2012 ANNUAL REPORT & ACCOUNTS
SUSTAINABILITY –
our journey for the next generation
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
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, drink and horticulture industry.
2. To positively influence attitudes towards, and knowledge of, Irish food, drink and horticulture
among consumer and trade buyers in the marketplace.
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, drink and horticulture industry.
4. To lead a collaborative approach to market development with the key agencies involved in serving
Irish food, drink and horticulture.
5. To actively respond to significant market issues that affect the industry.
6. To deliver value-for-money with expenditures.
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Bord Bia Irish Food Board Annual Report 2012
We did not inherit this world from our parents.
We borrowed it from our children. One day we
will return it to them. When we do, it should be
every bit as bountiful as it was when we found it.
Our farms have been looked after by generation after generation
of families. Our fishing industry too. All caretakers… custodians…
protectors… Because every generation has acknowledged one simple
fact: that this land belongs not to us… but to the ones who come after.
Bord Bia Irish Food Board Annual Report 2012
03
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
• 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
• A Vibrant Home Market – Support and progress the strong position that the agri-food sector
currently occupies within the broader Irish economy
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Bord Bia Irish Food Board Annual Report 2012
Contents
Our Business
Our Governance
Our Accounts
8
44 Corporate Statement
53 Report of the
Comptroller
and Auditor General
Food and
Drinks Industry
10 Export Figures
47 Statement on Internal
Financial Control
13 Chairman’s Statement
48 Organisation Structure
16 Chief Executive’s
Review
50 Bord Bia Board
24 Sector Reviews:
24 Meat & Livestock
28 Food & Beverages
51 Bord Bia Consumer
Foods Board
51 Bord Bia Meat and
Livestock Board
31 Small Business &
Organic Sectors
52 Bord Bia Quality
Assurance Board
34 Horticulture
52 Bord Bia
Horticulture Board
38 Quality and Enviromental
Assurance
39 Services
54 Statement of
Accounting Policies
56 Income and
Expenditure Account
57 Statement of
Total Recognised
Gains and Losses
58 Balance Sheet
59 Cash Flow Statement
60 Notes Forming
Part of the Financial
Statements
70 Marketing Finance
Grant Payments
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 31 December 2012.
Michael Carey
Chairman
Bord Bia Irish Food Board Annual Report 2012
05
Ireland’s Green Credentials
Sustainability is increasingly becoming an essential element of
the commercial strategies of our key customers as they look to
suppliers to provide the credentials and commitment to produce
in a sustainable manner.
Origin Green, the Bord Bia
initiative to build on the green
and natural image of Ireland
with its strong food and drink
sustainability credentials, brings
together the food and drink
industry to commence a journey
to provide proof of these
credentials.
06
Bord Bia Irish Food Board Annual Report 2012
The Irish Actress Saoirse Ronan
gave freely of her time to
develop a short video, which
highlights the thinking behind
Origin Green, why we think we
can be world leaders in this area
and the natural credentials that
we already have. (To view, visit
www.origingreen.ie)
Ireland’s Green Credentials
Ireland is a country supremely well suited to sustainability. Our
climate is temperate; our lush, green countryside is perfect for
farming; ours seas are teeming with fish.
Our dairy industry shares the lowest carbon
footprint in the EU with Austria. Our beef
industry, the largest net exporter in the
northern hemisphere, is also amongst the
lowest. And with our rainfall, in a world facing
water shortages, and agriculture requiring
70% of freshwater supplies for irrigation, our
water stress index, unsurprisingly is one
of the lowest in the world.
It is the proper management of these
resources now that matters, and which
will further enhance and demonstrate
our green reputation.
“I believe that the development of
such sustainability programmes is
an essential element in the growth
strategy for the food sector.”
Minister for Agriculture, Food and the Marine,
Simon Coveney T.D.
Bord Bia Irish Food Board Annual Report 2012
07
Exports of Irish Food and Drink (€m)
2011
2012(p)
LIVE ANIMALS
SHEEPMEAT
POULTRY
EDIBLE HORTICULTURE & CEREALS
SEAFOOD
PIGMEAT
BEVERAGES
PREPARED FOODS
BEEF*
DAIRY PRODUCTS & INGREDIENTS*
0
500
1000
1500
2000
2500
3000
(p) = 2012 figures are provisional
The Irish food and drink industry put in another robust
export performance in 2012 despite an 8% easing in global
commodity prices, lower output in some key sectors and an
ongoing search for value among consumers.
Trade was helped by continued growth to emerging
markets, a more positive exchange rate environment,
improving market position in major categories and
relatively good prices in the meat sector.
Exports exceed €9 Billion for the first time
Commenting on the figures, Michael Carey, Chairman stated:
‘Irish food and drink was a major contributor to the economy’s
strong export performance in 2012 and I would like to commend
the industry for its performance in what remains a challenging
and competitive environment.’
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Bord Bia Irish Food Board Annual Report 2012
Exports of Irish Food and Drink (€m)
2011
2012 (p)
2012/2011
€m
€m
% +/-
Dairy Products and Ingredients*
2,715
2,620
-4
Beef*
1,860
1,900
+2
Prepared Foods
1,415
1,424
+1
Beverages
1,235
1,255
+2
Pigmeat
421
507
+20
Seafood
417
501
+20
Edible Horticulture and Cereals
237
227
-4
Poultry
214
221
+3
Sheepmeat
197
212
+8
Live Animals
205
217
+6
8,916
9,084
+2
Total Food and Drinks
*includes export refunds
Source: Bord Bia estimates
(p) = 2012 figures are provisional
•
The value of Irish food and drink exports increased by a further 2% in 2012 to reach €9.08 billion.
•
This is the first time that exports exceeded €9 billion.
•
Exports in 2012 were €2 billion ahead of the levels recorded
in 2009.
•
Irish food and drink is exported to more than 175 countries across the globe.
•
Supports more than 250,000 jobs directly and indirectly.
•
Accounts for 26% of manufacturing industry turnover.
•
Represents 11% of merchandise exports.
•
Accounts for 8% of total employment.
Bord Bia Irish Food Board Annual Report 2012
09
Market distribution of Irish
food and drink exports (%)
45
40
42
42
30
35
25
31
20
23
15
27
2011
10
5
0
2012(p)
UNITED
KINGDOM
OTHER EU
INTERNATIONAL
MARKETS
The United Kingdom is estimated to have accounted
for just over 42% of total Irish food and drink exports in
2012. Total exports for the year to the UK are estimated
to have increased by around 3% or €95 million to reach
€3.8 billion.
The main drivers of export growth to the UK were
beef, seafood, dairy and to a lesser extent pigmeat and
horticulture. A slower demand impacted on beverage
exports while a challenging market environment persisted
for prepared food exporters, although growth returned to
the sector as the year progressed.
Ongoing difficulties in many economies across the euro zone
combined with more favourable exchange rates with both
sterling and the US dollar impacted on trade levels to other
European markets. For the year, exports of Irish food and
drink products to other European markets are estimated to
have fallen by 10% to around €2.8 billion. This represents
31% of total exports.
The strongest performing market was Germany with exports
showing a modest rise to reach almost €500 million. Other
markets to show growth included Sweden and Poland. All
other major markets recorded lower exports in 2012 with
10
31%
R EU
HE
OT
35
42%
27%
ETS
ARK
LM
NA
ITED KINGDOM
UN
INTER
NA
TIO
Bord Bia Irish Food Board Annual Report 2012
France and the Netherlands showing declines in the high
single digits.
A strong reduction in dairy exports and to a lesser extent
prepared foods were the main factors behind the lower
trade. Despite this a number of categories performed
well with beverages rising by around 4% while pigmeat,
sheepmeat, beef and seafood all recorded good returns.
Irish food and drink exports performed very strongly
to International markets and put in another strong
performance in 2012 with trade estimated to have increased
by 18% or €380 million to reach €2.45 billion. As a result,
exports to the region now account for 27% of total food
and drink trade.
Trade was boosted by stronger exports of beverages,
seafood, dairy, prepared foods and pigmeat. The increase
in dairy exports to the region bucked the overall trend
and highlights the ongoing opportunities available to Irish
exporters outside of Europe.
The growth in exports was led by Asia, Africa and North
America. This offset a modest decline in trade to the Middle
East/North Africa region.
Distribution of food and drink exports –
2012 vs. 2011 (€m)
4000
3500
3000
3,720
3,815
3,130
2500
2000
2,820
2,070
1500
2,450
1000
2011
500
0
2012(p)
UNITED
KINGDOM
OTHER EU
INTERNATIONAL
MARKETS
Growth in food and drink exports
to International Markets - 2012 vs. 2011 (%)
25
20
15
18
10
7
5
0
-5
ASIA
AFRICA
4
-2
NORTH
AMERICA
MIDDLE EAST/
NORTH AFRICA
Bord Bia Irish Food Board Annual Report 2012
11
12
Bord Bia Irish Food Board Annual Report 2012
Aidan Cotter and Michael Carey at the publication of Performance and Prospects January 2012
Chairman’s Statement
Three years of upward momentum lifted the value of Irish food and drink exports above the
milestone figure of €9 billion for the first time in 2012. With 2% growth following the doubledigit expansion in the previous two years, the figures represent a commendable achievement
against the backdrop of challenge both domestically and internationally.
From poor growing conditions and
higher input costs, to an uncertain
economic outlook and fluctuating
commodity prices, Irish food and drink
exporters weathered many familiar
challenges in 2012. They did so with
a growing sense of confidence that
the restructuring of the industry cost
base, which has taken place over the
last four years, has left it better placed
than at any time in the recent past to
sustain a trajectory of growth and to
meet the growing global demand for
its high quality outputs.
In addition to the continued strength
of demand internationally, and
improved exchange rates with key
currencies, the 2012 performance
was underwritten by ongoing industry
competitiveness and flexibility. With
broad recognition in the wider
economy of the need for structural
reform to support export growth and
Market Reach
The broadening of the food and drink
industry’s global footprint, meanwhile,
has been a significant feature of trade
in the last three years and further
significant inroads were made in the
Asian, Africa and North American
markets in 2012. The rest of the world
now accounts for 27% of total exports
or €2.4 billion, an increase of almost
€380 million on the 2011 figure.
Optimism
Those looking for evidence of the Irish
economy in competitive mode need
look no further than
the Irish food and drink
export performance
in 2012. The UK, long
established as our
42%
single most important
market, continued to
be focus for established
and new business,
absorbing 42% of
total exports in 2012. This was 5%
ahead of the 2011 figure and lifted
exports to an impressive €3.8 billion
in total. Favourable euro exchange
rates provided the foundation for this
growth, with beef, seafood and dairy
benefitting most, and pigmeat and
horticulture also enjoying significant
gains.
INGDOM
DK
ITE
UN
In the space of three years, total food
and drink exports have risen by €2
billion or 28%. While this could, in its
earliest stages, be viewed as a recovery
of lost ground, the confident manner
in which growth has progressed to
record breaking levels can only impress.
The strongest performing sectors
in 2012 were meat and livestock,
seafood, and beverages, while dairy
exports and prepared consumer foods
experienced moderate declines, the
former largely as a result of weakening
global commodity prices in Q1 and Q2,
the latter mainly due to price sensitivity
among consumers in key markets.
These challenges notwithstanding,
all sectors of the Irish food and drink
industry remain in a strong position to
continue growth in the decade ahead.
inward investment, the prospects for
continued improvement in Ireland’s
competitiveness index look positive.
The further consolidation of both
retailers and foodservice providers
globally means that addressing the
competitiveness challenge will remain
an issue at the heart of sectoral and
industry growth.
The challenges encountered by the
euro zone economies in 2012 were,
in contrast, mirrored in the story
of Ireland’s export performance in
the rest of Europe. Exports to the
continent fell by 8% to just under
€2.8 billion, as pressure on consumer
purchasing power saw exporters divert
their attention to more favourable
opportunities in other markets.
Favourable exchange rates and
other external factors undoubtedly
contributed to the industry’s overall
performance throughout the year.
However, Irish food and drink producers
faced formidable competition in all the
categories in which they competed
and their ability to win market share
through product excellence, price
competitiveness and innovative new
product development (NPD) has
undoubtedly been significant, and
much enhanced in the last four years.
A recent industry survey by Bord
Bia found an industry confident of
its ability to address challenges and
extremely positive about the potential
for further growth. In all, some 75%
of exporters expressed confidence in
their ability to increase export sales in
2013, with a further 23% believing
current levels will be maintained. The
survey also confirmed that levels of
optimism expressed in previous surveys
proved well grounded. In all, 77% of
exporters reported that their sales had
increased over the last 12 months, a
figure in line with expectations in the
2011 survey. A healthy combination of
growth drivers was also found to be in
evidence: growth in the previous year
Bord Bia Irish Food Board Annual Report 2012
13
had been achieved by increased sales
of existing products to new customers;
by increased sales of existing products
to existing customers; and by providing
new products to both existing and new
customers.
The grounds for optimism expressed
for the year ahead would also seem to
be borne out by macro-economic data.
Although weak economic conditions in
the euro zone are set to persist, there
is more positive news in the economies
where the industry found growth in
2012. In the UK, a modest recovery
of 0.9% is predicted, bringing with it
some stability in consumer sentiment
and spending power, while anticipated
growth of 2% in the US economy and
strong, albeit uneven, levels of growth
in the BRIC countries and across Asia in
2013, also paint a picture of continuing
strong demand. Droughts in South
America and the US Midwest, as well
as adverse weather conditions in Russia
and China, are likely to impact global
commodity prices and, while volatility
will persist, there can be little doubt
that the overall trend remains upward.
International perspective
ITED KINGDOM
UN
27%
ETS
ARK
LM
NA
In the face
INTER
of global
NA
TIO
uncertainty,
the retreat
of the
World Trade
Organisation
from the
international
spotlight has
been a notable feature of recent years,
with bilateral trade agreements proving
more attractive to policy makers.
For food producers, the increasing
confluence between world commodity
prices and EU prices has changed the
dynamic of the global trade debate, as
other regions compete with Europe for
the attention of commodity suppliers.
The most significant pending political
agreement of relevance to the Irish
agri-food industry is undoubtedly
the renegotiation of the Common
Agricultural Policy (CAP). Ireland’s
hosting of the EU presidency during
R EU
HE
OT
14
the first half of 2013 comes at a time
when key elements of the new CAP
agreement are progressed, and will
see many diverse stakeholders, with
often contrary agendas, brought
together. It is to be hoped that the
foregrounding of the food security and
the sustainability agendas, which have
gained prominence in recent years,
will continue to inform debate and
that the final outcome will support the
development of productive agriculture
across Europe. Certainly, it would be
hard to overstate how important a
conducive EU policy environment is to
Ireland meeting its targets for growth in
the years ahead.
Strategic plan
Food Harvest 2020, the Department
of Agriculture, Food and the Marine’s
framework document for the agrifood industry, sets out growth targets
and continues to provide the context
against which Bord Bia’s marketing
support activities are undertaken. Food
Harvest 2020 sets a target for food,
drink and horticulture exports of €12
billion by 2020, and puts particular
emphasis on value-added outputs. This
is an ambitious but achievable goal,
leaving little room for complacency. For
individual companies, growth will involve
anticipating and meeting consumer
needs through NPD and through
production and logistical efficiencies.
For the industry as a whole, it will
necessitate the development of a clear
point of differentiation, which takes full
advantage of our natural advantages,
our reputational strengths and our
customer and consumer oriented
approach. In 2012, Bord Bia committed,
through the implementation of the
Strategic Plan 2012-2014, to providing
industry with clarity on how the
organisation will play its role as a support
and champion for the industry during
this critical period of its development.
Whatever the complexities of execution,
any effective strategic plan must contain
within it a clear statement of intent.
The Bord Bia Strategic Plan crystalises its
goals into four priorities:
Bord Bia Irish Food Board Annual Report 2012
• Building Ireland’s Reputation
The development of an umbrella
food brand with verifiable
sustainability and quality credentials
at its core.
• Enhancing Competitiveness
Enabling Ireland to become
the most efficient, most highly
innovative food, drink and
horticulture country in the world
• Building Exports
A long-term plan for market
development and diversification.
• A Vibrant Home Market
Supporting vibrant and dynamic
domestic trade.
Pathways for Growth is perhaps
the most visible expression of this
strategic plan in action. This five-year
development programme, initiated
in 2010, is supporting change in five
key areas: the development of Origin
Green, the new national umbrella food
brand; investment in education that
enhances leadership and management
capability; facilitating co-opetition
strategies that increase the capacity of
Irish suppliers; investment in innovation
to enhance growth and differentiation;
and encouraging entrepreneurship
through high-potential start-ups and
strategic scale-ups.
Two notable developments in the
programme took place in 2012 – the
launch of Origin Green and FoodWorks
(in association with Enterprise Ireland
and Teagasc) – and we look forward
to reporting on their development and
impact in the years ahead.
In addition to its Pathways for Growth
objectives, Bord Bia supports the
different sectors of the industry through
a range of diverse undertakings.
Headline activities in 2012 include
Marketplace International and Bloom,
as well as the ongoing work of the
Quality Assurance Schemes, Vantage
– the small business programme,
the Brand Forum, Food Dudes – the
school education programme; and
the extensive refresh of the home
market advertising campaigns. Through
alignment with the Strategic Plan,
these actions have been undertaken
with clear goals and sightlines in mind,
and I am pleased to report a year of
significant progress across all the sectors
of the industry.
Irish food and drink businesses
continued to play its role as an engine
of growth for the Irish economy
in 2012. Though macro-economic
circumstances were largely favourable,
success was also the result of a longterm realignment of the industry, which
has allowed it to position itself for
further expansion in the years ahead.
Like any support organisation, Bord Bia
can only serve its client base effectively
when it has the trust of its decision
makers and the goals of its producers
at heart. The implementation of the
Strategic Plan 2012-2014 should leave
no one in doubt as to the resoluteness
with which we pursue both those
objectives.
As Chairman of Bord Bia, it is my good
fortune to serve with a Board whose
collective knowledge and passion for
the industry is unrivalled, and I find
myself enlightened and inspired by
its collective determination to serve
this industry. The role of the Board
and the four subsidiary boards in the
development of the Strategic Plan
deserves particular commendation. No
organisation can hope to address the
challenges of change without changing
itself and I would like to sincerely thank
those members who departed the
various boards in 2012 for their services
to them and to welcome those who
have now joined us.
