
emerging markets. The work of the overseas offices
in building networks and hosting buyer meetings
and presentations is greatly assisted by the generous
support of the President of Ireland, An Taoiseach and
the Minister for Agriculture, Food and the Marine.
Their participation in trade missions and other industry
initiatives offers an exceptional resource as the country
builds and maintains its profile in key markets.
41
In April, the historic state visit to Britain
by the President of Ireland included a
farm visit in Oxford, which had been
nominated by Bord Bia and which provided
an opportunity to communicate the
Origin Green programme to media.
Later in the year, on the occasion of the President’s
state visit to China, Bord Bia, in conjunction with
Enterprise Ireland, hosted a business lunch in Shanghai
where President Michael D. Higgins shared his
thoughts on sustainability and the value of Origin
Green. The Minister for Agriculture, Food and the
Marine, Simon Coveney TD, also led a Bord Bia
organised trade mission to China in 2014, which
involved 33 of Ireland’s leading food companies.
Bord Bia’s overseas offices work closely with the
Department of Foreign Affairs and Trade and
the Department of Agriculture, Food and the
Marine on an ongoing basis. Since 2013, their
collective work has resulted in gaining market
access in the US, Japan, Lebanon and Namibia
(for beef); Hong Kong, Namibia and Lebanon (for
sheepmeat); and Lebanon (for cooked meats). In
early 2015, it was announced that market access
to China had also been secured for Irish beef.
41 COMPANIES
PARTICIPATED IN
TRADE MISSIONS
Bord Bia Irish Food Board Annual Report 2014
1,049
1,049 BUYER
PRESENTATIONS
DURING THE YEAR
20
Chief Executive’s Review
Ploughing Championships
Bord Bia participated in the National Ploughing
Championships in Ratheniska, Co. Laois with a
marquee focused on the organisation’s promotional
activities for Irish meat, livestock and dairy products.
The Origin Green dome, meanwhile, provided an
audio-visual introduction to Origin Green, as visitors
enjoyed a new video featuring Saoirse Ronan and
which provided an update on the development of
Origin Green.
The National Ploughing Championships also saw the
presentation of the Origin Green Beef Sustainability
Awards. Organised in conjunction with the Irish
Farmers Journal and Teagasc, the awards recognised
the very best in sustainable beef production over
four categories.
Marketplace USA
During September, 25 Irish food and drink exporters
participated in over 200 pre-scheduled 30 minute
business meetings with more than 40 leading US
buyers in Boston. Bord Bia’s Origin Green Ambassador
also gave one-to-one presentations to buyers on the
sustainability programme.
Preparations for Marketplace 2015
Marketplace International will take place in the
Convention Centre Dublin in March 2015. In
preparation for the event, a number of training
workshops began in November, that included one-toone meetings with staff from Bord Bia’s network of
overseas offices.
25
25 IRISH FOOD AND DRINK EXPORTERS
PARTICIPATED IN MARKETPLACE USA
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
Finance
21
Strategic Priority 4:
A Vibrant Home Market
Bord Bia provides a broad range of marketing and
quality assurance supports that help underpin the
strong positioning of Irish food and drink products
among domestic consumers. Throughout 2014, the
focus was on highlighting the excellent quality and
value proposition of these products.
Bloom
Bloom 2014 was the eighth year of Ireland’s largest
gardening and horticulture event and, over five days of
the June Bank Holiday, Dublin’s Phoenix Park became
the centre of attention for the nation’s gardeners with
106,000 visitors attending.
Bloom 2014 showcased 30 show gardens and features
including the Floral & Nursery Pavilion, the AOIFA
Floral Art Stage and The Style Stage. The Irish Cheese
Awards 2014, presented at Bloom, highlighted the
very best from Ireland’s farmhouse cheese producers.
In all, some 300 media personnel attended
and feedback from the event showed that
visitor satisfaction was 93%.
By the end of the year, Bloom’s online following
consisted of over 30,000, amongst Facebook, Twitter
and Club Bloom.
Corporate communications
Bord Bia’s Corporate Communications supports the
organisation’s activities by securing national, regional
and online media coverage for key events. The
advertising value equivalent (AVE), which reflects the
value of editorial coverage in advertising costs, is a
standard measure of the success of communications
and PR initiatives. A sample of highlights in 2014
include print AVE in excess of €2.3 million for Bloom;
print AVE of over €100,000 following the conclusion
of Food Works 2; and print AVE of €35,000 following
the launch of the Guide to Farmers’ Markets in Ireland.
Growing small businesses
In January, Bord Bia launched the Guide to Retail for
Small Food Producers, a practical resource designed to
assist small food businesses in winning and growing
business in the Irish retail sector. The guide was
launched at Bord Bia’s fourth annual Small Business
Open Day.
Food Academy is a training programme launched
in 2013 that supports and nurtures start-up
food businesses, whereby Bord Bia, SuperValu
and Local Enterprise Offices work together to
provide food marketing knowledge to new
and early-stage food business owners. Food
Academy Advance, the second tier of the
programme, was launched in November 2014.
The Cheese Academy, also launched in 2014, is
designed to provide technical expertise to enhance
operational capability, market insight and management
know-how that will drive growth and scale among
farmhouse cheese producers.
Bord Bia Irish Food Board Annual Report 2014
106.000
DUBLIN’S
PHOENIX PARK
BECAME THE
CENTRE OF
ATTENTION FOR
THE NATION’S
GARDENERS
WITH 106,000
VISITORS
ATTENDING
BLOOM
22
Chief Executive’s Review
Food Dudes
Having commenced in 2007, the last block in the
national roll out of the Food Dudes Programme
took place in 2014. Evaluations of Food Dudes
shows a positive impact in terms of long-term and
sustained increases in consumption of fresh produce
by participants. A follow-on Food Dudes boost
programme was piloted in schools from September
2014 and will inform the Food Dudes programme for
2015 and beyond.
Meanwhile, up to 800 national schools also
participated in the Incredible Edibles programme
in 2014. Twenty-five schools representing all four
provinces took up an invitation to visit Bloom as part
of the programme.
Christmas tree promotion
In December, Bord Bia provided support to the Irish
Christmas Tree Growers Association, ‘Love a Real Tree’
initiative, to encourage consumers to choose a real
Christmas tree for the holiday celebrations.
Farmers markets and the organic sector
In August 2014, Bord Bia launched a Guide to Food
Markets in Ireland, developed to provide useful
insights, guidance and inspiration to assist stall holders
and market managers build and progress this route
to market.
In October, the achievements of Irish
organic food and drink companies were
recognised at National Organic Awards
held in Bord Bia’s headquarters. Ireland’s
first kombucha brewery SynerChi was
winner of both the Innovation and the
Best Processed Product awards while
the inaugural Lifetime Achievement
Award was presented to Josef Finke.
TASTE Council
The fourth annual Taste Council Summer School took
place in August with a focus on education. The event
saw a presentation on the Taste Council’s Transition
Year Food Module, which aims to introduce the Irish
food and drink industry and particularly the artisan
food sector to students. The Food Module has received
recognition by the National Council of Curriculum
Assessment (NCCA) and implementation is expected
to begin in spring 2015.
800
800 NATIONAL SCHOOLS PARTICIPATED IN THE
INCREDIBLE EDIBLES PROGRAMME IN 2014
Bord Bia Irish Food Board Annual Report 2014
Our Business
Conclusion
In a year that was not without challenge, 2014
resulted in another commendable performance by
Ireland’s food, drink and horticulture companies. The
progress made can leave us in no doubt that the
ambitious targets set out for the processing sector
at the start of the decade in Food Harvest 2020 are
achievable.
I hope that, through the Chief Executive’s Review,
I have given some sense of the role Bord Bia plays in
facilitating Irish food and drink companies as they
pursue their individual paths to growth. The range of
programmes and activities they participate in confirms
the industry to be one that is continually challenging
itself around the opportunities for growth.
The food industry is also one where growth
self-evidently translates into employment and
wellbeing in communities across the country.
Bord Bia is proud to play its part in the story
of renewal as communities emerge from the
challenges of the last number of years.
Having noted the tireless work of the Minister for
Agriculture, Food and the Marine, Simon Coveney
TD, in support of the industry, I should also add my
congratulations to the Minister who also assumed
responsibility for the defence portfolio during
2014. While this presented considerable additional
responsibilities, his passion and commitment for the
sector remains undimmed and we are grateful for his
continued, unstinting support.
Warm appreciation must also go to the Chairman of
Bord Bia Michael Carey and the members of the Board
and the five subsidiary boards. Bord Bia, and indeed
the entire industry, is richly served by the insight and
expertise available to us through their involvement in
our governance structures. My sincere thanks must
also go to all my colleagues in Bord Bia who, whether
at home or abroad, bring world-class expertise and
insight to industry through the roles they play. The
value of Bord Bia can be measured by the contribution
of these individuals and I believe that they shape an
organisation of the highest calibre.
Bord Bia Irish Food Board Annual Report 2014
Governance
Finance
Over the course of 2014, the Irish food, drink and
horticulture industry showed an ongoing commitment
to competitiveness, to quality and to innovation,
recognising that the path of success requires all three.
The broadening global presence of their outputs
was a consequence of this and one of the strongest
messages of the 2014 performance. No one would
suggest that growth can continue without some
challenges to it but, equally, no one could look at
the industry’s performance in the decade to date
without recognising a remarkable commitment to
addressing challenges head on and to capitalising on
opportunities as they emerge. In 2015, Bord Bia will
work closely with the Irish food and drink industry as it
continues to do what it does best, deliver the highest
quality, sustainably produced food to markets around
the world, while supporting economic renewal and
prosperity at home.
Aidan Cotter
Chief Executive
23
24
Sector Review
Sector Reviews
Meat and Livestock
25
Food and Beverages
29
Small Business & Organic Sectors
31
Horticulture
34
Services
38
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
Finance
Sector Review:
Meat and Livestock
Beef
2013 2014(e)
€m
€m
% +/-
2,248 2,270
+1
Increased supplies of beef in Ireland and across the EU
combined with sluggish beef consumption across most
markets resulted in a challenging year for the beef
sector during 2014. As a consequence, beef prices
declined across most European markets and although
exports to non-EU destinations improved, stocks of
beef remained relatively high towards the end of 2014.
Beef remains at a relatively high price point
compared to pork and poultry across the price and
value driven European market where consumers
are less frequently buying into the beef category.
At foodservice level, demand remains sluggish
with consumers choosing cheaper and often lower
meat-content options. While there has been some
recovery in demand for processed meat products,
meat manufacturers are focusing on local sourcing
to build trust in the category, a trend that has
been particularly apparent in France and the UK.
Production
Exported
Bord Bia’s Beef promotional programme in 2014
focused on building the premium positioning of
Irish beef through a series of integrated consumer
promotions across a number of key export markets,
with particular emphasis on Britain, Germany, Holland
and Italy.
In April 2014, additional funding of €0.5 million
was allocated to support the promotion of beef to
alleviate and mitigate the challenges facing the sector
at that time. A programme of promotional activity
included campaigns focused on the higher value retail
markets of Germany and Holland, both of which offer
strong prospects for growth in the medium term. The
promotions through the summer and autumn periods
in Germany and Holland have featured on over 1.4
million Irish Beef packs, throughout nine different
retailers and over 6,000 stores. This included the
participation of 3 of the top 5 retail groups in Germany
and 5 of the top 10 in the Netherlands. A targeted
campaign with individual key accounts with similar
high value and volume potential in Britain, Spain and
France also took place. Activities were phased between
the summer months and the peak autumn cattle
supply period in September to November.
% Exported
585,000t530,000t
90%
Although beef consumption in the United Kingdom is
estimated to have increased by just 4% during 2014,
exports of Irish beef destined for the UK increased by
around 9%, to an estimated 270,000 tonnes or just
over 50% of total beef exports. However, in value
terms trade was down by around 3% at just over €1
billion reflecting a competitive market situation for
imported beef.
Exports to Continental European markets grew by
17% in volume to an estimated 247,000 tonnes for
2014 with higher exports recorded to most markets,
particularly Italy, Scandinavia and Germany. Total
trade was valued at around €1.15 billion, a rise of
just 2%, again reflecting a competitive market for
beef. Consumer demand remained subdued in many
markets with Italian consumption reportedly 5% lower
and French consumption down by 3%.
Exports of Irish beef to International markets
were more than 10% higher in 2014 at around
9,000 tonnes while offal exports also increased
in volume terms. The overall trade was valued
at just over €100 million. Shipments to Russia
were progressing strongly prior to the import
suspensions imposed over the summer months
while there was strong growth from markets such
as Hong Kong, Switzerland and the Philippines.
Bord Bia Irish Food Board Annual Report 2014
Sheep
2013
€m
216
2014 (e)
€m
2014/2013
% +/-
218
+1
The value of Irish sheep exports, despite a marginal
decline in volumes, increased by 1% to an estimated
€218 million. A reduced presence of New Zealand
lamb on the European market together with a
weakening of the euro against sterling helped boost
the relative competitiveness of Irish lamb in key
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Sector Review
Meat and Livestock
markets. Domestic consumption improved during
2014 and according to Kantar Worldpanel retail
sales of lamb increased by approximately 7% to
€103 million. For the year, total sheep meat
consumption is estimated at 15,700 tonnes,
equivalent to 3.5kg per capita.
Sheep supplies at Irish meat export plants were
marginally back at 2.59 million head. Despite a
negligible decline in throughput numbers overall
sheep meat production is estimated to have increased
1% to 58,000t as a result of a 1% increase in average
carcase weights.
The global sheep market continues to be polarised
between the traditional markets of Europe where
production is in decline and demand remains
subdued. This compares to an accelerated
growth in emerging economies where domestic
supplies are unable to match demand. This
has resulted in a significant increase in world
sheep meat prices which benefited Ireland.
Exports: The UK and France, accounting for 60% of
total export volumes, continue to be the core markets
for Irish sheep meat. However, they continue to lose
ground as their % value share has fallen from 63%
to just below 55% in the last two years. Exports to
France eased slightly to 18,000 tonnes and were
valued at €90 million. Shipments to the United
Kingdom stood at around 9,000 tonnes. Key growth
markets are Germany, Belgium, Sweden, Denmark
and Switzerland. While Switzerland commands pole
position for the highest €/t price return, Denmark
which has registered 21% volume growth in the last
year earned a 60% premium above the average global
export price. Exports to Belgium, estimated at €20
million in 2014 have grown three fold.
Promotions: Lamb promotions continued to focus
on the core markets of Ireland and France as well
as intensifying its reach within a number of growth
markets in Northern Europe. Marketing campaigns
in Ireland in press, television, digital and social
media, promoted the message of choosing lamb
with the Quality Mark emphasising the use of new
season lamb in easily prepared and healthy meals.
In an initiative to encourage more consumers to
cook lamb across six European countries Bord Bia
together with Interbev (France) and Eblex (UK) secured
funding under the EU Scheme for the promotion of
farm products. This three year campaign will seek to
increase consumer awareness of the importance of
European lamb production and drive awareness of
lamb as a versatile daily-use meat. Over the course of
2015-17, an annual investment of €1.6 million from
Bord Bia, Interbev and Eblex will be matched by the EU
for an integrated promotional campaign across Ireland,
Belgium, Denmark, England, France and Germany.
