2011
Annual Report & Accounts
Sourcing from Ireland
Sourcing Sustainably
Growing the success of Irish food & horticulture
International markets
accounted for
24%
of total exports
in 2011
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.
4
Bord Bia Irish Food Board Annual Report 2011
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.
Bord Bia Irish Food Board Annual Report 2011
5
Pathways for Growth –
Review & Outlook May 2011
The implementation of the Pathways for Growth and Food Harvest
2020 reports provide a shared platform for action as Ireland turns its
immense natural advantages into a sustainable high-value food and
drink export industry.
Five work streams arose from the Pathways for Growth report:
• Brand Ireland - the development of an umbrella food brand with verified sustainability at its core.
• Education - enhancing leadership and management capability across the industry through learning
programmes supported by third-level institutions.
• Co-opetition - creating a culture where Irish companies work as partners, not competitors, to increase
their ability to win business overseas.
• Innovation - developing the industry capacity to produce innovative products that anticipate consumer
demand and deliver new growth streams.
• Entrepreneurship - attracting non-food entrepreneurs and investors into the industry and encouraging
senior executives to take entrepreneurial positions within it.
6
Bord Bia Irish Food Board Annual Report 2011
Contents
Our Business
Our Governance
Our Accounts
8
48 Corporate Statement
59 Report of the
Comptroller
and Auditor General
Food and
Drinks Industry
12 Export Figures
51 Statement on Internal
Financial Control
16 Chairman’s Statement
52 Organisation Structure
19 Chief Executive’s
Review
54 Bord Bia Board
25 Meat and Livestock
29 Food & Beverages
35 Small Business and
Organic Sectors
38 Horticulture
41 Quality and
Environmental
Assurance
43 Services
55 Bord Bia Consumer
Foods Board
55 Bord Bia Meat and
Livestock Board
60 Statement of
Accounting Policies
62 Income and
Expenditure Account
63 Statement of
Total Recognised
Gains and Losses
64 Balance Sheet
56 Bord Bia Quality
Assurance Board
65 Cash Flow Statement
56 Bord Bia
Horticulture Board
66 Notes Forming
Part of the Financial
Statements
76 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 2011.
Michael Carey
Chairman
Bord Bia Irish Food Board Annual Report 2011
7
The Irish Food and drink industry
Exports increase by
12%
in 2011 to
€8.84bn
Commenting on the figures, Michael Carey, Chairman stated:
‘This is an excellent achievement and the industry is to be
commended for its strong export performance, which affirms
its positioning at the heart of the Irish economy. Global
market conditions, reflected in strong commodity prices,
remain favourable and exporters are voicing continued
optimism about their business prospects for the year ahead.
The industry is well on track to deliver on the ambitious
targets of Food Harvest 2020.’
8
Bord Bia Irish Food Board Annual Report 2011
•The value of Irish food and drink exports increased by 12% in 2011 to reach
€8.84 billion.
• Meat and dairy sectors accounted for almost two-thirds of total food and
drink exports.
•Over the last two years, the value of Irish food and drink exports has
increased by €1.8 billion or 25%.
•Food and drink exports grew at three times the rate of total merchandise
exports.
• The food and drink industry accounted for 25% of the rise in total export
revenue.
• The food and drink industry represents 10% of merchandise exports.
• Irish food and drink is exported to more than 170 countries across the globe.
• The industry supports more than 230,000 jobs directly and indirectly.
• The industry has an annual gross output of some €22 billion.
• Exports of food and drink to Asia are estimated to have increased by
one-third and overall exports to international markets are estimated
to have increased by 20%.
•Irish beef exports increased by 17% to €1.86 billion.
• Irish pigmeat exports increased by 18% to €396 million.
• Irish sheepmeat exports increased by 19% to €190 million.
• Irish dairy exports increased by 18% to €2.69 billion.
Bord Bia Irish Food Board Annual Report 2011
9
The Irish Food and Drink Industry
Bord Bia Food and Drink Industry Awards 2011
Jameson Irish Whiskey a key contributor to the growth in Irish food and drink exports in 2011
won the Bord Bia Food and Drink Export Award. Congratulating Irish Distillers on the Award,
the Minister for Agriculture, Food and the Marine, Simon Coveney T.D. stated that:
‘Irish Distillers has shown huge marketing commitment to Irish whiskey and its
exceptional export performance is to be welcomed not only for the sustained double
digit growth in exports, but for the fact that it promotes the Irish identity in more than
120 countries around the world. It is proudly rooted in Irish heritage and tradition
and its global reach provides a platform to build awareness and enhance the brand
reputation of our entire food and drink industry, a key element of Food Harvest 2020’.
The Food and Drink Industry Awards, held in association with Rabobank, were open to all food and drink products manufactured in Ireland.
Bord Bia received a total of 184 award entries across the six categories; innovation, domestic success, branding, entrepreneurship, exporting
and sustainability. The key contribution of Jameson Irish Whiskey was recognised when it won the Bord Bia Food and Drink Export Award at the
ceremony in Trinity College. Pictured are Kevin Knightly, CEO, Rabobank Ireland, Minister for Agriculture, Food and the Marine, Simon Coveney
T.D., Rosemary Garth, Irish Distillers and Michael Carey, Chairman, Bord Bia.
10
Bord Bia Irish Food Board Annual Report 2011
Export Award – Jameson
Over one billion glasses of Jameson are consumed around the world each year.
Jameson is a global brand with a presence in over 120 markets. In 2010 the iconic
brand passed a key milestone selling three million cases of whiskey globally and
is set to reach four million cases by 2012. Irish Distillers and Pernod Ricard are
investing over €100 million in Ireland over the coming three years to sustain the
rapid expansion of the brand.
Innovation Award: Natasha’s Living Food for Kale Crunchies
Natasha Czopor established Natasha’s Living Food, an innovative, health food
manufacturing company, three and a half years ago. Raised as a vegetarian,
Natasha felt there were no alternatives on the market for truly healthy snacks. Her
new product – Kale Crunchies – are made from locally grown kale.
Sustainability Award – Country Crest
Based on a four generation family farming tradition, Country Crest (based in North
County Dublin) prides itself on its strong environmental and sustainability ethos in
all aspects of its business from farming 2000 acres, growing and packing 500 tons
of potatoes and 120 tons of onions to producing 80,000 prepared meals per week.
In tandem with its business expansion, Country Crest has not lost sight of its green
roots and includes a wind turbine, water recycling, and a wildlife pond, as part of
their environment philosophy. Energy management, together with an 800kW wind
turbine, has resulted in reduced reliance on fossil fuel for power requirements. This
together with an anaerobic digestion plant planned in the near future will help to
achieve Country Crests aim of energy self-sufficiency by 2015.
Domestic Success Award – Flahavan’s
Flahavan’s, one of Ireland’s leading private companies, has been milling quality
Irish oats for over six generations at the family mill in Kilmacthomas, Co.
Waterford. Flahavan’s has seen strong growth in its market share of the hot
oats cereal category and continues to maintain its leadership position in the Irish
market. Key customers in the domestic market include Musgraves/Superquinn,
Tesco, Dunnes Stores, independents and forecourts.
Branding Award – Largo Foods for Tayto
In 2006, Ashbourne based Largo Foods purchased the well known but struggling
brand Tayto for €68 million. At the time, Tayto was in a difficult position with
an ageing and slowly declining loyalty base. The only path forward for the brand
was to reinvigorate its personality and to protect and grow its number one status
in Ireland. To compete successfully with the global multinationals, creativity had
to be the key ingredient. This meant developing many non-traditional ideas and
using some not so obvious mediums. These included running Mr. Tayto in the
general election, a Mr. Tayto song in the Irish download charts, classified ads,
Bebo, Youtube & Facebook profiles, a bestselling autobiography and biggest of all,
a theme park called Tayto Park. Tayto is currently Ireland’s number one crisp and
snack brand, with over three million packs sold in Ireland each week.
Entrepreneurial Award – Arun Kapil, Managing Director,
Green Saffron
In 2007, Arun Kapil set up Green Saffron – an award winning family business
based in Midleton, Co. Cork. The company specialises in the premium, farm-fresh
whole spices and blends of exceptional quality for use in home and professional
kitchens alike. Green Saffron products are currently sold in farmers markets, select
supermarkets and in over 80 speciality food, farm shops and cookery schools
throughout Ireland including Avoca, Donnybrook Fair and Fallon & Byrne.
Bord Bia Irish Food Board Annual Report 2011
11
1500
1000
Exports of Irish food and drink (€m)
500
0
€m
3000
3000
2011 (p)
2010
2500
2500
2000
1500
1500
1000
1000
500
500
s*
*
nt
gr
ed
ie
Be
Fo
In
ar
ed
&
ts
uc
ve
ef
od
ge
s
s
t
Be
gm
ea
d
Pi
oo
ra
Pr
ep
re
af
ls
&
Ce
Po
ltu
cu
Pr
od
Da
iry
Ed
ib
le
Ho
rti
Se
ul
re
a
t
ea
pm
al
ee
Sh
im
An
e
Liv
try
00
s
(p) = 2011 figures are provisional
Over the next four decades the world must produce 70% more food.