My thanks and appreciation must also
go to the Minister for Agriculture, Food
and the Marine, Simon Coveney T.D.,
to Secretary General Tom Moran and
to all the staff at the Department of
Agriculture, Food and the Marine, all of
whom routinely put at our disposal their
expertise and insight. I would also like
to recognise the significant contribution
and notable achievements of the
Minister of State at the Department
of Agriculture, Food and the Marine,
Shane McEntee T.D prior to his untimely
death in December. Throughout his
time in office, Minister McEntee worked
tirelessly on behalf of the agriculture,
food and horticulture industry. May he
rest in peace.
In a year when Bord Bia worked more
closely than ever with Enterprise Ireland,
Teagasc and Bord Iascaigh Mhara,
my sincere thanks must go to these
organisations for the generosity of spirit
and professionalism with which they
engaged with us. We look forward to
building closer bonds with these, and
other semi-state bodies and Government
Departments with whom we have the
good fortune to work with. The OPW,
without whose support Bloom would
not be possible, and the Department of
Foreign Affairs and Trade, who tirelessly
work behind the scenes to open doors
to new markets and new opportunities
merit particular mention.
Finally, I would like to recognise and
commend the management and staff
of Bord Bia, who I believe delivered
another outstanding performance
on behalf of the industry in difficult
circumstances. Under the stewardship
of Chief Executive Aidan Cotter, this
marketing team routinely brings
professionalism and dynamism to their
every undertaking.
For the broader economy, and many
who find themselves at the coalface
of its uncertainties, 2012 was a
challenging year. No one who works
within the industry could be in any
doubt as to the impact of these
anxieties on their business. However,
2012 was also a year of delivery –
above all in an export performance
that confidently saw off many
challenges to it. The path of growth
has been sustained and a number
of significant initiatives have been
undertaken that will lay the foundation
for growth in the future.
Michael Carey
Chairman
Additional information and updates
on Bord Bia activities can be obtained
from www.bordbia.ie or by following us
online at www.facebook.com/bordbia
or on Twitter @bordbia.
Bord Bia Irish Food Board Annual Report 2012
15
Chief Executive’s Review
In what proved to be another challenging year for the broader economy, the Irish food and drink
industry continued to be a pacemaker in Ireland’s export-led recovery, surpassing €9 billion in
the value of exports for the first time. It was a year of weakening economic conditions in many of
our key markets, with continued pressure on margins – making this performance one that must
give cause for optimism on many fronts. Enjoying 2% growth in 2012, the industry could be said
to have consolidated on its achievements in 2010 and 2011. Strong performances were seen
in diverse categories, and in both familiar and new markets, with key sectors such as beef and
livestock delivering greater overall returns in spite of reduced volumes.
Scope and reach
The drive towards market diversity
intensified in 2012 and there is
perhaps no better litmus test for
the competitiveness of the Irish
food and drink industry than the
range of markets it serves.
Significant growth in third country
markets in 2012 were important in
their own right but also point the
way to longer-term opportunities as
relationship building continues and
market access issues are addressed. It
is encouraging to see Irish companies
develop significant presence in
countries that, only a few years ago,
would have been considered out of
reach. Impressive performances in Asia,
Africa and North America benefitted
from a number of factors, including
the strengthening of the dollar against
the euro, continuing strong demand
for food, and the challenges to supply
created by extreme weather events.
Collectively, they enabled the industry
to increase trade in this region by 7%
in 2012.
In contrast, Irish exporters saw a fall
of some 10% in trade to continental
Europe, with market challenges
reflecting the ongoing difficulties faced
by many key economies, particularly
in the euro zone, where fiscal
consolidation has gone hand in hand
with weakening economic activity.
A small rise in exports to the euro
zone powerhouse economy Germany,
16
traditionally one of the region’s most
price sensitive markets, points to
opportunities for recovery when the
economic situation stabilises.
Consumer uncertainty was also in
evidence in our nearest market,
the UK, where price sensitivity and
discounting have become pervasive in
recent years. However, the favourable
exchange rates with sterling and the
enduring strength of relationships
between the two countries underwrote
a year of robust growth, with exports
seeing an overall increase of 5%,
accounting for 42% of total Irish
food and drink exports. There were
particularly strong performances by
beef, seafood and dairy producers,
while the pigmeat and horticulture
sectors also put in commendable
performances.
Strategic Plan
The successful implementation of
the Strategic Plan 2012-2014 during
the year was significant for Bord
Bia’s programme of activities. The
strategy can be seen to fulfil a number
of important functions and is an
important statement of intent with
regard to our determination to serve
industry and to facilitate the objectives
of Food Harvest 2020 in a coherent,
effective and transparent manner. The
Strategic Plan 2012-2014 sets out a
focused, goal-centred approach for
Bord Bia activities and I am grateful
Bord Bia Irish Food Board Annual Report 2012
for the input of the Chairman and
Board in its development and for the
commitment of Bord Bia personnel to
its implementation. Collectively, they
have ensured that policy and action
reflect one another appropriately, and
that Bord Bia will continue to leverage
our existing strengths as we support
innovation, capacity building and
growth in the industry. The strategy
incorporates both long-standing and
more recent Bord Bia activities in the
home and export markets, including
the multi-disciplinary Pathways for
Growth programme initiated in 2010.
At no time in the recent past has it
been more important to measure and
validate return on investment in overall
marketing spend and the Strategic
Plan can also be understood as the
framework document within which
all Bord Bia activities can be located
and, more importantly, assessed for
return on investment. By delineating
activities within four strategic priorities,
and by demonstrating, where possible,
the impact of these activities through
relevant metrics, our goal has been
to provide maximum clarity and
accountability to stakeholders on the
role we play as a marketing agency.
Strategic Priority 1: Building
Ireland’s Reputation
The development of an
umbrella food brand with
verifiable sustainability and
quality credentials at its core.
• Origin Green
In 2012, Bord Bia launched Origin
Green, the national sustainability
programme designed to facilitate
Ireland’s development into a world
leader in sustainably produced food
and drink. Origin Green is founded
on evidence-based performance
in areas such as greenhouse gas
emission, energy conservation, water
management, biodiversity, community
initiatives and health and nutrition.
At its heart is a Sustainability Charter
that sets out clear and robust targets
for food and drink companies in areas
such as emissions, energy, waste,
water and biodiversity. Participating
companies develop a plan with targets
in these areas and report on progress
annually, with a robust audit system
monitoring company compliance to
goals. An Taoiseach, Enda Kenny T.D.
launched Origin Green at the annual
Pathways for Growth Food and Drink
Leadership Summit in June and the
Irish actress, Saoirse Ronan, gave freely
of her time to launch Origin Green
through an impressive audio-visual
presentation (to view, visit www.
origingreen.ie). By the end of the
year, Origin Green had 163 Irish food,
drink and horticulture
exporters signed
up to its
163 companies
ambitious
accounting for almost
objectives,
60% of food and
drink exports signed
suggesting
up to Origin Green
our 2016 goal
of having 100%
active participation
by exporters to be achievable. An
important journey is now underway
for our entire industry and will involve
continuous measurement, feedback
and improvement to the highest
international standards. The rewards
are significant and we believe the Irish
food and drink industry is well on the
way to positioning itself as a world
leader in sustainability.
Origin Green is a significant advance in
Ireland’s sustainability agenda, but one
that builds on firm foundations. The
development of a vibrant, sustainable
beef industry is a cornerstone of Food
Harvest 2020, and Bord Bia asserts
Ireland’s sustainability credentials
within its overall strategy of market
diversification and premiumisation.
Internationally credible statements
on sustainability are being provided
through the Beef and Lamb Quality
Assurance Scheme (BLQAS) - the
world’s first such scheme to incorporate
an objective measurement of carbon
footprint. In 2012, the groundwork was
also laid for a sustainability programme
within the dairy sector, which will be
rolled out in 2013.
BLQAS provides a significant marketing
support for the Irish beef industry as it
achieves recognition for its premium
quality and grass-based outdoor rearing
methods. A rigorous
programme of
There are 35,605
auditing and
Primary Producer QA
inspections,
Scheme Members and
as well as
26,703 audits were
the ongoing
conducted during
technical
2012
development of
the standard itself,
continues to underwrite the credibility
of BLQAS, and indeed all Bord Bia
Quality Assurance programmes.
Over 2012, Bord Bia undertook
promotional activity for Quality Assured
beef in 14 European markets, with a
particular emphasis on the premium
beef brands that deliver the highest
returns. Included in the mix were
marketing and branding supports as
well as the development of targeted
promotional events and campaigns.
Bespoke consumer research undertaken
in the year included a focus on the
Netherlands, where perceptions
of Ireland’s welfare standards
remain problematic. A forthcoming
promotional campaign will build on
this research by updating consumers
on the strengths of Irish beef in terms
of its natural production methods, high
welfare standards and taste credentials.
• Event participation
International trade fair participation
represents an important
platform for Irish food and
621,000 visitors
drink companies and
attended 16
Bord Bia involvement at
overseas trade
16 overseas events over
fairs organised
the year provided an
during 2012
unrivalled opportunity to
highlight the reputational
strengths of the industry to key
industry figures. SIAL Paris, France,
the world’s largest food trade fair
in 2012, provided the platform for
An Taoiseach, Enda Kenny T.D. to
officially launch Origin Green to
the global industry and 14 Irish
companies exhibited under the Origin
Green brand in the meat and dairy
halls for the first time, providing a
unique opportunity to enhance the
awareness and understanding of
Ireland’s green credentials.
Other event highlights include SIHRA,
the leading European foodservice
trade-show in Lyon, France, where
Irish beef will have the honour of
being the meat ingredient for the
Bocuse d’Or competition, the biennial
world chef championship, in 2013.
Some nine Irish companies attended
ISM in Cologne, Germany, the most
important confectionery and biscuits
fair in the world, while Bord Bia
participated at Fruit Logisitica in Berlin,
Germany, for the first time, hosting
six Irish potato marketing companies
under its banner. Three Irish beef
companies and one pigmeat company
exhibited at Prodexpo in Moscow,
Russia, while 12 organic producers
exhibited at Biofach, the World
Organic Trade Fair in Nuremberg,
Germany. Nine exhibitors, representing
20 Irish food companies, attended
Gulfood in Dubai and nine Irish drink
companies were represented at the
annual Wine & Spirit Wholesalers of
America Convention in the US.
Some 14 companies participated
at the Speciality & Fine Food Fair in
London, while after a break of six
years, Bord Bia returned to ProWein
International in Dusseldorf with five
companies participating. The European
Seafood Exposition, the world’s largest
Bord Bia Irish Food Board Annual Report 2012
17
Bord Bia’s Ireland stand pictured at the
European Seafood Exposition (ESE), April 2012
seafood fair, saw 19 Irish producers
exhibit, and Irish seafood companies
also participated at Conxemar, the
international frozen food fair in
Spain. Five Irish companies exhibited
with Bord Bia at SIAL China, and
participated in a Bord Bia workshop on
doing business in China in advance. In
April, Bord Bia organised the largest
Irish food and drink trade mission to
China in association with the official
visit of the Minister for Agriculture,
Food and the Marine, Simon Coveney
T.D. Trade missions to South Africa and
the official visit of an Irish delegation
to Ghana and Nigeria also created
opportunities for Bord Bia involvement
during the year.
Strategic Priority 2:
Enhancing Competitiveness
Enabling Ireland to become
the most efficient, most highly
innovative food, drink and
horticulture country in the world
• Pathways for Growth
Pathways for Growth is a five-year
multi-disciplinary programme that
sets out to support Ireland’s journey
to becoming one of the most efficient
and innovative food, drink and
horticulture producers in the world.
Initiated in 2010, Pathways takes
a strategic approach to enhancing
xxxxxxxxx
Ireland’s competitiveness and supports
growth in a number of ways. In
addition to the development of Origin
Green (which falls under the remit of
Strategic Priority 1: Building Ireland’s
Reputation), Pathway’s distinct but
interlinked work streams include
supporting a culture of co-opetition
– whereby companies achieve growth
by strategic cooperation rather than
competition; assisting innovation and
NPD that leads to genuine market
differentiation; enhancing the industry
talent pool through industry-centred
education initiatives; and supporting
a culture of entrepreneurship with a
particular emphasis on high-potential
start ups.
• Co-opetition and innovation
An evolving body
of co-opetition
8 co-opetition
projects, where Irish
projects
companies work
successfully
together for their
established
mutual benefit, is
pointing the way to
the long-term opportunities for a
culture of competitive collaboration
to emerge. During the year over
112 companies were briefed on
co-opetition projects with eight
successfully established.
Bord Bia’s Consumer Insights and
Innovation team continued to support
a ‘consumer-centric’ approach
to innovation, insights
37 consumer
and branding in 2012,
centric projects
assisting 28 food, drink
completed
and horticulture companies
during 2012
with 37 individual projects.
The flagship Periscope and
Foresight4Food programmes
provided dedicated insight and
innovation opportunities while a new,
syndicated approach to NPD and
branding, initiated in 2011, continued
to offer companies sharing a category
space the chance to investigate key
performance drivers collaboratively.
The inclusion of a World of Insights
exhibit at Marketplace International
in February, which attracted
buyers from 27 countries, and the
launch of branding, insights and
innovation workbooks in October
were emblematic of Bord Bia’s
determination to remain at the
cutting edge of consumer lifestyle
trends monitoring.
Innovative ethnographic research
conducted in Vietnam, South Korea
and Indonesia, meanwhile, explored
how consumers in those markets use
dairy products, feeding further into
the growing body of insight available
to Irish food and drink companies.
•Education
Bord Bia’s in-market education
activities operate a three-tiered
approach, providing opportunities
from graduate to senior industry level
and putting a particular focus on
retaining talent within the industry
upon completion.
The Minister for Agriculture, Food and the Marine Simon Coveney, T.D. pictured during the
trade mission to China, April 2012.
18
Bord Bia Irish Food Board Annual Report 2012
The Food Export Graduate Programme
is an 18-month placement developed
by Bord Bia, in partnership with IBEC,
in 2011. The first programme saw 15
graduates work with Irish companies
to assist in the development of their
overseas capabilities. Some 85% of
graduates were retained within the
Successful past participants of the Bord Bia
Marketing Fellowship programme pictured
in February 2012
industry following the end
of the programme in
2012. The Marketing
14 former
Fellows retained
Fellowship
in food and
Programme, run in
drink industry
conjunction with
the Michael Smurfit
Graduate Business School,
meanwhile, provides a pipeline to
industry of high-calibre graduates
with previous industry experience.
The 2011/2012 programme saw 25
Fellows participate, completing 104
individual projects on behalf of
client companies. The rate
104
commercial
of immediate retention
assignments
of Fellows within the
completed by
sectors they operated in,
25 Fellows
following completion of
the programme was almost
60%. The first two-year Strategic
Growth Programme, which focuses on
senior executive career development,
continued in 2012, with 13
participants availing of the opportunity
to enhance their leadership capabilities
within the industry.
•Entrepreneurship
With the launch of FoodWorks,
Bord Bia has followed up on its
Pathways for Growth commitment
to actively develop and nurture
the next generation of Irish food
entrepreneurs. In its development
and execution, FoodWorks is a
collaborative and genuinely innovative
initiative that brought together the
expertise of Bord Bia, Enterprise
Ireland and Teagasc. In the space of
less than a year, the arc of progress
was impressive. FoodWorks moved
seamlessly from seeking first
expressions of interest, to supporting
information evenings and workshops,
at which some 300 individual
entrepreneurs were engaged with.
From these, 29
innovative
Having originally met
business
300 entrepreneurs at
proposals
33 briefings, 29 were
were
selected for Food
Works and eleven have
selected
progressed to investor
for
ready business plans
assessment
and brought
through further
rounds of feasibility testing. This
resulted, ultimately, in the selection of
eleven new ventures that were, by the
end of the year, developing investorready business plans. As with Origin
Green, we are only at the beginning
of a journey and I look forward to
reporting on further progress in this
exciting initiative in the coming years.
• Brand Forum
The Brand Forum continued to offer
consumer and market insights to the
industry’s marketing professionals
throughout 2012. Quarterly events
featured high-profile brand owners
who shared stories of their experiences,
with open, interactive sessions allowing
participants to share their expertise and
insight. In 2012, high-level speakers
addressed topics such as how to build,
protect and innovate brands. Keynote
speakers included David Keeling,
Keelings; Dan Germain, Creative
Director, Innocent; David Hamilton,
Innovation Director, Kerry Foods;
Adrian Crean, CEO, McDonalds Ireland;
and Adele Cooper, Director of Global
Business Partnerships, Facebook.
• Marketing assistance
The Marketing Assistance
Programme (MAP) is open to
Irish food, drink and horticulture
producers with a turnover between
€100,000 and €3.5m and is
designed to help improve
marketing techniques
189 approvals
and capabilities, while
for MAP grants in
supporting the highest
2012 to the value
operational standards.
of €954,000
In 2012, grants worth
€0.779 million were paid
to 146 eligible Irish companies.
Strategic Priority 3: Building
Exports
A long-term plan for market
development and diversification.
The export reach of Irish food and drink
companies has been greatly enhanced
in recent years, with robust growth
in evidence across a range of markets
and sectors, largely as a result of the
industry’s ongoing commitment to
high quality, competitive pricing, NPD
and marketing nous. Favourable euro
exchange rates against Ireland’s two
key trading currencies, sterling and the
dollar, also provided some welcome
leverage to exporters facing tight
operating margins in many key markets
in 2012. While the year saw a decline
in exports to continental Europe, largely
as a result of the well-versed difficulties
facing the euro zone, Bord Bia will
continue to encourage diversification to
this hugely important market.
Keynote speakers JP Donnelly, Chief Executive, Ogilvy Group, Steve Esom, Chairman at British Retail
Consortium and Aisling Walsh, Marketing Director, Butlers Chocolates pictured at the ‘Feeling the
Pinch’ Brand Forum Event, January 2012.
Bord Bia Irish Food Board Annual Report 2012
19
• Overseas offices
Throughout 2012, Bord Bia
assisted Irish firms
develop new business
91 Irish companies
in established
participated in trade
European markets
missions to emerging
as
well as make
markets.
deeper
inroads in
28 delegations visited
the
faster-growing
Ireland from emerging
marketplaces of Asia,
markets
Africa, and the Middle
East. Bord Bia’s network of
overseas offices stretches from the US
to China and provides an important
marketing resource for companies
seeking to identify and capitalise on
new opportunities. Over the course
of the year, the overseas offices
network made over 919 individual
buyer presentations on behalf of the
industry, and annualised incremental
sales as a result of this have been
estimated at €32 million.