Pigmeat
A slight increase in EU production combined with a
more challenging international market environment,
following a ban on EU imports by Russia, led to a
more challenging market environment for pigmeat in
2014. This was reflected in a reduction of 10% in EU
pig prices. Irish prices were 4% lower with production
increasing by around 6% to 254,000 tonnes. The price
reduction and increased volumes led to a 3% increase
in the value of pigmeat exports to €570 million.
2013
€m 552
2014 (e)
€m
2014/2013
% +/-
570
+3
The growth in Irish pigmeat exports to International
markets evident over recent years was negatively
impacted by the restrictions on supplying Russia for
much of the year.
Irish pigmeat shipments to the United Kingdom
performed well with volumes 5% higher at 87,000
tonnes. The value of this trade is estimated at €330
million, which is broadly similar to a year earlier.
Increased exports to Continental EU
markets were a result of a strong increase
in shipments to Denmark, which more
than offset lower exports to Germany
and France. For the year, exports to
the Continent are estimated to have
reached 41,000 tonnes or €95 million.
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
Finance
Exports to International markets performed strongly
despite the Russian restrictions. China remains our
second, to the UK, most important market reflecting
the increasing purchasing strength of that market.
As a result of the Russian restrictions product was
redirected to different markets such as South Korea
and the Philippines. The Australian market, which
reopened for uncooked pigmeat product in March
2013, continues to show good potential. For the year
exports of Irish pigmeat to markets outside of the
EU are estimated to have grown by 10% to 70,000
tonnes or an estimated €140 million.
With 50% of Irish pigmeat production destined
for the home market, promotional activity focused
on maximizing demand for Quality Assured pork,
bacon, cooked ham and sausages amongst Irish
consumers. The use of the Bord Bia Quality Mark on
pigmeat products (bacon, pork, rashers and cooked
ham) increased by 1% to 69% during 2014, the
highest level since the retail audits started in 2008.
A special promotion for ham and bacon, through
the Ray Darcy radio show around St. Patrick’s Day,
sought out the best ham sandwich idea for the
chance to be crowned the Bord Bia ‘Hambassador’.
This campaign was supported with TV, point of
sale, PR and social media activities. There were
two other bursts of ham and bacon promotional
activity during the year during January and May
with a dedicated pork promotion across national
and local radio stations during November.
Retail sales of pigmeat on the Irish market
showed mixed trends with the volume of
pork sales down 2% and volumes of bacon
increasing by 6%. Rasher sales volumes
were up by almost 9% with shoppers
visiting the category more frequently.
Poultry
Stable consumer demand and some easing in feed
prices helped the poultry sector as 2014 progressed.
Poultry production across the EU is forecast to have
increased by just under 2% in 2014 with most of this
increase evident in broiler output. Imports into the EU
were around 4% higher driven by stronger shipments
from Brazil and Thailand. Exports increased by a similar
amount driven by stronger trade to Africa and Asia.
For 2014, the number of birds processed in Ireland fell
by 2% to 76.2 million compared to 2013 levels. For
the year it is estimated that the value of Irish poultry
exports increased by 29% to reach €335 million,
helped by stronger processed poultry exports.
2013
€m 259
2014 (e)
€m
2014/2013
% +/-
310
+20
The value of trade to the United Kingdom jumped
by 30% in 2014, driven by increased shipments of
processed poultry. For the year trade was valued at
an estimated €250 million or some 81% of the total.
Exports to other European markets, valued at €50
million, performed well in value terms led by France
and the Netherlands. Trade to International markets
eased in 2014 to €10 million with most product
destined for Africa.
Retail sales of poultry increased by 10% to
41,600 tonnes with the volume purchased per
buyer increasing.
Export meat plant pig supplies in Ireland are
estimated to have increased by 5% in 2014 to reach
2.97 million head.
Bord Bia Irish Food Board Annual Report 2014
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Sector Review
Meat and Livestock
Livestock
Live exports continue to provide a valuable market for
different categories of stock. Although finished cattle
prices at Irish meat plants fell by 10-12% on average
throughout 2014, lighter store cattle and weanlings
continued to achieve strong prices which were almost
on par with the previous year. This performance was
partly attributable to live export demand, as well as
the good grazing conditions which benefited domestic
beef producers.
Total live cattle exports for 2014 were
236,896, which was 13% higher than
the previous year. This represents a 50%
recovery on the level of live exports
recorded in 2012, when shipments
totalled just 160,000 head.
Shipments of all categories of stock increased. The
number of calves exported recorded a rise of 12%,
while exports of weanlings and stores were collectively
7% higher than 2013. Similarly, the number of adult
or finished cattle exported increased by 24%.
With regard to the major calf markets, exports to
the Netherlands increased by 21%, while exports to
Belgium increased by 11%. Exports to Spain increased
by 20%, mainly consisting of calves. There were also
5,000 head of calves exported to France. Meanwhile,
weanling exports to Italy recovered by 15%. Exports
to Northern Ireland were almost on par with 2013, at
55,000 head, although exports to Britain increased
by 61%. There was an increase of 18% in exports
to non-EU markets with higher shipments to Libya
and Tunisia and with Morocco taking a number of
consignments. The recent approval of additional
transport vessels increases Ireland’s capacity to supply
potential markets in the Middle East and North Africa.
The ideal preference in these countries is to import live
cattle, rather than beef, which is seen to add more
value within the economy, and can be slaughtered and
processed in line with religious customs.
After April 2015, the ending of EU milk quotas is
likely to result in higher numbers of male dairy calves
available to export. Dairy farmers will no longer need
to consider feeding surplus milk to calves in order to
avoid super-levy fines. Domestic farmer buyers tend to
prefer beef-cross calves, whereas the pure dairy males
are more likely to go for export. Greater adoption of
sexed semen technology in the future would allow
more of these male dairy calves to be replaced with
more valuable beef crosses.
Although live exports of sheep declined by 30% to
46,500 head, they still exceed the 5 year average
of 43,300 head. The three continental markets
of Belgium, France and Germany accounted
for 70% of live exports whilst International
markets, principally Singapore, accounted for
almost 4%. Demand for sheep exports tends
to peak in advance of the Eid al-Adha religious
festival which took place in early October with
two thirds of Ireland’s live exports occurring in
the month preceding this important festival.
Meanwhile, exports of live pigs to Northern
Ireland were 9.5% below 2013 levels,
at 540,000 head. The overall value of
livestock exports for the year remained
stable at around €245 million.
Bord Bia Irish Food Board Annual Report 2014
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Governance
Finance
Sector Review:
Food and Beverages
Dairy Products & Ingredients
Prepared Foods
The dairy category is a broad category encompassing
both primary dairy products, such as butter, cheese
and milk powders, and value added dairy products
and ingredients, such as infant formula, casein and
chocolate crumb.
The prepared foods category includes a wide range of
primary products that have been further processed,
such as ready-to-eat foods, main-meal centres, some
added-value dairy products, snacks, confectionery and
bakery products.
While the global dairy market commenced the year at
strong levels, international commodity prices started
to decline in spring and accelerated throughout the
summer period. Strong milk production growth due
to favourable weather conditions and good producer
prices led to a strong increase in production in many
of the world’s largest dairying regions.
The export market for prepared food showed positive
growth in 2014 led by dairy-based enriched powders
although the sector continues to broaden its customer
base through securing new markets and customers.
Ongoing product development has also delivered
greater product diversification.
Notwithstanding this, it is estimated that the value of
Irish dairy and ingredient exports increased by around
6% to €3.1 billion.
The United Kingdom remains a key market for Irish
dairy exports accounting for almost one third of
the total. Exports to other EU markets were largely
unchanged at around €840 million, accounting for
28% of total trade.
There was significant growth in the value of exports
to International markets, growing by around 20% to
account for 40% of total exports. Within International
markets, Asia led the way with a 30% growth in
exports to account for 17% of total dairy exports.
Higher trade was recorded to Russia, despite the
market closing in August while the Middle East, Africa
and North America all reported increased trade. The
strongest performing categories were cheese, infant
formula, casein, SMP and milk proteins.
Bord Bia Irish Food Board Annual Report 2014
The strongest performing categories during the year
were dairy-based enriched powders, bakery, chocolate
confectionery as well as meat-based ingredients and
meals.
Bakery
During 2014 bakery was one of the strongest
performing export categories within prepared foods,
recording a doubling in value compared with 2013
with a particularly good performance from sweet
baked goods.
While the UK remains the most important export
market for baked goods, growth has also been
underpinned by a continuing increase in the number
of international markets served by bakery companies
and increased volumes of products being supplied to a
global marketplace including Australia, North America
and the Middle East.
Bord Bia research undertaken in 2014 highlighted
a consumer desire for constant variety within the
category to maintain interest and excitement by
providing new consumption occasions.
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Sector Review
Food and Beverages
Confectionery
Chocolate exports from Ireland grew by over 10%
last year driven by growth to new markets in Asia,
Australia and the Middle East and by premium
chocolate exports.
Frozen
Following declines in the frozen food category during
2013, the category has remained relatively flat in
Ireland although it has grown by 2% in the UK
during 2014.
The Irish pizza sector has managed to maintain a
strong position within the UK market despite it being a
highly competitive market and recorded export growth
in 2014. Some growth was also recorded to parts of
Continental Europe and to a lesser extent the Middle
East. Export of ice cream continues to show growth in
2014 with new markets showing most potential.
Grocery
The grocery sector performed well in 2014 with value
growth of 11% in the exports of sauces, soups, cereals
and extracts; the value of sweet spreads exports grew
by 4%.
Seafood
Irish seafood exports recorded an increase of 10% in
2014 to reach an estimated €527 million. Whilst total
volumes exported were around 2% lower, there was a
strong increase in unit prices of around 10% across the
range of species boosting export values.
The main EU markets, namely France, Spain, UK, Italy
and Germany continue to dominate seafood exports,
accounting for in excess of 50% of export values.
However, this compares to a 60% share in 2012 and
demonstrates the on-going focus of the leading Irish
seafood exporters to develop emerging markets.
Seafood exports to International markets grew by
20% to an estimated €195 million, now accounting
for 37% of exports. The markets with the strongest
growth were Cameroon, Korea, China and Hong Kong
driven by a wide range of species.
Opportunities for the sector continue to be in value
added salmon exports. The growing awareness of
species such as oysters, brown crab and prawns are
also important especially in markets such as China
and Hong Kong.
Although the UK accounts for almost 40%
of exports, companies are also successfully
exporting to new markets in the Middle East,
Australia, South Korea and USA.
Key growth drivers continue to be product and variety
developments especially those with a focus on healthy,
low fat and low sugar options.
Beverages
Demand for premium alcoholic beverages helped
maintain beverage sector exports in 2014 offsetting
weaknesses in other categories. Strong geographic
markets for growth included Asia, the Middle East,
South America and Africa.
More particularly, the growth in Irish whiskey and
further growth in ‘craft’ exports offset, somewhat,
slower growth or decline in beer, cream liqueurs
and cider although water performed strongly in
the non-alcoholic beverages sub category.
Overall, beverages exports estimated at €1.15 billion
recorded a decline of 1%.
Bord Bia Irish Food Board Annual Report 2014
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Sector Review:
Small Business & Organic Sectors
Bord Bia works with over 400 small food and drink
businesses with a total estimated turnover of €400
million. Total direct employment by the small business
sector is approximately 3,000 people.
Small Business Open Day
Themed ‘Understanding a Changing Marketplace’
some 160 small food and drink producers attended
the Bord Bia Small Business Open Day on 29th
January 2014. This annual event is designed to assist
companies plan for the year ahead and was opened
by Minister for Agriculture, Food & Marine Mr. Simon
Coveney TD.
Bord Bia Vantage
In 2007, Bord Bia launched Bord Bia Vantage, which
services over 400 SMEs with a turnover of less than
€3.5 million. Since its launch, the Vantage Programme
has enabled owner/managers to access best-practice
resources, expertise and processes to help build their
respective markets.
The key service platforms of Bord Bia Vantage are:
Bord Bia Vantage Point –
Vantage Point is Bord Bia’s online resource guide
for small businesses. This is a focused internet
space for small food and drink businesses at www.
bordbiavantage.ie. The website is divided into three
areas; ‘starting your business’, ‘marketing your
business’ and ‘insights for business’. Visitor numbers
have remained at similar levels to 2013 at almost
47,000 visits.
Bord Bia Irish Food Board Annual Report 2014
Bord Bia Vantage Plus –
Vantage Plus is a programme designed to
develop small business companies’ capabilities
and competencies in the key areas of business and
market development.
Vantage Plus Programmes are underpinned
by a group-based learning and networking
philosophy which encourages best practice
and co-opetition. In 2014, over eighty
businesses participated in the Vantage Plus
programme covering topics such as online
marketing, finance, making the most
of PR and awards, distribution, and first
steps to export.
Aligned to Vantage Plus was the roll-out of Food
Academy Start in 2014, reaching over 200 participants
across almost the entire Local Enterprise Office (LEO)
network. By year end, almost 100 participants had
product trials in 150 participating SuperValu stores. In
November 2014, Food Academy Advance began with
thirty of the ‘graduate’ participants of Food Academy
Start. This programme aims to take participants on a
supplier development journey with SuperValu that will
take businesses from local to regional and national
supplier status.
Bord Bia Vantage Promote –
Provides for business development and public relations
activities; sponsorship of awards and the development
of itineraries for the promotion of the small business
and speciality sector.
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Sector Review
Small Business & Organic Sectors
Trade Fairs
Trade fairs continue to be an important source of
new business (trade and consumer) for small business
companies. Small businesses participated with Bord Bia
at ISM Cologne, Biofach Nuremburg and the Speciality
& Fine Food Fair in London.
Bloom 2014
61 Irish artisan food producers participated in the
Artisan Food Market Village at Bloom.
The Village provides a showcase for the
finest Irish artisan. Adjacent to the food
market in the Bloom Inn where 14 craft
whiskey, beer and cider producers who
showcased their products over the course of
the Bloom festival. Alongside them,the Irish
Cheese Awards participants and winners
demonstrated the strength and breadth of the
farmhouse cheese industry in Ireland.
Bord Bia Irish Food Board Annual Report 2014
Our Business
Food Markets
2014 was the culmination of market research
undertaken by Bord Bia the year before to assess
the current dynamic of food markets in Ireland. This
is against the back drop of Food Harvest 2020’s
ambitions for food markets. In April 2014, Bord Bia
launched a new ‘Guide to Food Markets in Ireland’.
The purpose of the guide was to illustrate the sense
of change and diversity in the food market model and
to provide best-practice guidelines for stallholders and
market managers.
Organic Food
2014 saw the Irish organic market return to growth
for the first time in several years. The total value of
organic retail sales was €99.4 million, representing 2%
growth and 1.4% of total food and drink retail sales in
Ireland. The multiple retail channel accounts for 75%
of all organic retail sales.
As part of the 2014 organic marketing
plan, consumer research into understanding
of organics in Ireland was conducted by
IPSOS MRBI on behalf of Bord Bia and
Organic Focus in April 2014. The aim of
the qualitative and quantitative national study
was to understand Irish consumer attitudes,
purchase decisions and consumption
behaviour around organics as the country
emerges from five years of recession.