Food Harvest 2020 is Ireland’s roadmap to exploit the growing global demand for food and drink.
Our goal is to expand output and grow exports by over 40% in this decade.
Ireland is seen as a green and natural food producer and a protector of the natural environment
with a reliable source of pure water.
The carbon footprint of Irish meat and dairy products is amongst the lowest in the EU (EU Commission study).
Bord Bia’s Beef Quality Assurance Scheme is the first such scheme in the world to integrate carbon footprint measures.
Ireland has a compelling story to tell in terms of its green and natural environment and our sustainability programme
will demonstrate our credentials and differentiate us in a world that is increasingly concerned about climate change
and how we use our natural resources.
12
Bord Bia Irish Food Board Annual Report 2011
Exports of Irish food and drink (€m)
2010
2011 (p)
2011/2010
€m
€m
% +/-
Dairy Products and Ingredients*
2,271
2,685
+18
Beef*
1,585
1,860
+17
Prepared Foods
1,375
1,420
+3
Beverages
1,171
1,218
+4
Pigmeat
336
396
+18
Seafood
371
418
+13
Edible Horticulture and Cereals
193
238
+23
Poultry
202
210
+4
Sheepmeat
160
190
+19
Live Animals
Total Food and Drinks
*includes export refunds
245
205
-16
7,909
8,840
+12
Source: Bord Bia estimates
(p) = 2011 figures are provisional
Sourcing from Ireland means Sourcing Sustainably
Bord Bia’s sustainability programme is credibly demonstrating and proving our credentials in sourcing sustainably.
Our quality assurance schemes are evolving to include additional environmental assurances by measuring and
certifying performance in key areas such as carbon footprint, water, biodiversity and animal welfare. Working with
Carbon Trust we have developed a PAS2050 accredited methodology for tracking the carbon footprint of Irish beef
and dairy. We are on a journey to roll out across all Irish primary production and along the food supply chain to
deliver on our claim that ‘we are natural and we can prove it’.
The mildness of the Irish climate ensures an exceptionally long grass-growing season, contributing to the excellent
flavour and health qualities of Irish beef and dairy. The purity of the environment and the rigorous standards set by
Irish cattle health and movement monitoring systems mean Irish beef is also among the safest in the world. Over
90% of Irish beef output is exported, making Ireland the largest net exporter of beef in the
Northern Hemisphere. Ireland’s reputation for delivering a first class product time after time
has been hard won and is jealously guarded. The sustainability certification programme is a key
initiative of Bord Bia designed to help differentiate our exports and enhance market returns.
Since its rollout in May 2011, the carbon footprint of over 13,000 Irish beef farms has been
measured as a routine part of the quality assurance scheme and work is underway to add
water footprint and biodiversity measures. Some 95% of poultry and pigmeat, 75% of beef
and 50% of lamb production comes from quality assured farms. Bord Bia currently completes
some 500 quality assurance audits every week.
Bord Bia Irish Food Board Annual Report 2011
13
Market distribution of Irish
food and drink exports (%)
2010
United
Kingdom
34
24%
2011
35%
2010
Other EU
Other EU
30
2011
36
41%
2011
0
5
International Markets
32
2010
International
Markets
United Kingdom
32
10
15
20
25
36
30
35
40
2010
United
Kingdom
44
2011
41
2010
Other EU
33
2011
35
2010
International
Markets
23
2011
0
24
10
20
30
40
50
recorded strong export growth led by the Netherlands,
The United Kingdom is estimated to have accounted
Germany and France. As3,435
a result, the share of exports going
for just over 41% of total Irish2010
food and drink exports in
United
to
the
region
increased
to
35%. Dairy exports were the key
2011. Total exports
for
the
year
to
the
UK
are
estimated
Kingdom
2011 €200 million to reach
3,600recording a rise of around
driver of export growth in 2011,
to have increased by 6% or almost
one quarter to the region. Other categories, which recorded
€3.6 billion. The main drivers of export growth to the UK
2,600
2010
double digit export growth, include meat and seafood while
were dairy and beef
andEU
to a lesser extent sheepmeat and
Other
more modest growth
poultry. A challenging market2011
environment for prepared
3,065was also evident in beverages and
prepared food exports.
food exporters meant only a modest increase in trade for
2010 to the sector as the 1,850
the year, although
growth returned
International
Irish food and drink exports performed very strongly to
year progressed. Markets
2,175
2011
International markets during 2011 led by strong growth
in dairy, meat, seafood and prepared food exports. For the
Exports of Irish food and drink products to other European
0 increased
500 by 14%
1000or €375
1500
2000it is estimated
2500
3000
3500
year,
that
exports
outside 4000
of Europe grew by
markets are estimated to have
20% or €350 million to reach almost €2.18 billion.
million in 2011 to reach €3.07 billion. All major markets
40
An Áise
14
Bord Bia Irish Food Board Annual Report 2011
36
An Afraic
Meiriceá Thuaidh
13
2010
2010
International
United
Markets
Kingdom
Other EU
2011
2011
10
3033
20
40
23
2010
2011
3,435
24
2011
10
2010 Distribution
20
30
1,850
2010
2010
0 2010 500
1000
1500
3,600
2000 2,600
2500
2011
3000
3500
4000
3,065
1,850
2010
2011
An Afraic 0
50
3,435
2,175
2011
2011
International
Markets
An Áise
3,600
40
of food and drink
2,600 exports –
2011 vs. 2010 (€m) 3,065
2011
International
United
Markets
Kingdom
50
35
2010
Other EU
40
2,175
500
1000
Meiriceá Thuaidh
1500
2000
2500
3000
36
3500
4000
13
Middle
An East
Áise
North Africa
40
9
0
Meiriceá Thuaidh
5
10
15
20
25
30
36
35
40
Growth in food and drink exports
13
to International
Markets - 2011 vs. 2010 (%)
Middle East
North Africa
Asia
9
40
Africa 0
5
10
North America
15
20
25
30
3635
40
13
Middle East/
Asia
North Africa
Africa
41
2011
0
An Afraic
44
24
0 2010
International
Markets
United
Kingdom
Other EU
23
40
9
0
5
10
North America
15
20
25
30
36
35
40
15
20
25
30
35
40
13
Middle East/
North Africa
9
0
5
10
Bord Bia Irish Food Board Annual Report 2011
15
Chairman’s Statement
In 2011, for the second year in a row, the value of Irish food and drink exports grew in double
digit figures, reaching an all-time high of €8.84 billion. A rise in value of 12% or €1 billion,
over the year, meant the sector accounted for 25% of the growth in the country’s total export
revenue for that year, a statistic that affirms, beyond any doubt, the renewed importance to the
economy, of Ireland’s largest indigenous industry which supports over 230,000 jobs directly
and indirectly.
Overview
Taking 2010 and 2011 together, the
value of Irish food and drink exports
has increased by €1.8 billion or 25%.
There are few obvious comparisons,
in any sector of the Irish economy, of
such robust and sustainable growth
being achieved through exports. To do
so against a backdrop of continued
global economic uncertainty makes
these figures all the more noteworthy.
The protracted eurozone crisis of
2011 was, in many respects, the latest
expression of the economic turmoil
that has beset the global economy
since 2008. Its impact on consumer
sentiment across Europe was profound
and has cast a shadow on the tentative
recovery taking place in the continent’s
economy. However, it is well to note
that the dampening effect on the
demand for Irish food and drink
exports, which became evident in the
fourth quarter of 2011 was, ultimately,
less severe than many had predicted.
Michael Carey, Bord Bia’s Chairman addressing the attendees at Bord Bia’s Food and Drink Industry
Awards in November 2011.
16
Bord Bia Irish Food Board Annual Report 2011
Market diversification
In addition to a strong overall
performance, the increasing
diversification of our export base was
a further noteworthy development
in 2011. The value of exports to
continental European markets increased
by 14%, or €375 million, to over
€3 billion, with particularly effective
performances in the Netherlands,
Germany and France, all countries
in strong positions to weather the
economic challenges of 2012. The
strong performance of Irish companies
in international markets, meanwhile,
also offers a signpost to future
growth opportunities, and affirms the
competitiveness of the Irish supply
base. In 2011, the value of exports to
third countries grew by 20%, or €350
million, reaching almost €2.2 billion.
Vigorous performances were particularly
evident in dairy, meat and seafood.