Marketing activities, by their nature,
are targeted and specific, and the
work of the offices is well illustrated
by their commitments to individual
sectors. The re-establishment of
premium Irish beef on the German
market is part of an ongoing
campaign supported by Bord Bia
through point of sale promotions,
print media, chef and gourmet
events and PR. Listings in four of
the country’s top five
retailers, as well
as high-end
49 European retail and
foodservice
foodservice outlets now
outlets,
promoting quality assured
point to
beef. Irish beef is now sold in
the
success
more than 75 supermarket
chains across the EU, a
of these
higher number than beef
activities and
from any other origin
the German
market was one
of the few euro zone
economies where Irish food and drink
exports recorded an increase in 2012.
The Chefs Irish Beef Club has been a
very successful medium for enhancing
the reputation of Irish beef at the
highest level in markets across Europe
and plans are afoot to extend the
current six chapters in Belgium, Britain,
France, Germany, the Netherlands and
Switzerland even further in 2013.
20
By the end of 2012, Ireland’s beef
exporters could report 17 new
customers in overseas markets, while
the number of retail and foodservice
accounts promoting Quality Assured
beef stood at 49, included among
them many of Europe’s and world’s
highest-profile retailers.
France and the
UK continued
8 new lamb
to be the
brands have been
cornerstone
developed in
of Ireland’s
markets outside
lamb export
the UK and
market
France
in 2012,
accounting for
some 70% of lamb shipments. The
Agneau Presto campaign, which
brings together the Irish, French and
UK food boards to promote the image
of lamb in the French market, enjoyed
another successful year with a focus
on PR, online and in-store promotions
in three of France’s leading retailers.
Belgium, Germany and Sweden
are showing an increased interest
in the Irish lamb offering and Bord
Bia provided marketing support for
eight new brands outside the UK
and France which, in turn, supported
growth of over 2% in Irish lamb
exports to these non-core markets.
Successful collaboration among
food development agencies is also
in evidence in the three-year EUsupported mushroom promotional
campaign, which entered its second
year in 2012. The campaign has
been seen to help bolster sales of
mushrooms in the UK market, which
grew by 5% in 2012. Mushroom
exports to the UK increased by 4% in
line with this.
The opportunities for Irish exporters in
emerging markets are supported on an
ongoing basis through inward trade and
media visits. In 2012, Bord Bia organised
itineraries for 28 individual delegations
of buyers, journalists and regulatory
officials from emerging markets to
Ireland. At the same time, 91 Irish food
and drink companies participated in
trade missions to emerging economies
with the assistance of Bord Bia.
Bord Bia Irish Food Board Annual Report 2012
In the seafood sector, high-end
markets including China, Japan,
Dubai, Austria and Switzerland were
targeted with increased marketing
resources and 26 inward
buyer visits from
customers in non26 seafood
traditional markets
buyers from nontraditional markets
were undertaken.
visited Ireland
In all, more than
during the year
10 new listings
by buyers outside
Ireland’s main seafood
markets were developed.
Throughout the year, Bord Bia
continued to work with both the
Departments of Agriculture, Food
and the Marine and Foreign Affairs
and Trade, side-by-side with industry
operators, to ensure the industry can
benefit from rising global commodity
prices and extend the reach of Irish
food and drink in the international
marketplace.
•Marketplace
Even in our IT age, no one can doubt
the value of face-to-face engagement
and the biennial Marketplace
International offers Irish companies
the opportunity to connect with
buyers representing some of the
world’s most important retailers and
foodservice providers. The 2012
event, themed ‘Ireland, Partners for
Growth’, built on the momentum of
previous Marketplaces and saw some
500 domestic and international
buyers, representing
27 countries and
3,731 meetings between
an estimated €18
suppliers and buyers
billion in food
arranged. 27 countries
purchasing
involved.
power, meeting
282 opportunities to quote
with178 Irish
presented themselves and
companies. In all,
63 companies reported
no less than 3,731
increased business
individual buyer/
supplier meetings
were held at the Convention Centre,
Dublin, on a single day in February.
Although it was a one-day event,
Marketplace was the culmination
of a year of careful pre-planning,
preparation and training. Following
the event, over 150 separate
invitations to quote were issued to
Irish suppliers and 63 participating
companies reported increased sales as
a result of participation. By the end of
2012, sales of some €29 million could
be directly attributed to participation
in Marketplace, with more to follow.
•China
In 2012, Bord Bia launched the
Ireland-China Food Hub and the
Ireland-China Food Network. The
food hub is a shared office facility
that enables Irish food and drink
exporters to cost-effectively establish
a presence in Shanghai, as well
as benefit from shared services,
market knowledge and research. The
network, meanwhile, is designed to
bring together members of the Irish
community based in China.
Bord Bia launched the hub at the
conclusion of a Department of
Agriculture, Food and the Marine
trade mission to China, led by Minister
Simon Coveney T.D. and organised by
Bord Bia in April.
Bord Bia’s strategic focus for the
dairy industry recognises a particular
opportunity in the Chinese formula
market as a high-value, high-growth
target market in the decade ahead.
However, it is important to stress that
Ireland will need to address a number
of marketing and logistical challenges
to fully capitalise on this, including
the challenge of existing bilateral
agreements that exist with other
suppliers.
• Ploughing championships
Bord Bia’s presence at the National
Ploughing Championships proved
a success in 2012. The information
marquee included product displays
of premium meat cuts as well
as a dedicated area
introducing Origin
160,000
Green to the farming
live cattle
community. The first
exported
Sustainable Quality Beef
Awards were presented
at the 2012 championships, while a
livestock area was run in conjunction
with the Irish Farmers Journal.
Strategic Priority 4: A vibrant
home market
Towards a vibrant and dynamic
home market
Although future growth will come
primarily through exports, a vibrant
and dynamic domestic home market
will remain the platform on which
Irish companies develop their
capabilities, test new ideas and build
experience. A vibrant presence in the
home market is also central to the
industry’s ability to attract investment,
encourage entrepreneurship, and
attract business talent. It is, then, both
a meeting place and a testing ground,
where key stakeholders in the food
supply chain – farmers, processors,
manufacturers, retailer and consumers
– can come together and play a
partnership role in championing the
industry’s future.
Michael Carey, Chairman, Bord Bia, Aidan Cotter, CEO Bord Bia and Minister for Agriculture, Food and the Marine Simon Coveney, T.D. pictured at the
official opening of the Ireland - China Food Hub, Shanghai, April 2012
Bord Bia Irish Food Board Annual Report 2012
21
•Bloom
Bloom once again proved its drawing
power with the Irish public in 2012, as
a number of developments
brought fresh energy
54% of the
to an event that has
general population
become a national
confirmed
centrepiece of the
awareness of Bloom
when prompted.
June Bank Holiday
80,000 attended
and attracted almost
Bloom in 2012
80,000 visitors. As an
event for all the family,
Bloom 2012 continued its
tradition of no entrance charge for
children and the 2012 show featured
27 show gardens, a floral pavilion,
a craft area, retail areas, dining,
children/family areas, a grow-ityourself zone, live stages with cooking
demonstrations and live music. It
also saw the expansion of the highly
successful food village and the
introduction of the Bloom farmyard,
jointly organised by Bord Bia and Agri
Aware. Media partnerships continued
to provide a very strong promotional
platform for the event and RTE’s
Super Garden, which ran in the six
weeks preceding Bloom, helped build
consumer anticipation of the event.
Welcoming some 20 European food
bloggers to a novel ‘food blogger
picnic’ allowed Bord Bia to add new
media to the strong TV, print and
radio coverage already secured for the
event at home and abroad.
• Home market activities
Bord Bia’s activities on the home
market focused on Quality Assurance
and on encouraging consumers to
identify and engage with the Quality
Mark. TV and print advertising
remained the mainstay of advertising
activity over the year. Recognition of
the need for a refresh of Bord Bia’s
TV advertising led to a number of
new executions being commissioned
for 2012. In addition, the most
comprehensive digital marketing
plan yet for promoting food with
the Quality Mark in the Irish market
was developed. Bord Bia’s Facebook
page and website were enhanced and
enriched to ensure they continue to
engage with target audiences.
22
National consumer
campaigns
Percentage of
undertaken
homes buying:
during the
Haddock 45%
year reflected
the needs
Hake 13%
and goals of
Whiting 23%
different sectors.
In March, a seafood
campaign targeted the younger age
groups who already eat fish on a
regular basis and encouraged them to
try hake. A number of domestic lamb
promotions encouraged shoppers
to look for the Quality Mark on
pack when shopping. The June/July
campaign coincided with a reported
12% increase in retail lamb sales.
National Organic Week in September
increased consumer awareness of
the range of organic foods and
also saw the hosting of the sixth
annual National Organic Awards. In
November, a generic TV ad, designed
to enhance consumer understanding
of the Quality Mark, was introduced
and a two-week campaign of TV
advertising focusing on ham and
bacon ran in mid December, following
a number of similar campaigns earlier
in the year. Recent research indicates
some 93% of consumers are aware of
the Quality Mark with 71% more likely
to buy products displaying the mark.
Bord Bia, in association with
representatives from the poultry
and egg industry was involved in
the sixth biennial Poultry and Egg
Conference, which had an estimated
attendance of 140. An estimated
170 delegates (including 70 trade
buyers) attended Bord Bia’s annual
foodservice seminar in Dublin,
while Bord Bia also supported the
GLAS Trade Show in July 2012,
where over 100 companies from the
horticulture industry participated.
Sponsorship initiatives undertaken
in 2012 included partnering with
Grow It Yourself (GIY); sponsorship
of the food and drink category award
for start-ups with startups.ie; and
contributing sponsorship towards
the Craft Beer Festival in September.
Bord Bia’s partnership with the
FAI ensured that Bord Bia Quality
Assured food was a key ingredient
Bord Bia Irish Food Board Annual Report 2012
in team meals during Euro 2012 and
the World Cup Qualifiers.
• Small business
The importance of small businesses
and artisan producers to the overall
vibrancy of the Irish food and
drink industry hardly needs to be
underlined. This is a sector that Bord
Bia has worked closely with over the
last few years, in particular through
the Vantage programme, but also
involving the important work of
the Taste Council. Significant new
initiatives in 2012 included the Skills
Share Mentoring Programme, run
in cooperation with Food and Drink
Industry Ireland. Over 130 small
food and drink producers attended
the Small Business Open Day in
January 2012 when Minister for
Agriculture, Food and the Marine,
Simon Coveney T.D. launched
the mentoring initiative, which is
designed to encourage and share best
practice and learnings between small
and large food companies in the key
areas of business strategy, account
management and logistics.
The Vantage Plus programme focused
resources in a novel way in 2012, by
allowing small businesses to address
four core business competencies over
four successive business quarters.
These included strategy and planning;
key account management; finance;
and distribution. Ease of access
is a primary value of the Vantage
programme and Vantage Plus
activities are free to members.
• Food Dudes
The National roll out of the Food
Dudes programme commenced in
2007 and by the end of 2012 close
to 75% of all primary
schools and
pupils will have
Food Dudes Healthy
participated
Eating Programme
continued in 2012 with
in the
another 385 schools
programme.
and 63,000 children
In total, the
taking part
programme has
been introduced to
over 368,880 children in
2,493 schools up to the end of 2012.
Options for a replacement programme
following completion of the current
programme, in conjunction with the
Department of Agriculture, Food and
the Marine, are being considered and
piloted in schools.
Conclusion
Irish suppliers faced strong challenges
across virtually all the categories in
which they competed in 2012, and their
success is testament to the drive and
tenacity that characterises this industry.
We can now boast a food, drink and
horticulture industry that is at an historic
highpoint in terms of its overall reach,
scope and diversity of output.
The continued good name of
our industry will be pivotal to its
continued growth and Bord Bia
will work tirelessly throughout
2013 to ensure that our industry’s
reputation for excellence continues
to be asserted, built on the quality
of our output and confirmed by
our standards of traceability and
accountability.
Through this Annual Report, I hope
to give a sense of an organisation
that strives to be as dynamic as the
industry it serves, and that foregrounds
accountability and transparency in
all it undertakes. Our successes are
intrinsically intertwined with those
of the industry we champion, and
though we can ever only be a catalyst
for growth, I believe that any impartial
assessment of our activities in 2012
must conclude that our impact has
been a considerable multiple of the
resources we have invested.
I would like to thank the Chairman,
the members of the Board and the
subsidiary boards for their continued
support in 2012. I would also like
to thank those who work in Bord
Bia for their commitment and
professionalism. Together, I believe we
have played a significant supporting
role to an industry that is determined
to remain in growth mode for the
remainder of the decade.
Many of the challenges faced in
the last number of years are set to
continue in 2013. The Irish food,
drink and horticulture industry has
shown its ability to change and
adapt to changing circumstances,
and its determination to be at the
vanguard of the economic growth and
development of Ireland in the decade
ahead cannot be in doubt.
We look forward to working with all
our stakeholders as we continue on
this journey, and to helping build an
industry whose strength has always
been its natural resources, its talented
pool of people and its enduring
determination to produce some of the
finest food and drink in the world in a
sustainable manner.
Aidan Cotter
Chief Executive
Michael Carey, Chairman, Bord Bia pictured with Minister for Agriculture, Food and the Marine Simon Coveney, T.D. and Aidan Cotter, CEO, Bord Bia during
the opening of Marketplace, February 2012.
Bord Bia Irish Food Board Annual Report 2012
23
Sector Review: Meat and Livestock
Beef
Irish beef exports increased 2% to
an estimated €1.9 billion following a
13% increase in cattle prices during
2012. This price increase offset a
reduction of 11% in beef available for
export to 445,000 tonnes.
Cattle supplies at Irish meat export
plants are estimated to have declined
to almost 1.4 million head. This
decline was led by a drop in steers and
heifers, which fell by 21% and 16%
respectively. The strong increase in
young bull supplies evident over recent
years continued, albeit at a slower
pace, with a rise of more than 10%
recorded. Young bulls now account for
almost one third of male cattle supplies
at export meat plants. Despite the
difficult grazing conditions evident for
much of the year, a modest increase in
average carcase weights was recorded.
In summary, total beef production,
including local abattoir output, fell by
11% to an estimated 485,000 tonnes.
The on-going tight supply situation in
EU beef, evidenced by an increase of
10% in EU young bull prices during
2012, coupled with lower beef imports
helped offset the impact of slower
consumer demand in a number of
key European markets. Keeping
beef competitive and relevant to the
everyday choices of consumers while
satisfying the growing demand for
added value and premium offerings
continues to present challenges in our
key markets.
Markets for Irish Beef
Volumes of Irish beef destined for the
United Kingdom were down some
7% to an estimated 237,000 tonnes.
However, higher prices increased
the value of beef exports to the UK
by more than €60 million to €910
24
million. As a result the UK market
accounted for 52% of total Irish beef
exports by volume and just under half
in terms of value.
culminating in sales of over 260,000
tonnes of premium quality assured
beef. Promotional activities centred
on the following:
Lower product availability also
contributed to lower exports to
Continental European markets where
volumes fell by 11% to 209,000
tonnes. As with the UK prices were
also a factor and total trade rose by
€40 million on 2011 to a total of
€960 million. All major markets with
the exception of Germany recorded
lower volumes with more pronounced
declines evident in the Netherlands,
Italy and France. Shipments to
Germany increased to 15,000 tonnes
compared to less than 10,000 in 2010
and the Bord Bia campaign, launched
in 2011, to double exports of Irish
beef to Germany by 2015 would have
contributed to this growth in volume.
All markets, however, presented
competitive challenges due to the
higher beef prices prevailing during
the year.
• Supporting Premium Beef:
Prioritising key accounts which
deliver premium prices by providing
marketing and branding support
as well as developing promotional
events and campaigns.
• Premium Image building:
Through the Bord Bia ‘Chefs’
Irish Beef Club’ and media
activities focused on PR, events
and promotions with retailers.
There are now over 70 ‘Michelin
Star’ member chefs in the Chefs’
Irish Beef Club spread across
six chapters in Belgium, Britain,
France, Germany, the Netherlands
and Switzerland. The Chefs’ Irish
Beef Club is being expanded to
other markets.
• Positioning Quality Assured
Beef in the German Market:
As part of the Bord Bia campaign
to double Irish beef exports to
Germany by 2015, promotions
during 2012 focused on our grass
fed, outdoor reared quality assured
beef offering to trade and consumer
media as well as to the high income
health conscious consumer base.
The campaign involves customer
specific point of sale promotions,
print media, customer and chefs’
events as well as PR. In the last two
years Irish beef has re-established
itself on the German market and
listings have been secured with four
of the top five retailers, as well as
leading steakhouses, foodhalls and
restaurants.
• Establishing our reputation for
sustainable and welfare friendly
beef in the Netherlands: Welfare
concerns persist with customers
and suppliers of Irish beef on the
Dutch market. During 2012, Bord
Bia undertook qualitative and
Reduced demand for beef from the
key EU markets of Russia and Turkey
contributed to a decline in Irish beef
exports to International markets.
Exports of Irish beef outside the EU
reached just 5,000 tonnes
Promotion
Bord Bia, through consumer research,
promotion and brand development
initiatives continues to support the
premiumisation and differentiation
of Irish beef in our key markets.
Some 60% of Irish beef exports are
now destined for the higher value
standard retail, premium foodservice
and retail sectors.
In 2012 Irish beef was promoted
in over 70 higher value customers
across 14 European markets,
Bord Bia Irish Food Board Annual Report 2012
quantitative research with Dutch
consumers, to better understand
our reputation regarding welfare of
cattle, and the appeal of an outdoor
grass based beef production system.
This research will form the basis
of a new promotional campaign
with consumers and trade which
will seek to re-establish the appeal
of Irish beef on its natural, high
welfare and taste credentials.
Livestock exports
Live cattle exports from Ireland
reached just 160,000 head in 2012,
which was 25% lower than the
215,000 cattle that were exported
in the previous year. The value of
this trade increased marginally on
the previous year, to €142 million,
as higher prices more than offset
the declining numbers. Exports of
calves recorded the most dramatic
decline, falling by 60% to 38,000
head from the previous year. Exports
of weanlings and stores were 15%
lower, at 68,000 head. Finished cattle
increased 10% to 51,000 head and
were the only category to experience
an increase on the previous year.