The main findings of the research are that the
purchase behaviour of core organic shoppers
(approximately 40% of total shoppers) has remained
since the last consumer study in 2010 and the
incidence of people who claim never to buy organic
is going down. Other key learnings include the
importance of consumer engagement for the organic
sector at point of purchase via promotions, sampling
or improved packaging that reinforces the organic
value proposition.
Bord Bia Irish Food Board Annual Report 2014
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The organic sector was represented at Bloom, via the
expanded schools, and five organic producers were
present in the artisan food market area.
In October, the National Organic Food Awards took
place. The Awards were re-designed to have six
categories – Best Fresh, Best Processed, Best New,
Export Award, Innovation Award and the Direct Selling
Award as well as a Lifetime Achievement Award.
In terms of export focus, eight companies exhibited on
the Ireland stand at Biofach in Nuremburg Germany
in February, five seafood, one meat and two prepared
foods. The Ireland stand was opened by Minister of
State, Mr. Tom Hayes TD.
Later in the year, a bespoke one-day market study visit
to Dusseldorf for the organic sector took place with
13 participants. This followed the publication of a new
market report (organic) for Germany in July which
outlined the opportunities and routes to market for
prospective Irish organic suppliers.
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Sector Review
Sector Review:
Horticulture
The key crops in the horticulture food sector include
mushrooms, potatoes, field vegetables, outdoor fruit
and protected crops. The key crops in the amenity
horticulture sector include nursery stock production,
protected flowers / ornamentals, Christmas trees,
cut foliage and bulbs. The main market for the
horticultural industry continues to be the domestic
market. The main exports are mushrooms to the UK
market and amenity sector exports include nursery
stock plants, cut foliage and Christmas trees.
Mushrooms
During the year production of mushrooms increased
slightly to 64,000 tonnes and the farm gate value
estimated at €121 million. Mushrooms are the main
edible horticulture export mainly to the UK. Overall
mushroom sales grew by 2%. Exports of mushrooms
continued to France in small quantities. The Irish retail
market for mushrooms had similar volume of sales in
2013 and 2014.
Protected Vegetable Crop
The recent census of the protected salad/vegetable
sector indicated a cropping area of 190 hectares with
an output value estimated at €21 million. Tomatoes,
peppers and lettuce are the main crops and most
are destined for the Irish retail market. Irish tomato
production has consolidated in recent years, but there
have been some increases in the greenhouse area.
There were good growing conditions during 2014 and
consistent demand for salad ingredients throughout
the summer. There were volume increases in the retail
sales of cucumbers, tomatoes, peppers and lettuce. Of
these, cucumbers recorded the biggest gain, with an
8% gain in sales.
Fruit Crops
Fruit, with a retail value of €549 million, is the largest
fresh produce category with apples and strawberries
the two main fruit crops produced in Ireland. Demand
for Irish eating apples remains strong and there have
been marginal increases in the area allocated to
growing eating apples. The value of the retail market
for Bramley apples declined while volume increased.
The increasing interest in cider production, with several
new artisan ciders being launched, has the potential to
be a major boost to apple farm income.
The recent census of the soft fruit sector shows that
there are over 330 hectares grown with output valued
in excess of €30 million. The majority of soft fruit is
now produced under protection (glass or polythene).
In the soft fruit market, strawberries are the most
important crop and investment in the sector has
extended the strawberry growing season from early
April to December. The retail value of strawberries
was similar in 2014 to the previous year however
supply and demand were evenly matched for Irish
growers. Soft fruits such as raspberries, blueberries,
gooseberries and red currants continue to show
growth, although their rate of growth is slowing, apart
from blueberries. Excluding strawberries, other berries
account for nearly 50% of the value of soft fruit sales.
There are now commercial volumes of Irish blueberries
available for sale.
Field Vegetable Crops
In 2014 the fine weather provided good growing
conditions for field vegetables resulting in higher yields
of quality crops being produced. The total production
area for field vegetables is estimated to be in excess
of 4,000 hectares with annual output from the sector
valued at €60 million.
Bord Bia Irish Food Board Annual Report 2014
Our Business
The domestic retail market is the key market for
vegetables with the total value of the fresh vegetable
category valued at €505 million in 2014. The prepared
fruit and vegetable category was valued at €84 million
at retail level.
Potato Crop
During the 2014 growing season, a total of 353,000
tons of potatoes were produced over 9,122 hectares.
The Rooster variety accounted for 60% of potatoes
grown, while other main crop varieties included Kerrs
Pink (8%), Queens (8%), Golden Wonder (2%) and
Records (1%). The potato production area in the
Republic of Ireland decreased by 12% when compared
with the 2013 season and tonnage was back by 3%.
Lower average prices in the 2013 season are likely to
have contributed to this.
While the growing area was reduced in 2014, it was a
good growing season with satisfactory yields achieved
and this allied with a reduced demand on the domestic
market resulted in a plentiful supply of product which
impacted negatively on returns. The retail market is
the key market outlet for potatoes which is valued
at approximately €150 million per annum. Despite
high penetration levels in the household purchase of
potatoes, the overall trend in recent years has seen a
steady decline in potato consumption with consumers
switching to other competing carbohydrate products.
Amenity Crops
The amenity sector consists of crops such as hardy
nursery stock, bedding plants, bulbs, cut flowers/
foliage and turf grass and a total output valued at
in excess of €40 million. Bord Bia’s market research
carried out on the gardening market in 2014 has
indicated that the market has experienced a 22%
rebound in sales over the last two years. This has been
driven by increasing consumer confidence and the
very good gardening weather in 2014. The gardening
market was valued at €631 million in 2014 with 20%
of the spending on outdoor plants and €118 million
spent on professional landscaping services.
Exports of amenity horticulture crops were valued at
€14.4 million in 2014 which is an increase of €0.65
million over 2013. The five main daffodil bulb &
flower producers continued to expand export sales
into the USA and Eastern European markets. The Irish
Christmas Tree Growers Association estimate that in
excess of 200,000 of the 600,000 trees harvested
in Ireland were exported in 2014 with an estimated
export value of €4.4 million.
Bord Bia Irish Food Board Annual Report 2014
Governance
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In 2014 cut foliage sales rose to €3.5 million with
increased production capacity in southern counties.
Improved gardening weather and an improving
consumer spend in Great Britain assisted with exports
of hardy nursery stock (garden plants) and a number
of Irish nurseries made inroads with non-traditional
export plants such as larger pot-sized amenity and
landscaping plant material.
Horticulture Promotions
A number of generic promotional activities were
carried out in 2014 including National Strawberry
Week, National Potato Day and the schools
programme Incredible Edibles which saw 800 national
schools participate and learn about the growing
of fresh produce, its origin and its importance in a
healthy balanced diet. National Potato Day brought
a national spotlight on the potato for one day which
included extensive promotional activity on line. The
industry website potato.ie which is supported by Bord
Bia was promoted in the communication around the
day and contains detail on the potato, its nutritional
characteristics with many potato recipes to choose
from. In 2014, Bord Bia working closely with the Irish
Potato Federation and the Irish Farmers Association,
submitted an application to the EU to secure matching
funds to promote potato consumption on the
domestic market over the next three years. If successful
the funds secured will be used to address the recent
fall in potato consumption by presenting potatoes as
a convenient healthy food product that can be used in
many new and exciting ways.
Fresh produce was again promoted at Bloom 2014
through a major exhibit of fruit and vegetable crops
and the best in season fresh produce market. The
“Best in Season” website promotes crops in season
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Sector Review
Horticulture
detailing their nutritional content and how they can be
used in recipes. In 2014 the promotion of mushrooms
continued under the “Just Add Mushrooms” campaign
banner. This campaign is co-funded by producers and
marketers of mushrooms in the UK and Ireland, and by
funds from the EU. The campaign uses the appeal of
working celebrities to broaden the base of mushroom
consumers, and increase their frequency of purchase.
The campaign has elements in both the UK and
Ireland, and resulted in an increase in sales of 1,600
tonnes in the first year.
‘It’s Garden Time’, the gardening promotion banner
included a gardening supplement in the Irish
Independent in April, the support of two monthly
gardening features in the Irish Garden magazine
featuring quality-awarded garden centres, landscaping
businesses and nurseries. A suite of promotional
material was available to growers and retailers to
download from the Bord Bia website.
Food Dudes
The national roll out of the Food Dudes Healthy
Eating Programme which commenced in 2007 was
completed in 2014. A total of 3,100 national schools
and over 475,000 school children participated in
the programme. The Food Dudes Healthy Eating
Programme is a whole school initiative which is based
on the repeated tasting of fruit and vegetables. The
programme is focused specifically on consumption
and getting children to change their existing behaviour
to either start or increase their consumption of fresh
produce. Evaluations to date have shown a significant
increase in the consumption of fresh produce by the
children who have participated in the programme.
The programme is funded by the Department of
Agriculture, Food and the Marine and the European
School Fruit & Vegetable Scheme. Also in 2014 a
successful Food Dude boost programme was piloted
in a number of schools which contains all the key
elements of the traditional programme. This will
commence to roll out to a large number of schools
during 2015.
Marketing, Innovation, Training and
Information
During the year 42 horticulture businesses received
assistance to a total of €0.19 million, under the Bord
Bia Marketing Assistance Programme in for a range
of activities including trade shows, market research,
POS & labelling generation and website development.
The Bord Bia foresight4food programme also assisted
a number of nurseries in brand development and
consumer focus work. Research on the size and trends
in the retail fresh produce market was disseminated
to the sector and similar information was provided on
the UK mushroom market to the export marketing
companies. In addition, the annual census data on
selected crops and yield information on potatoes were
made available to the relevant sectors
Bord Bia partnered with the Irish Potato
Federation at the Fruit Logistica fresh
produce trade show in Berlin. It is the largest
fresh produce trade fair globally and provided
an opportunity for participating companies to
build on existing market contacts and to find
potential buyers for Irish fresh produce.
During May six apple farms across the country
provided members of the public with the opportunity
to walk thorough their apple farms during blossom
time. This provided an opportunity for farms with
shops to raise their profile and their brands.
Various events organised or sponsored by Bord
Bia during the year included, the protected crops
conference, the top fruit seminar, the David Robinson
Memorial Lecture and the Young Horticulturalist of the
Year competition.
Bord Bia Irish Food Board Annual Report 2014
Our Business
Bloom
Visitors to Bloom 2014 spent over €6.5 million on
site as the show becomes an increasingly important
outlet for small specialist nurseries and artisan food
companies. Held in the Phoenix Park on the June bank
holiday weekend the event attracted an attendance of
106,000 visitors over five days. New site improvements
and additional features at the show resulted in high
satisfaction ratings from both exhibitors and visitors.
This year the show had the largest marquee built in
Ireland which housed the floral and plant displays and
a large retail area, a new sculpture garden, fifteen
high end fashion shows on the main entertainment
stage and the introduction of a new plant village. In
2014 An Post honoured Bloom with the launch of
two commemorative stamps. The significant media
coverage achieved across TV, radio, print and online
resulted in post event sales of plants, gardening
equipment and garden makeovers.
Amenity Strategy
The implementation of the recommendations in the
Amenity Sector Strategy continued and activities
included cooperation with agencies to further develop
the cut foliage sector, the organisation of two
successful national trolley fairs and the introduction
of a new regional garden show support scheme. The
amenity export development programme continued
in 2014 and both daffodil bulb growers and nursery
stock producers participated in mentoring and sales
support, resulting in increased export sales to the UK
and further afield.
Bord Bia Irish Food Board Annual Report 2014
Governance
Finance
Bord Bia assisted in the organisation of
and supported the key amenity trade show
Garden Landscape Amenity Showcase
(GLAS), which is focused on promoting
and facilitating local plant sales. Bord
Bia was involved in the organisation and
planning for the International Garden Centre
Congress 2014 which saw 230 international
delegates touring garden centres, nurseries
and gardens of note in Ireland during
August, showcasing the Irish gardening
industry and locally grown plants to garden
centre owners from all over the world.
Amenity Quality Programmes
A total of 50 garden centres and 20 landscape
contractors participated in the Bord Bia Amenity
Quality Programmes during 2014. These provide
horticultural enterprises with guidelines on ‘best
practice’ in managing their businesses. In addition, the
Nursery Quality Programme is now operating to the
EN45011 standard with independent inspection and
certification now completed for 20 members. Certified
members are availing of the opportunity to use the
Bord Bia Quality Mark on plant labels.
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Sector Review
Services
Quality and Environmental Assurance
Scheme Number of audits
conducted during 2014
Beef & Lamb Quality Assurance Scheme 32,234
Sustainable Dairy Assurance Scheme 4,043
Poultry Products Producer Scheme 1,256
Horticulture Quality Assurance Schemes
288
Pigmeat Producer Scheme
287
Egg Producer Quality Assurance Scheme 242
Meat Processor Quality Assurance Scheme 109
Egg Packer Quality Assurance Scheme 10
There were 38,469 audits conducted
across all the Quality Assurance
Schemes during 2014.
Over 100 auditors and 16 reviewers are contracted
to conduct audits and reviews respectively. All of the
above schemes are accredited by the Irish National
Accreditation Board (INAB) and auditing and reviewing
is of a standard required by accreditation.
Membership of the BLQAS has grown by 40% over
the past two years from 33,630 at the end of 2012 to
47,170 in 2104. It is now estimated that over 90% of
all beef and 70% of all lamb is produced on quality
assured farms with beef and lamb farm membership at
44,619 and 12,549 respectively.
2014 was the first year of operation of the Sustainable
Dairy Assurance Scheme (SDAS) and by year end a
total 4,043 audits were conducted with a total of
3,217 farms certified. The average score achieved at
audit was over 95% indicating very high standards of
food safety, animal welfare and environmental care
on Irish dairy farms. Significant work took place to
achieve this high participation rate with the panel of
dairy auditors increased from 12 to 77 by year end and
over 80 dairy advisors from the milk purchasers trained
in the operation of the scheme and actively engaged
in preparation of farms for audit and in assisting with
close out of any non-compliances post audit.
Bord Bia attended a large number of farmer events
during the year to inform farmers of the details of the
scheme and the auditing process. Almost all farmers
who have become members of the SDAS are also
members of the BLQAS and receive a joint audit of
both schemes.
The Egg Quality Assurance Scheme was revised in
2014 and the packer and producer components
combined together with a module for rearers.
Sustainability criteria were also incorporated in the
revised standard which was submitted to INAB for
accreditation by year end.
The Horticulture Ornamental Standard was accredited
by INAB in December 2014. The standard for produce
was revised and incorporates grower, packer and
distributor modules within a renamed Sustainable
Horticulture Quality Assurance Scheme. This will be
finalised in early 2015 and submitted for accreditation.
Bord Bia has developed a Feed Quality Assurance
Scheme for providers of feed to producer members
of the beef, lamb, dairy, pig, poultry and egg quality
assurance schemes. This scheme has four modules
for compounders, traders/merchants and two at farm
level. The scheme has been submitted to INAB for
accreditation and will be introduced in 2015.
Bord Bia Irish Food Board Annual Report 2014
Our Business
As all schemes become due for revision relevant
sustainability criteria will be included ensuring the
verification of sustainable production at farm level.
Approval for use of the quality assurance logo on
product labels continues to grow with over 5,000
labels approved on the quality assurance database.
Over 1,800 labels were approved in 2014.