This welcome refocusing has not come
at the expense of our single biggest
export market, and the centrality of
the UK to food and drink exporters
remained a feature of 2011. The total
value of exports to the UK saw a
healthy 6% rise, and now accounts for
41%, or €3.6 billion, of all Irish food
and drink exports. The redoubling of
marketing efforts in our key export
markets and the building of our
exporting capability beyond traditional
‘comfort zones’ will continue to pay
dividends in 2012, and the expectation
is that Irish food and drink companies
will make further headway in both core
and non-traditional markets.
International perspective
In spite of the overall weakness in
global economic sentiment, the
achievements of 2011 were based on a
number of significant macro-economic
positives, among them favourable
global market conditions, strong
commodity prices, and stability in key
currency exchange rates. Indicators
of this favourable context include the
FAO food price index, which ran more
than 25% higher over 2011, and
the Agricultural Outlook of the FAO/
OECD, which predicts strengthening
commodity prices will remain in
evidence over the rest of the decade,
with meat and dairy prices set to run
more than 20% ahead of the last
decade’s average prices.
Underscoring such projections are two
indisputable facts – an accelerating
world population and a global
agricultural base that will struggle
to keep pace. Both the general
increase in demand for food, and the
growing sophistication of consumers
in developing economies, must be
seen as representing major long-term
opportunities for Ireland. The caveat,
however, is that long-term trends do
not come without short-term risks
and the industry is well versed in the
disruptive impacts of currency flux,
price volatility, supply shocks, weather
events and market speculation. That
said, the experiences of the 2008/09
period, in particular, provided a
significant learning curve and there
now exists a considerable level of
sophistication in the industry with
respect to managing export risk.
Acknowledging the positive macroeconomic context of 2011 should, also,
not lessen the credit due to individual
Irish food and drink companies, who
have positioned themselves in markets
that are, for the most part, no less
price competitive than our own. The
success of our consumer food and
beverage exports have less to do
with rising global commodity prices
and more to do with the particular
marketing and sales capabilities of
individual companies.
The continued optimism voiced across
all sectors of the industry, as expressed
through the Bord Bia leadership survey
at the end of the year, confirms the
ongoing determination to win new
market share in 2012.
Pathways for Growth
The 2011 industry performance can
be positioned in the context of a
decade-long strategy to maximise
the potential of our agri-food sector.
Food Harvest 2020, the Department
of Agriculture, Food and the Marine’s
framework document for the industry,
targets growth in the total volume
of exports to reach €12 billion by
2020, a 42% increase on the 2007-09
average. The strong performance of
2011 confirms an industry not only on
target but, in some areas, ahead of
target, in delivery.
Bord Bia’s own commitment to
supporting these growth objectives
is expressed in Pathways for Growth,
the inter-disciplinary five-year
development programme initiated in
2010, which is based on the report of
the same name, authored by Professor
David E. Bell and Mary Shelman of
the world-renowned Harvard Business
School and launched at Bord Bia’s
Leadership Summit in 2010. At the
follow-up Leadership Summit in
2011, Bord Bia was in a position to
demonstrate how the Pathways for
Growth programme has evolved,
allowing Bord Bia to be a catalyst
for the change in five key areas:
‘Brand Ireland’, the development of
a new national umbrella food brand;
education, the enhancement of
leadership and management capability
in our industry; co-opetition, the
encouragement of partnership
arrangements that increase the
capacity of Irish suppliers; innovation,
the enhancement of our industry’s
NPD capability; and entrepreneurship,
the support of ambitious business
start-ups and scale-ups in the sector.
Strategic planning
Among the roles played by the
board of Bord Bia, one overriding
responsibility is to ensure alignment
between the goals of Government, as
expressed in Food Harvest 2020, and
the management strategy that drives
and informs Bord Bia activities. In a
straitened economic environment, it
is self-evident that resource allocation
requires a clear articulation of
priorities. Bord Bia has always shown
admirable clarity in the pursuit of its
objectives and, over the coming years,
the board will play a constructive role
in ensuring all programmes of activity
are guided by a focused and informed
strategic framework.
In 2011, the board undertook a broadbased review of the organisation’s
activity and the development of the
Bord Bia Strategic Plan 2012-2014 is
the direct outcome of this. This plan
will ensure the process of change and
development underway in the industry
is reflected in and assisted by Bord
Bia’s work programmes. It reaffirms six
strategic objectives for Bord Bia:
• To actively contribute to the success
and development of our industry;
• To positively influence consumers
and trade buyers in our target
markets;
• To establish Bord Bia as the top-ofmind resource for market research
and analysis;
• To lead a collaborative approach
with the key agencies serving Irish
food and horticulture;
• To actively respond to significant
market issues that affect the
industry; and,
• To deliver value-for-money with
expenditures.
At implementation level, the Strategic
Plan offers renewed support for the
scaling up of our industry envisaged in
Food Harvest 2020. The progression
of ‘Brand Ireland’; the intensifying
of market diversification; and closer
cooperation with other state agencies
are among the elements of a plan that
puts particular emphasis on capability
development and creating a culture
Bord Bia Irish Food Board Annual Report 2011
17
where entrepreneurship, business
expansion and NPD are supported.
that has made the development of the
Strategic Plan possible.
The Strategic Plan also emphasises the
importance of a vibrant and dynamic
domestic market for Irish food,
drink and horticulture companies
and details how Bord Bia’s depth of
experience, reputation and trust, will
effectively be leveraged for the benefit
of the industry.
I would like to acknowledge the
exceptional contribution of outgoing
Chairman Dan Browne who brought
his unrivalled expertise and credibility
in this industry to the position and
who steered the organisation with an
assured hand through the challenging
economic environment that emerged
during his term of office as Chairman.
In the same vein, can I thank those
members who departed the board
during 2011 and welcome our new
members.
Conclusion
In a year that saw Irish food and
drink businesses continue to deliver
impressive growth through exports,
the future opportunity for Ireland’s
largest indigenous industry has ceased
to be an arena of speculation and
gained a tangible sense of the possible.
No one can doubt that challenges
remain, and that our commitment to
capacity building as an industry and
to long-term production efficiencies
must remain resolute. However, we
also recognise that we are fortunate
to operate in a sector that is so
strategically well placed to play a
central role in the next chapter of
Ireland’s economic story.
It was my great honour to be
appointed as Chairman of Bord Bia
in 2011 and to find myself serving
alongside a board of calibre and
distinction. I would like to thank all the
members of the board and the four
subsidiary boards for their expertise
and insight and for the commitment
18
I would also like to convey my thanks
and appreciation to 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. In addition, I express
my gratitude to our colleagues in the
semi-State bodies and Government
departments with whom we routinely
work. This also includes Ireland’s
global network of ambassadors and
embassy staff who play an important,
sometimes unsung role, in helping us
promote Irish food and drink and in
achieving our goals of opening new
markets for food and drink exports.
Bord Bia is led by a management team
of exceptional calibre, and its resolute
commitment to serve our industry is
evident in its performance over the last
number of years. I would like to thank
Chief Executive Aidan Cotter and all
Bord Bia Irish Food Board Annual Report 2011
the staff of Bord Bia for the daily roles
they play in championing the longterm success of our industry.
Ambition and success were at
the heart of the industry’s export
performance in 2011. Amidst the
challenges and uncertainty evidenced
in the broader economy, this industry
has become a focus not just for
growth but for hope. All of us who
work within it share a responsibility
to ensure it continues on this path of
growth, and reaches the potential it is
recognised to have.
Our vision is of a vibrant food, drink
and horticulture industry at the heart
of Irish life and we are committed to
taking the actions that will secure the
maximum benefit from the industry for
our economy, our country and
our people.
Michael Carey
Chairman
Chief Executive’s Review 2011
The strong growth in Irish food and drink exports, built on a period of sustained strong commodity
prices is enabling the industry to not only rebound fully from the challenges encountered in the
2008/09 period but to take a leading role in Ireland’s export-led recovery. Food and drink exports
accounted for 25% of the total growth in export revenues during the year. While dairy and beef
from our grass based enterprises delivered the strongest performances, virtually every sector saw
increases reflecting the overall vigour of international demand.
Market diversity
A feature of 2011 was the growing
diversity of markets for our food and
drink. The UK remains our dominant
export market and its long-term
strategic importance is not in doubt.
Accounting for just over 41% of
total Irish food and drink exports,
the market showed strong demand
for Irish dairy and beef products and
supported credible performances by
our sheepmeat and poultry exporters,
all feeding into a 6% year-on-year
rise in value, to a record €3.6 billion.
In a market where consumer price
sensitivity and retail discounting are
widespread, there was some welcome
relief for exporters in the form of a 5%
rise in retail prices, which allowed for a
degree of price recovery to offset rising
input costs.
The growing determination of
exporters to diversify by carving
out significant market shares in
both continental Europe and the
international marketplace was reflected
in double-digit growth and record
performances in both geographies.