While exports of live cattle to Northern
Ireland increased by 5% to 62,500
head, other markets imported less
animals from Ireland. Volumes to
Italy were 29% lower than 2011,
at 38,000 head. Exports to Spain
fell by 39% to 15,000 head, while
shipments of calves to the Netherland
and Belgium each declined by 56%
and 68%, respectively. These five
markets collectively account for 87%
of total Irish live cattle exports. Exports
to smaller markets increased on the
previous year with exports to Great
Britain increasing by 50% to 11,500
head and there were 1,500 head of
breeding cattle exported to Russia
and Kazakhstan.
Finished cattle prices in Ireland
exceeded the weighted average
for the EU for the most of 2012.
Consequently, live cattle from Ireland
tended to be less price-competitive
than from other suppliers, especially
when the transport costs incurred
in reaching some major markets is
considered. Finished cattle prices in
Ireland rose by more than 12% during
2012, which gave domestic farmers
greater confidence when it came to
restocking. Around Europe, increases
in cattle prices were less significant,
and on average prices for EU R3 prime
males improved by just 9%.
Live pig shipments to Northern Ireland
remained strong at an estimated
609,000 head although total numbers
declined 3% on 2011 and total trade
was valued at €73 million. Live sheep
exports recovered slightly on recent
years to over 37,000 head. Overall,
the value of Irish livestock exports in
2012 increased to an estimated €217
million or 6%.
Pigmeat
Both Irish and European pig producers
were challenged by spiralling feed
costs, tightening credit and the
introduction of new EU Sow Welfare
Legislation during 2012.
Total Irish pig disposals were up 1.5%
or 47,000 head on 2011 levels at
3.5 million head. Sow throughput
was 7% or 6,000 head ahead of the
year previous, reflecting some destocking of herds, on-farm financial
issues and a retraction in numbers in
the industry. Overall, Irish pigmeat
production increased by almost 3% to
241,000 tonnes.
Bord Bia Irish Food Board Annual Report 2012
25
The slowdown in European
production combined with steady
consumption levels and higher
international prices boosted EU pig
prices during 2012 and average EU
pig prices increased by 11% to 170c/
kg in 2012. Similarly Irish pig prices
rose steadily, however these gains
were negated by a rise in feed costs.
In 2012 feed costs jumped by almost
30%, placing severe pressure on
producers within the sector.
Following a record year for EU
pigmeat exports in 2011, volumes
for the first half of 2012 were ahead
of the previous year. However in
the latter part of the year supplies
tightened on the continent and export
volumes eased, particularly to Russia
and South East Asia. On the other
hand, China has seen a large growth
in volume and is becoming ever more
important as a market driver.
26
Irish pigmeat exports for 2012
increased by over 3% to reach almost
180,000 tonnes and combined with
higher international prices generated
€507 million in export value. Exports
of Irish pigmeat to the United
Kingdom, valued at €302 million,
continued to gain pace as shipments
rose by 3% to reach 80,000 tonnes.
Exports to the Continent, valued at
€88 million are estimated to have
fallen by around 7% to 40,000
tonnes. Exports of Irish pigmeat to
International markets performed
strongly particularly to China, the
United States and Russia. The volume
of these exports rose by 13% to
60,000 tonnes with a value estimated
at €116 million.
Pigmeat promotions
With 50% of Irish pigmeat production
destined for the home market, the
promotional focus during 2012 was
Bord Bia Irish Food Board Annual Report 2012
to maximise demand for Quality
Assured pork, bacon, cooked ham and
sausages among Irish consumers. The
use of the Bord Bia Quality Mark on
pork and bacon products as recorded
in the Bord Bia quarterly retail audit
was at its highest level during 2012.
In 2012, a new TV advertisement on
Quality Assured bacon and ham was
commissioned and aired for a total
of nine weeks during the spring and
autumn. This campaign was supported
with PR and social media activities.
Poultry
The new EU Laying Hen Welfare
Standards which came into force in
January 2012 had a significant impact
on the market as supplies tightened,
particularly in the early part of the
year. In the first quarter EU egg prices
increased significantly as shortages
occurred and the wholesale price
across Europe rose by 70%. Prices
eased from this peak and levelled off
during the summer but finished the
year some 36% ahead of 2011.
The strong rise in feed costs and the
failure of product prices to match
this increase led to further margin
pressure on the poultry meat industry,
particularly during the second half
of 2012. This margin pressure was
evidenced by the fact that the EU
broiler/feed price ratio reached an
eight year low in August 2012.
EU poultry production is estimated to
have increased by almost 2% in 2012
in response to increased consumption
levels. This increase was driven by
both broiler and turkey production.
Broiler output reached 6.4 million
tonnes with most of the increase
recorded in the first half of the year in
response to stronger prices and better
consumer demand.
In 2012 the value of Irish poultry
exports increased by 3% to €221
million. Trade to the United Kingdom,
which accounts for almost 86% of
poultry exports, was valued at €190
million with higher prices offsetting
lower volume. Exports to other
European markets fell as France our
largest Continental market took
reduced volumes of frozen product.
The value of exports to other European
markets is estimated at around €19
million. Trade to international markets,
valued at €13 million was affected by
reduced trade to South Africa, China
and Hong Kong.
Lamb
Throughout 2012 a higher demand
from both the domestic and export
markets were evenly matched with
supplies, particularly during the peak
periods of hogget and main season
lamb supply. Total slaughtings in 2012
were up 12%, or 260,000 head to
2.43 million sheep, an impressive
result considering it occurred during
one of the wettest and coldest
summers on record.
Leaving aside the early lamb trade
and the trade since October, lamb
prices remained relatively stable for a
large part of the year. At €4.62/kg,
average sheep prices for 2012 were
back 16 cent from the record highs
of 2011. One of the positive takeouts
from 2012 was how well the industry
managed the additional supplies of
sheep meat particularly during the
period from July to December. With
the exception of the bank holiday
weekend in October, where processing
was restricted to 4 days, throughput
exceeded 55,000 head for 23
consecutive weeks.
Exports of Irish sheep meat registered
a solid performance in 2012 where
total value rose by 8% to €212
million. Up to 70% of our production
is destined for export markets, the vast
majority of which is destined for the
EU market. Just over 42,000 tonnes,
a 14% increase on the previous year,
were exported to over 24 individual
markets across the globe in 2012.
France and the UK continue to be
our core export markets representing
three quarters of our volume exports.
Strong increases in shipments were
recorded to Belgium, Germany and
Sweden as exporters continue to
secure new business and grow volume
with existing customers.
The effects of austerity measures
and reduced disposable income in
the traditional markets for light lamb
dampened demand with imports into
Portugal and Spain falling by 26% and
42% respectively.
Despite the ongoing pressure on
retail meat sales in Ireland lamb
held its own, with data from Kantar
Worldpanel indicating a rise of almost
4.5%.during 2012.
Lamb promotions
were key objectives of the 2012 lamb
promotions. A series of promotional
activities to include PR, publicity and
in-store activities were undertaken to
coincide with peak availability of new
season lamb. A TV advert highlighting
the unique flavour of Irish lamb due
to our ideal climate was aired for
a total of eight weeks during the
summer months and again in August
and September.
Within the foodservice channels,
a series of Lamb workshops were
delivered through three regional
network meetings of the Restaurant
Association of Ireland. In conjunction
with the previous Just Ask restaurant
of the month recipients, Bord Bia
developed a trade leaflet on ‘Keeping
lamb on the menu’ where examples
of restaurant dishes using forequarter
lamb dishes and delivering profit
margins were the key messages.
The ‘Agneau Presto Campaign’, which
means “quick lamb”, is now in its
fifth year of operation. A collaborative
initiative between Bord Bia and its
counterparts in the UK and France
the campaign has taken a pioneering
approach to modernising the image
of lamb. France is Europe’s largest
consumer market for lamb and indeed
Ireland’s most important export market
accounting for almost half of all Irish
sheep meat exports.
Irish sheep processors have made
significant inroads in growing exports
into a number of other European
markets such as Belgium, Germany
and Sweden. These markets are
delivering high value returns and have
considerable potential as interest in
the Irish lamb offering is growing.
Securing market access continues to
be a priority focus particularly within
regions of US, Canada, Middle East,
North Africa and the Far East.
Promotions for 2012 continued to
focus on the Irish and French markets.
Increasing both the frequency of
purchase and encouraging Irish
shoppers to look for the Bord Bia
Quality Mark on-pack when shopping
Bord Bia Irish Food Board Annual Report 2012
27
Sector Review: Food and Beverages
Dairy Products
and Ingredients
Despite the drop in global product
prices, the Irish dairy sector performed
strongly during the year. Overall, it is
estimated that the value of Irish dairy
and ingredient exports for the year fell
by just 4% to €2.62 billion.
The prospects for Irish dairy exports in
2013 remain generally positive with
global demand likely to keep exports
well ahead of historical averages.
Global stock levels, demand in key
regions and the relative strength of the
euro will determine price movements.
The dairy products and ingredients
category includes primary dairy
products such as butter, cheese and
milk powders; value added dairy
products and ingredients such as
infant formula; casein and chocolate
crumb. 2012 marked a more difficult
year for the global dairy market
as increased supplies in response
to the strong price prevailing over
the previous 18 months led to a
significant softening in prices over the
course of the spring and early summer
with product prices easing by 20% to
25%. However, from late summer, a
good recovery in dairy product prices
was evident as poor weather across
much of Europe and drought in key
parts of the US affected supplies.
The slowdown in global milk supplies
combined with a stronger international
demand across Asia and Africa led to
upward price movements for powders
and other dairy products during the
autumn.
There also appears to be a recognition
that improvements in feed prices are
necessary to bring about a recovery in
global milk supplies. Prices stabilised
from November onwards with some
US prices showing a slight decline.
Key market developments
through the year
• Stronger global supplies.
• Weather and feed cost impact
on global supplies as the year
progressed.
• Good turnaround in product prices
from mid summer
• Stock levels lower than anticipated.
Figures from Rabo Bank suggest that
milk supplies have tightened across
all major export regions with the
exception of New Zealand where
favourable seasonal conditions boosted
output. Australian milk supplies over
recent months have been slower than
expected with wet weather in parts of
Victoria impacting on deliveries while
higher feed costs have hit margins.
US supplies have gone into negative
territory as have EU-27 milk supplies.
These developments will likely reduce
the risk of any significant stock levels
being brought into the early part of
2013. The same report suggested that
the economic malaise continued to
tighten its grip on the global economy
during the latter months of 2012 with
many developing economies growing
at their slowest rate in many years.
However, steady dairy demand in
emerging markets helped maintain
export momentum among the key
exporters. The key markets driving
import demand are China, South East
Asia, Middle East and North Africa.
Milk deliveries in Ireland felt the
effects of poor weather conditions for
much of the year, which impacted on
average yields. This combined with a
difficult fodder situation and high feed
costs limited any potential for recovery
during the latter months of the year.
Indications from the CSO are that milk
deliveries were running some 2.5%
lower than 2011.
Export markets for Irish dairy
products
Minister for Agriculture, Food and the Marine Simon Coveney, T.D. is pictured with Breda Maher,
Cooleeney Farmhouse Cheese and Maria Bourke, The Jelly Bean Factory, Marketplace 2012
28
Bord Bia Irish Food Board Annual Report 2012
Mixed trends were evident among
the key export destinations for dairy
products during 2012. Exports to the
United Kingdom performed strongly
and increased by more than 5% to
€960 million or 36% of total trade.
The strongest performing categories
were cheese, infant food and spreads.
Exports to other European markets
fell by almost 20% to €680 million.
This leaves the region accounting
for just over a quarter of total dairy
exports. The largest declines were to
France, the Netherlands and Belgium.
Exports to International markets are
estimated to have reached more than
€1 billion for the first time in 2012
and now account for almost 40% of
total exports.
Main product trends
The strongest performing categories
in 2012 were infant formula, cheese,
whey and spreads/fats. Infant formula
exports had the strongest growth
during 2012 with increased trade
to the UK, Asia and the Middle East
reported. Regulatory change and
changing market requirements, as
well as existing bilateral agreements
with other suppliers, which put
European product at a competitive
disadvantage, continue to challenge
the trade in infant formula to Asia.
Cheese exports put in a good
performance across all regions led by
the UK, the Middle East and some
Continental European markets. Butter
exports were challenged during the
year due to a combination of lower
prices and reduced production as the
year progressed.
Outlook for 2013
Rabobank expect global milk
production growth to slow
considerably during the course of
2013 as producers respond to lower
milk prices, higher feed costs and
unfavourable weather conditions in
some regions. These developments are
expected to result in reduced volumes
of surplus milk being available from
key export regions.
The prospects for Irish dairy exports in
2013 remain generally positive with
global demand likely to keep exports
well ahead of historical averages
as global production growth slows.
Global stock levels, demand in key
Pictured at the fourth annual Irish Foodservice Seminar event were Maureen Gahan, Foodservice
Specialist, Bord Bia, Kieran Walsh, Managing Director with The Flat Bread Company and conference
speaker Ian Douglas, Procurement Director with Domino’s Pizza Group
regions and exchange rates will largely
determine price prospects.
products to satisfy consumer demand
as well as expanding the range of
international markets.
Prepared Foods
Overall, exports of prepared foods
increased slightly to €1.42 billion.
The frozen food category remained
relatively buoyant although exporters
have to continually respond to
downward price pressure as retailers
push to offer convenience at lower
prices to consumers on a budget.
Frozen pizza exports remained strong
in export markets, particularly the UK,
despite ongoing price sensitivity. The
frozen food sector performed well with
stable performances in challenging
key markets for meat-based prepared
foods and ice-cream.
The prepared foods category includes
a wide range of primary products
that have been further processed,
such as ready-to-eat foods, mainmeal centres, some added-value dairy
products, snacks, confectionery and
bakery products.
For prepared food producers,
2012 was a challenging year with
continued pressure on margins due to
increases in input costs and sustained
price pressure from customers.
The sector benefitted from more
favourable euro exchange rates in the
key UK market but passing on price
increases to retailers was challenging.
Many companies, however, have
reduced their cost base, are leaner,
in a better position to exploit new
sales opportunities and are being
more innovative in launching new
Exports of prepared foods to the UK
remained at 40% of total prepared
foods exports and exports to
international markets grew strongly
and now account for 35% of the total
exports, up from 31% in 2011. Much
of this growth is from added-value
dairy, such as infant formula.
Bord Bia Irish Food Board Annual Report 2012
29
Exports to Continental Europe
remained unchanged at 25% of
total exports. Notwithstanding this,
there is renewed recognition of
potential opportunities in France,
the Netherlands and Germany as
companies lessen their dependence
on the sterling area.
Prospects for 2013 remain challenging.
Consumer retrenchment as a result of
the austerity measures sees consumers
shopping around for better value and
we may see further growth in privatelabel penetration. Although commodity
prices have come off their peaks they
are still high by historic standards
and manufacturers are finding it
challenging to pass on increased
costs. Competition from the UK and
Continental manufacturers is set to
remain intense and currency volatility
may make planning very difficult in
the period ahead.
Confectionery
Overall chocolate confectionery
exports fell by 2% in 2012.
Consumers continue to view
chocolate as an affordable treat.
While sales of mainstream chocolate
to the UK declined, sales grew
strongly to a number of new markets,
such as the Middle East, Southern
Asia and Australia driven principally by
smaller producers. The launch of new
products has also driven some of the
growth especially in the luxury end of
the market.
Sugar confectionery exports had
a very robust start to the year and
finished the year growing by almost
17% with the UK, continental
European markets and the Middle
East at the core of this growth.
Beverages
Bakery
While bakery was one of the stronger
performing categories in 2012,
higher input costs, particularly flour,
sugar and fuel negatively impacted
margins. However, more favourable
euro exchange rates mitigated
the impact of this to some extent
with the UK remaining the most
important market for exports from
the category. An increase in the
number of European markets served
also helped to increase exports. New
opportunities continue to be explored
by Irish companies in markets further
afield, including the Middle East,
Australia, the USA and Canada.
The outlook for Irish bakery exports
is mainly positive, as manufacturers
exploit market opportunities
particularly where the product offer is
unique or the niche is a growth area.
Consumer interest in healthier choices
is growing and increased innovation in
indulgent ranges will also continue to
drive growth.
30
Once again, exports of beverages (both
alcoholic and non-alcoholic) following
strong growth in 2011 preformed
very well during 2012. A focus on
premiumisation and the travel retail
sector contributed to the growth in
beverage exports which grew by an
estimated 2% to reach €1.26 billion.
Alcoholic Beverages
Continuing the trend of 2011 the
export of Irish whiskey was the leading
growth category in the alcoholic
beverage sector experiencing double
digit growth. The US market remains
the largest market and has driven
growth in the category with increased
sales in both open and control US
states. The Russian, Canadian,
Australian and French markets also
recorded strong growth and these are
likely to show further opportunities for
Irish whiskey in the medium term.
Exports of cream liqueurs showed
growth in 2012 in a challenging market
environment, however an increased focus
on innovation within the category is likely
to help challenges at consumer level and
drive sales in established markets. The
best performing markets were the UK,
USA, Latin America and Asia.
Bord Bia Irish Food Board Annual Report 2012
Irish cider exports performed very
well in 2012 and continued to build
sales and broaden the customer base
in non traditional markets outside
the UK. Markets that contributed to
this growth included North America,
Australia and Finland where sales
increased in both the on and offtrades. The poor weather in the UK
and Northern Ireland resulted in a
decrease in exports to theses markets
as well as increased competitor activity
by new entrants in the cider category.
Beer exports remained stable in 2012
due to relatively flat sales in the volume
markets of the UK and USA. Sales in
several emerging markets appear to
be more positive. Consumers in this
category continue to seek value and
this had a negative impact on premium
or super premium branded beers.
The ongoing move from the on-trade
to the off-trade is impacting beer
sales, particularly in the UK. Changes
in consumer habits, in certain markets,
is also having a negative impact as
consumers move from beer to spirits.
Non-Alcoholic Beverages
While tea and coffee performed well
throughout 2012, exports of nonalcoholic beverages to the UK slowed
slightly although favourable currency
rates mitigated the impact of this slow
down. While the UK will remain the
principal market for non-alcoholic
beverage exports, work continues
in developing euro zone markets for
the sector. While a slight decline is
predicted by the soft drinks segment
across Europe for the next 24 months,
manufacturers hope to maintain their
current position as they persist with
efforts to drive operating costs down.