Strategic Information Services
Consumer Insight
Bord Bia’s Consumer Insight and Innovation team
strives to drive business growth through unlocking
consumer understanding. Acting in partnership with
Irish food and drink businesses, a consumer-centric
focus ensures that the consumer is at the heart of
marketing and innovation strategies. It works across
small, medium and large enterprises and offers tailored
programmes for each.
The Consumer Insight team works with
food and amenity horticultural companies
to encourage taking a consumer-centric
perspective in generating and developing
new product ideas or branding initiatives.
During 2014, 55 individual insight, branding
and innovation projects were completed. Of
these 14 were in overseas markets, while 41
were conducted in the domestic market.
Small food and drink companies operate in an
exciting and fast changing environment and Ireland’s
small business sector is growing steadily. The team
also offers a ‘syndicated’ programme of research
for businesses with turnover of less than €5 million.
During 2014 the programme saw participation from
13 companies. Consumer research is shared by a group
of small businesses and each business benefits from
insight and marketing consultancy whilst also saving
on resources.
During 2014 the Insights team championed
the use of ethnography, specifically for the
dairy sector, to help Irish exporters understand
consumers in developing markets across Asia.
Ethnographic studies have provided a rich source
of insight, beyond conventional studies.
Bord Bia Irish Food Board Annual Report 2014
Governance
Finance
Bord Bía was awarded the Grand Prix
and Qualitative Research Excellence
award by the Marketing Society in 2014
for ethnographic research undertaken on
the Infant Formula category in China.
Further to this, Bord Bia was awarded with
Innovation in Research Approach, for an
ethnographic project in China for Glanbia.
To stimulate ideas and creativity and to assist
companies and entrepreneurs with first stage
innovation generation, the Insights team organises
Inspirations Expeditions. This initiative involves
provocative market immersion visits that look into the
local food culture and visible consumer trends. Visits
to San Francisco, Shanghai & Beijing during 2014 were
attended by 32 participants from 22 companies.
Workbooks
The Branding and Innovation workbooks are being
used by food and drink companies in ‘live’ projects.
Branding and Innovation is central to successful and
sustainable growth and the workbooks provide a
structured approach that will improve their prospects
for success. In 2014 the team worked closely with 13
small and medium size companies embedding best
practice in branding and innovation.
Published Research
A programme of original insight research continued
throughout 2014 and was disseminated via insight
sessions, client presentations and the Bord Bia website
including:
• The Emerging Tide of Cultural Change – a deep
dive that explores how consumers and Irish society
have evolved over the past eight years, what the
current landscape looks like and how Irish food
and drink brands might exploit the opportunities
presented. This study follows on from the Feeling
the Pinch series to identify how consumers were
turning a corner within a new cultural landscape.
• Snacking in IRL & the UK explored snacking
patterns in the two markets so as to understand
the snacking occasion and identify opportunities
for Irish food and drink companies. The report
defines the consumer definition of a snack, profiles
consumers according to their snacking need state
(rational and emotional) and understands their
behaviour within the category.
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Sector Review
Services
•
Understanding Millennials explored and measured
behaviour and attitudes of millennials (22-30 year
olds) and their relationship with food and drinks.
Lifestyle, shopping & eating patterns and use of
technology were some of the key areas touched
upon in order to understand how Irish food and
drink companies can market their products and
brands to better connect with Millennials.
Brand Forum
The cornerstone of the Brand Forum are quarterly
events which present Irish food and drink brand
owners with the opportunity to step back from daily
challenges, to be informed of the latest research
and trends, to be inspired by the speakers, panel
discussions, practical workshops and to network with
over 200 Irish food and drink companies.
•
The Future of Seafood, a foresight study, analysed
macro-, meso- and micro-level trends influencing
the future of the industry. A set of scenarios
looking at the future of the global seafood industry
were developed and these look at how some of
the key uncertainties shaping the future of the
industry might play out. The report highlights
potential opportunities for the future and identifies
possible drivers of change so that companies can
better prepare for what lies ahead.
•
Shopper Missions 2014 sought to build a holistic
understanding of deferred shopper missions in
Ireland and determine the proportions and value of
stock-up and top-up missions. Stock-up shopping
is being spread across multiple stores and the
traditional main shop is being eroded. Top-up
shopping is also now so frequent and automatic
that shoppers do not always recall the incidence,
let alone what they purchased.
Now in its fifteenth year, the Brand Forum provides
Irish food and drink brand owners with a dedicated
platform to collaborate and pool their individual
expertise, ideas and problems. Incorporated into the
enlarged Insight and Innovation team, the programme
has gained further momentum by integrating the bestin-class case study presentations with the customised
branding work undertaken with client companies.
Members of the Brand Forum continue to participate
in the “Brand Health Check”, a national on-line survey
across 45 grocery categories. An additional number of
branding workshops, which were customised to the
food and drink brand owners, were offered to member
companies and included – Social Media Marketing and
Packaging design.
•
The Consumer Lifestyle Trends programme enables
companies to be more outward looking, future
focused, consumer driven and acts as a catalyst for
new ideas and innovations. In many ways, it is the
cornerstone of our Consumer Insights programme.
In 2014 the programme was updated ahead of a
full revision in 2015.
Weekly Newsletter
FoodAlert continues to be published on the Bord Bia
website with subscribers emailed each week with
headline issues. It offers a Bord Bia perspective on
developments in the food business across the world
along with price series on key commodities.
Inquiries Team
The inquiry team responds to external as well as
internal enquiries using an array of international
reports, trade press and databases as well as our
own original research. There were in excess of 1,700
external enquiries during 2014 with more than a
further thousand enquiries made by colleagues
working on projects during the year.
Food Works – Creating Global Food
Entrepreneurs
The pilot Food Works Programme was launched in
March 2012 as a collaborative initiative between Bord
Bia, Enterprise Ireland, and Teagasc to strengthen
the Food HPSU pipeline by finding and accelerating
the development of new HPSU prospects. The pilot
programme completed in June 2013 and a second
Programme ran from July 2013 until June 2014. To
date, 43 projects have participated in the various
stages of both Programmes.
What is the
consumer need?
INNOVATION
What is
technically
possible?
What is
commercially
viable in the
marketplace?
Bord Bia Irish Food Board Annual Report 2014
Our Business
The collective aim of the Food Works Programme is to
find and foster a new group of globally focused food
entrepreneurs. An industry advisory board continues to
proactively support the initiative including Ray Coyle,
Mary-Ann O’Brien, Larry Murrin, Ronan MacNamee,
Richard Cullen and Padraig McEneaney.
The Food Works Programme consists of a series of
stages including recruitment, selection, the provision
of detailed programme information and an application
phase (Stages 1-3). Stages 4 and 5 are targeted to
initially deliver a feasibility report and finally an investor
ready business plan. Both Stages 4 and 5 include a mix
of education modules, market study trip, 1:1 coaching
and agency advice on developing the business from
a technical, market and commercial perspective
including consumer feedback and focus groups.
Investment introductions can be made to the projects
when appropriate.
Summary outcomes from the two programmes:
To date, three Food Works projects have been
approved equity HPSU investment by Enterprise
Ireland and three have been approved for Competitive
Start Fund investment. One has received investment
from Udaras na Gaeltachta and several have received
priming support from Local Enterprise Offices (LEO’s).
A further two Food Works projects are in the pipeline
for HPSU equity investment in 2015.
Food Works 3 Programme:
Food Works 3 launched formally on 30th September
2014 and was quickly followed by a series of four
information evenings in Athlone, Ashbourne, Cork and
Dublin. Over 240 people attended these information
evenings where the three agencies provided insight
into the programme. Two previous participants
outlined their experience of the Food Works journey
at each event which was very informative for those
wishing to apply for FW3.
125 applications were received by the deadline in late
November 2014 and a selection panel selected 39
projects for interview. Selection was based on the four
criteria outlined on the application form: Promoter
and Team Experience, Market opportunity, Innovation
and potential to globally commercialise. Interviews
took place in early December and the panel included
a representative from each agency as well as an
independent representative from the Dublin Business
Innovation Centre. Eighteen projects were selected to
participate on the FW 3 Programme which is scheduled
to run from January to December 2015.
Bord Bia Irish Food Board Annual Report 2014
Governance
Finance
Marketing Services
Trade Fairs
Under the Origin Green programme Bord Bia
Marketing Events team organised Ireland’s participation
at 17 international trade shows in 2014, the combined
audience of which was in the region of 725,000
buyers/visitors. With the aim of expanding export
reach these included major flagship shows such as ESE
and SIAL as well as sector specific trade fairs such as
ISM in Cologne (confectionery), Biofach in Nuremberg
(organic), Fruit Logistica Berlin (horticulture), Tavola
Belgium (meat), PLMA Amsterdam (private label),
Speciality & Fine Food Fair London (artisan products),
Conxemar in Spain & Chinese Fisheries & Seafood Expo
in Qingdao (seafood), CIMIE (meat), TFWA in France
(travel retail). Exhibitions focusing on a particular
region include Prodexpo in Moscow, Gulfood in Dubai,
SIAL China in Shanghai.
Marketing Events managed the logistics of the Trade
Mission to China, led by Minister for Agriculture, Food
and the Marine, Mr Simon Coveney TD which was
attended by 96 delegates including representatives
from 34 Irish food & drink companies, media,
stakeholders, semi state agencies and professional
bodies. The delegation visited a number of China’s
largest cities including Beijing, Shanghai, Hangzhou
and Qingdao amongst others. The mission included
multiple itineraries for the dairy, seafood, pigmeat,
beef & sheepmeat and consumer food sectors. Bord
Bia organised a dairy seminar in Beijing, highlighting
Ireland’s sustainable dairy industry, and to demonstrate
Ireland’s commitment to the Chinese dairy market. The
audience included first and second tier Chinese dairy
manufacturers and Chinese government officials.
Some 32 conferences, seminars and events were
also organised. Key events included Bloom 2014,
Pathways Leadership Summit, National Ploughing
Championships, National Organic Awards, Poultry
& Egg Conference, Food Service Conference and
the Brand Forum Programme including Industry
Annual Dinner.
Sponsorships
During 2014, Bord Bia sponsored the fifth series
of Neven Maguire’s Home Chef on RTE 1 aimed at
increasing consumer understanding of the Quality
Mark and increasing loyalty to it. This series featured
Neven Maguire and other chefs using quality assured
ingredients in their kitchens over thirteen episodes.
The 2014 series attracted 250,000 viewers on average
per episode with the majority agreeing that the
programme encouraged them to buy more food
with the Quality Mark.
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Sector Review
Services
Award sponsorships in 2014 included the
food, beverage and seafood categories
of the Small Firms Association, the
Start-Up Awards and the Irish Exporter
Awards. Other sponsorships included
the Supreme Champion category and
the Best Artisan Producer category
at the Blás na hEireann awards.
A number of agri food related events and conferences
provided Bord Bia with opportunities to showcase
the best of Irish food and drink products and to
highlight the Origin Green Sustainability Programme
to international audiences. These included the Radio
Days Europe event held in Dublin, the European Youth
Parliament gathering in Cork, the Food Summit at the
Web Summit held in the RDS Dublin, as well as the
Ballymaloe Literary Festival of Food and Wine.
Marketing Finance
Bord Bia’s Marketing Assistance Programme (MAP)
provides small and medium-sized enterprises with
assistance towards improving their marketing
techniques and capabilities. In 2014, grant aid was
provided to companies in the farmhouse cheese,
beverages, chilled dairy, confectionery, bakery,
prepared meals, charcuterie, seafood and horticulture
sectors. Participating companies have an annual
turnover of between €100,000 and €3.5 million.
During 2014, 196 MAP applications were received and
186 approved. Grants totalling €819,357 were paid to
159 companies during the year.
Home Market
The Quality Mark marketing programme is part of
the strategic priority for a ‘vibrant home market’.
In 2014 the aim was to increase understanding
and purchasing of food with the Quality Mark.
Targeting the relatively larger meat purchasers,
30-60 year old female grocery shoppers, the key
message was that food with the Bord Bia Quality
Mark is produced to the highest Bord Bia quality
standards and you know where it comes from.
Key activities included 36 weeks of TV advertising,
sponsorship of the RTE1 ‘Home Chef’ programme and
a range of integrated PR and digital activities.
A nationally representative survey of adults indicates
that 92% of Irish consumers are aware of the
Quality Mark up from 60% in 2004. It is also
regarded by consumers as the dominant source
of assurance on food quality and food safety in
the domestic market. 77% say that they would
be more likely to buy a food product having seen
the Quality Mark on it – up from 54% in 2006. In
addition, a further 70% say they would be willing
to pay 10% more for quality assured products.
The increased consumer demand for
meat with the Quality Mark has in
turn resulted in retailers increasing the
proportion of shelf space with quality
assured meat. In 2014, 67% of meat
facings across retailers carried the Quality
Mark compared with 64% in 2011.
Bord Bia’s ‘Your Food is Our Passion’ television
advertising campaign continued to rank in the top ten
advertising campaigns in terms of consumer awareness
and impact. The increased focus on digital activities to
target consumers also resulted in an increased level of
traffic and engagement levels on the Bord Bia website
for information on the Quality Mark and recipes.
TASTE Council
The TASTE Council is an independent voluntary body
representing the artisan and speciality sector for which
Bord Bia provides a secretariat role.
Around two hundred artisan producers, chefs,
representative from the education sector and support
agencies attended the fourth Annual Taste Council
Summer School at Brooklodge Hotel in Co. Wicklow.
Topics included connecting the artisan producer and
chef through the education system and next steps
in rolling out the Food Module for transition year
students in secondary schools.
Quality Mark activities included generic promotion
to increase consumer understanding and loyalty as
well as specific programmes to increase purchasing of
pigmeat, lamb and eggs with the Quality Mark. In total
12 campaigns took place including a campaign for
fish. The ‘Just Ask’ campaign continued to encourage
restaurants to highlight the origin and suppliers of
meat on their menus for customers.
Bord Bia Irish Food Board Annual Report 2014
Our Business
The Food Module developed by the Taste Council
in association with Bord Bia has been developed
and received recognition by the National Council
of Curriculum Assessment (NCCA). The aim of the
Module is to introduce the Irish food and drink
industry and particularly the artisan food sector to
students. Following a pilot phase in seven schools, the
Module is now available to teachers of transition year
students in schools nationwide through the NCCA
website and the Taste Council website. Over ninety
schools have expressed interest in implementing the
Module. There is also strong support from producers
and chefs to work with schools in their particular
counties in implementing the Food Module.
Another highlight of the TASTE Council’s work was
making a submission to the FSAI Artisan Forum on a
voluntary code for the proper use of artisan terms on
food packaging.
Markets
Bord Bia’s global footprint extends to 11 overseas
locations. Seven offices operate in Europe and four
internationally. The Irish market business development
and other international markets are served directly
from Dublin. The allocation of resources and the
structure are continuously reviewed to meet the
evolving needs of the Irish food, drink and horticulture
companies through a market prioritisation process.
In order to meet the needs of Irish companies,
promoting Irish products and showcasing Irish
supply capability, these offices and personnel
were resourced to:
• Undertake increased buyer contact activity.
• Supply marketplace services to equip companies to
secure new business.
• Acquire, assimilate and convey relevant market
information to client companies.
• Represent the Irish food industry in developing
relationships with opinion formers along with key
trade and consumer media.
Bord Bia Irish Food Board Annual Report 2014
Governance
Finance
In addition to the implementation of programmes and
projects, Bord Bia’s markets personnel in 2014:
• Undertook 1,049 buyer meetings and
presentations.