Exports directed to the eurozone
markets increased by 14% or €375
million, meaning Ireland now directs
over one third of its food and drink
exports to continental Europe. As with
the UK, a rising consumer food price
index, albeit by a more modest 3%,
brought some relief to suppliers.
An equally confident performance
in the international marketplace
confirmed the new ambition of the
sector in third country markets, with
significant growth in dairy, meat and
seafood exports all contributing to
growth of 20% or €350 million and a
total value of almost €2.2 billion.
Bord Bia’s Marketing Fellowship Programme,
in association with the UCD Michael Smurfit
Graduate Business School, allows high
potential graduates to combine academic
learning with a foreign industry placement
involving a series of assignments from
Irish food and drink companies to identify
opportunities in overseas markets. Pictured
are the second Fellowship group who
graduated in December.
Industry sentiment
Bord Bia’s annual industry survey,
conducted in the closing weeks of
2011, offers an excellent snapshot
of the industry’s expectations in the
coming year. The survey indicated
widespread optimism among
suppliers with an impressive 85% of
respondents viewing the prospects
for 2012 as good or very good. This
compares to 70% in 2010. In the same
vein, two thirds of respondents rated
their business prospects as improved
or much improved, while 69% have
increased their sales forecasts for 2012.
A telling indication of ambition was the
finding that 71% had developed new
product offerings in the last year; 59%
had improved their competitiveness
and 42% had increased full-time staff
numbers. However, the survey also
pointed to the continuing challenges
of weak consumer sentiment. Among
the issues with the potential to impact
negatively on business, control of costs
(identified by 93% of respondents) and
the challenge of passing on increases
in input costs (noted by 81% of
respondents) were central.
Strategic Plan
Bord Bia’s success as a marketing
support agency is ultimately based
on our ability to deliver programmes
that fulfil our client needs in the
marketplace. The Chairman has
highlighted, in his statement, the
development of the Bord Bia Strategic
Plan 2012-2014, which is designed to
ensure our ongoing alignment with
the strategic objectives of Food Harvest
2020 and the needs of our industry.
The Strategic Plan asserts Bord Bia’s
determination to help improve the
Bord Bia Irish Food Board Annual Report 2011
19
Bord Bia’s Food and Drink Summit in May presented updates on progression towards Food Harvest 2020 initiatives, the vision for the Irish food and drink
industry. The event attracted over 150 representatives from Ireland’s food and drink, including the industry’s leading CEOs. Pictured at the event were An
Taoiseach, Enda Kenny T.D., Chief Executive, Bord Bia, Aidan Cotter, and Minister for Agriculture, Food and the Marine, Simon Coveney T.D.
overall competitiveness of our industry
through an integrated approach
to problem solving; through a
leveraging of existing strengths; and
by exploiting potential synergies across
all sectors. It offers explicit support
for consumer insight, innovation and
capacity building, recognising that our
resourcefulness as an industry is key to
the ability of companies to compete
in high-potential export markets.
The Strategic Plan also envisages
close cooperation between Bord Bia,
Enterprise Ireland and Teagasc, and
among other Government agencies.
Through this framework, Bord Bia can
optimise the delivery of all our services
to our community of stakeholders in
the coming years.
Pathways for Growth
The Strategic Plan offers renewed
support for the Pathways for Growth
programme, and the areas of action
prioritised in its five programmes:
branding; education; innovation;
entrepreneurship; and coopetition.
Significant developments in all five
areas can be reported for 2011.
Progress on the development of ‘Brand
20
Ireland’, the umbrella food brand,
centred on the completion of a major
research project with consumers
and industry in six countries. This
provided the basis for industry
consultation and the development of a
common consensus on the goals and
progression of Brand Ireland.
Education has always been at
the heart of Ireland’s economic
development and in the education
sphere, the Bord Bia Marketing
Fellowship went from success to
success, entering its third programme
in 2011. The third cohort of 26
Fellows commenced the commercially
focused Marketing Fellowship
Programme undertaking 102
commercial assignments for 79 food
and drink companies in 12 markets:
Britain, US, France, Germany, Italy,
UAE, Russia, Spain, China, Korea,
Sweden and Holland. To date some
362 commercial assignments have
been undertaken for Irish food and
drink companies.
The two year Strategic Growth
Programme open to graduates of the
Marketing Fellowship Programme
and Irish food and drink companies
provides a framework for senior
executive career development that will
Bord Bia Irish Food Board Annual Report 2011
enhance the leadership capabilities of
the Irish food and drink industry.
A new tier to the education
programme launched in 2011 was the
Food Export Graduate Programme,
an 18-month placement programme
developed by Bord Bia, in partnership
with IBEC, and involving 15 graduates
being placed with exporting companies
to assist in the development of
their overseas capabilities. Also in
conjunction with IBEC our existing
orientation programme brings some
10 graduates to our overseas offices
to gain experience of the international
food and drink industry.
All these programmes greatly enhance
the representation of the Irish food and
drink industry in overseas markets.
In the evolving area of co-opetition,
Bord Bia worked with over 60 Irish
food and drink companies during
2011, to facilitate a range of
projects that address opportunities in
procurement, product development,
logistics, marketing and sales.
Bord Bia through its consumer research
and market knowledge facilitates
and encourages innovation and
new product development (NPD).
Capabilities in consumer led innovation
can create points of differentiation in
the marketplace and Bord Bia through
its Insights Programme and consumer
research can provide the building
blocks for innovation.
Progress was also made in setting
the parameters for a viable Food
Entrepreneurs Network and further
steps were taken to facilitate the
industry capacity in R&D, including a
consumer collaboration project that
links NPD to social media, enabling
companies to engage directly with
their consumers and delivering valuable
research in an economical manner.
Bord Bia offices in sophisticated
consumer markets such as the UK and
the US also have a key role to play in
identifying product innovation and
trends likely to confer competitive
advantage to the Irish industry.
Food and Drink Summit
The 2011 Bord Bia’s Food and Drink
Summit brought together over
150 representatives from industry,
including CEOs and senior managers,
at the UCD Michael Smurfit Graduate
Business School on 27 May 2011.
The event was opened by Minister
for Agriculture, Food and the Marine,
Simon Coveney TD, and saw Mary
Shelman of Harvard Business School,
present an update on progress in
Pathways for Growth. The audience
was also given a focused presentation
on the progress of Brand Ireland.
Branding expert Prof. John Quelch,
Dean of the China Europe International
Business School, talked about how the
branding of Irish food could evolve,
while the closing address from An
Taoiseach, Enda Kenny TD, confirmed
the Government’s commitment to the
industry at the highest level.
Royal visit
The visit of Her Majesty Queen
Elizabeth II to Ireland for three days
in May was an event of historical
dimensions and the itinerary provided
an unrivalled opportunity to showcase
Irish food and drink to a global
audience. Bord Bia played a consulting
role in the development of the menu
for the State Dinner, held in honour
of the visit, in Dublin Castle on 17
May, while 30 Irish food and drink
companies participated at a business
breakfast, aimed at fostering trade
relationships between the UK and
Ireland, held the next day. One of
the most enduring images of the
three days was Her Majesty’s visit
to the English Market in Cork. Bord
Bia worked closely with Cork City
Council to ensure the historic food
market would be seen to maximum
advantage. Stalls were dressed to
highlight Irish food offerings and
Bord Bia also assisted traders in their
messaging and communications. In
all, over 600 media were accredited to
the visit and the Queen’s spontaneous
walkabout in Cork put the English
Market at the centre of hugely positive
headlines in print, broadcast and
online media around the world.
show gardens, 35 gardening talks
and over 20 cookery demonstrations,
opportunities for learning and
interaction were at an all time high.
The event was greatly enhanced by
the addition of a new ‘food village’;
the inclusion of an international
garden from Suzhou in China; and,
new features including a GIY zone,
ICA Boot Camp and the Craft Council
Craft Zone. Bloom 2011 garnered
widespread media coverage with 400
accredited journalists, and film crews
from China, Dubai, Canada, London
and the Netherlands in attendance.
Feedback from attendees indicated a
97% satisfaction rate with the event.
Sincere thanks must go to the OPW,
whose cooperation has been pivotal
to the success of the show over the
years and to former President Mary
McAleese, who as patron of the event,
over its first five years, brought both
warmth and gravitas to the role. As
Bloom enters its sixth year in 2012, the
focus will be on continuing to build on
the quality of the event.
Event participation
Bloom
Bloom returned to the Phoenix Park
over the June Bank Holiday weekend
and attracted a record crowd of more
than 90,000, an impressive 50%
increase on the attendance of 2010.