Beverage prospects for 2013
Prospects for beverage exports remain
positive for 2013, with stronger
demand likely to be maintained in
emerging markets. Irish whiskey is likely
to continue to make gains in key export
markets as brand owners continue to
drive sales and invest in campaigns to
develop their customer base.
Sector Review: Small Business and
Organic Sectors
Bord Bia works with over 400 small
food and drink businesses with a total
estimated turnover of €400 million,
which represents an increase in value
of 7% per year since 2007. Total direct
employment by the small business
sector is approximately 3,000 people.
Marketing Assistance
Programme
IIn the Marketing Assistance
Programme, Bord Bia provides financial
support to food, drink and horticulture
companies, to help them improve their
marketing techniques and capabilities,
while maintaining the highest
standards of quality and hygiene.
During the year 189 companies were
approved grants, amounting to a total
of €954,500.
Small Business Open Day
‘Delivering insights for success in
2012’, the Open Day took place on
18th January 2012 and was attended
by 150 small food and drink producers.
Designed to assist companies plan
for 2012 and gain valuable insights
into opportunities, services and new
ways of doing business for the year
ahead. The event provides access
to information on the range of
programmes and services available
to support and assist companies in
planning for growth and business
development. This was the second
year of this event and showcased
the range of services on offer from
Bord Bia and other support agencies
including County Enterprise Boards,
Enterprise Ireland and Teagasc while
also providing delegates with an
opportunity to network with other
food and drink producers.
Marketplace International in February
2012 provided Irish companies with
the opportunity to meet with 500 of
the world’s most important retailers
and foodservice providers. Some 52
small business companies participated
at the event.
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 aim of the website is to provide
quick and easy access to timely and
relevant information 24/7 and is
divided into three areas; ‘starting your
business’, ‘marketing your business’
and ‘local food’. Under ‘marketing
your business’ visitors are provided
with overviews, top tips, guidelines,
templates and other downloads under
the ‘four Ps’: product, price, place and
promotion. Vantage Point is a core
part of the small business service and
continues to be updated on a daily
basis. Visitor number have trebled
during the year to over 35,000 visits,
29,000 of which were unique visits
meaning that they are counted as an
individual visitor no matter how many
times they visit.
Bord Bia Vantage Plus –
The 2012 Vantage Plus Programme
for small food and drink producers
was delivered through a series
of regional workshops in Dublin,
Mullingar and Cork to develop small
business companies’ capabilities and
competencies in terms of business and
market development. Vantage Plus
programmes are free to access and
are underpinned by a group-based
learning and networking philosophy
which encourages best practice and
co-opetition.
Topics covered during the year included
Business Strategy Formulation and Key
Account Management. The interactive
workshops were attended by 60
companies and provided an opportunity
to share best practice using “how to
do” templates and interactive role play
sessions followed up with one-to-one
mentoring sessions.
Financial mentoring on a one-to-one
basis was provided to 35 companies to
assist in improving financial knowledge
and skills. Areas covered were tailored
to individual company needs and
included costing, pricing, cash flow
management and how to manage
costs for improved profit and growth.
Bord Bia Vantage Partner – in
2012, supports for small businesses
previously delivered under the
Vantage Partner programme were
moved into the Retail and Foodservice
Supplier Development Programmes
for the Irish and UK markets. The
combined programmes are now
strengthened by merging the delivery
of core marketing and business
coaching alongside introductions and
access to target buyers in the retail
and foodservice markets.
Bord Bia Vantage Promote business development and public
relations activities, sponsorship of
awards and the development of
itineraries for the promotion of the
small business and speciality sector were
orchestrated in 2012 through trade
and consumer fair participation and the
organisation of media activities.
Bord Bia Irish Food Board Annual Report 2012
31
32
Bord Bia Irish Food Board Annual Report 2012
Keith Johnson, Sam’s Cookies and Ciara Troy, Oishii Sushi pictured at Bord Bia’s Small Business Open Day, January 2012
A young visitor to Bloom 2012 helps out at the Farmyard.
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 the
following key events:
• ISM Cologne, Germany, the largest
and most important confectionery
and biscuits fair in the world.
• Biofach, Nuremburg, Germany,
the largest organic trade fair in the
world.
• Speciality & Fine Food Fair London,
a key event for the speciality and
premium food sector.
Fifteen organic producers
participated on the Ireland stand
at Biofach including eight seafood
companies and seven from the
ingredient, meat and prepared
foods sectors.
Bloom 2012
The Artisan Food Market at Bloom is
an established feature of the event
and provides a showcase for the finest
artisan foods Ireland has to offer.
Offering visitors an unparalleled food
shopping experience, 60 Irish artisan
producers presented bakery, meat,
fish, confectionery and prepared
foods. The market stalls were run by
the producers themselves providing
a unique opportunity for visitors to
learn first-hand about the products on
offer and how best to prepare them.
Salone del Gusto
Bord Bia co-ordinated the Irish
presence at the biennial Salone
del Gusto event in Turin. This
consumer show is the largest event
in the Slow Food Calendar and Irish
participation consisted of a stand in
the International Pavilion showcasing
cheeses from the Irish Raw Milk
Cheese Presidium, representing 8
producers.
Market Research
The findings of research into online
marketing opportunities for small
food and drink producers were
presented at the Small Business Open
Day. Findings were also published
on bordbiavantage.ie. The objective
of the research was to enable
producers to successfully develop and
implement an online presence and
digital marketing strategy to assist
their online growth.
Organic Food
Themed in 2012 as, ‘Enjoy Organic,
it’s Only Natural’, National Organic
Weeks’ objectives are to raise
consumer awareness of the benefits
of organic food and promoting
increased frequency of consumption
of locally produced organic food.
The weeklong celebration promotes
Ireland’s organic sector with organic
producers, retailers and farmers
markets nationwide hosting events
which include organic farm walks,
cookery demonstrations, BBQs,
harvest feasts, complimentary in
store tastings and talks. Bord Bia
organises the National Organic
Awards and the Best Overall Organic
Product was awarded to Crowe’s
Farm for its Organic Dry Cure Back
Rasher product which was chosen
for its high quality, superior taste and
smart packaging.
Organic food retail sales among the
target group of 28 to 44 year olds
higher income households grew by
29% during National Organic Week.
Bord Bia Irish Food Board Annual Report 2012
33
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 including nursery stock plants,
cut foliage and Christmas trees
Potatoes
There are estimated to be 540
commercial potato growers in Ireland.
At farm level approximately 263,000
tonnes of potatoes were produced
from 8,864 hectares in 2012. It was
a hugely difficult growing year with
reduced yields but with good eating
quality, which led to shortfalls in
the market at the end of 2012. The
Rooster accounts for 58% of potatoes
grown, while other main crop varieties
include Kerrs Pink (9%), Queens
34
(7.5%), Golden Wonder (3%) and
Records (1%). The counties with the
highest percentage of area involved in
potato production are Meath (22%),
Dublin (15%),Wexford (13%), Louth
(12%), Donegal (10%) and Cork (8%).
Recent years have seen a decline in
fresh potato consumption with market
switching over to other carbohydrate
sources such as rice and pasta. While
a significant majority of households
still buy potatoes, on average they are
tending to buy smaller pack sizes. The
retail value of the potato category was
€145 million in 2012.
Field Vegetables
The total production area for field
vegetables is estimated to be in
excess of 4,000 hectares with
approximately 200 commercial field
vegetable growers. The wet weather
throughout the 2012 growing season
made crop production and harvesting
extremely challenging which resulted
in considerable crop losses. Growing
conditions post spring planting were
detrimental to crop yields as well as
Bord Bia Irish Food Board Annual Report 2012
reducing the general crop quality.
The domestic retail market is the key
market for vegetables with the value
of the fresh vegetable category valued
at €519 million in 2012. The prepared
fruit and vegetable category was
valued at €82 million at retail level.
Mushrooms
The mushroom sector experienced
growth in 2012 with production
exceeding 63,000 tons and the
farm gate value estimated at €111
million Investment in new state-ofthe-art production facilities has been
continuing, allied with greater phase
three compost availability, which
has boosted overall production and
also led to higher exports. The UK
market is the key market with over
seventy percent of production traded
in the UK. Exports increased by
approximately 5 % in 2012 mainly as
a result of strong demand from the
UK. The UK retail mushroom market
showed good growth, with a 5%
increase both in value and volume.
Button mushrooms are the main
Children pictured at the launch of National Organic Week, September 2012
variety but value mushrooms are
growing market share at the expense
of the button mushroom variety.
Protected Food Crops
The protected salad/vegetable sector
cropping area is approximately 260
hectares. Tomatoes, peppers and
lettuce are the major crops in this
sector, most of which is destined for
the Irish retail market. Irish tomato
production has consolidated in recent
years, with good demand from the
multiple retailers for high value
lines. The retail value of the tomato
market increased slightly over the
year while volume increased by 2%.
Vine tomatoes and cherry tomatoes
showed modest gains, slightly above
the average, but all tomato lines
indicated growth. The value of the
retail sales of lettuce grew slightly in
2012 while volume grew marginally.
Overall, it was a difficult season for all
producers, with cold and wet weather
affecting yields.
Fruit Crops
Fruit is the largest fresh produce
category for consumers at retail
level valued at €545 million. Apples
and strawberries are the two main
fruit crops produced in Ireland.
While demand for Irish eating
apples remains strong, 2012 was a
very difficult season for producers
and average yields varied from
30-50% due to wet and windy
weather during flowering and a wet
summer. Demand for cider apples
was reasonably strong, as supplies of
apples from the continent reduced.
In the soft fruit market, strawberries
are the most important crop and
investment in the sector has extended
the strawberry growing season to the
end of December. The retail value of
strawberries was down slightly both in
value and volume. Soft fruits such as
raspberries, blueberries, gooseberries
and red currants continue to show
growth, although their rate of
growth is slowing. Berries apart from
strawberries account for nearly 50%
of the value of soft fruit sales. Wet and
overcast weather had a negative effect
on strawberry yields during the year.
Amenity
The amenity sector consists of hardy
nursery stock, bedding plants, bulbs,
cut flowers/foliage and turf grass
with the most recent census showing
that there are 244 amenity producers
involved in the sector. An optimistic
start to the 2012 season saw strong
demand for plants in the first half of
the year, which fell off in the second
half of the year due to poor weather
conditions. The domestic retail
market for plant and flower sales is
estimated to be in the region of €224
million per annum. The commercial
landscaping sector continues to be
affected by the economic downturn
and the weak construction sector.
Exports of amenity horticulture
crops were valued at approx €11.75
million in 2012 which is a reduction
of €0.5 million on 2011. Following
a rise in exports over a number
of years, growth was disrupted in
2012 due to the extremely poor
gardening weather during the main
Bord Bia Irish Food Board Annual Report 2012
35
spring/summer trading months. This
depressed consumer demand in the
important UK market and a number
of Irish suppliers saw their sales orders
reduced as retail outlets struggled to
clear stock.
The €11.75 million is made up of cut
foliage used in floristry €2.5 million,
daffodil bulbs and cut daffodil flowers
€1 million, nursery stock (trees and
shrubs) €4.5 million and Christmas
trees €3.75 million. Most export
sales were to UK with small
quantities of young plants (plugs
and liners) exported further afield
where prices supported the
additional transport costs.
Horticulture Programmes
Promotions
Generic horticulture promotions
in 2012 included those under the
Best in Season (fresh produce) and
Garden Time (gardening and plants)
banners. Promotional activity focused
on driving consumers back to the
two campaign websites. There were
more specific promotional activities
with National Strawberry Week and
later with Christmas trees. Supported
by Bord Bia, the potato.ie website
continues to promote the potato
to consumers as well as supporting
other promotional activities. Fresh
Produce was promoted at Bloom
2012 through a major exhibit of
fruit and vegetable crops, the best
in season fresh produce market and
a potato variety exhibit and cooking
demonstrations. A potato promotions
group was established representing
the key interests in the potato sector
and chaired by Bord Bia which aims to
develop potato promotion campaigns
for the category with the assistance of
sector funding.
A special supplement ‘It’s Garden
Time’ was published in association
with the Irish Independent in May, and
two monthly features were supported
in the Irish Garden magazine,
featuring quality-awarded garden
centres and landscaping businesses.
A promotion of local plants through
36
garden centres linked to Bloom was
carried out during the summer.
The national roll out of the Food
Dudes Healthy Eating Programme
continued in 2012 with another
385 schools and 63,000 children
taking part. 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. The national roll out of the
programme commenced in 2007 and
75% of schools have participated
to date. 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 Scheme.
‘Incredible Edibles’ schools
programme is managed by Agriaware
and jointly funded campaign by Bord
Bia and the fresh produce industry.
The programme was taken up by
1,000 national schools in 2012 and
teaches children how to grow fruit
and vegetables, their origin and the
benefits of eating healthy by getting
the recommended five a day.
The second year of a three year EU
supported mushroom promotion
campaign in the UK market continued
in 2012 resulting in increased sales.
The campaign has resulted in an 8%
growth in the volume of sales to
consumers under the age of 45 (the
target group for the campaign).
Marketing, Innovation, Training
and Information
During the year 30 horticulture
businesses received assistance under
the Bord Bia Marketing Assistance
Programme in for a range of activities
including trade shows, market research,
POS & labelling generation and website
development. Assistance was also
provided to a number of horticulture
Bord Bia Irish Food Board Annual Report 2012
companies through the innovation
programme in the areas of new product
development and branding.
Market research on the size of
the gardening market in Ireland
was disseminated to the sector to
assist amenity businesses plan their
marketing strategies. This data was
further supported by the compilation
of an Amenity Sector Census with the
Department of Agriculture, Food and
the Marine.
Market research was also carried out
on the potato market to understand
the consumer decision making process
around the choice of carbohydrate
to be served with meals within the
household, with a particular focus on
22-44 year old female shopper.
A supplier development programme
was implemented with nursery
growers to assist them in delivering
profitable sales growth for their
businesses via retail markets. The
programme included workshops
and one-to-one business mentoring
focused on increasing sales.
Bord Bia partnered with the Irish
Potato Federation in organizing a
trade stand at the Fruit Logistica
fresh produce trade show in Berlin in
2012. 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
new buyers across a wide range of
countries for Irish grown potatoes.
Bloom 2012
Bloom 2012 was held in the Phoenix
Park on the June bank holiday
weekend which attracted 80,000
visitors over the five days of the
show. As well as being a major
promotional vehicle for horticulture
and food it has become a key event
for associated companies to exhibit,
promote and sell their produce.
There was a 99% satisfaction rate
measured at the event. The event
included an expanded food village
representing all elements of the food
sector and an enhanced floral pavilion
which included a large number of
specialist nurseries exhibiting and
retailing a large range of plants. The
Chefs Summer Kitchen and garden
stages highlighted and promoted
local production and how best to
use local ingredients and plants. Post
event awareness was measured and
indicated that two million people in
the adult population were aware of
Bloom and as a result 25% of those
claimed to have engaged in increased
gardening activity and spend to the
benefit of the domestic horticulture
industry, a key objective of Bloom.
Amenity Sector Strategy
The implementation of the
recommendations in the Amenity
Sector Strategy continues and
includes the development of new
plant varieties, cut foliage variety trials
and developing a trading website
to facilitate domestic plant sales.
The Bord Bia Export Development
Programme continued with nurseries
to develop export market initiatives.
Bord Bia also assisted in the
organisation and supported key trade
events including the industry trolley
fairs and the amenity trade show
Garden Landscape Amenity Showcase
(GLAS), both of which are clearly
focused on promoting and facilitating
local plant sales.
In addition, the Nursery Quality
Programme is now operating to
the accredited EN45011 standard
with independent inspection and
certification now completed for 16
members. Certified members are
availing of the opportunity to use the
Bord Bia Quality Mark on plant labels.
Amenity Quality Programmes
A total of 40 garden centres and 17
landscape contractors participated
in the Bord Bia Amenity Quality
Programmes in 2012. These
provide horticultural enterprises
with guidelines on ‘best practice’
in managing their businesses.
President Michael D Higgins, Bloom Patron, with his wife Sabina in Jane McCorkell’s entitled “Bord na Mona Growise My Garden” at Bloom 2012
Bord Bia Irish Food Board Annual Report 2012
37
Sector Review: Quality and
Environmental Assurance
The Quality & Environmental
Assurance Division ensures that all
existing and new quality assurance
schemes are compliant with
legislation, are up to date with best
practice and are appropriate to Irish
farming conditions while at the
same time fulfilling the requirements
of the international marketplace.
This is achieved by engaging the
comprehensive expertise of the
Technical Advisory Committees to
regularly review and revise existing
quality assurance schemes and
to develop new schemes to meet
the demands of industry and the
marketplace by establishing schemes
in accordance with accredited
procedures. The Bord Bia quality
assurance schemes are accredited
to ISO 9001:2008, EN45011 and as
appropriate, GlobalGAP. Bord Bia
itself is audited to ensure it maintains
its accreditation. In 2012 Bord Bia
received a two day audit from the
Irish National Accreditation Board
(INAB) for its EN45011 accreditation,
a one day ISO 9001:2008 audit from
the National Standards Authority
of Ireland (NSAI) and a three day
Certification Integrity Process (CIPRO)
GlobalGAP audit. All of these external
audits concluded that the Bord Bia
schemes were operating satisfactorily
and accreditation was maintained.
The main development work in 2012
included the revision of the Pig quality
assurance scheme, the development
of a new combined species meat
processor standard and a new scheme
for dairy farmers. The Pig Quality
Assurance Standard (Rev 2), which
was in operation since 2007, was fully
revised to include new requirements
for the control of salmonella, new
housing legislation, DNA testing
of boars on farm and eligibility for
participation by free range/outdoor pig
38
producers. The revised standard was
submitted to INAB for accreditation in
December and all audits from the start
of 2013 will be to the new standard.
Bord Bia previously developed separate
quality assurance schemes for each
individual species (beef, lamb, pigmeat
and poultry). However, in 2012, work
was concluded to combine all of these
species into a new meat processor
standard. This was in order to facilitate
the many meat plants processing more
than one species and to improve the
efficiency of auditing. Accreditation
for the new standard was sought at
the end of 2012.