• Responded directly to 1,027 individual buyer
requests for detailed information on the Irish food
and drink industry, particularly suitable suppliers.
• Conducted 1,287 business planning meetings with
Irish client companies.
• Responded to 1,901 market information requests
from Irish client companies.
• Delivered bespoke business development projects
with more than 80 client companies per month.
• Represented the industry in 60 market-access
meetings with veterinary and regulatory authorities
in Asia, Russia and the Middle East.
• Achieved positive coverage for Irish food and drink
in over 550 consumer and trade titles, along with
numerous on-line mentions.
A Collaborative Approach
Bord Bia continues to work in partnership with key
government departments, agencies and associations
in the development and implementation of support
for the food and drink industry. These included the
Department of Agriculture, Food and the Marine,
Teagasc, BIM, Department of Foreign Affairs and Trade,
Enterprise Ireland, Failte Ireland (and Tourism Ireland),
Food Safety Authority of Ireland and the Environmental
Protection Agency, among others.
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44
Governance
Corporate Statement
45
Statement on Internal Financial Control
48
Organisation Structure
49
Staff Structure
50
Bord Bia Board
51
Bord Bia – Consumer Foods Board
52
Bord Bia – Dairy Board
52
Bord Bia – Horticulture Board
52
Bord Bia – Meat and Livestock Board
53
Bord Bia – Quality Assurance Board
53
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
Finance
45
Corporate Statement
Corporate Governance
Freedom of Information
Bord Bia was established
under the Bord Bia Act 1994
and operates in accordance
with the provisions of the
Bord Bia Acts 1994 & 2004
and under the aegis of the
Minister for Agriculture,
Food and the Marine.
Bord Bia is a prescribed organisation
under the Freedom Of Information Act
2014. The Freedom of Information Act
establishes three statutory rights:
Governance
The Board has adopted the Code of
Practice for the Governance of State
Bodies and the provisions of the Code
are being implemented. For the purposes
of applying the Code of Practice for the
Governance of State Bodies, Bord Bia is
regarded as a non-commercial State Body.
The Board is committed to maintaining
the highest standards of Corporate
Governance and Best Practice, has a
formal schedule of matters specifically
reserved to it for decision, provides
strategic guidance, monitors the activities
and effectiveness of management and
monitors compliance on an ongoing basis
ensuring relevant legislation, regulations
and guidelines are complied with.
Ethics in Public Office
The provisions of the Ethics in Public
Office Act 1995 and the Standards
in Public Office Act 2001 have been
implemented. Board members and
staff members holding designated
positions furnish statements of
interests on appointment and
each year to the Secretary.
Bord Bia Irish Food Board Annual Report 2014
• A legal right for each person to access
information held by public bodies;
• A legal right for each person to
have official information held by a
public body, relating to him/herself,
amended where it is incomplete,
incorrect, or misleading;
• A legal right to obtain reasons for
decisions affecting oneself taken by
a public body
In addition to the requirements of the
Freedom of Information Acts, the Data
Protection Acts 1988 and 2003 also apply
to Bord Bia. The Data Protection Acts
protect the privacy of individuals whose
personal data is being processed. Personal
data is information relating to a living
individual who can be identified from the
data itself or in conjunction with other
information held.
Equality
Bord Bia is committed to ensuring
equality of opportunity and that no staff
member or applicant for employment
receives less favourable treatment than
any other on grounds of gender, marital
status, family status, sexual orientation,
religion, age, disability or race. Personnel
and staff development programmes are
structured accordingly.
Bord Bia endeavours to assist staff in
relation to career and personal needs
and operates appropriate policies
covering such areas as professional
development, study leave, flexible
working and career breaks. Bord Bia
is also committed to implementing
government policy in relation to the
employment of disabled people in
the public sector. Specific additional
provisions were made for disabled
visitors in the construction of Bord Bia’s
Food Centre. There is a policy on sexual
harassment in operation to support and
protect the dignity of each person.
Safety, Health and Welfare
at Work
Bord Bia is implementing the provisions
of Safety, Health & Welfare at Work
legislation, including the preparation
and operation of a Safety Statement
embracing all matters affecting safety,
health and welfare of staff and visitors to
Bord Bia’s premises.
Service Charter
Bord Bia’s Service Charter sets out its
commitment to the Principles of Quality
Customer Service for Customers and
Clients of the Public Sector. The Charter
is supported by an Action Plan and
appropriate internal procedures to give
practical effect to this commitment.
Energy Efficiency
and Conservation
Bord Bia is committed to making every
effort possible to be energy efficient and
to operating appropriate conservation
and recycling measures. Light and
heat, supplied by electricity, are the
main areas of energy use in Bord Bia.
Annual energy usage has been reduced
significantly since commencing a
review of energy usage. Usage within
Bord Bia’s main office is as follows:
mWh of electricity
2014
235
(Base year 2009: 379 mWh)
Actions undertaken in 2014
During the year, work continued to
identify and replace older and inefficient
heating units as well as the installation
of further passive infra-red occupancy
light control switches where appropriate
as well as the installation of low voltage
light fittings in a number of areas.
Actions planned for 2015
Bord Bia will continue to monitor energy
usage including monitoring energy usage
throughout the day to examine cost
effective initiatives to further improve our
energy performance.
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Corporate Statement
Prompt Payments
In accordance with the provisions of
the Prompt Payment of Accounts Act
1997 as amended by the European
Communities (Late Payment in
Commercial Transactions) Regulations
2002, Bord Bia is committed to
ensuring that all suppliers are paid
promptly and during 2014 over 99% of
payments were made within 15 days.
Official Languages Act 2003
Bord Bia comes under the remit of the
Official Languages Act 2003 to provide
a statutory framework for the delivery
of services through the Irish language.
In accordance with Section 10 of the
Act, this Annual Report is published
simultaneously in Irish and English.
Board Structures
Bord Bia comprises the Board, five
Subsidiary Boards, the Chief Executive
and the Executive, which provide a range
of services to implement Board policy
and programmes. The Board provides
the appropriate balance of skills and
experience to support the strategy
of Bord Bia. The Board comprises a
Chairman and fourteen ordinary members
appointed by the Minister for Agriculture,
Food and the Marine. All new board
members receive financial and other
information about Bord Bia, and the role
of the board and the board committees.
The roles of the chairman and chief
executive are separate.
There are five Subsidiary Boards (Meat
and Livestock, Consumer Foods, Dairy,
Quality Assurance and Horticulture)
comprising a Chairman and twelve
ordinary members, who are appointed
by the Board with the consent of the
Minister for Agriculture, Food and the
Marine. The Chairman of each Subsidiary
Board is a member of the Board.
The Dairy Subsidiary Board was
established to provide the necessary
governance for funding provided by
the sector to enhance communication
initiatives developed for promotion
of the sector.
The board meets regularly and is
responsible for the proper management
of Bord Bia. It takes the major strategic
decisions and retains full and effective
control while allowing executive
management sufficient flexibility to run
the business efficiently and effectively
within a centralised reporting framework.
Board Members and
Independence
All board members have access to
advice and services of the Secretary/
Director Corporate Services who is
responsible to the board for ensuring
that board procedures are followed,
and applicable rules and regulations are
complied with. Bord Bia’s professional
advisors are available for consultation by
board members as required. Individual
board members may take independent
professional advice if necessary.
Composition of the Board
Details of members of the Board of Bord
Bia are set out on page 51.
The Roles of the Chairman and
the Chief Executive
The Chairman leads the Board in the
determination of its strategy and in
the achievement of its objectives. The
Chairman is responsible for organising
the business of the Board, ensuring its
effectiveness and setting its agenda.
The Chairman facilitates the effective
contribution of all board members and
constructive relations between the
executive and board members, ensures
that board members receive relevant,
accurate and timely information.
The Chief Executive has direct charge
of Bord Bia on a day to day basis and is
accountable to the Board for Bord Bia’s
financial and operational performance.
Board Members and Meeting
Attendance
There were seven Board meetings held
during 2014 and the details of each
member’s attendance, is set out below.
Board Member
Board Meetings
Attended
G. Brown
4 out of 5
M. Byrne 7 out of 7
M. Carey
7 out of 7
J. Comer
7 out of 7
M. Cronin
5 out of 5
E. Downey
4 out of 7
F. Hayes
5 out of 7
R. Holland
4 out of 5
J. Horgan
7 out of 7
C. Keeling
4 out of 7
J. Kingston
5 out of 5
F. O’Gara
5 out of 7
B. Sweeney
5 out of 5
Board Committees
The Board Audit Committee, which
comprises two members of the Board
and one external member with a
financial background, met on four
occasions during 2014. The Board
Audit Committee is responsible for
maintaining an appropriate relationship
with the group’s external auditors and
for reviewing Bord Bia’s internal audit
resources, internal financial controls and
the audit process. It aids the board in
seeking to ensure that the financial and
non-financial information presents a
balanced assessment of our position. The
Internal Auditor and the External Auditor
have full and unrestricted access to the
Board Audit Committee. Briefing sessions
are held to apprise members of the
Board Audit Committee and the Board
of relevant and recent developments in
Corporate Governance issues.
Bord Bia Irish Food Board Annual Report 2014
Our Business
The Remuneration and Pensions
Committee, which comprises three
members of the Board, met on one
occasion during 2014. The Remuneration
and Pensions Committee determines on
behalf of the Board the appointment,
remuneration and assessment of the
performance of, and succession planning
for, the Chief Executive; and significant
amendments to the pension benefits of
the Chief Executive and staff.
The Strategy Committee, which
comprises two members of the Board,
met on three occasions during 2014. The
Strategy Committee plays an important
role in providing observations and
recommendations concerning strategic
issues facing Bord Bia and contributes to
our strategic planning process and the
development of strategy.
Governance
Board Responsibilities
Section 21 of An Bord Bia Act 1994
requires the Board to “keep in such form
and in respect of such accounting periods
as may be approved by the Minister, with
the consent of the Minister for Finance,
all proper and usual accounts of monies
received or expended by it, including an
Income and Expenditure Account, a Cash
Flow Statement and a Balance Sheet and,
in particular, shall keep in such form as
aforesaid all such special accounts as the
Minister may, or at the request of the
Minister for Finance shall, from time to
time direct and the Board shall ensure
that separate accounts shall be kept and
presented to the Board by any Subsidiary
Board that may be established by the
Board under this Act and these accounts
shall be incorporated in the general
statement of account of the Board.”
In preparing these financial statements
the Board is required to:
1. Select suitable accounting policies
and then apply them consistently.
2. Make judgements and estimates that
are reasonable and prudent.
3. Prepare the financial statements on
the going concern basis unless it is
inappropriate to presume that the
Board will continue in operation.
Bord Bia Irish Food Board Annual Report 2014
Finance
4. State whether applicable accounting
standards have been followed, subject
to any material departures disclosed
and explained in the financial
statements.
The Board is responsible for keeping
proper books of account, which disclose,
with reasonable accuracy at any time,
the financial position of Bord Bia. The
Board is also responsible for safeguarding
the assets of the organisation and hence
for taking reasonable steps for the
prevention and detection of fraud or
other irregularities.
Michael Carey Chairman
Aidan Cotter
Chief Executive
47
48
Statement on
Internal Financial Control
On behalf of the Board of Bord Bia, I acknowledge our
responsibility for ensuring that an effective system of
internal financial control is maintained and operated.
The system can provide reasonable, but not absolute,
assurance that assets are safeguarded, transactions
authorised and properly recorded and that material
errors or irregularities are either prevented or would
be detected in a timely period.
The Board has taken steps to ensure an appropriate
control environment is in place by:
• Clearly defining management responsibilities
and powers
• Establishing formal procedures for monitoring
the activities and safeguarding the assets of the
organisation
• Developing a culture of accountability across
all levels of the organisation
The Board has established processes to identify
and evaluate business risks by:
• Identifying the nature, extent and financial
implication of risks facing the body, including
the extent and categories which it regards as
acceptable
• Assessing the likelihood of identified risks
occurring
• Working closely with Government and various
Agencies to ensure that there is a clear
understanding of Bord Bia goals and support
for the Board’s strategies to achieve those goals
Bord Bia has an outsourced internal audit function,
which operates in accordance with the Framework
Code of Best Practice set out in the Code of Practice
for the Governance of State Bodies and, which reports
directly to the Board Audit Committee. The work of
internal audit is informed by analysis of the risk to
which the body is exposed and annual internal audit
plans are based on this analysis. The analysis of risk
and the Internal Audit plan are endorsed by the Board
Audit Committee and reported to the Board. The risk
register is reviewed at each Board Audit Committee
meeting and at each Board meeting.
The Board Audit Committee meets on a regular
basis throughout the year to review and confirm the
ongoing adequacy and effectiveness of the system of
Internal Financial Control.
The Board’s monitoring and review of the effectiveness
of the system of internal financial control is informed
by the work of the Internal Auditor, the Board Audit
Committee which oversees the work of the internal
auditor, the executive managers within Bord Bia
who have responsibility for the development and
maintenance of the financial control framework and
informed by the work of the Comptroller and Auditor
General in his annual audit.
I confirm that in the year ended 31st December, 2014
the Board conducted a review of the effectiveness of
the system of internal financial control.
On behalf of the Board
Michael Carey
Chairman
The system of internal financial control is based on
a framework of regular management information,
administration procedures including segregation of
duties and a system of delegation and accountability.
In particular it includes:
• A comprehensive budgeting system with an annual
budget which is reviewed and agreed by the Board
• Regular reviews by the Board of periodic and
annual financial reports which indicate financial
performance against forecasts
• Setting targets to measure financial and other
performance
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
Finance
Organisation Structure
Main Board
Chairman
Meat & Livestock
Board Chairman
Consumer Foods
Board Chairman
Dairy Board
Chairman
Horticulture
Board Chairman
Quality Assurance
Board Chairman
Chief
Executive
Markets
Meat &
Livestock
Food &
Beverages
European
& International
Horticulture
Quality
Sustainability
Corporate Services
& Finance
Information
Consumer Insight
Marketing
Services
Corporate
Communications
Human
Resources
Bord Bia is comprised of the Board, five Subsidiary Boards, the Chief Executive and
the Executive, which provide a range of services required to implement Board policy
and programmes.
The Board is comprised of a Chairman
and 14 ordinary members appointed by
the Minister for Agriculture, Food and the
Marine. There are five Subsidiary Boards
(Meat and Livestock, Consumer Foods,
Dairy, Quality Assurance and Horticulture)
comprised of a Chairman and 12 ordinary
members, who are appointed by the
Board with the consent of the Minister.
The Chairman of each Subsidiary Board is
a member of the Board.
The following Board Committees are in
place: Audit Committee, Remuneration
and Pensions Committee and Strategy
Committee.
The Executive is comprised of staff based
in the Board’s head office and overseas.
General Information
Head Office:
Clanwilliam Court, Lower Mount Street,
Dublin 2.