The biggest ever artisan food market,
featuring 49 traders, proved highly
successful and, with 400 exhibitors
in total, this annual showcase of Irish
food and horticulture now extends
to over 70 acres. With 27 spectacular
Following comprehensive consumer
research in Germany which found
Irish beef scored highest on taste and
the German consumer associated it
with two key identifiable features
- place and culture, a major new
campaign to support the doubling
of Ireland’s beef exports to Germany
by 2015 was launched at Anuga,
the largest international food fair in
Europe where 14 Irish meat and five
Irish dairy companies exhibited. This
marked a new phase in the continued
repositioning of Irish beef in the
European marketplace, which accounts
for 98% of our total exports in this
category. The German market is the
second largest beef importer within the
EU after Italy, importing almost 400,000
tonnes a year, and our goal, in support
of Food Harvest 2020, is to assist the
industry build a premium position and
to treble its import share by 2015. Four
of the top five German retail groups,
as well as leading steakhouses, now
stock Irish beef, providing a major
Bord Bia Irish Food Board Annual Report 2011
21
platform to further develop and widen
the penetration of Irish beef in both the
high end retail and foodservice market,
through targeted consumer promotion.
In addition to Anuga, some trade-fair
highlights for Irish food and drink
companies in 2011 included: Nineteen
Irish seafood exporters participated at
the European Seafood Exhibition in
Brussels, the largest seafood fair in the
world. Eight exhibitors representing
12 companies participated at Gulfood,
the largest and most important food
related exhibition in the Middle East
region. Bord Bia participated for the
first time with five seafood companies
at the Chinese Fisheries & Seafood Expo
in Shanghai. For the first time, since
2007, four companies participated
at Prodexpo in Moscow, the largest
annual specialised exhibition in Russia
and Eastern Europe. Eighteen Irish
companies from the seafood, meat and
farmhouse dairy sectors participated
at Biofach in, Nuremburg, Germany,
the largest organic trade fair in the
world. Six Irish companies participated
at ISM, Cologne, Germany, the largest
and most important confectionery
and biscuits fair in the world. Eight
Irish drinks companies participated at
Vinexpo, Bordeaux, France, the largest
drinks show in the world. Eight Irish
companies participated at WSWA,
Orlando, Florida, the 68th Annual Wine
& Spirit Wholesalers of America Annual
Convention and Exposition which brings
together US importers, wholesalers,
brokers and manufacturers. Six Irish
companies participated for the first
time at Tuttofood, Milan, Italy, an event
that has been growing in relevance for
the meat sector. Six Irish companies
participated at SIAL China, one of
the leading trade shows for the food
and beverage industry in China. Six
Irish meat and two value added meat
companies exhibited on two separate
stands at the Sirah food service trade
fair in Lyon.
Meanwhile, 27 Irish food and
drink manufacturers were among
35 companies participating in the
Carrefour Sourcing Day, hosted
22
by Bord Bia, in conjunction with
Enterprise Ireland and the Irish
Embassy, in France in June. The
event provided access to twenty-five
Carrefour category buyers and the
estimated value of business leads
generated was in excess of €3 million.
Bord Bia returned to the National
Ploughing Championships in
September, hosted in Athy, Co.
Kildare. The Bord Bia marquee
highlighted current promotional
initiatives and provided the public
with an opportunity to interact with
personnel from our Meat, Quality
Assurance, Information and Home
Market teams. A new innovation, in
conjunction with the Irish Farmers
Journal, was a livestock demonstration
that showcased cattle raised in a
sustainable manner.
Finally, in advance of Marketplace
2012, Bord Bia developed an intensive
three-part training programme to assist
Irish companies build their presentation
skills and confidently close deals with
their retailer counterparts. The first
two training modules took place in
September and October.
Food and Drink Awards
Bord Bia’s biannual Food and Drink
Industry Awards, held in association
with Rabobank, took place on 22
November. Six award categories
recognised excellence among Irish
food and drink companies and Bord
Bia received a total of 184 award
entries. Adjudication was by an
independent judging panel, chaired
by John Fanning, Chairman of Bord
Bia’s Brand Forum. Congratulations
go to the worthy winners in each
category, which included: (Innovation)
Natasha’s Living Food for Kale
Crunchies; (Domestic Success)
Flahavan’s; (Sustainability) Country
Crest; (Branding) Largo Foods;
(Entrepreneurial) Arun Kapil, Green
Saffron; and (Export) Jameson.
Keynote speaker at the awards
Bord Bia Irish Food Board Annual Report 2011
ceremony was Irial Finan, Vice
President of Coca Cola.
Small business
Bord Bia Vantage continued to
develop its range of services to the
small business and artisan sector and
eight small business clients undertook
Vantage Partner’s 12-month intensive
business development programme
during the year. Meanwhile, a further
60 companies participated in a
series of innovation and packaging
workshops over the year and some
140 food business owner-managers
were involved in the Bord Bia Small
Business Seminar held in January. A
panel of industry experts, chaired by
RTE’s John Murray, discussed how to
best use branding, marketing and
finance to bring sales to life in the
current climate.
Another first in 2011 was the Food
Summer School, hosted by the Taste
Council in association with Bord Bia,
which took place in Co. Wicklow and
involved some 150 representatives
from the artisan food sector. Set to
become an annual event, the Food
Summer School provides a forum for
debate for the sector.
Food Dudes
The Food Dudes Healthy Eating
Programme supports a positive attitude
to eating fruit and vegetables among
children at a time when childhood
obesity levels are rising. Some 64% of
national schools have been introduced
to the programme which covers over
300,000 children in 2,100 schools.
A further 385 schools and 60,000
children will be introduced to Food
Dudes in 2011/2012.
Brand Forum
Brand Forum offers an exceptional
networking and learning opportunity
for the industry’s marketing
professionals and now enjoys the
participation of over 80 member
companies, ranging from artisan SMEs
to the multinational sector. In 2011,
the forum hosted 10 events, including
a number of food styling workshops.
Topics covered include the use of social
media to build brand awareness and
the dynamics of brand loyalty, both
in Ireland and overseas. Bord Bia also
facilitates one-to-one mentoring as
part of its services to members through
the forum.
Quality assurance
Bord Bia’s activities in the Irish market,
in 2011, continued to centre on the
important role that quality assurance
schemes (QAS) play in underpinning
domestic consumption of our beef,
lamb, pigmeat, poultry and horticulture
outputs. The implementation of
sustainability criteria in the Beef QAS,
while not yet a part of our consumer
communications and marketing
programme, is an important building
block for the future, as our industry
addresses evolving consumer concerns
around sustainability both at home
and abroad. All 32,000 Beef QAS
participating farms will have been
individually assessed, and their carbon
footprint measured, by the end of
2012. Beef QAS is the first national
scheme in the world to engage with
producers in this breadth and detail.
In the coming years, the programme
will extend to other outputs, notably
dairy, and highlight the world-class
sustainability credentials of Irish food
production.
allow for the export of Irish beef to
these markets.
and was reflected in an 18% rise in
pigmeat exports over the year.
With no major developments to
speak of regarding WTO in 2011, the
importance of bilateral agreements
in driving global trade is increasing
and discussions between the EU and
Mercusor continued through 2011,
though with no fixed timeline for
agreement. The publication, at the
end of 2011, of the EU proposals for
the development of CAP, post 2013,
can be seen as the starting point of a
debate that will gather momentum in
the coming year. Given the increasing
prominence of issues such as food
security and sustainability and the
growing importance of agri-food, not
just to Ireland but to the EU’s economy,
it is to be hoped that the policy
measures ultimately put in place will
aid growth objectives rather than prove
an impediment to them.
Poultry exporters enjoyed a more
modest increase in prices of 3%.
However, strong demand saw volumes
increase and, overall, the value of Irish
poultry exports rose by 4% to reach an
estimated €210 million.
Sectoral reviews
Macro developments
Meat and Livestock
The combined value of meat and
livestock exports grew by an estimated
13% to €2.86 billion in 2011, with
increased export revenues recorded for
beef, pigmeat, sheepmeat and poultry.
Beef exports rose by 17% or over
€270 million as a decline in volumes
was more than offset by an increase
in cattle prices. Exporters will hope to
benefit from similar strong demand in
2012. Bord Bia’s marketing strategy for
Irish beef stresses differentiation and
premiumisation and, over the last four
years, the industry has doubled the
volumes directed to premium retail and
foodservice providers and increased
by 15% the volumes destined for
standard retail lines.
Market access is a key priority outside
of Europe, particularly in Asia and
Russia for pigmeat, livestock and beef,
and the United States and Middle East
for beef. During 2011 agreements
were reached with authorities in
Turkey, Egypt and Singapore that will
The rising cost of inputs remains
a challenge in both pigmeat and
poultry, where feed price plays a
critical role in the competitiveness of
outputs. That said, a rise of 9% in
average pig prices in 2011 pointed to
some opportunity for cost recovery
Irish sheepmeat exports enjoyed
19% in growth in 2011 and were
valued at €190 million in total. This
reflected both the stabilisation in
export availability of sheepmeat and
continuing strong demand for lamb
in Ireland’s key markets. Bord Bia
marketing and promotional activity
centred on the home market - with
campaigns around Quality Assured Irish
lamb and hill and mountain lamb - and
France, our key lamb export market,
where a three-year joint promotional
programme, Agneau Presto, involving
Irish, UK and French suppliers, focused
on on-line promotional activity.