Work continued on the development
of a new sustainability and dairy quality
assurance scheme. Certification for
the Dairy Carbon Footprinting Model
was awarded by the Carbon Trust
in April 2012 enabling Bord Bia to
provide a calculation of the carbon
footprint for individual dairy farms
in a similar manner to that already
in operation for beef and lamb
producers. Considerable progress on
the development of the dairy standard
was achieved by the Technical Advisory
Committee during the year and the
standard will be submitted to INAB for
accreditation during 2013.
The mushroom casing standard
received accreditation to EN45011
in 2012 and this together with the
development of the standard for the
production of mushroom growing
substrate or compost will ensure that
all stages in the production of Ireland’s
most important horticultural export
will be accredited in future. A total of
fourteen companies were audited to
the new standard for the production
of ornamental plants during the year.
Accreditation is expected from INAB
in 2013.
Bord Bia Irish Food Board Annual Report 2012
There are a total of 77 auditors
engaged in quality assurance auditing
and 26,073 audits were carried
out across all schemes during the
year. The majority of these audits
were announced, but based on risk
assessment, unannounced spot audits
were instigated as required. The
number of primary producer members
stood at 35,605 at the end of the year
and the number of processor/packers
members was 177. The certification
period for all schemes is 18 months
with renewal audits scheduled from
the fifteenth month. The vast majority
of meat and eggs produced and
processed in Ireland are by members
of the Bord Bia quality assurance
schemes. It is anticipated that, with
the completion and introduction of
the Sustainability and Dairy Quality
Assurance Scheme, a high percentage
of all milk produced will also be from
quality assured farms.
Pictured at the Sustainable Quality Beef
Producer Awards at the National Ploughing
Championships, New Ross, Co. Wexford is
Joe Burke, Bord Bia.
Sector Review: Services
Strategic Information Services
Consumer Insight
2012 represented the first full year of
Bord Bia’s enhanced ‘consumer insight’
programme arising from the call in
Pathways for Growth for a ‘consumer
centric’ perspective designed to deliver
‘insight’ as the source of business with
the best prospect of repeat sales.
Bord Bia’s foresight4food programme
supports Irish food and drink
manufacturers by offering bespoke
insight and consumer focused
innovation services. The programme
assists clients with stimulation
(inspiring creativity for new ideas
through the Consumer Lifestyle
Trends publications and Inspiration
Expeditions), ideation (developing
ideas into concepts through
workshops), validation (consumer
testing of new product ideas and
concepts) and commercialisation
(helping create and build brands and
ensure they are launch ready).
In the foresight4food programme,
food and amenity horticultural
companies are encouraged to take
a consumer-centric perspective in
generating and developing new
product ideas or branding initiatives.
Some 25 individual company projects
were completed or started in 2012. A
‘syndicated’ version of this, where the
consumer research was shared by a
group of typically smaller companies,
was continued throughout 2012 and
had 17 participants during the year.
Brand Forum
The Brand Forum is Bord Bia’s brand
development programme. The
objective is to work with Irish food
and drink companies to develop and
grow their brands with inspiring
brand speakers, practical workshops
and dedicated branding advice. It
is recognised as a time and place
where Irish food and drink brand
owners have collaborated by pooling
together their individual expertise
and ideas and sharing problems.
2012 was the first full year where
the programme was part of the
enlarged Insight and Innovation
team which ensures that consumer
insight and best practise in branding
remains central to the branding work
undertaken with client companies.
The cornerstone of the Brand Forum are
the 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 and panel discussion and
to network with over 180 Irish food and
drink companies.
2012 was the first year in which
members of the Brand Forum
participated in the “Brand Health
Check”, a national on-line survey
across 45 grocery categories.
Participating companies through the
workshops, gained understanding of
the health of their brand relative to
their competitors.
Workbooks
Published Research
During 2012, the Consumer Insights
team developed two workbooks – one
for innovation and the other for
branding projects. These workbooks are
being used by food and drink companies
in ‘live’ projects to provide a structured
approach that will improve the prospects
for successful innovation and branding.
A programme of original research
was continued through 2012 and was
published through the Bord Bia web
site, including:
•The Consumer Lifestyle Trends
programme received a major
refresh in 2012, the second since
the programme’s inception in
2006. Trends allow companies to
be more outward looking, future
focused and consumer driven and
act as a catalyst for new ideas
and innovations. In that way, it is
a cornerstone of our Consumer
Insights programme.
• Feeling the Pinch was the sixth
iteration of a companion study
to Consumer Lifestyle Trends
which following the impact of the
recession, explored the consumer
outlook in both the Republic
of Ireland and Great Britain for
the year ahead and highlights
the implications for brands and
companies. The research found
that not all consumers have been
affected equally by the recession or
face the same challenges. Brands
and companies have a critical
opportunity to offer support, help
people create connections and build
new meaning into people’s lives. By
understanding the changed mindset of consumers, companies can
unlock the spending power that still
exists.
• Understanding Tweens was a
look at children aged from 8 to
12 year olds (not teenagers, but
not entirely child-like, hence the
term). Bord Bia wanted to explore
this market in Ireland and the
UK and also to understand their
and their parent’s attitudes and
behaviours about food & snacks,
music, movies, TV, clothing, toys
& games. Understanding their
attitudes and behaviours enabled
the identification of the implications
for the Irish food and drink industry
to explore how companies can
improve their marketing activities in
response to Tween behaviour and
attitudes.
• foresight4food category
perspectives – The results of
qualitative exploratory studies
undertaken to provide stimulus
Bord Bia Irish Food Board Annual Report 2012
39
for new product thinking were
also published. One concerned
“Chilled vs. Frozen” while another
looked at “Food to Go”. Both
involved original consumer research
in Ireland combined with on-line
research amongst American and
British consumers.
Weekly Newsletter
The weekly FoodAlert continues to be
published on the Bord Bia website with
subscribers emailed each week with
headline issues. FoodAlert 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 1,200 external
enquiries during 2012 with almost a
further thousand internal enquiries
made by staff on behalf of Irish food
companies during the year.
Marketing Services
Trade Fairs, Exhibitions and
Events
Trade fairs and exhibitions are an
integral part of Bord Bia’s strategic
marketing programme fulfilling a wide
range of objectives for Irish companies
from developing new markets to
product testing, from seeking new
buyers to maintaining and growing
existing customers.
Bord Bia designed, built and managed
over 56 events and trade fairs in 2012
with the aim of building Ireland’s
reputation and exports as well as
supporting marketing competitiveness
and growth within the industry. Over
130 Irish companies participated at
overseas exhibitions with a combined
attendance of 621,176 international
visitors/buyers in 2012.
Flagship events included SIAL, Paris
and ESE in Brussels. Niche trade fairs
in confectionery (ISM), alcoholic drinks
40
(Prowein), speciality foods (Speciality &
Fine Food Fair), premium meat (Tavola
and Intermeat) seafood (Conxemar
and ESE), travel retail (TFWA) and
organics (Biofach) focussed on
delivering targeted quality buyers to
Irish exhibitors.
The Origin Green programme was
launched to the international food
industry on the Ireland stand at SIAL
in Paris by An Taoiseach, Enda Kenny
T.D. and the Origin Green Charter was
activated visually through graphics
around the hospitality area and on
AV video starring Saoirse Ronan.
The Origin Green branding will be
rolled out at all Bord Bia organised
exhibitions throughout 2013.
The growing importance of the
Chinese market was highlighted by
the Trade Mission to China led by
the Minister for Agriculture Food
and the Marine, Simon Coveney T.D.
Some 127 delegates from 52 Irish
companies travelled to 7 cities from
Beijing to Shanghai on pre-arranged
itineraries. This was further supported
by increased participation at both the
China Sea Fisheries Show in Dalian and
SIAL China in Shanghai.
The increased interest in Middle
Eastern markets was demonstrated
by a doubling of the Ireland stand at
Gulfood in 2012.
Key events organised in Ireland
were Marketplace at which 178
Irish companies attended 3,731 pre
arranged meetings with 500 potential
buyers from 27 countries. The Quality
mark was promoted to Irish consumers
at Bloom and the National Ploughing
Championships.
International Communications
During 2012, Bord Bia’s International
Communications programme worked
in close collaboration with our 10
overseas offices to achieve print and
online media coverage in foreign
press by providing information,
photography, video and press releases
to international consumer and trade
media, as well as international social
media commentators. Coverage for
Bord Bia Irish Food Board Annual Report 2012
Bord Bia’s events and campaigns
spanned across many of Europe’s
leading food and drink trade
publications such as The Grocer and
Food Manufacture (UK), Lineaires and
Les Marches (France), Fleisch Magazine
and Lebensmittel Zeitung (Germany)
and Vlees Magazine (The Netherlands).
Over the course of the year Bord Bia
welcomed over 165 international
journalists into Ireland from 12 markets
including UK, France, Germany, China,
The Netherlands and the United
States. In September, following the
June launch of Origin Green, over 30
European journalists were invited to
Dublin and Kilkenny for presentations
on the new sustainability development
programme. This resulted in over 20
online publications reporting on Origin
Green with an estimated viewership of
2.7million. Print coverage saw 15 trade
publications print articles on Origin
Green with an estimated circulation of
over 280,000.
Bord Bia’s International
Communications team worked in
close collaboration with Fáilte and
Tourism Ireland. June 2012 saw our
collaboration with a group of European
food bloggers travelling to Ireland
to visit Bloom. The food bloggers
sampled some of the best Irish food in
Dublin, took a food walking tour and
participated in a food styling event at
Bloom using produce from Bloom’s
Irish Food Market interviewing some of
the food and drink producers present
at the show. Collaboration was also
achieved whilst working alongside
Dublin City Council and the Temple Bar
Traders Association in hosting the TailGate Event for the Navy Notre Dame
American Football game in Dublin
during the month of September. Bord
Bia took this opportunity to showcase
Irish beef, farmhouse cheeses and
smoked salmon.
Supporting its trade fair programme,
Bord Bia advertised and assisted in
the editorial of eight editions of Irish
Food magazine. The presence of the
magazine at overseas trade shows
continues to provide a touch point
for over 621,176 trade fair visitors.
Bord Bia continues to share coverage
stemming from visiting international
media online in video format via
www.youtube.com/bordbia and in
static image format via image sharing
sites. Bord Bia also shares coverage
and information with our followers
on www.twitter.com/bordbia and
www.facebook.com/bordbia
During 2012, Bord Bia continued
to integrate social media into
its consumer-facing marketing
communications activity. Through Bord
Bia social media accounts on Facebook,
LinkedIn, YouTube and Twitter, Bord
Bia interacted with client companies,
stakeholders, media and consumers
both in Ireland and internationally.
In August Ireland’s Irish Independent
newspaper named Bord Bia as one of
“Ireland’s top 30 business tweeters”
and were recommended to follow:
“All things food-related in Ireland.
Eclectic interests from covering
big brands to the Grow It Yourself
movement. Shows how a State body
should use Twitter with lots of links
and pictures.”
Origin Green
On Thursday 21st June 2012 Bord
Bia announced the launch of a
comprehensive national sustainability
development programme to more
than 120 food and drink industry
leaders during its Pathways for
Growth Food and Drink Leadership
Summit in the UCD Michael Smurfit
School of Business. The programme,
entitled ‘Origin Green’, is a world first
and the vision is that it will enable
Ireland to become a world leader in
sustainably produced food and drink.
The programme builds on existing work
being undertaken at primary production
level and it is intended that a target of
75% of Irish food and drink exports will
be sourced from members signed up to
the programme before the end of 2014.
Origin Green is founded on evidence
based performance and commitment
to further improvement of farming
and manufacturing in areas such as,
greenhouse gas emission, energy
conservation, water management,
biodiversity, community initiatives and
health and nutrition. At the heart
of Origin Green is a sustainability
charter that will commit participants
to engage directly with the challenges
of sustainability and will see Ireland’s
food and drink industry align with the
sustainability goals of international
retailers, foodservice operators and
manufacturers.
In September in the spirit of ‘Come See
Us’ we welcomed 31 journalists from
leading European trade publications to
tell them our Origin Green story and
show them the proof of our existing
sustainability commitments in practice
at farm level.
Response to the programme has
been very encouraging from industry
and trade. After just 6 months over
163 companies representing more
than 60% of exports had joined the
programme and had begun their
journey to becoming more sustainable.
For more details on the programme
visit: www.origingreen.ie
Sponsorships
During 2012, Bord Bia sponsored the
third series of Neven Maguire’s Home
Chef on RTE 1 to promote the Bord
Bia Quality Mark. The series, which
achieved an average audience of
318,300 and a 19.5% share, once
again made Neven the most popular
chef on RTE.
The programme featured Neven
recreating at home some of the dishes
he serves in his restaurant, using locally
sourced, quality assured ingredients.
In the location features, Neven met
producers of some of Ireland’s iconic
food and drink brands.
Research following the television series,
indicated that of those who were
aware of Bord Bia’s sponsorship of the
programme, 85% of those reached
had a more positive opinion of Bord
Bia after the series.
Quality assured products and local
produce were promoted at key food
festivals throughout the country.
Award sponsorships in 2012 included
the food, beverage and seafood
categories of both the Small Firms
Association and the Irish Exporter
Awards. Other sponsorships included
the Supreme Champion category
in the Blás na hEireann awards (the
Best Artisan Producer category was
sponsored by the Taste Council), the
Food Producer of the Year category of
the Good Food Ireland Awards and the
Food and Drink Entrepreneurial StartUp of the Year in the Start-Up Awards.
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 2012, 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 €3.5million.
In 2012, 200 MAP applications were
received and 189 approved. Grants
totalling €778,573 were paid to 146
companies during the year.
Home Market
The aim of the Quality Mark marketing
programmes in 2012 was to continue
to increase the number of consumers
only buying food with the Bord Bia
Quality Mark. Targeting the relatively
heavier meat purchasers, 30-50 year
old female grocery shoppers with
children, the key message was:
‘Choose food with the Bord Bia Quality
Mark to ensure it is produced to the
highest Bord Bia quality standards and
you know where it comes from’.
In total, 13 campaigns took place
across lamb, pork and bacon, eggs and
generic activities on the Quality Mark.
This also included campaigns for fish
and organic food while the ‘Just Ask’
campaign continued to encourage
restaurants to highlight the origin and
suppliers of meat on their menus for
customers. Key activities included TV
Bord Bia Irish Food Board Annual Report 2012
41
advertising, sponsorship of the RTE1
‘Home Chef’ programme and a range
of integrated PR and digital activities.
New TV advertisements were produced
for the Quality Mark, ham and bacon
and eggs which all reflected the ‘Your
Food is our Passion’ theme.
In terms of results, 93% of Irish
consumers are aware of the Quality
Mark with 71% more likely to buy a
food product displaying the Quality
Mark.
This overall high awareness and
persuasive influence of the Quality
Mark has in turn led to increased
consumer loyalty to it. A segmentation
of consumers based on their loyalty
to the Quality Mark indicates that
37% of adults are either Enthusiasts
or Waiverers – an increase from 26%
overall in November 2010. Enthusiasts
will only buy food with the Quality
Mark while Waiverers will buy it if it is
readily available to them. These both
tend to be females in the 30-50 year
old group.
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 2012, 66% of meat
facings across retailers carried the
Quality Mark.
Bia provides a secretariat role for the
TASTE Council. The TASTE Council
in association with Bord Bia hosted
the second Food Summer School on
30 August at Brook Lodge Hotel,
Macreddin Village, Co. Wicklow
which was attended by 120 delegates.
TASTE Council
The one day event focused on three
distinct themes – the label and the
artisan producer; the label and the
artisan fishing fleet and Origin Green.
The format consisted of a series of
presentations, panel discussions
with industry experts and break-out
sessions – in World Café Debate style.
It was attended by food and drink
producers, processors, manufacturers,
those working in the food tourism and
hospitality sectors and members of
industry bodies, Government Agencies
and Departments.
The TASTE Council is an independent
voluntary body representing the
artisan and speciality sector. Bord
Following a meeting between the Taste
Council and Minister for Agriculture,
Bord Bia’s ‘Your Food is Our Passion’
television advertising campaign ranked
in the top ten advertising campaigns
in terms of consumer awareness
and was also shortlisted by the EU
Commission for a Communications
Award out of 118 entries across the EU
as part of the inaugural CAP Awards.
Pictured at the second Food Summer School event in Co.Wicklow is Una Fitzgibbon, Director of Marketing, Bord Bia and Darina Allen, Ballymaloe
House, August 2012
42
Bord Bia Irish Food Board Annual Report 2012
Food and the Marine, Simon Coveney
T.D., it was agreed that the Taste
Council will develop a Food Module
for transition year secondary school
students in 2013. Its objective is to
increase students’ understanding of
the benefits of local and artisan food
and highlight the artisan food industry
as an attractive career choice.
Markets
Bord Bia’s global footprint extends to
10 overseas locations; seven in Europe
and three internationally. In addition,
the Irish market 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.
client companies.
• Delivered bespoke business
development projects with
approximately 40 client companies
per month.
• Represented the industry in 42
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 200
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 include the Department of
Agriculture, Food and the Marine,
Department of Foreign Affairs and
Trade, Department of An Taoiseach,
Teagasc, BIM, Enterprise Ireland,
Failte Ireland and Tourism Ireland,
Food Safety Authority, Environmental
Protection Agency and County
Enterprise Boards, among others.
In addition to the implementation of
programmes and projects Bord Bia’s
markets personnel in 2012:
• Undertook 919 buyer meetings and
presentations.
• Responded directly to 1,054
individual buyer requests for
detailed information on the Irish
food and drink industry, particularly
suitable suppliers.
• Conducted 779 business planning
meetings with Irish client companies.
•Responded to 2,224 market
information requests from Irish
Bord Bia Irish Food Board Annual Report 2012
43
Corporate Statement
Corporate Governance
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.
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.
Freedom of Information
Bord Bia is a prescribed organisation
under the Freedom Of Information
Acts 1997 and 2003. The Freedom
44
of Information Acts established three
statutory rights:
• 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.
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
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.
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.
Equality
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 in 2008. Usage within Bord
Bia’s main office is as follows:
2012
MWh of electricity
304
Bord Bia is committed to ensuring
equality of opportunity and its 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 educational programmes, study leave,
job-sharing 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.
Bord Bia Irish Food Board Annual Report 2012
Energy Efficiency and
Conservation
Actions undertaken in 2012
Low voltage light fittings were
installed in a number of areas
where the changed level of lighting
and cost/benefit were acceptable.
Passive infra-red occupancy light
control switches were also installed
in a number of areas. A number of
air conditioning units were assessed
and replaced with more energy
efficient units.