Auditors:
Comptroller and Auditor General
Bankers:
Allied Irish Banks
Solicitors:
Philip Lee Solicitors
Bord Bia Irish Food Board Annual Report 2014
49
50
Staff Structure
Chief Executive
Aidan Cotter
Markets
Michael Murphy
International Markets
Position Vacant
Quality and Environmental
Assurance
Michael Maloney
Marketing Services
Una Fitzgibbon
Meat & Livestock
Jim O’Toole
Food and Beverages
Tara McCarthy
Horticulture/Food Dudes
Mike Neary
Strategic Information Services
Julian Smith
Corporate Communications
Rosaleen O’Shaughnessy
Human Resources
Susan Doyle
Corporate Services
Frank Lynch
Finance
John O’Grady
Human Resource activities within
Bord Bia support management and
staff to meet the challenges of the
marketplace through:
• Establishing appropriate
management structures and
performance management
systems to deliver the strategic
aims of the organisation
• Delivery of leadership, high
performance team and
competency development
programmes
Overseas Offices
Amsterdam
Margaret McCarthy
Dubai
Michael Hussey
Dusseldorf
Donal Denvir
London
Michelle Butler
Madrid
Cecilia Ruiz
Milan
Position Vacant
Moscow
Alla Barinova
New York
Karen Coyle
Paris
Noreen Lanigan
Shanghai
James O’Donnell
Stockholm
Nicolas Ranninger
The organisational culture is driven
by continual prioritisation and
innovation, ensuring relevance to
the marketplace, clients and the
consumer, maximisation of outputs,
and the delivery of efficiencies
through the optimal use of
resources and systems. There is a
large focus on continually ensuring
clarity around the linkage between
strategy and role contribution.
Being an open, authentic and agile
organisation ensures our people can
adapt to change and are responsive
to the fast changing environment in
which we live today.
• Regular communication,
motivational and engagement
initiatives.
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
Finance
Bord Bia Board
CHAIRMAN
Mr Michael Carey
The Company of Food
MEMBERS
Chief Executive
Aidan Cotter
Changes during 2014
Secretary/Director
Frank Lynch
Appointed 30th January
Mr Eddie Downey
Prof. Fergal O’Gara (re-appointed)
Ms Marian Byrne
Principal Officer, Department of
Agriculture, Food and the Marine
Re-appointed 18th September:
Mr Michael Carey
Mr John Comer
President, Irish Creamery Milk Suppliers’
Association
Terms of office expired 6th October:
Mr Gary Brown,
Executive Chairman, Target McConnells
Mr Eddie Downey
President, Irish Farmers’ Association
Mr Michael Cronin
Former Chairman, The Irish Dairy Board
Mr Frank Hayes
Director Corporate Services, Kerry Group
Plc.
Ms Rhona Holland
Marketing Director Global Intelligence,
PepsiCo
Mr John Horgan
Managing Director, Kepak Group
Mr John Kingston
Beef & Dairy Farmer
Ms Caroline Keeling
Chief Executive,
Keelings Fruit Growers/Importers
Mr Brody Sweeney
Food Entrepreneur
Prof Fergal O’Gara
Department of Microbiology, University
College Cork
Changes during 2015
Term of office expired 23rd March:
Mr Eddie Downey (re-appointed 25th
March)
Term of office expired 27th March:
Ms Marian Byrne (re-appointed 28th
March)
Bord Bia Irish Food Board Annual Report 2014
51
52
Bord Bia – Consumer Foods Board
CHAIRMAN
Vacant
MEMBERS
Ms Triona Byrne
Finance Director, Aran Candy
Ltd.
Mr Vincent Carton
Chief Executive, Carton Group
Mr Pat Connors
Sales & Processing Director,
Marine Harvest
Mr Bernard Coyle
Chairman, Mr Crumb
Mr Mike Doyle
Managing Director – Meat &
Savoury Provisions Kerry Foods
Mr Colin Gordon
Chief Executive, Glanbia
Consumer Foods
Mr Larry Murrin
Managing Director, Dawn
Farm Foods
Mr Joe O’Flynn
Senior Partner, Agrifood
Business Partners
Mr Eddie Power
Managing Director, Green Isle
Foods
Mr Pat Rigney
Managing Director,
Fastnet Brands Co. Ltd
Changes during 2014
Appointed 13th May:
Mr Pat Rigney
Term expired 14th June:
Mr Mike Doyle
(re-appointed
8th September)
Term expired 6th October:
Ms Rhona Holland
(Chairman)
Mr John Noonan
Sales & Marketing Director,
E. Flahavan & Sons
Appointed 2nd December:
Mr Vincent Carton
Bord Bia – Dairy Board
CHAIRMAN
Mr Michael Carey
The Company of Food
MEMBERS
Mr Noel Corcoran
Sales & Marketing Director,
Carbery Food Ingredients
Ms Catherine Lascurettes
National Dairy & Liquid Milk
Executive Secretary,
Irish Farmers’ Association
Mr James Lynch
Vice Chairman, Dairygold Cooperative Society
Mr Pat McCormack
Deputy President, Irish
Creamery Milk Suppliers
Association
Mr Fergal McGarry
Global Director Consumer
Foods, The Irish Dairy Board
Dr Pat Shiels
General Manager, Agri
Division, Lakeland Dairies
Mr Sean Molloy
Director of Strategy & Supplier
Relations, Glanbia
Mr Padraig Young
Chairman, Lakeland Dairies
Mr Padraig Sayers
Vice President, Ingredients &
Flavours, Kerry Group plc
Changes during 2014
Appointed 8th September:
Mr Noel Corcoran
Bord Bia – Horticulture Board
CHAIRMAN
Ms Caroline Keeling
Chief Executive, Keelings Fruit
Growers/Importers
MEMBERS
Mr Paddy Callaghan
Chairman, Nature’s Best Ltd.
Mr Thomas Carpenter
Chairman, Potato Committee,
Irish Farmers’ Association
Ms Rachel Doyle
Director, Arboretum Garden
Centre
Mr Matt Foley
Kilbush Nurseries
Mr John Hogan
Dunsany Landscapes Ltd.
Ms Karen Kerrigan
Kerrigan’s Mushrooms
Ms Jane McCorkell
Landscape Architect &
Horticultural Consultant
Mr Philip Moreau
Glenbrook Nurseries
Mr Ciaran O’Brien
Peter O’Brien Landscapes
Changes during 2014
Resigned 10th February
Ms Caroline Keeling,
Chief Executive, Keelings Fruit
Growers/Importers
Term expired 11th
December:
Mr Brian O’Reilly,
National Chairman, IFA
Horticulture Committee
Appointed 5th May:
Ms Caroline Keeling
(Chairman)
Term expired 27th
September:
Ms Rachel Doyle
(re-appointed
2nd December)
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
Finance
Bord Bia – Meat and Livestock Board
CHAIRMAN
Vacant
MEMBERS
Mr Henry Burns
Chairman, National Livestock
Committee, Irish Farmers’
Association
Mr Paddy Gernon
Livestock Exporter
Mr Michael Guinan
Irish Creamery Milk Suppliers’
Association
Mr Jim Hanley
Chief Executive, Rosderra Irish
Meats
Mr John Lynskey
Chairman, National Sheep
Committee, Irish Farmers’
Association
Changes during 2014
Mr Brendan Mallon
Associated Craft Butchers of
Ireland
Resigned 5th February:
Mr Alo Mohan
Former Chairman, National
Poultry Committee, Irish
Farmers’ Association
Mr Pat O’Flaherty
Chairman, National Pigs &
Pigmeat Committee, Irish
Farmers’ Association
Mr James Murphy
Former Chairman, National
Sheep Committee, Irish
Farmers’ Association
Mr Nigel Renaghan
Chairman, National Poultry
Committee, Irish Farmers’
Association.
Appointed 27th February:
Mr John Lynskey
Mr Nigel Renaghan
Terms expired 2nd October –
re-appointed 10th October
Term expired 2nd October:
Mr Brendan Mallon
(re-appointed)
Term expired 2nd
December:
Mr Pat O’Flaherty
(re-appointed)
Terms expired 11th
December:
Mr Finbarr McDonnell
Managing Director, ABP
Mr Paddy Walsh
Dawn Meats
Changes during 2015
Re-appointed 25th March:
Mr Finbarr McDonnell
Mr Paddy Walsh
Bord Bia – Quality Assurance Board
CHAIRMAN
Vacant
MEMBERS
Mr Ray Bowe
Food Safety & Quality
Manager, Musgrave Retail
Partners
Mr Henry Burns
Chairman, National Livestock
Committee, Irish Farmers’
Association
Mr Dermott Jewell
Policy and Council Advisor,
Consumers’ Association of
Ireland
Mr John Mohan
Chairman, The Egg
Association
Mr Paul Nolan
Group Development Manager,
Dawn Group
Mr Liam O’Flaherty
Dairygold Co-operative Society
Mr Denis Carroll
Irish Creamery Milk Suppliers’
Association
Ms Joyce Roche
Director & Technical Manager,
Codd Mushrooms
Mr John Cunningham
Ex-Dairygold Food Products
Dr Declan Troy
Head of Centre, National Food
Centre, Teagasc
Mr Colm Hayes
Meat & Meat Policy Division,
Department of Agriculture,
Food & the Marine
Bord Bia Irish Food Board Annual Report 2014
Changes during 2014
Resigned 17th February:
Mr Michael Doran
Irish Farmers’ Association
Term Expired 18th February:
Mr Vincent Carton,
Chief Executive, Carton Group
Mr Cornelius Traas,
The Apple Farm
Appointed 25th March:
Mr Henry Burns
Resigned 3rd April:
Mr Eamon O’Sullivan.
Former Head of Supply Chain,
Dairygold Co-operative
Society.
Appointed 28th May:
Mr Liam O’Flaherty
Ms Joyce Roche
Term expired 29th May:
Mr Brendan Gleeson,
Department of Agriculture,
Food & the Marine
Term expired 27th
September:
Dr Declan Troy
(re-appointed
2nd December)
Appointed 8th September:
Mr Colm Hayes
Term expired 6th October:
Mr Michael Cronin
(Chairman)
53
54
Finance
Report of the Comptroller
and Auditor General
55
Statement of Accounting Policies
56
Income and Expenditure Account
58
Statement of Total Recognised
Gains and Losses
59
Balance Sheet
60
Cash Flow Statement
61
Notes forming part of the
Financial Statements
62
Marketing Finance Grant Payments 2014
68
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
Finance
Report of the Comptroller
and Auditor General
Comptroller and Auditor General
Report for presentation to the Houses of the Oireachtas
An Bord Bia
I have audited the financial statements of An Bord Bia
for the year ended 31 December 2014 under the An
Bord Bia Act 1994. The financial statements, which
have been prepared under the accounting policies set
out therein, comprise the statement of accounting
policies, the income and expenditure account, the
statement of total recognised gains and losses, the
balance sheet, the cash flow statement and the related
notes.The financial statements have been prepared in
the form prescribed under Section 21 of the Act, and
generally accepted accounting practice in Ireland.
Responsibilities of An Bord Bia
An Bord Bia is responsible for the preparation of the
financial statements, for ensuring that they give a true
and fair view of the state of the An Bord Bia’s affairs
and of its income and expenditure, and for ensuring the
regularity of transactions.
Responsibilities of the Comptroller and Auditor
General
My responsibility is to audit the financial statements and
report on them in accordance with applicable law.
In addition, I read An Bord Bia’s annual report to identify
material inconsistencies with the audited financial
statements. If I become aware of any apparent material
misstatements or inconsistencies, I consider the
implications for my report.
Opinion on the financial statements
In my opinion, the financial statements, which have
been properly prepared in accordance with generally
accepted accounting practice in Ireland, give a true and
fair view of the state of An Bord Bia’s affairs at 31
December 2014 and of its income and expenditure for
2014.
In my opinion, proper books of account have been kept
by An Bord Bia. The financial statements are in
agreement with the books of account.
Matters on which I report by exception
I report by exception if
•
My audit is conducted by reference to the special
considerations which attach to State bodies in relation
to their management and operation.
•
My audit is carried out in
accordance with the
international Standards on Auditing (UK and Ireland)
and in compliance with the Auditing Practices Board’s
Ethical Standards for Auditors.
•
Scope of audit of the financial statements
•
An Audit involves obtaining evidence about the amounts
and disclosures in the financial statements, sufficient to
give reasonable assurance that the financial statements
are free from material misstatement, whether caused by
fraud or error. This includes an assessment of
•
•
•
•
whether the accounting policies are appropriate to
An Bord Bia’s circumstances, and have been
consistently applied and adequately disclosed
the reasonableness of significant accounting
estimates made in the preparation of the financial
statements, and
the overall presentation of the financial statements.
I also seek to obtain evidence about the regularity of
financial transactions in the course of audit.
Bord Bia Irish Food Board Annual Report 2014
I have not received all the information and
explanations I required for my audit, or
my audit noted any material instance where money
has not been applied for the purposes intended or
where the transactions did not conform to the
authorities governing them, or
the information given in An Bord Bia’s annual report
is not consistent with the related financial
statements, or
the statement on internal financial control does not
reflect An Bord Bia’s compliance with the Code of
Practice for the Governance of State Bodies, or
I find there are other material matters relating to the
manner in which public business has been
conducted.
I have nothing to report in regard to those matters upon
which reporting is by exception.
Seamus Mc Carthy
Comptroller and Auditor General
11 June 2015
55
56
Statement of Accounting Policies
(a) Basis of Accounting:
(d) Fixed Assets and Depreciation:
These financial statements are prepared
under the accruals method of accounting,
except as indicated below, and in
accordance with generally accepted
accounting principles under the historical
cost convention. Financial Reporting
Standards recommended by the
accountancy bodies are adopted as they
become operative. The unit of currency is
the Euro.
Fixed assets are stated at cost less
accumulated depreciation. Depreciation
is calculated to write off the original
cost less the estimated residual value of
tangible assets on a straight line basis at
the following annual rates:
Leasehold Improvements Furniture & fittings
10%
12½%
Office equipment
(b) Keeping of Accounts:
Subsidiary Boards:
Under the terms of An Bord Bia Act,
1994, the Board is assisted by five
Subsidiary Boards in respect of Meat
and Livestock, Consumer Foods and
Ingredients, Dairy, Quality Assurance and
Horticulture. All income and expenditure
relating to these Subsidiary Boards is
reflected in these financial statements.
(c) Income:
Income shown in the financial
statements under Oireachtas Grantin-Aid represents the actual receipts
from this source in the period.
Income from the Quality Assurance
Schemes Special Funding, the Food
Dudes National Roll-Out and Food
Promotions Special Funding is released
to revenue in line with related
expenditure and any balances due
to or from Bord Bia are included in
Debtors or Creditors as appropriate.
Income arising from the Statutory Levy
is accounted for on the accruals basis
with the exception of live exports of
sheep and pigs which are accounted
for on a cash receipts basis.
Computer equipment
With regard to employees of the
former Bord Glas, a non- contributory
defined benefit pension scheme and
a contributory spouses and children’s
scheme are operated on an administrative
basis pending the authorisation of
the schemes by the Minister for Public
Expenditure and Reform. Under the
provisions of An Bord Bia (Amendment)
Act, 2004, all staff of the former Bord
Glas were transferred to Bord Bia with
effect from 1st July 2004.
20%
331/3%
(e) Marketing Finance:
Expenditure under this heading is
accounted for on the basis of actual
payments made.
(f) Pensions:
There are three Superannuation Schemes
in operation within Bord Bia.
The Bord Bia main scheme is an unfunded
scheme since 31st December 2009.