Live animal exports were the one area
of the industry to register a decline in
2011, although the picture was not a
uniform one. While there was a decline
in live cattle and sheep exports, strong
pig shipments, largely to Northern
Ireland, bucked the trend with
significant growth. All in all, the sector
declined by 16% to €205 million.
Dairy Products and Ingredients
Milk production in Ireland saw a rise
in output of around 5% in 2011, as
the sector benefitted from strong
‘push’ and ‘pull’ factors, in the form of
good weather conditions at home and
buoyant demand abroad. An increase
of 18% in value saw total dairy and
ingredient exports exceed €2.69
billion. European prices, in most dairy
categories, rose between 10% and
15% during 2011, with powders and
butter the main beneficiaries.
Continental European markets
accounted for almost a third, or €880
million, of Ireland’s dairy exports and
strong growth was also recorded in
Bord Bia Irish Food Board Annual Report 2011
23
China, South East Asia, the Middle
East, Africa and the US. While global
demand will continue to grow for
dairy, the dampening effect of poor
consumer sentiment in key markets
cannot be discounted and a building
of global stocks may result in some
easing of prices. That said, the overall
fundamentals of the market remain
positive for Irish producers in 2012.
Prepared Foods
The prepared foods category saw
an increase of 3% to €1.42 billion
in 2011, with the key growth
areas – value-added dairy products,
meat-based products and chocolate
confectionery – confirming the range
and versatility of the sector. Prepared
foods is an area where commitment
to and investment in NPD is of central
importance and where a competitive
marketplace can impact on cost
recovery. A strong emphasis on lean
manufacturing and diversification
in products, customers and markets
has helped the sector to deliver a
convincing export performance and
will continue to be important in 2012.
Beverages
Exports in both alcoholic and nonalcoholic beverages increased by
some 4% in 2011 to reach €1.22
billion. Whiskey led the fray, with
strong double-digit growth, while
other categories, notably cream
liqueurs, beer and cider, experienced
more modest growth. In the nonalcoholic sector, water and coffee were
the key performers. The industry’s
performance is all the more impressive
given the intense global competition
that is natural in this sector and the
pressure on price points. The industry
has shown a renewed commitment
to NPD and an energetic approach
to emerging markets, which offer
alternatives to traditional destinations
where the sales environment has
been challenging. Evolving consumer
sentiment will play a key role in
determining the industry’s ability to
sustain growth in 2012, particularly in
the eurozone area.
Seafood
In spite of a fall in volume of some
20%, the value of Irish seafood exports
showed robust growth, leading to the
sector recording a 13% increase in
value, to an estimated €418 million.
Higher prices and diversification
beyond the traditional core European
markets assisted in the strong export
performance. Maintaining supply
levels, and the levels of supply into the
market by competitors, will be critical
determinants to the performance of
the sector in 2012.
Edible Horticulture and Cereals
Exports of edible horticulture and
cereals rose by 23% to reach €238
million in 2011, with strengthening
cereal prices and an improved export
performance by mushrooms to the
UK market.
Conclusion
The performance of the food and drink
industry in 2011, building as it does
on an equally strong performance in
2010 has, at its foundation a benign
international trading environment.
While the challenges of economic and
consumer uncertainty remain with
us, and beset the domestic market
particularly, the industry has shown
an impressive ability to capitalise on
the underlying trends in our global
economy – a rising demand for food
and increasing affluence in developing
economies. Bord Bia is committed to
playing its full supporting role in this
drive for growth, building the industry’s
market knowledge around the world
and highlighting Ireland’s unique set
of strengths as a source of sustainable
high-quality food and drink.
We are part of an industry that is in
the happy position of looking to the
future with confidence and optimism,
recognising that our success will
largely be a measure of our skills
and capacity to capitalise on the
opportunities that emerge.
In June 2011, following the success of Queen Elizabeth II’s visit to Ireland, Bord Bia organised an
event in Selfridges to build on the positive image of Irish food and drink. Irish chef Ross Lewis
travelled to London to recreate the menu he had prepared at the State banquet in Dublin Castle in
May. Senior executives from Selfridges attended the event along with key influential UK media. The
event took place in Hix restaurant in Selfridges. Pictured were CEO of Selfridges, Paul Kelly, Chief
Executive of Bord Bia, Aidan Cotter, Chef Ross Lewis, and Minister for Agriculture, Food and the
Marine, Simon Coveney T.D.
24
Bord Bia Irish Food Board Annual Report 2011
While there can be no room for
complacency, the importance of the
food and drink industry – both as an
engine and a bell weather for the
sustainable recovery in our economy
– is not in doubt, making this an
exciting period of both growth and
development for Ireland’s oldest and
largest indigenous industry. Bord Bia
looks forward to working side-by-side
with the industry as the process of
growth and transformation continues.
Meat and Livestock
Beef
Higher value premium markets and
product mix contributed to an increase
in the value of beef exports, which are
estimated to have jumped by 17%
or over €270 million during 2011 to
€1.86 billion.
Following a stabilisation in the
European beef market during the
second half of 2010, the supply/
demand balance improved further
during 2011, as a combination of
increased demand for European beef
products on international markets and
lower imports from South America
helped offset ongoing sluggish
consumer demand.
A drop of just under 5% in Irish export
meat plant cattle supplies, to almost
1.57 million head, was recorded in
2011 as a reduction of 12% in steer
disposals and 6% in heifer supplies
was partly offset by a jump of almost
25% in young bull supplies to more
than 175,000 head.
During 2011, around 96% of total
Irish beef exports were destined for
European markets with in excess of
200,000 tonnes being destined for the
higher-value standard and premium
retail and premium foodservice
markets, with a further 80,000 tonnes
going to the high-quality, high-volume
quick-service restaurant sector.
While volumes destined for the
UK eased during 2011, the market
continues to account for almost half of
total export volumes at an estimated
254,000 tonnes, with an estimated
value of €850 million. This represents a
rise of more than €90 million on 2010
levels. Exports to Continental European
markets were marginally lower in 2011
at 237,000 tonnes. Trade was valued
at around €920 million.
Stronger shipments to Germany, Spain
and, to a lesser extent, Sweden and
the Netherlands helped offset lower
exports to France and Italy. Exports
to Germany are estimated to have
increased by more than 5,000 tonnes
to reach 15,000 tonnes. Trade was
helped by increased export demand
for European beef in markets such
as Turkey and Russia, which saw
shipments increase by more than
110,000 tonnes during the first nine
months of the year.
Exports of Irish beef to international
markets benefited from stronger
import demand, with shipments rising
by around 30% to 20,000 tonnes. This
reflected stronger demand in Russia as
well as increased trade to Switzerland,
South Africa and the Middle East. Total
exports are estimated to have been
worth around €70 million.
Promotion
Bord Bia’s beef marketing strategy
is one of differentiation and
premiumisation of Irish beef by
assisting industry target the best
customers across Europe.
Since 2007, we have seen a doubling
of the volume of Irish beef going to
premium retail and foodservice and a
rise of 15% in the volumes destined
for standard retail lines. This equates
to over 50,000 tonnes going to better
paying outlets.
The Food Harvest 2020 Beef
Implementation Group identified a
40% potential growth in the output
value of the beef sector by 2020.
Marketing targets in developing this
goal include:
• Extending the Bord Bia Strategy of
differentiation and premiumisation
to 2020.
• Positioning Irish grass-fed beef as
a premium product in high-value
European markets and international
markets such as the US.
• Developing the positive
environmental, human health
and animal welfare attributes of
grass fed beef into marketing
opportunities and building
environmental criteria into quality
schemes.
• Developing international markets
for beef.
Among the initiatives being
implemented to achieve the above
targets are:
• Supporting premium beef brands.
• Premium image building via chefs
and media in flagship regions.
• Positioning Irish beef at the top of
the German market.
• Branding Ireland’s sustainability
advantage.
• Developing a market for sustainable
suckler beef.
• Maximising market access.
Livestock exports
Live cattle exports from Ireland reached
just 215,000 head for 2011, which was
over 36% lower than in 2010, when
almost 340,000 cattle were exported.
Bord Bia Irish Food Board Annual Report 2011
25
drink industry: Lorem ipsum dolor sit amet
The value of this trade, at €135 million,
was 24% behind the previous year,
as the fall in volume was partly offset
by the higher prices. Shipments of all
categories of stock were substantially
lower. The number of calves exported
fell by 45%, while exports of weanlings
and stores were collectively 34% lower.