Actions planned for 2013
In 2013 and beyond Bord Bia
intends to continue to examine
cost effective initiatives to further
improve our energy performance in
the areas of air conditioning, water
heating and lighting.
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.
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,
four 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 four Subsidiary Boards
(Meat and Livestock, Consumer
Foods, 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 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 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 2012 and the details of each
member’s attendance, is set out below.
Board Member Board Meetings
Attended
Board Members and
Independence
All board members have access
to advice and services of the
Secretary/Director of 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 50.
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
G. Brown
J. Bryan
M. Byrne
M. Carey
N. Cawley
M. Cronin
A. Dennison
K. Dunne
F. Hayes
R. Holland
J. Horgan
J. Kingston
F. O’Gara
M. O’Rourke
B. Sweeney
6 out of 7
7 out of 7
7 out of 7
7 out of 7
5 out of 5
7 out of 7
6 out of 7
5 out of 7
6 out of 7
7 out of 7
1 out of 1
7 out of 7
7 out of 7
1out of 1
7 out of 7
Board Committees
The Board Audit Committee, which
comprises four members of the Board
and one external member with a
financial background, met on four
occasions during 2012. 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.
Bord Bia Irish Food Board Annual Report 2012
45
Annually, a briefing session is held to
apprise members of the Board Audit
Committee and the Board of relevant
and recent developments in Corporate
Governance issues.
During 2012, the briefing session,
reviewed information flows to Board,
criteria for evaluating an effective
Board and appreciating the importance
of risk resilience.
The Pensions and Remuneration
Committee, which currently comprises
three members of the Board, met
on one occasion during 2012.
The Pensions and Remuneration
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 five members of the Board,
met on one occasion during 2012. 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.
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.
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
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
46
Bord Bia Irish Food Board Annual Report 2012
Aidan Cotter
Chief Executive
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.
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 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’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 31
December 2012 the Board conducted
a review of the effectiveness of the
system of internal financial control.
On behalf of the Board
Michael Carey
Chairman
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.
Bord Bia Irish Food Board Annual Report 2012
47
Organisation Structure
Main Board
Chairman
Meat & Livestock
Board
Chairman
Horticulture Board
Chairman
Consumer Foods
Board
Chairman
Quality Board
Chairman
Chief Executive
Markets
European &
International
Sectors
Food, Drink,
Horticulture &
Food Dudes
Quality &
Environmental
Assurance
Marketing
Services
Strategic
Information
Services
Corporate
Communications
Human
Resources
Corporate
Services &
Finance
Bord Bia is comprised of the Board, four 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 four
Subsidiary Boards (Meat and Livestock,
Consumer Foods, 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
48
Bord Bia Irish Food Board Annual Report 2012
Staff Structure
Chief Executive
Aidan Cotter
Markets
International Markets
Quality and Environmental Assurance
Marketing Services
Meat & Livestock
Food and Beverages
Horticulture/Food Dudes
Strategic Information Services
Corporate Communications
Human Resources
Corporate Services
Finance
Michael Murphy
Breiffini Kennedy
Michael Maloney
Una Fitzgibbon
Jim O’Toole
Tara McCarthy
Mike Neary
Julian Smith
Rosaleen O’Shaughnessy
Susan Doyle
Frank Lynch
Gerry Bailey
Overseas Offices
Amsterdam
Dusseldorf
London
Madrid
Milan
Moscow
New York
Paris
Shanghai
Stockholm
Margaret McCarthy
Liam MacHale
Michelle Butler
Cecilia Ruiz
John Keane
Alla Barinova
Karen Coyle
Noreen Lanigan
James O’Donnell
Nicolas Ranninger
Human Resource activities within Bord Bia support
management and staff to meet the challenges of the
market place through:
• Establishing appropriate management structures to
support the strategic aims of the organization
• Appropriate performance management systems
• Leadership, management and staff development
• Regular communication and engagement initiatives
The organisational culture is driven by continual prioritisation
and innovation, the maximisation of outputs, and the
delivery of efficiencies through the optimal use of resources
and systems. Open dialogue ensures that Bord Bia resources
remain responsive to the fast changing environment in
which we live today.
Bord Bia Irish Food Board Annual Report 2012
49
Bord Bia Board
Chairman
Mr Michael Carey
The Company of Food
Members
Mr Gary Brown
Chief Executive Officer, Below the Line
Marketing
Prof Fergal O’Gara
Department of Microbiology, University
College Cork
Mr Brody Sweeney
Food Entrepreneur
Chief Executive
Aidan Cotter
Secretary/Director
Mr John Bryan
President, Irish Farmers’ Association
Frank Lynch
Ms Marian Byrne
Principal Officer, Department of
Agriculture, Food and the Marine
Mr John Comer
President, Irish Creamery Milk
Suppliers’ Association
Mr Michael Cronin
Former Chairman, Irish Dairy Board
Ms Anne Maria Dennison
Former National President, Irish
Countrywomen’s Association
Mr Kieran Dunne
L and K Dunne Nurseries
Mr Frank Hayes
Director Corporate Services, Kerry
Group Plc.
Ms Rhona Holland
Marketing Director Global
Intelligence, Pepsi Co.
Mr John Horgan
Managing Director, Kepak Group
Mr John Kingston
Beef & Dairy Farmer
50
Bord Bia Irish Food Board Annual Report 2012
Changes during 2012
Appointed 8th February
Mr John Comer
Terms Expired 23rd March
Mr John Bryan (re-appointed 24th
March)
Ms Marian Byrne (re-appointed 28th
March)
Mr Mel O’Rourke, Managing Director,
Sylvan Ireland
Term Expired 13th September
Dr Noel Cawley, Chairman Teagasc
Appointed 7th December
Mr John Horgan
Bord Bia Consumer Bord Bia Meat and
Foods Board
Livestock Board
Chairman
Changes during 2012
Chairman
Changes during 2012
Ms Rhona Holland
Marketing Director
Global Intelligence,
Pepsi Co.
Term Expired 13th
September
Dr Noel Cawley (Chairman)
Mr John Bryan
President, Irish Farmers
Association
Resigned 20th February
Mr Michael Doran, Former
Chairman Livestock
Committee, IFA
Appointed 11th October
Ms Triona Byrne
Members
Members
Ms Triona Byrne
Finance Director, Aran
Candy Ltd.
Mr Pat Connors
Sales & Processing Director,
Marine Harvest
Mr Bernard Coyle
Chairman, Mr Crumb
Term Expired 19th
November
Mr Larry Murrin (reappointed 23rd November)
Appointed 23rd November
Mr John Noonan
Mr Joe O’Flynn
Mr Eddie Power
Mr Henry Burns
Chairman, Livestock
Committee, IFA
Mr Vincent Carton
Chief Executive, Carton
Group
Mr Jim Hanley
Chief Executive, Rosderra
Irish Meats
Changes during 2013
Mr Mike Doyle
Managing Director – Meat
& Savoury Provisions Kerry
Foods
Mr Colin Gordon
Chief Executive, Glanbia
Consumer Foods
Mr Tom Harrington
Public Representative
Mr Larry Murrin
Managing Director, Dawn
Farm Foods
Mr John Noonan
Sales & Marketing Director,
E. Flahavan & Sons
Mr Joe O’Flynn
Managing Director,
Consumer Foods Division,
the Irish Dairy Board
Appointed 4th March
Ms Rhona Holland
Mr Michael Guinan
Irish Creamery Milk
Suppliers’ Association
Mr Brendan Mallon
Associated Craft Butchers of
Ireland
Mr Finbar McDonnell
Managing Director, ABP
Mr Alo Mohan
Chairman, National Poultry
Committee, IFA
Mr James Murphy
Chairman, National Sheep
Committee, IFA
Mr Pat O’Flaherty
Chairman, National Pigs &
Pigmeat Committee, IFA
Mr Paddy Walsh
Dawn Meats
Appointed 24th February
Mr Henry Burns
Term Expired 23rd March
Mr John Bryan (re-appointed
29th March)
Term Expired 19th
November
Mr Henry Burns (reappointed 23rd November)
Mr Martin McMahon,
ICMSA
Appointed 23rd November
Mr Michael Guinan
Changes during 2013
Resigned 7th January
Mr John Horgan, Managing
Director, Kepak Group
Term Expired 10th February
Mr Jim Hanley (re-appointed
14th March)
Resigned 8th February
Mr Tim Cullinan, Former
Chairman, National Pigs &
Pigmeat Committee, IFA
Appointed 28th February:
Mr Pat O’Flaherty
Appointed 7th March:
Mr Paddy Walsh
Mr Eddie Power
Managing Director, Green
Isle Foods
Mr Jack Teeling
Managing Director, Cooley
Distillery
Bord Bia Irish Food Board Annual Report 2012
51
Bord Bia Quality
Assurance Board
Bord Bia
Horticulture Board
Chairman
Changes during 2012
Chairman
Changes during 2012
Mr Michael Cronin
Former Chairman, the Irish
Dairy Board
Term Expired 23rd March
Mr Mel O’Rourke
(Chairman), Sylvan Ireland
Mr Kieran Dunne
L & K Dunne Nurseries
Members
Appointed 19th July
Mr Michael Cronin
(Chairman)
Terms Expired 8th December
Mr Gary McCarthy
Chairman, Fruit Growers
Association
Ms Jane McCorkell
Landscape Architect &
Horticultural Consultant
Mr Philip Moreau
Glenbrook Nurseries
Mr Eoin Reid
Fernhill Garden Centre
Mr Ray Bowe
Food Safety & Quality
Manager, Musgrave Retail
Partners
Mr Vincent Carton
Chief Executive, Carton
Group
Members
Changes during 2013
Term Expired 20th January:
Mr John O’Leary, Deputy
President, Irish Creamery
Milk Suppliers’ Association
(ICMSA)
Mr Paddy Callaghan
Nature’s Best Ltd.
Mr Thomas Carpenter
Chairman, Potato
Committee, IFA
Ms Rachel Doyle
Arboretum Garden Centre
Mr John Cunningham
Ex-Dairygold Food Products
Mr John Hogan
Dublin/Meath Growers
Mr Michael Doran
IFA
Mr Martin Jones
Islandview Nurseries
Mr Brendan Gleeson
Meat & Meat Policy Division,
Department of Agriculture,
Food and the Marine
Ms Caroline Keeling
Keeling Fruit Growers/
Importers
Mr Dermott Jewell
Chief Executive, Consumers’
Association of Ireland
Mr Paul Nolan
Group Development
Manager, Dawn Group
Mr Cornelius Traas
The Apple Farm
Dr Declan Troy
Head of Centre, National
Food Centre, Teagasc
52
Bord Bia Irish Food Board Annual Report 2012
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
Mr Brian O’Reilly
National Chairman, IFA
Horticulture Committee
Changes during 2013
Appointed 28th February:
Mr Thomas Carpenter
Mr John Hogan
(re-appointed)
Ms Karen Kerrigan
Ms Jane McCorkell
(re-appointed)
Mr Philip Moreau
(re-appointed)
Report of the Comptroller and Auditor General
Bord Bia Irish Food Board Annual Report 2012
53
Statement of Accounting Policies
(a) Basis of accounting:
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.
(b) Keeping of accounts:
(d) Fixed Assets
and Depreciation:
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
Office equipment
Computer equipment 10%
12½%
20%
331/3%
Subsidiary Boards:
Under the terms of An Bord Bia Act,
1994, the Board is assisted by four
Subsidiary Boards in respect of Meat
and Livestock, Consumer Foods and
Ingredients, Quality 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 Grant-inAid represents the actual receipts from
this source in the period.
Income from the Quality Assurance
Schemes Special Funding, the Food
Dude National Roll-Out, the EU
“Food Dude” 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. Income
arising from the recovery of overseas
VAT, under the EU 8th Directive,
represents the actual receipts from this
source in the period.
54
(e) Marketing Finance:
Expenditure under this heading is
accounted for on the basis of actual
payments made.
(f) Pensions:
There are two Superannuation
Schemes in operation within Bord Bia,
the Bord Bia main scheme and the
Bord Glas scheme.
The Bord Bia main scheme is an
unfunded scheme since 31 December
2009. Prior to 1 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 31
December 2009. The scheme continues
in being for existing members. From
1 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.
Bord Bia Irish Food Board Annual Report 2012
With regard to employees of the
former Bord Glas, a non-contributory
defined benefit pension scheme
and a contributory spouses and
children’s scheme is operated on
an administrative basis pending the
authorisation of the schemes by
the Minister for Finance. 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 1 July 2004.
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.
(g) Leased Assets:
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
Statement of Accounting Policies
Expenditure Account over the period of
the lease in proportion to the balance
of the capital repayments.
Rentals in respect of operating leases
are charged to the Income and
Expenditure Account as incurred.
(h) Tangible assets:
(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.
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.
(l) Taxation:
Provision has been made in respect
of all VAT liabilities and the PRSI
contributions of Irish persons attached
to overseas offices.
Bord Bia Irish Food Board Annual Report 2012
55
Income and Expenditure Account
Year ended 31 December 2012
2012
2011
NOTES
E’000
E’000
1a
27,120
27,637
Food Dude National Roll Out
1b
1,878
2,835
Quality Assurance Schemes: Special Funding
1c
3,509
3,717
Food Promotions Special Funding
1d
703
660
Statutory Levy
1e
4,598
5,005
Project and Other Income
1f
4,320
4,343
14b
2,288
2,107
44,416
46,304
46
105
44,462
46,409
24,529
25,230
Food Dude National Roll Out
1,878
2,836
Quality Assurance Schemes
3,509
3,717
Income
Oireachtas Grant-in-Aid
Oireachtas - Other Funding:
Net deferred funding for pensions
Transfer from Capital Account
2
Total Income
Expenditure
Marketing and Promotional Expenditure
3
Marketing Finance
4
779
749
Pay
5
10,717
10,319
Operating Expenditure
6
2,885
2,841
44,297
45,692
Total Expenditure
Operating Surplus for the year
Less: Pension Related Contribution to Exchequer
14a
Deficit for Year after Exchequer Pension Contribution
Balance at 1 January
Balance at 31 December
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 Carey
Chairman
56
Bord Bia Irish Food Board Annual Report 2012
Aidan Cotter
Chief Executive
165
717
(770)
(830)
(605)
(113)
615
728
10
615
Statement of Total Recognised Gains and Losses
Year ended 31 December 2012
NOTES
2012
2011
E’000
E’000
(605)
Deficit for Year
(113 )
Actuarial (Loss)/Gain on Pension Scheme Liabilities
14a
(14,092 )
632
Adjustment to Deferred Pension Funding
14a
14,092
(632)
(605)
Total Recognised Losses for the Year
113
The Statement of Accounting Policies and Notes 1 to 17 form part of these financial statements.
Michael Carey
Chairman
Aidan Cotter
Chief Executive
Bord Bia Irish Food Board Annual Report 2012
57
Balance Sheet
As at 31 December 2012
Assets Employed
2012
2011
E’000
E’000
7
201
247
3
3
8
2,219
1,733
5,593
5,863
7,815
7,599
7,191
6,360
624
1,239
614
624
NOTES
Fixed Assets
Tangible Assets
Current Assets
Stocks
Debtors
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
Total Assets less Liabilities before Pensions
10
615
211
862
Deferred Pension Funding
14b
42,143
26,117
Pension Liabilities
14b
(42,143 )
(26,117 )
211
Total Assets less Current Liabilities
862
Financed by
Capital and reserves
Capital account
2
Income and expenditure account
The Statement of Accounting Policies and Notes 1 to 17 form part of these financial statements.
Michael Carey
Chairman
58
Bord Bia Irish Food Board Annual Report 2012
Aidan Cotter
Chief Executive
201
247
10
615
211
862
Cash Flow Statement
Year ended 31 December 2012
Reconciliation of Deficit to Net Cash Outflow
from Operating Activities:
2012
2011
E’000
E’000
Deficit for year
(605)
(113 )
Net Interest receivable
(110)
(136 )
Depreciation
101
181
Capital account transfer
(46)
(105 )
16
Loss on disposal of tangible fixed assets
2
(486)
Increase in debtors
( 295)
-
Decrease in stocks
229
Increase/(decrease) in trade creditors
1
(1,625 )
-
Increase in taxation and PRSI
602
Increase/(decrease) in accruals & deferred income
Decrease in provision for liability and charges
Net cash outflow from operating activities
12
(1,073 )
(10 )
(6 )
(309)
(3,157)
(309)
(3,157)
CASHFLOW STATEMENT
Net cash outflow from operating activities
Returns on investment and servicing of finances:
110
Bank interest received
(199 )
Net current outflow of funds
136
( 3,021)
Capital Expenditure:
Payment to acquire tangible assets
Decrease in Cash
(71)
(78 )
(270)
(3,099)
(270)
(3,099)
Reconciliation of net cash flow to movement of funds
Decrease in Cash
Net funds at 1 January
5,863
8,962
Net funds at 31 December
5,593
5,863
The Statement of Accounting Policies and Notes 1 to 17 form part of these financial statements.
Michael Carey
Chairman
Aidan Cotter
Chief Executive
Bord Bia Irish Food Board Annual Report 2012
59
Notes forming part of the Financial Statements
Year ended 31 December 2012
1. Income
(a) Included in Oireachtas Grant-in-Aid is €5,330,000 which has been made available to An Bord Bia under the Marketing
Sub-Programme of the Productive Sector Operational Programme of the National Development Plan 2007-2013.
(b) Amounts included under the heading of Food Dude - National Roll-Out totalling €1,877,999 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.
(c) Amounts included under the heading of the Quality Assurance Scheme Special Fund totalling €3,509,167 arise in respect
of funding made available by the Department of Agriculture, Food and the Marine to cover the costs of independent onfarm inspections and associated certification processes under the Bord Bia Quality Assurance Scheme.
(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:
2012
2011
E’000
E’000
8
10
158
228
Biofach Organic trade fair
75
-
Asia- Beef Pork Offal-Promotion
52
63
More to Mushrooms Promotion
410
359
703
660
Bloom Garden
Domestic & Small Business Organic Promotion
(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 25c 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 €110,061 (2011: €136,173).