Prior to 1st January 2010 employer and
employee contributions were paid into
a fund. Under the terms of the Financial
Measures (Miscellaneous Provisions)
Act, 2009, the assets of the scheme
were transferred to the National Pension
Reserve Fund with effect from 31st
December 2009. The scheme continues
in being for existing members. From
1st January 2010, Bord Bia became
responsible for the administration of
the pension payments to pensioners on
behalf of the Exchequer. Under the new
arrangement the funding contribution will
continue in being and is payable to the
Department of Agriculture, Food and the
Marine after taking account of pensions
paid. The Department will provide
funding where the pensions paid exceed
the funding and employee contributions.
The new Single Public Service Pension
Scheme (“Single Scheme”) commenced
with effect from 1 January 2013. All new
entrants to pensionable public service
employment on or after 1 January 2013
are, in general, members of the Single
Scheme. The rules of the Single Scheme
are set down in the Public Service
Pensions (Single Scheme and Other
Provisions) Act 2012.
Pension costs reflect pension benefits
earned by employees in the year. An
amount corresponding to the pension
charge is recognised as income to the
extent that it is recoverable, and offset
by Grant-in-Aid received in the year to
discharge pension payments for the Bord
Glas scheme and any deficit in funding
arising on the Bord Bia scheme.
Actuarial gains or losses arising on
scheme liabilities are reflected in the
Statement of Total Recognised Gains and
Losses and a corresponding adjustment
is recognised in the amount recoverable
from the Department of Agriculture, Food
and the Marine.
Pension liabilities represent the present
value of future pension payments
earned by staff to date. Deferred
pension funding represents the
corresponding asset to be recovered
in future periods from the Department
of Agriculture, Food and the Marine.
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
(g) Leased Assets:
(l) Taxation:
Assets held under leasing arrangements
that transfer substantially all the risks and
rewards of ownership (finance leases)
to Bord Bia are included in the balance
sheet as tangible fixed assets at cost less
accumulated depreciation and the capital
element of future rentals is treated as a
liability. The interest element is charged to
the Income and Expenditure Account over
the period of the lease in proportion to
the balance of the capital repayments.
Provision has been made in respect
of all VAT liabilities and the PRSI
contributions of Irish persons
attached to overseas offices.
Rentals in respect of operating leases are
charged to the Income and Expenditure
Account as incurred.
(h) Tangible Assets:
Tangible assets are financed out of
revenue. Provision is made in the Income
and Expenditure Account for a transfer to
the Capital Account of amounts allocated
for such capital purposes less credits to
revenue over the life of the related assets.
(i) Stocks:
Stocks of stationery are stated at cost.
(j) Provision for Bad and Doubtful
Debts:
Known bad debts are written off and
specific provision is made for any
amounts the collection of which is
considered doubtful.
(k) Foreign Currencies:
Foreign currency balances are translated
at the rates ruling at the balance sheet
date. Revenues and costs are translated
at the exchange rates ruling at the
dates of the underlying transactions.
Profits and losses arising from foreign
currency translations and on settlement
of amounts receivable and payable in
foreign currency are dealt with in the
Income and Expenditure Account.
Bord Bia Irish Food Board Annual Report 2014
(m) Capital Account:
The capital grant element of Oireachtas
Grant-in-Aid received by Bord Bia is
credited to the Capital Account as
set out in Note 2, and is transferred
to the Income and Expenditure
Account over the expected useful lives
of the assets to which they relate,
in line with asset depreciation.
Finance
57
58
Income and Expenditure Account
year ended 31 December
2014
2013
Notes
€’000
€’000
1a
27,282
27,734
1b
1,926
2,739
Quality Assurance Schemes: Special Funding
1c
5,215
4,401
Food Promotions Special Funding
1d
616
655
Statutory Levy
1e
5,715
5,176
Project and Other Income
1f
6,472
5,388
14b
3,013
3,292
50,239
49,385
4
49
50,243
49,434
INCOME
Oireachtas Grant-in-Aid
Oireachtas - Other Funding:
Food Dude National Roll Out
Net deferred funding for pensions
Transfer from Capital Account
2
Total Income
EXPENDITURE
Marketing and Promotional Expenditure
3
28,047
25,772
Food Dude National Roll Out
1b
1,926
2,739
Quality Assurance Schemes
1c
5,215
4,401
Marketing Finance
4
819
851
Pay
5
11,088
11,556
Operating Expenditure
6
Total Expenditure
Operating Surplus for Year
Less: Pension Related Contribution to Exchequer
14a
Surplus/(Deficit) for Year after Exchequer Pension Contribution
2,392
2,761
49,487
48,080
756
1,354
(718)
38
(768)
586
Balance at 1 January
596
10
Balance at 31 December
634
596
The results for the year relate to continuing operations.
The Statement of Accounting Policies and Notes 1 to 17 form part of these financial statements.
Michael CareyAidan Cotter
ChairmanChief Executive
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
Finance
59
Statement of Total Recognised
Gains and Losses
year ended 31 December
Notes
Surplus for Year after Exchequer Pension Contribution
2014
2013
€’000
€’000
38
586
Actuarial (Loss)/Gain on Pension Scheme Liabilities
14a
(8,854)
4,261
Adjustment to Deferred Pension Funding
14a
8,854
(4,261)
Total Recognised Gains for the Year
The Statement of Accounting Policies and Notes 1 to 17 form part of these financial statements.
Michael CareyAidan Cotter
ChairmanChief Executive
Bord Bia Irish Food Board Annual Report 2014
38
586
60
Balance Sheet
year ended 31 December
ASSETS EMPLOYED
Notes
2014
2013
€’000
€’000
148
152
3
3
2,562
1,980
6,314
5,225
8,879
7,208
7,617
6,016
1,262
1,192
628
596
Fixed Assets
Tangible Assets
7
Current Assets
Stocks
Debtors
8
Cash at bank and in hand
Creditors
(amounts falling due within one year)
9
Net Current Assets
Creditors (amounts falling due after more than one year)
Provision for Liabilities and Charges
11
Net Current Assets less Liabilities
634
596
Total Assets less Liabilities before Pensions
782
748
Deferred Pension Funding
14b
52,053
40,846
Pension Liabilities
14b
(52,053)
(40,846)
Total Assets less Current Liabilities
782
748
FINANCED BY
Capital and reserves
Capital account
Income and expenditure account
2
148
152
634
596
782
748
The Statement of Accounting Policies and Notes 1 to 17 form part of these financial statements.
Michael CareyAidan Cotter
ChairmanChief Executive
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
Finance
61
Cash Flow Statement
year ended 31 December
RECONCILIATION OF SURPLUS/(DEFICIT) TO NET CASH
2014
2013
INFLOW FROM OPERATING ACTIVITIES
€’000
€’000
38
586
Surplus for year
Net Interest receivable
(13)
(26)
Depreciation
84
Capital account transfer
(4)
(49)
-
7
Loss on disposal of tangible fixed assets
Increase/(Decrease) in debtors
Increase in trade creditors
(581)
1,323
142
239
158
(Decrease) in taxation and PRSI
(15)
Increase/(Decrease) in accruals & deferred income
292
(1,332)
32
(18)
1,156
(294)
1,156
(294)
Increase/(Decrease) in provision for liability and charges
Net cash inflow/(outflow) from operating activities
(1)
CASHFLOW STATEMENT
Net cash inflow/(outflow) from operating activities
Returns on investment and servicing of finances :
Bank interest received
Net current inflow / (outflow) of funds
13
1,169
26
(268)
Capital expenditure:
Payment to acquire tangible assets
(80)
(100)
1,089
(368)
Increase/(Decrease) in Cash
1,089
(368)
Net funds at 1 January
5,225
5,593
Net funds at 31 December
6,314
5,225
Increase/(Decrease) in cash
Reconciliation of net cash flow to movement of funds
The Statement of Accounting Policies and Notes 1 to 17 form part of these financial statements.
Michael CareyAidan Cotter
ChairmanChief Executive
Bord Bia Irish Food Board Annual Report 2014
62
Notes forming part of the Financial Statements
year ended 31 December 2014
1. INCOME
2. CAPITAL ACCOUNT
(a) Included in Grant in aid is €0 (2013 €5,330,000) which has
been made available to Bord Bia under the marketing sub
program of the productive sector operational program of the
national development plan 2007-2013. Such amounts are
now included in grant-in-aid non pay.
(b) Amounts included under the heading of Food Dude National Roll-Out totalling €1,925,841 arise in respect of
funding made available by the Department of Agriculture,
Food and the Marine to cover the costs of the roll-out of the
Food dude programme on a national basis.
Amount capitalised in respect
of purchased tangible assets
Amounts released on
disposal of tangible assets
Amortisation in line with
asset depreciation
Net transfer to Income and
Expenditure Account
(c) Amounts included under the heading of the Quality
Assurance Scheme Special Fund totalling €5,214,870
arise in respect of funding made available by the
Department of Agriculture, Food and the Marine to
cover the costs of independent on-farm inspections
and associated certification processes under the
Bord Bia Quality Assurance Scheme.
Balance at 31 December
201
80
100
(84)
(4)
148
(7)
(142)
(49)
152
2014
2013
€’000
€’000
15
9
2013
€’000
Promotions
6,421
6,491
Marketing Development
6,707
5,125
Trade Fairs and Exhibitions
4,722
5,432
Information Services Research
2,104
1,934
Information Services - Other
1,354
1,111
Quality Assurance
1,668
1,507
3,120
2,516
345
210
15
Trade Development
Biofach Organic trade fair
71
90
Technical Support - Pigmeat
Sector
Farmhouse Cheese
€’000
152
2014
144
Mushrooms promotions
€’000
€’000
Domestic & Small Business
Organic Promotion
Asia - Beef Pork
Offal - Promotion
2013
3. MARKETING AND PROMOTIONAL EXPENDITURE
(d) Amounts included under Food Promotions Special
Funding arise in respect of funding made available by the
Department of Agriculture, Food and the Marine in respect
of the following programmes:
Bloom Garden
Balance at 1 January
2014
-
(30)
317
529
69
42
616
655
(e) An Bord Bia Act, 1994, provides for payment to the Board of
a levy per head on slaughtered or exported livestock. Under
section 37 of the Act, the rates were set at €1.90 per head
for cattle, 25c per head for sheep and 35c per head for pigs.
(f) Project and other income includes industry contributions
to joint promotions, trade fairs, information services and
seminar and conference fees. Also included is interest
receivable of €12,470 (2013: €26,359).
Other Client Services
Fellowship Plus
144
105
1,462
1,341
28,047
25,772
2014
2013
€’000
€’000
819
851
4. MARKETING FINANCE
Marketing Assistance
Programme
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
Finance
63
Notes forming part of the Financial Statements
year ended 31 December 2014
5. PAY
6. OPERATING EXPENDITURE
2014
2013
€’000
€’000
Marketing & Promotion
9,345
8,702
Administration
1,743
2,854
Board and Sub-Board
Members’ fees and expenses
2014
2013
€’000
€’000
150
185
Rent, rates and insurance
1,054
1,121
Pay costs are comprised of:
Telecommunications costs
194
275
Wages and salaries
7,523
7,712
General business expenses
885
1,009
Social welfare costs
552
552
Audit fee
25
22
3,013
3,292
Depreciation (Note 7)
84
142
11,088
Pension costs (Note 14b)
11,088
11,556
11,556
Loss on disposal of tangible
assets
The remuneration of the Chief Executive included in the above
Pay costs is as follows:
Salary
€
€
149,175
154,628
Board Members’ fees are as
follows:
Mr. M. Carey*
Mr. G. Brown
In addition, the Chief Executive is a member of the Bord Bia
Superannuation Scheme and has pension entitlements which
do not extend beyond the standard entitlements in the model
public sector defined benefit superannuation scheme.
The total number of employees (including part-time persons)
at 31 December 2014 was 88 (2013: 90). The cost of certain
part-time employees amounting to €82,097 (2013: €82,959) is
included in Marketing and Promotional expenditure.
A total of €392,014 (2013: €413,072) was deducted from
employees during the year by way of pension levy and was paid
over to the Department of Agriculture, Food and the Marine.
Mr. J. Bryan
Ms. M. Byrne**
Mr J. Comer
-
7
2,392
2,761
€
€
-
-
9,199
11,970
-
11,970
-
-
11,970
11,363
9,199
11,970
Ms. A. Dennison
-
5,837
Mr. K. Dunne
-
10,937
Mr. F. Hayes*
-
-
Ms. R. Holland
9,199
11,970
Mr. J. Horgan*
-
-
Ms. C Keeling*
-
-
Mr. J. Kingston
9,199
11,970
Prof. F. O’Gara
10,970
11,035
Mr. B. Sweeney
9,199
11,970
Mr. M. Cronin
Mr E Downey
10,970
-
Total
79,905
110,992
Amounts paid to Board
Members for travel and
subsistence expenses
10,751
17,704
Amounts paid to Sub-Board
Members for travel and
subsistence expenses
19,855
17,889
* Indicates those Board Members who have waived part or all of
the fee payable, as a Board member, in 2014.
**No fees are payable to Ms. M. Byrne, Principal Officer,
Department of Agriculture, Food and the Marine.
Bord Bia Irish Food Board Annual Report 2014
64
Notes forming part of the Financial Statements
year ended 31 December 2014
7. TANGIBLE FIXED ASSETS
Improvements
to Leasehold
Property
Furniture and
Fittings
Computer
Equipment
Office
Equipment
Cost
€’000
€’000
€’000
€’000
€’000
At 1 January 2014
1,615
606
628
181
3,030
53
19
Additions in year
-
8
Disposals
-
(11)
At 31 December 2014
-
Total
80
(3)
(14)
1,615
603
681
197
3,096
1,592
559
559
168
2,878
60
Depreciation
At 1 January 2014
Charged in year
4
11
Disposals
-
(11)
At 31 December 2014
1,596
-
559
619
9
84
(3)
(14)
174
2,948
Net Book Amounts
At 1 January 2014
23
47
69
13
152
At 31 December 2014
19
44
62
23
148
8. DEBTORS
9. CREDITORS (amounts falling due within one year)
2014
2013
€’000
€’000
Amounts falling due within
one year:
Trade debtors
Less: Provision for Bad Debts
Prepayments and accrued
income
2014
2013
€’000
€’000
2,911
1,588
Exchequer pension
contributions
644
905
Taxation and social welfare
(Note 10)
203
218
Withholding tax
403
325
2,893
2,319
563
661
7,617
6,016
Trade creditors
1,175
1,388
(453)
(669)
722
719
1,840
1,261
Accruals
2,562
1,980
Deferred Income
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
Finance
65
Notes forming part of the Financial Statements
year ended 31 December 2014
10. TAXATION AND SOCIAL WELFARE
12. COMMITMENTS
2014
2013
€’000
€’000
Taxation and social welfare
creditors comprise the
following:
P.R.S.I.
138
151
65
67
203
218
An Bord Bia is not liable to corporate taxes in Ireland or in the
countries in which it operates because it is a non-commercial
State-sponsored body.
It is liable to employer taxes in Ireland and complies with related
withholding, reporting and payment obligations in all countries
in which it operates.
An Bord Bia had no capital commitments at the year end.