Similarly, exports of finished cattle
declined by 22%.
Live cattle exporters sold fewer
animals to all of the major markets in
comparison with last year. With regard
to the major calf markets, exports to
the Netherlands fell by 44%, followed
by a 22% decline for Belgium. Exports
to the main weanling markets, Italy
and Spain, were 24% and 59% lower,
respectively, for the year. Similarly,
exports to Northern Ireland were 37%
lower. It is worth remembering that
these five markets collectively account
for over 90% of Irish live cattle exports.
The slower live export trade is
principally due to the impact of
higher prices for finished cattle in
the domestic market. Finished cattle
prices in Ireland rose by more than
18% during 2011, which naturally
gave farmers more confidence when it
came to restocking. The upward trend
26
in cattle prices was less pronounced in
Italy and Spain, where producer prices
rose by just 7-10% in comparison with
the previous year.
Finished cattle prices in Ireland
currently exceed the weighted average
for the EU, as they did for most of
2011. Under these circumstances,
live cattle from Ireland tend to be less
competitive than our competitors,
especially when the transport costs
incurred in reaching some major
markets is considered. 2012 is likely
to present some opportunities for
further live exports to non-EU markets,
including Russia for breeding cattle
and the Middle East/North Africa for
commercial animals.
While exports to the main livestock
markets were more difficult than
previous years, there was some success
in developing new markets. During
the latter half of the year, some 1,000
pure bred beef heifers were exported
to Kazakhstan. Other destinations to
feature among the smaller markets
were Morocco, Greece, Hungary and,
most recently, Tunisia.
During 2011, a veterinary health
certificate was agreed with the Egyptian
Bord Bia Irish Food Board Annual Report 2011
authorities for finished cattle and stores.
Although no trade has yet been agreed,
this market could become important
in future years when cattle availability
looks set to increase.
Shipments of live pigs to Northern
Ireland remained strong, reaching
an estimated 630,000 head, which
represents an increase of 10% on
2010 levels. This trade was valued at
€68 million for the year.
Live sheep exports followed the trend
that started in 2010 with shipments
falling by two thirds to just over
15,000 head, as the strong prices
prevailing at both export-approved
meat plants and local abattoirs reduced
numbers. This trade was valued at
approximately €2 million.
Overall, the value of Irish livestock
exports fell by 16% in 2011 to an
estimated €205 million.
Sheepmeat
Following years of strong declines in
our national flock, 2011 represented
an important turning point in the
Irish sheep industry as, for the first
time in over a decade, the national
sheep flock grew by 3.5% to 4.1
million head. In addition, for a
second successive year, average prices
increased at producer level; such
positive developments brought about
a much-needed confidence boost to
the sector as a whole.
Teresa Brophy, Ireland Market Manager,
Bord Bia, James Murphy, IFA National Sheep
Chairman and Neven Maguire, celebrity
chef, promoted lamb at Easter to increase
the frequency of purchasing lamb with the
Bord Bia Quality Mark.
Sheep supplies at export meat plants
stabilised in 2011 at just 2.1 million
head. Overall supplies were boosted
by a drop of 30,000 in the level of
live sheep exports and by a marked
increase in live exports from Northern
Ireland, which stood at 488,000. With
average carcass weights rising by
1% during the year, total sheepmeat
production is estimated to have
reached 50,000 tonnes. Average prices
for 2011 finished at €4.78/per kg, an
equivalent of 40c higher or 9% above
2010 prices.
On another positive note, Irish sheep
meat exports grew by 19%, realising
a value of €190 million, equivalent
to 40,000 tonnes. France and the UK
continue to be Ireland’s core export
markets, representing 76% of volume
exports. However, strong increases in
shipments were recorded in Belgium,
Germany and Sweden as exporters
continued to secure new business and
grow business with existing customers
in these markets. In their own right,
these three markets are growing in
attractiveness for Irish sheep export
plants as they continue to deliver higher
price returns relative to other markets.
Lamb promotion
Bord Bia’s lamb marketing campaign
focused on two of the largest markets;
Ireland and France. The main objective
of the Irish lamb campaign was to
maintain and increase frequency of
purchasing lamb with the Quality
Mark. Targeting both light and medium
consumers of lamb, the promotional
focus was on lamb joints and chops.
Coinciding with peak availability of
new season lamb, activities included
TV advertising, PR and online activities.
A further burst of TV advertising also
took place in September with consumer
research indicating 50% of the target
audience recalling the TV advert.
Within the foodservice channel, trade
promotions including PR and online
activity were used to encourage chefs
to keep lamb on the menu as part of a
lunch and value menu offering.
In France, marketing promotions
continued to centre on the Agneau
Presto campaign and, due to its
ongoing success, Bord Bia has agreed to
extend its involvement for another three
years. The campaign brings together
the French, Irish and UK food boards
to modernise the image of lamb in the
French market. France is the largest
consumer market for lamb in Europe
and the most important export market
for the Irish sheep sector, accounting
for half of its export volumes. Bespoke
promotional activities were undertaken
with some of our key customers
in Belgium, Germany and Sweden
throughout 2011.
Pork and Bacon
2011 can be described as a year of
severe difficulty for the pig sector as
high feed prices seriously impacted on
producer margins. Despite the dramatic
rise in feed costs, a credit squeeze,
impending farm and environmental
regulations and higher cull sow
numbers, there was a strong increase
in Irish pig supplies in 2011, well
above the European average, driven
by improved on-farm productivity and
stability within our sow herd.
Total Irish pig supplies ended the year
almost 10% or 314,000 head above
2010 figures at just under 3.5 million
pigs. On average, weekly throughput
during 2011 was 5,600 head above
2010 levels. This represents up to
half a million pigs or a 17% rise on
2008 levels.
Given the difficulty across the
European pig industry, it can be no
surprise that the EU breeding herd is in
decline. The May/June 2011 pig census
reported a decline in sow numbers
of 4%. Even with a falling breeding
herd, pig supplies across the EU
were 2% higher during 2011, due to
improvements in on-farm performance.
However, as the year progressed, the
rate of increase in pig supplies started
to decline and began to tighten,
particularly in the final quarter.
Broadcast personality and champion of
all things Irish, Hector O’hEochagain
participated in Bord Bia’s ‘Bring Home
the Bacon’ campaign. The campaign,
which highlighted the importance of
always looking for the Bord Bia Quality
Mark when shopping for pork, bacon and
ham, incorporated national TV and radio
advertising, competitions, national and
regional PR and various online activities.
Bord Bia Irish Food Board Annual Report 2011
27
Despite pigmeat consumption
struggling in many parts of the EU
(Spain, -9% Jan – June; France,
-3% Jan – Sept; Germany -1% Jan
– Sep), pig prices increased in 2011
driven by strong export demand and
tightening supplies. On average,
EU pig prices were 13 c/kg or 9%
higher than in 2010. Irish pig prices
also averaged 9% higher. The poor
start to 2011 was exacerbated by
the dioxin incident in Germany in
early January. This led to a reduction
in consumption in Germany, and an
excess supply of pork across Europe.
The EU Commission introduced
private storage aid for pigmeat, which
removed 130,000 tonnes from the
market, bringing some relief and
prices started to rise steadily across
Europe, reaching a peak of close to
160 c/kg excl. VAT in May.
Prices then eased in June as private
storage product came back onto
the market and remained relatively
constant across the summer months.
In previous years, a seasonal decline in
demand leads to lower prices during
the autumn period. However, in 2011,
prices actually returned to peak levels
and were in some cases 15% – 20%
higher than the previous year.
Imports of pigmeat into Ireland are
estimated to have reached 85,000
tonnes during 2011, representing a
rise of more than 10% on 2010 levels.
With some of this pigmeat being
further processed in Ireland before
being re-exported, total shipments are
estimated to have increased by around
13% to 170,000 tonnes in 2011. This
combined with higher average export
prices left the value of Irish pigmeat
exports some 18% higher in 2011 at
€396 million.
2011 saw some considerable changes
in the market distribution of Irish
pigmeat exports, with a strong increase
in shipments outside of Europe more
than offsetting a challenging market
environment within Europe.
Pork and Bacon promotions
The domestic market is the main
volume outlet for Irish pigmeat
production. The focus of Bord Bia
activities on the market is to maximise
demand for Quality Assured pork and
bacon. In terms of export markets,
our main priority is assisting with
market access and finding customers
in these new markets, particularly
in Asia. These markets can deliver
significant premiums over some
traditional markets. In 2011, pigmeat
promotional activity was concentrated
in the early part of the year when the
feed cost crisis was at its deepest.
This campaign was fronted by TV and
radio personality Hector Ó’hEochagain
and was spread across TV, radio and
PR material.