2. Capital account
2012
2011
E’000
E’000
247
352
71
78
(16)
(2)
(101)
(181)
Net transfer to Income and Expenditure Account
(46)
(105 )
Balance at 31 December
201
247
Balance at 1 January
Amount capitalised in respect of purchased tangible assets
Amounts released on disposal of tangible assets
Amortisation in line with asset depreciation
60
Bord Bia Irish Food Board Annual Report 2012
Notes forming part of the Financial Statements
Year ended 31 December 2012
3. Marketing and Promotional Expenditure
2012
2011
E’000
E’000
Promotions
5,997
7,467
Marketing Development
5,045
5,077
Trade Fairs and Exhibitions
4,064
4,075
Information Services - Research
2,518
2,679
159
418
Quality Assurance
1,354
1,236
Trade Development
3,345
2,574
119
153
Information - Other Services
Other Client Services
1,928
1,551
24,529
25,230
779
749
Marketing & Promotion
8,070
7,764
Administration
2,647
2,555
10,717
10,319
Wages and salaries
7,864
7,592
Social welfare costs
565
558
2,288
2,169
10,717
10,319
Fellowship Plus
4. Marketing Finance
Marketing Assistance Programme
5. Pay
Pay costs are comprised of:
Pension costs (Note 14a)
The remuneration of the Chief Executive included in the above pay costs is as
follows:
Salary
E
E
160,082
160,082
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 2012 was 90 (2011: 93). The cost of certain
part-time employees amounting to €89,075 (2011: €89,197) is included in Marketing and Promotional Expenditure.
A total of €433,137 (2011: €447,389) 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.
Bord Bia Irish Food Board Annual Report 2012
61
Notes forming part of the Financial Statements
Year ended 31 December 2012
6.
2012
2011
E’000
E’000
192
205
Rent, rates and insurance
1,032
1,043
Telecommunications costs
170
184
General business expenses
1,352
1,201
22
25
101
181
Operating expenditure
Board and Sub-Board Members' fees and expenses
Audit fee
Depreciation (Note 7)
16
2
2,885
2,841
E
E
Mr. M. Carey*
-
-
Mr. D. Browne
-
5,566
Mr. G. Brown
11,970
2,820
Mr. J. Bryan
11,970
11,970
-
-
10,707
-
Loss on disposal of tangible assets
Board members’ fees are as follows:
Ms. M. Byrne
Mr J. Comer
-
11,970
Mr. M. Cronin
11,970
2,820
Mr. R. Carolan
-
3,312
8,445
11,970
Mr. V. Cleary
-
3,312
Mr. P. Cusack
-
8,559
Ms. A. Dennison
11,970
11,970
Mr. K. Dunne
11,970
11,970
Mr. F. Hayes*
-
11,970
Mr. J. Horgan*
-
-
Mr. J. Hyland
-
3,247
Ms. R. Holland
11,970
2,820
Mr. J. Kingston
11,970
2,820
Prof. F. O’Gara
11,970
11,970
Mr. M. O’Rourke
2,722
11,970
Mr. B. Sweeney*
-
2,820
117,634
133,856
19,929
13,677
Mr. J. Cahill
Dr. N. Cawley
Total
Board members’ travel and subsistence expenses
* Indicates those Board members who have waived part or all of the fee payable, as a Board member, during
2012. No fees are payable to Ms. M. Byrne, Principal Officer, Department of Agriculture, Food and the Marine.
62
Bord Bia Irish Food Board Annual Report 2012
Notes forming part of the Financial Statements
Year ended 31 December 2012
7.
Tangible Fixed Assets
Improvements
to Leasehold
Property
Furniture and
fittings
Computer
equipment
Office
equipment
Total
Cost
E’000
E’000
E’000
E’000
E’000
At 1 January 2012
1,704
671
626
355
3,356
Additions in year
-
7
47
17
71
Disposals
-
(62)
(98)
(161)
(321)
1,704
616
575
211
3,106
1,657
593
533
326
3,109
At 31 December 2012
Depreciation
At 1 January 2012
Charged in year
16
11
65
9
101
-
(59)
(93)
(153)
(305)
1,673
545
505
182
2,905
At 31 December 2012
31
71
70
29
201
At 31 December 2011
47
78
93
29
247
Disposals
At 31 December 2012
Net Book Amounts
Bord Bia Irish Food Board Annual Report 2012
63
Notes forming part of the Financial Statements
Year ended 31 December 2012
8.
Debtors
Amounts falling due within one year: Trade debtors
2011
E’000
E’000
1,204
1,087
(597)
( 593)
607
494
1,612
1,239
2,219
1,733
Trade creditors
1,430
1,201
Exchequer pension contributions
1,299
1,219
Taxation and social welfare (Note 10)
219
219
Withholding tax
306
340
Accruals
2,285
2,146
Deferred Income
1,652
1,235
7,191
6,360
154
155
65
64
219
219
Less: Provision for Bad Debts
Prepayments and accrued income
9.
2012
Creditors (amounts falling due within one year)
10. Taxation and Social Welfare
Taxation and social welfare creditors comprise the following:
Income Tax
P.R.S.I.
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.
64
Bord Bia Irish Food Board Annual Report 2012
Notes forming part of the Financial Statements
Year ended 31 December 2012
11. Provisions for Liabilities and Charges
At
1 January
2012
Provided
during
year
Released
during
year
At
31 December
2012
E’000
E’000
E’000
E’000
41
-
583
-
624
-
Value Added Tax
Provision for Dilapidations
31
(10 )
583
-
614
(10 )
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.
12. Commitments
(a) Capital Commitments
An Bord Bia had no capital commitments at the year end.
(b)
Financial Commitments
There were no commitments in respect of Marketing Finance Programmes at the year end. (c)
Operating Leases Operating leases comprise leases of premises. Leasing commitments payable during the next twelve months
amount to €745,291 made up as follows:
Payable on leases on which the commitment expires:
E
84,892
Within one year
Within two to five years
199,027
Six years and over
461,372
745,291
13. Contingent Liabilities
Contingent liabilities exist in respect of amounts approved but unclaimed at the year end under the terms of the
following Marketing Finance Programme operated by Bord Bia as follows:
Marketing Assistance Programme
2012
2011
E’000
E’000
1,023
1,009
Management estimates the contingent liabilities under this heading will be settled within one year.
Bord Bia Irish Food Board Annual Report 2012
65
Notes forming part of the Financial Statements
Year ended 31 December 2012
14. Superannuation
2012
2011
a i) Pension costs
E’000
E’000
Service cost
1,207
1,186
( 337)
(387)
870
799
Interest Cost
1,479
1,370
Total
2,349
2,169
Employee contributions
Current service cost
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 €770,516 in the year (2011: €830,515).
An amount of €1,298,733 was due at 31 December 2012 (2011: €1,219,458) 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
Changes in assumptions
1,116
751
(15,208 )
(119 )
(14,092 )
632
b i) Present value of scheme obligations
26,117
24,751
Service cost
1,207
1,186
Interest costs
1,479
1,370
14,092
( 632)
Present value of scheme obligations at beginning of year
Actuarial loss/(gain)
Benefits paid
Present value of scheme obligations at end of year
66
Bord Bia Irish Food Board Annual Report 2012
(752)
42,143
(558 )
26,117
Notes forming part of the Financial Statements
Year ended 31 December 2012
14. Superannuation (Cont’d)
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 benefits
or associated provision for members. The Department of Agriculture, Food and the Marine will provide funding where
the pensions paid exceed the 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 an 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 service pensions,
including the annual estimates process.
A deferred funding asset of €42.143 million equal to the pension liability is recognised at 31 December 2012 (2011:
€26.117 million). The deferred funding asset at the year end was determined after taking into account Net Deferred
Funding for Pensions in the year of €2.288 million and adjustments arising from the actuarial loss of €14.092 million
and from pensions payable under the Bord Bia scheme of €731,790 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)
2012
2011
E’000
E’000
2,349
2,169
( 61)
( 62)
2,288
2,107
c) Description of schemes and actuarial assumptions
The Board operates two 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 Finance 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.
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 Finance.
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 2012 for the
purpose of preparing this FRS17 disclosure. The liabilities and costs have been assessed using the projected unit method.
Bord Bia Irish Food Board Annual Report 2012
67
Notes forming part of the Financial Statements
Year ended 31 December 2012
14. Superannuation (Cont’d)
Financial assumptions
The principal actuarial assumptions used to calculate the retirement benefit obligations under FRS17 were as follows:
31/12/2012
31/12/2011
Discount Rate
3.55%
5.75%
Inflation Rate
2.00%
2.00%
Salary increases
4.25%
4.25%
Pension increases
3.75%
3.75%
The following amounts were measured in accordance with the requirements of FRS17.
Demographic assumptions
The mortality table is 62% of PNML00 for males and 70% of PNFL00 for females. There is an addition to the annuity
factor of 0.39% for each year between 2008 and the individual’s Normal Retirement Age. 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
21.9
23.5
65 in 25 years
25.0
26.1
d) History of defined benefit obligations, assets and experience gains and losses
2012
2011
2010
2009
2008
E’000
E’000
E’000
E’000
E’000
Defined benefit obligations
42,143
26,117
24,751
23,169
21,732
Fair value of scheme assets
-
-
-
-
12,807
Deficit on Superannuation Schemes
(42,143)
(26,117)
(24,751)
(23,169)
(8,925)
Experience adjustments on scheme obligations
(14,092 )
632
1,266
1,822
(920)
-
-
1,239
(6,685)
Experience adjustments on scheme assets
68
Bord Bia Irish Food Board Annual Report 2012
-
Notes forming part of the Financial Statements
Year ended 31 December 2012
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
An Bord Bia occupies premises at Clanwilliam Court, Lower Mount Street, Dublin 2 under a rental agreement. This
agreement, which commenced in 2010, is for a period of ten years.
The rental charge for 2012 was €377,470. In addition, the Board occupies ten other properties in various locations
internationally. The total rent paid on these premises in 2012 was €399,726.
17. Approval of Financial Statements
The Board approved the financial statements on 29th May 2013.
Bord Bia Irish Food Board Annual Report 2012
69
Marketing Finance Grant Payments 2012
Company
ABC Nutrition Ltd
Adare Farm Foods
Alan Kelly Tomatoes t/a Golf Road Nurseries
Amour Nurseries
Annascaul Black Pudding
Babylon Foods Ltd
Badger & Dodo Coffee
Ballybrado Ltd
Ballyleague Mushrooms
Barry's Bakery Ltd
Beal Organic Cheese
Beechlawn Organic Farm
Blackwater Valley Meats
Broadway Bagels Ltd
Brookridge Farm Ltd
Caherbeg Free Range Pork Ltd
Cahill Farm Cheese Ltd
Cais Cuil-Aodha Teoranta
Carleton Cake Co. Ltd
Carlow Craft Brewery Ltd
Castlecor Potatoes
Cathy's Spelt for Health
Celtic Chocolates Ltd
Celtic Pure Ltd
Chia Booster Distribution Ltd t/a Chia Bia
Chris Brownlow Potatoes
Clanwood Farm
Clinton Foods Ltd
Connemara Seafoods Ltd
Coolanowle Organics
Country Cooking Co.Ltd
Couverture Ltd
Crossogue Preserves
Crowe Meat (Dundrum) Ltd
Cuinneog Ltd
Cybercolors Ltd
Dee's Wholefoods Ltd
Deliciously Different Cake Ltd
Eight Degrees Brewing Company Ltd
Emerald Cheese Co Ltd t/a Fermoy Natural Cheese
Emly Eggs Ltd
Farm Fresh Homemade Foods Ltd
Fior Uisce Ltd
Flair Confectionery
Flanagan Fish Merchants
Flannery's Nurseries Ltd
Fusco Foods Ltd
Gannett Fishmongers Ltd
Glenilen Farm Ltd
Green Earth Organics
Green Saffron Ltd
G's Gourmet Jams Ltd
Happy Days Artisan Ice Cream
Healy Fine Foods Ltd t/a Wicklow Fine Foods
Heatherfield Ltd t/a Seery's
Hickeys Bakery Ltd
Highbank Orchards
Hot Irishman Ltd
Hughes Roses Ltd
Hyde Ltd
Iasc Mara Teoranta
IL Valentino Continental Bakery Ltd
Inagh Farmhouse Cheese Ltd
Irish Artisan Beverages
Irish Cone & Wafer Co Ltd
Irish Direct Confectionery Ltd t/a Tea Time Express
Irish Seaspray Ltd
Island Seafoods Ltd
Island View Nurseries
ITSA Bagel Ltd
J&L Grubb Ltd
Janet's Country Fayre Ltd
Jinny's Bakery Ltd
Amount €
15,000
4,000
3,000
1,200
3,000
2,390
3,084
4,000
3,335
200
3,000
844
1,767
4,443
4,000
1,984
8,000
2,003
1,165
17,695
3,996
2,000
5,869
13,114
5,000
3,000
3,000
480
10,000
365
3,725
8,710
3,000
11,000
4,288
8,000
3,720
6,000
600
2,500
5,000
1,796
3,684
3,000
3,083
1,302
11,562
2,700
20,000
1,217
6,562
6,000
2,000
7,000
3,830
2,000
2,000
8,000
6,000
15,000
1,644
2,000
18,000
2,546
3,856
10,000
5,635
11,445
8,000
268
17,782
4,350
3,000
Company
JM Food Services Ltd
JMW Potatoes Ltd
Kellys of Newport
Kelly's Organic Dairy Products Ltd
Keoghs Crisps Ltd
Keohane Seafood Ltd
Kilbeg Dairy Delights
Kilfera Food Manufacturers Ltd
Killeen Farmhouse Cheese
Kinvara Smoked Salmon Ltd
Knockanore Farmhouse Cheese
Knockdrinna Farmhouse Cheese
Kohinoor Ltd
Kooky Dough Ltd
Kush Seafarms Ltd
LC Confectionery Ltd
Liam O'Keeffe and Co Ltd t/a O'Keeffe's Artisan Bakery
Linnalla Ice Cream
Man of Aran Fudge
Mannings Bakery Ltd
Marchminder Ltd t/a Cooleeney Farmhouse Cheese
McEvoy Family Foods
Meadowsweet Apiaries Ltd
Mileeven Ltd t/a Mileeven Fine Foods
Milseoga Uí Mhurchú Idirnaisiunta t/a Murphy's Ice Cream
Mossfield Organic Farm
Mr.Middleton Garden Shop Ltd
Nightpark Nursery
Noirins Bakehouse Ltd
Nutweave t/a Bombay Pantry
O'Callaghan Delicious Gourmet Foods Ltd
OHCO Ltd t/a Organic Herb Co
Olvi Oils Ltd
O'Neill Foods Ltd
Paddy's O'Granola
Pandora Bell
Ponaire Ltd
Prue & Simon's Ltd
Radical Fruit Co.Ltd t/a Wild Orchard
Rathcreedan Limited t/a Sushi King
Rices Hill Farm Ltd
Rose Manufacturing Ltd
Ryan's Farm
Sam's Cookies Ltd
Schram Plants Ltd
Shannon Estuary Oysters
Sheelin Mushrooms
Sillis Green Veg Ltd
Skelligs Chocolates
Slender Choice
Solaris Botanicals
Spanish Point Sea Veg
Spice O'Life Ltd
Stams Bamboo Nursery Ltd
Straight Sausages Ltd t/a Jane Russell's Original Irish
Taste a Memory Foods
The Bretzel Bakery
The Burren Smokehouse Ltd
The Foods of Athenry Ltd
The Hooker Brewery
The Tipperary Kitchen
Tipperary Organic Ice Cream Ltd
Trudies Catering Kitchen Ltd
Ummera Smoked Products Ltd
Virginia Health Food Ltd
Volcano Wood Fired Pizza
Wexford Preserves
Whelan and Lombard Ltd t/a Pure Brazen
Whelan Food & Meat Processors
Whitefrost Ltd t/a Franciscan Well Brewery
Wicklow Farmhouse Cheese Ltd
Yellow Furze Nurseries
Zanna Cookhouse Ltd
Total
70
Bord Bia Irish Food Board Annual Report 2012
Amount €
7,000
3,000
5,000
5,000
4,000
5,000
6,000
8,963
1,909
3,559
6,000
3,000
12,000
7,170
8,000
4,000
5,000
3,500
2,000
15,000
15,000
9,611
989
8,000
6,733
1,172
8,000
4,161
2,588
6,477
4,011
2,000
500
5,755
3,000
2,000
4,000
4,599
1,236
3,500
3,000
8,000
1,500
15,851
5,928
5,000
3,335
24,000
5,000
3,000
4,000
2,840
10,000
1,980
2,159
1,874
5,000
10,000
10,350
15,224
2,281
692
9,962
970
5,000
595
2,000
2,343
7,000
3,000
7,517
5,000
3,000
778,573
Bord Bia Offices
Head Office
Amsterdam
Moscow
Clanwilliam Court
Lower Mount Street
Dublin 2, Ireland
T +353 1 668 5155
F +353 1 668 7521
World Trade Centre
Strawinskylaan 1351
1077 XX Amsterdam
The Netherlands
T +31 20 754 6969
F +31 20 754 6961
Orlikov per, 3B
Moscow 107139
Russia
T +7 495 607 8150
F +7 495 607 8460
Dusseldorf
Derendorfer Allee 6
40476 Dusseldorf
Germany
T +49 211 8681 497
F +49 211 8681 499
London
201-203 Great Portland Street
London
W1W 5AB
United Kingdom
T +44 20 7307 3555
F +44 20 7307 3556
Madrid
Casa de Irlanda
Paseo de la Castellana
No 46 - 3a planta
28046 Madrid
Spain
T +34 91 435 6572
F +34 91 435 6211
Milan
Via E. De Amicis, 53
20123 Milano
Italy
T +39 02 7200 2065
F +39 02 7200 4062
New York
Ireland House
345 Park Avenue
17th Floor
New York
NY 10154-0037
USA
T +1 212 935 4505
F +1 212 935 4385
Paris
Maison d’Irlande
33, rue de Miromesnil
75008 Paris
France
T +33 1 42 66 22 93
F +33 1 42 66 22 88
Shanghai (Asia Office)
Suite 733
Shanghai Centre
No. 1376 Nan Jing Xi Road
Shanghai 200040
China
T +86 21 627 98829
F +86 21 627 98849
Stockholm
Embassy of Ireland
Hovslagargatan 5
11148 Stockholm
Sweden
T + 46 8 545 04058
Bord Bia Irish Food Board Annual Report 2012
71
Head Office: Clanwilliam Court, Lower Mount Street, Dublin 2, Ireland.
T +353 1 668 5155 | F +353 1 668 7521 | E info@bordbia.ie | www.bordbia.ie
Growing the success of Irish food & horticulture