(c) Operating Leases
Operating leases comprise leases of premises. Leasing
commitments payable during the next twelve months
amount to €751,532 made up as follows:
Payable on leases on which the commitment expires:
€
Within one year
36,142
Within two to five years
674,803
40,587
751,532
At
Provided
Released
At
1 January
during
during
31 December
2014
year
year
2014
€’000
€’000
€’000
€’000
13
-
-
13
583
32
-
615
596
32
-
628
The provision in respect of Value Added Tax relates to
adjustments to amounts recovered from overseas jurisdictions
in prior years. The provision for dilapidations comprises the
estimated cost of reinstatement of leasehold properties in
accordance with obligations under operating leases.
Bord Bia Irish Food Board Annual Report 2014
There were no commitments in respect of Marketing Finance
Programmes at the year end.
Six years and over
11. PROVISION FOR LIABILITIES AND CHARGES
Provision for
Dilapidations
(b) Financial Commitments
Income Tax
Value Added Tax
(a) Capital Commitments
13. CONTINGENT LIABILITIES
Contingent liabilities exist in respect of amounts approved but
unclaimed at the year end under the terms of the Marketing
Finance Programmes operated by Bord Bia as follows:
Marketing Assistance
Programme
2014
2013
€’000
€’000
923
911
Management estimates the contingent liabilities under this
heading will be settled within one year.
66
Notes forming part of the Financial Statements
year ended 31 December 2014
14. SUPERANNUATION
a i) Pension costs
Service cost
Employee contributions
2014
2013
€’000
€’000
1,936
2,190
(314)
(315)
Current service cost
1,622
1,875
Interest cost
1,452
1,483
Total
3,074
3,358
a ii) Contribution to the Exchequer
In accordance with the Financial Measures (Miscellaneous
Provisions) Act 2009 and the arrangements set out in the
accounting policies, contributions payable to the Exchequer
amounted to €717,687 in the year (2013: €768,261).
An amount of €643,820 was due at 31 December 2014 (2013:
€904,820) in respect of employee deductions and contributions
payable to the Exchequer after offsetting pensions payable
under the Bord Bia scheme.
a iii) Analysis of amount recognised in Statement of Total
Recognised Gains and Losses
Experience gains
2014
2013
€’000
€’000
951
3,314
Changes in assumptions
(9,805)
947
Total
(8,854)
4,261
b i) Present value of scheme obligations
2014
2013
€’000
€’000
40,846
42,143
Service Cost
1,936
2,190
Interest Cost
1,452
1,483
8,854
(4,261)
Present value of scheme
obligations at beginning of
year
Actuarial (gain)/loss
Benefits paid
(1,035)
Present value of scheme
obligations at end of year
52,053
(709)
40,846
b ii) Deferred Funding Asset
Under the terms of the Financial Measures (Miscellaneous
Provisions) Act 2009, the assets of the Bord Bia Superannuation
Schemes were transferred to the National Pension Reserve Fund
with effect from 31 December 2009. The pension schemes
associated with these funds continue in force for existing
members with no impact on their benefits or associated
provision for members. The Department of Agriculture, Food
and the Marine will provide funding where the pensions paid
exceed contributions. An Bord Bia has adapted the treatment
and disclosures required by the accounting standard, Financial
Reporting Standard 17 (Retirement Benefits) to reflect the
arrangements in operation. While the funding arrangement
operates on a net pay over basis with the Department, An
Bord Bia believes the nature of the arrangement is akin to a
full reimbursement of the pension liability when those liabilities
fall due for payment and therefore recognises its right to the
reimbursement as a separate asset in the amount equal to the
liability at the year end.
An Bord Bia also recognises an asset corresponding to the
unfunded liability for pensions on the Bord Glas scheme on the
basis of a number of assumptions and past events, including
the statutory basis for the establishment of the superannuation
schemes, and the policy and practice currently in place in
relation to funding public services pensions, including the annual
estimates process.
A deferred funding asset of €52.053 million equal to the
pension liability is recognised at 31 December 2014 (2013:
€40.846 million). The deferred funding asset at the year end was
determined after taking into account Net Deferred Funding for
Pensions in the year of €3.013 million and adjustments arising
from the actuarial loss of €8.854 million and from pensions
payable under the Bord Bia scheme of €978,652 which were
offset against the contribution payable to the Exchequer.
b iii) Net Deferred Funding for Pensions in Year
Funding recoverable in
respect of current year
pension costs
Oireachtas Grant-in-Aid
applied to pension payments
(An Bord Glas scheme)
2014
2013
€’000
€’000
3,074
3,358
(61)
3,013
(66)
3,292
c) Description of schemes and actuarial assumptions
The Board operates three defined benefit superannuation
schemes for certain eligible employees.
1) The Bord Bia main scheme, for which the approval of
the Minister for Agriculture, Food and the Marine and
the Minister for Public Expenditure and Reform has been
received. Until 31 December 2009, the contributions of
employees and Bord Bia were paid into a fund managed by
the trustees. As detailed under note 14b ii) above, the assets
of the scheme were transferred to the National Pension
Reserve Fund with effect from 31 December 2009.
Bord Bia Irish Food Board Annual Report 2014
Our Business
Governance
Finance
67
Notes forming part of the Financial Statements
year ended 31 December 2014
2) The former Bord Glas scheme. This consists of
a non-contributory defined benefit pension
scheme and a contributory spouses and
children’s scheme which is operated on an
administrative basis pending the authorisation
of the schemes by the Minister for Public
Expenditure and Reform.
3) The Single Public Service Pension Scheme. The
rules of the Single Scheme are set down in
the Public Service Pensions (Single Scheme
and Other Provisions) Act 2012.
An Bord Bia meets the cost of current retirements.
These are paid out of current income.
Contributions received by An Bord Bia from
members of the contributory unfunded schemes
outlined above are used to part fund ongoing
pension liabilities.
An actuarial valuation of the Bord Bia
Superannuation Schemes was carried out as at
31 December 2014 for the purpose of preparing
this FRS17 disclosure. The liabilities and costs have
been assessed using the projected unit method.
Financial assumptions
The principal actuarial assumptions used to
calculate the retirement benefit obligations under
FRS17 were as follows:
31/12/14
31/12/13
31/12/12
Discount Rate
2.25%
3.60%
3.55%
Inflation Rate
1.60%
2.00%
2.00%
Salary increases
3.85%
4.25%
4.25%
Pension increases
3.35%
3.75%
3.75%
d) History of defined benefit obligations, assets and experience gains
and losses
Defined benefit
obligations
Fair value of scheme
assets
Deficit on
Superannuation
Schemes
Experience
adjustments on
scheme obligations
Experience
adjustments on
scheme assets
2014
2013
2012
2011
2010
€’000
€’000
€’000
€’000
€’000
52,053
40,846
42,143
26,117
24,751
-
-
-
-
-
(52,053)
(40,846)
(42,143)
(8,854)
4,261
(14,092)
-
-
-
(26,117)
(24,751)
632
1,266
-
-
15. BOARD MEMBERS - DISCLOSURE OF TRANSACTIONS
In the normal course of business the Board may approve grants and may also
enter into other contractual arrangements with undertakings in which Bord
Bia Board Members are employed or otherwise interested. The Board adopted
procedures in accordance with the guidelines issued by the Department of
Public Expenditure and Reform in relation to the disclosure of interests by
Board Members and these procedures have been adhered to by the Board
during the year.
No grants were approved or paid during the year to companies with which
Board Members are associated.
16. PREMISES
The following amounts were measured in
accordance with the requirements of FRS17.
An Bord Bia occupies premises at Clanwilliam Court, Lower Mount Street,
Dublin 2 under a rental agreement.
Demographic assumptions
This agreement which commenced in 2010, is for a period of ten years. The
rental charge for 2014 was €378,470.
The mortality table is 88% of ILT15 (Males) for
males and 91% of ILT15 (Females) for females,
with the 2013 CSO mortality improvements
applying from 2010. Representative rates are
shown below.
The expected lifetime of a participant who is
age 65 and the expected lifetime (from age 65)
of a participant who will be age 65 in 25 years
are shown in years below based on the above
mortality tables.
Age
Males
Females
65
20.8
23.4
65 in 25 years
23.9
26.0
Bord Bia Irish Food Board Annual Report 2014
In addition, the Board occupies eleven other properties in various locations
internationally. The total rent paid on these premises in 2014 was €348,530.
17. APPROVAL OF FINANCIAL STATEMENTS
The Board approved the financial statements on 27th May 2015.
68
Marketing Finance Grant
Payments 2014
Company
Adare Farm foods
Aine’s Chocolates Ltd
Algaran Teoranta
Ardsallagh Goat Products Ltd
Atlantic Marine Seafoods
Ballykelly Farms
Beal Organic Cheese
Beechill Bulbs Ltd
Beechlawn Organic Farm
Beeline Health Foods Ltd
Boylan Fruits Ltd
Brookridge Farm Ltd
Burren Smokehouse Ltd
Caherbeg Free Range Pork
Cahills Farm Cheese Ltd
Carlow Craft Brewery Ltd
Carrigaline Farmhouse Cheese Ltd
Carrigbyrne Farmhouse Cheese
Castlecor Potatoes
Celtic Chocolates Ltd
Celtic Pure Ltd
Clanwood Farm
Clinton Foods Ltd
Con Traas Ltd
Connemara Seafoods Ltd
Coolea Farmhouse Cheese Ltd
Corleggy Cheese
Couverture Ltd
Crossogue Preserves
Crowe Meats
Cuinneog Ltd
Curley Quality Foods
Cybercolors Ltd
D&S Gourmet Food - Gran Clarkes
Dee’s Wholefoods Ltd
Delicious Gluten Free Bakery
Derrycamma Farm Foods Ltd
Durrus Cheese
Eden Farms Ltd
Eight Degrees Brewing Company Ltd
Everyday Foods
Fermoy Natural Cheese
Fior Uisce Thuar Mhic Teoranta
Fitzgerald Nurseries
Four Seasons Nurseries
Froberry Ltd
Fusco Foods Ltd
Galway Natural Health Company
Garden of Eden Herbs
Glendalough Irish Whiskey Ltd
Goatsbridge Trout Farm Ltd
Good 4U
Goodness Grains Gluten Free Bakery
Green Earth Organics
Green Saffron Spices Ltd
Green valley Farm Ltd t/a Killowen Farm
Greenbean Ltd
G’s Gourmet Jam
Harrington Home Bakery Ltd
Harty’s Jam
Hickey’s Bakery Ltd
Hughes Roses Ltd
Improper Butter
Inagh Farmhouse Cheese Ltd
Inch House
Irish Organic Milk Producers Ltd t/a The Little Milk Company
Island Seafoods Ltd
J&L Grubb Ltd
Jane Russell’s Original Irish
Janet’s Country Fayre
JFS Produce Ltd
JOD Food Products
John Hickey & Sons Ltd t/a Hickeys Bakery
Kearney’s Homebaking Ltd
Keeling F Juices Ltd
Keith Higgins Potatoes
Kelly’s Nursery Ltd
Kelly’s of Newport
Kilbeg Dairy Delights
Kilfera Food Manufacturers Ltd
Amount
€
5,000
13,000
6,000
2,650
2,249
5,000
3,000
3,965
713
4,000
5,000
4,000
10,000
2,364
15,000
15,000
7,000
7,764
4,000
10,000
1,886
3,454
1,110
4,212
10,000
1,400
3,000
11,507
3,000
2,720
3,941
4,000
11,000
1,885
4,220
5,000
1,960
8,238
3,000
6,773
3,000
4,000
477
9,710
3,000
2,000
10,000
3,000
5,800
4,000
16,000
6,000
3,000
1,868
6,000
26,987
1,260
7,000
2,789
1,500
2,000
576
3,000
10,000
3,000
5,383
15,930
20,000
6,000
3,416
4,000
13,000
2,387
3,000
10,000
2,425
12,000
6,000
8,000
7,000
Amount
€
Company
Killeen Farmhouse Cheese
Kinvara Smoked Salmon Ltd
Knockanore Farmhouse Cheese
Knockdrinna Farmhouse Cheese Ltd
Kohinoor Ltd
Kooky Dough Ltd
Kush Seafarms Ltd
Larry Whelan Potatoes
Lovin Catering Ltd
M&M Products Ltd
Mags Homebaking Ltd
Man of Aran Fudge
Mangort (Ireland) Ltd t/a Cloon Potatoes
Mangrove Green Ltd t/a Chilly Moo
Mannings Bakeries Ltd
Marchminder Ltd t/a Cooleeney Cheese
Mc Bride Fishing Co
Meadowsweet Apiaries Ltd
Michael Kelly Shellfish Ltd
Michael Waldron Meats Limited
Milleens Cheese Ltd
Mossfield Organic Farm Ltd
Mr. Middleton Garden Shop
Murphy’s Ice Cream
Newgrange Gold Ltd
Nightpark Nursery
Nohoval Brewing Company Ltd t/a Stonewell Cider
Nua Naturals
O’Dowd Nurseries
Oishii Foods Ltd
Olvi Oils Ltd
On The Pigs Back
O’Neill Foods
Paddy O’Granola
Pandora Bell
Paul Brophy Veg
Prue & Simon’s Ltd
Pure Foods Ltd
Quarrymount Free Range Meats
Radical Fruit Co t/a Wild Orchard
Rathcreedan Limited (t/a Sushi King)
Régale Biscuit Co.
Rentes Plants Ltd
Riceshill Farm Ltd
Rosie’s Bakehouse
Sam’s Cookies Ltd
Sceaclaidi Na Sceilge Teoranta
Shannon Estuary Oysters Ltd
Slender Choice Ltd
Sliogeisc na Rossan Teoranta
Solaris Botanicals
Spanish Point Sea Veg
Speciale Donegal Bay Ltd
Spice O’Life Ltd
Stam’s Bamboo Nursery Ltd
Summerhill Lawns
Sunnyside Fruit Ltd
Sunshine Bread and Confectionery Ltd
Taste a Memory Foods
Teeling Whiskey Company Ltd
The Bretzel Trading Company Ltd
The Delicious Food Company
The Food Store
The Foods of Athenry Ltd
The Happy Pear Living Foods
The Hooker Brewery t/a Galway Hooker
The Just Food Company
The Nusli Company Ltd
The Scullery Fine Foods
The Tipperary Kitchen
Trudies Catering Kitchen
Waterford Blaa Bakers
Wexford Fruit Producers
Wicklow Farmhouse Cheese
Wicklow Fine Foods
Woodcock Smokery
Woodstock Trees & Shrubs Ltd
Yawl Bay Seafoods Ltd
Young Nurseries Ltd
Total
2,756
1,537
16,000
5,427
17,914
1,105
13,497
3,000
1,016
3,000
3,710
1,500
4,000
2,000
12,000
15,000
1,115
1,572
2,096
6,500
3,000
1,799
6,000
4,000
5,000
6,560
3,632
3,000
2,769
313
1,355
688
2,976
4,000
2,000
2,548
252
2,500
1,200
2,212
2,737
4,000
4,211
4,000
1,415
8,308
5,000
5,114
3,000
8,000
5,000
917
6,914
9,000
3,500
2,651
4,000
4,000
3,807
5,000
3,016
1,467
3,000
12,000
3,000
8,000
5,301
3,000
4,000
996
9,896
4,000
1,470
7,000
7,000
3,882
1,263
1,460
5,964
819,357
Bord Bia Irish Food Board Annual Report 2014
HEAD OFFICE
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Growing the success of Irish food & horticulture