Poultry
The strong rise in feed costs evident
over the last year, led to a slowdown
in the rate of growth in EU broiler
meat production. For the year, output
is estimated to have increased by
less than 1% to 9.26 million tonnes.
Consumer demand across Europe
has shown little change with higher
exports of EU poultrymeat helping to
offset stronger imports on the market.
As a result, EU broiler prices are
estimated to have increased by 7%
during 2011.
The main growth in EU broiler meat
production was evident in France and
Germany, which more than offset
lower output in the UK and Spain. In
Ireland, we have also seen a rise in
domestic production as volumes on
both the domestic and export markets
remain strong. Processed poultry
exports were marginally lower. For the
year, it is estimated that the value of
Irish poultry exports increased by 4%
to reach €210 million.
A delegation from Nanjing, the second largest commercial city in China after Shanghai, and the Yurun
Group, China’s largest pigmeat processor with an annual kill of 40 million pigs visited Ireland. China is
now the second largest customer of Irish pigmeat after the UK, as volumes increased by over 700% in
2011 and Chinese meat imports continue to grow. Pictured (from l-r) were Michael Murphy, Director
of Markets, Bord Bia, Mr. Yicai Zhu, Chairman, Yurun Group, Mr. Yang Weize, Party Chairman,
Nanjing and Brendan Gleeson, Meat and Milk Policy, Department of Agriculture, Food and the Marine.
28
Bord Bia Irish Food Board Annual Report 2011
Food and Beverages
Dairy Products
and Ingredients
The dairy products and ingredients
category encompasses both primary
dairy products such as butter, cheese
and milk powders, and value-added
dairy products and ingredients
such as infant formula, casein and
chocolate crumb.
The strong performance evident in the
global dairy market during 2010 was
maintained throughout 2011 with
demand for dairy products remaining
strongly resilient to recovering global
supplies and ongoing economic
uncertainty in a number of key
markets. While prices for most
products showed some downward
movement during the second half of
the year, strong import demand in
markets such as South East Asia and
China helped support prices.
Key drivers of dairy export performance
in 2011
• Ongoing increased consumption of
dairy products globally.
• Strong import demand, particularly
in China and South East Asia.
• Although price increases slowed
down as the year progressed, most
product prices were up by 10% to
15% for the year as a whole.
Milk supplies during the second half
of 2011 increased strongly in the
northern hemisphere as well as in
both New Zealand and Australia.
However, some slowdown in the
rate of growth is expected over the
coming months.
For most products, European prices
increased by 10% to 15% during
2011 with the strongest increases
evident in powders and butter.
Cheese prices recorded increases of
just under 10% and global cheese
prices showed similar trends. The
Fonterra auction price for WMP
increased by 7% in 2011, which
followed a rise of 40% in 2010.
Tonnage prices peaked in March
at $4,619 before gradually easing
to $3,309 in October. However,
prices recovered by more than $300
between October and December to
finish the year at $3,637 per tonne.
Fonterra Auction prices, Whole Milk
Powder, Dec 2008 to Dec 2011
(US$/tonne)
Kingdom
4000
3000
32
Overall, it is estimated
that the value of
2010
EU
exports forOther
the year
increased
by 18%
2011
to €2.69 billion.
International
Markets
32
36
2011
36
Dairy Products and Ingredients
Exports* (€m) 0
5
10
15
2010
em
2,271
30
2010
20
25
30
Dec 08
Feb 09
Apr 09
Jun 09
Aug 09
Oct 09
Dec 09
Feb 10
Apr 10
Jun 10
Aug 10
Sep 10
Oct 10
Nov 10
Dec 10
Jan 11
Feb 11
Mar 11
Apr 11
May 11
Jun 11
Jul 11
Aug 11
Sep 11
Oct 11
Nov 11
Dec 11
Source: Fonterra
Milk deliveries in Ireland increased
strongly throughout 2011 as a
combination of good grass growth and
high prices boosted output. For the
35
40
2011 (e) 2011/2010
% +/em
2010
United
+18
2,685
Kingdom
2011
2010
* includes export refunds
Other EU
International
33
2011
3
2010
23
Markets for
Export markets
2011Irish dairy
products
24
0
10
All export destinations
for dairy
products showed strong growth
during 2011. Exports to the UK are
2010
estimated toUnited
have increased
by more
Kingdom
than 10% to reach 2011
€850 million or
just over 30% of total
2010exports.
Other EU
20
30
2,600
2011
Meiriceá Thuaidh
1000
34
2011
Exports to other European
markets 1,850
International 2010
showed theMarkets
strongest growth, rising
2,175
2011
by almost a third to €880 million,
accounting for almost
one
0
500 third
1000
1500
2000
of total dairy exports. While most
markets recorded growth, strong
increases in An
exports
to France and
Áise
the Netherlands, in particular, were
recorded. An Afraic
5000
2000
A recent report by Rabobank
suggests that, while the pace of dairy
consumption growth slowed during
2011, it still remains in growth,
highlighting the resilience of the
sector. While trade slowed during the
latter half of 2011, lower demand
from China and Russia was offset by
increased demand from South East
Asia and Latin America.
year as a whole, milk deliveries were
estimated to be around 5% higher
and higher production of butter and
2010
powder wereUnited
also recorded.
2500
13
Exports to international markets also
Middle East
showed North
strong
growth helped
9 by
Africa
strong shipments to China, South East
Asia, the Middle East,
Africa
and
0
5
10 the 15
United States. Overall exports outside
of Europe are estimated to have
reached more than €930 million.
20
25
20
25
Asia
Africa
North America
Middle East/
North Africa
13
9
Bord Bia Irish Food Board Annual
0 Report
5 201110
2915
Sep 11
Oct 11
Nov 11
Dec 11
Distribution of dairy products
and ingredients exports (%)
2010
United
Kingdom
34
2011
32
2010
Other EU
30
2011
International
Markets
0
The fact that the global dairy market
has been able to absorb a strong
increase in milk supplies over the last
six months is a positive indication
of the level of demand. However, it
remains to be seen what level of stock
build up, if any, will emerge during the
early part of 2012.
32
2010
36
2011
36
5
10
15
20
25
30
35
40
Source: Bord Bia estimates
Main
dairy
2010product trends
United
Kingdom 2011
The
strongest performing categories
33
during the2010
year were WMP, whey, SMP,
Other EU
2011
35
and casein.
2010
International
Markets
23
Supplies from New Zealand, Australia
and Argentina are expected, by
Rabobank,
to have a late surge during
44
41 early months of 2012 and how
the
the market handles this additional
product will largely determine price
prospects for much of 2012.
2011
24 some
Infant formula
exports showed
Slower
economic
growth is expected
growth during
2011
with
increased
0
10
20
30
40
50
in many regions during 2012 and this
volumes shipped to Asia, the Middle
is likely to impact volumes and result in
East and Africa. Trade in infant
3,435
United 2010
some stock build up, particularly if US
formula
to
Asia
is
facing
challenges
Kingdom
2011
3,600
output increases at a faster rate than
in the form of pressure on costs,
2,600
2010
Other EU
anticipated. However, much is likely to
regulatory
changes and changing
2011
3,065
depend on the strength of feed prices
market requirements. In addition,
1,850
International 2010
Markets agreements in place with
and Rabobank suggests that increased
bilateral
2,175
2011
Chinese imports could boost global
other supplying nations put European
0
500
1000
1500
2000
2500
3000
3500
4000
trade levels.
product at a competitive disadvantage.
Cheese
export volumes eased during the
An Áise
year, a trend particularly noticeable with
An Afraic
respect to exports to the UK, although
Meiriceá
13 more than two
theThuaidh
UK still accounted for
thirds
of
export
volumes.
Middle East
9
North Africa
Butter volumes
strongly
0
5 increased
10
15
20
25
during the year with the strongest
growth recorded to the United
Asia and other European markets.
Kingdom
On the
continent, the best performing
Africa
markets were France and Germany.
North America
13
Middle East/
North Africa
9
Dairy Outlook for 2012
0
5
10
15
20
25
Dairy products and ingredients export
drivers for 2012
• Sustainable level of consumer
demand for dairy products.
• Impact of economic developments
on consumer spending, particularly
in Europe.
• Supply levels in New Zealand and
Europe.
• Grain price developments and
impact on US supplies.
30
The prospects
for Irish dairy exports
40
in 2012 remain generally positive
36
with global demand likely to be
sustained at levels well above historical
averages. If global stocks begin to
build, it may bring some pressure
on prices,
although
overall market
30
35
40
fundamentals remain sound in many
regions, although European volumes
40
may be challenged
by recent economic
developments.
36
Following a strong increase in output
during 2011, the early months of 2012
are likely to see reduced Irish milk
30
35
40
deliveries
as
producers seek to avoid
going over quota. For the new quota
year, commencing in April, little overall
change is expected beyond the 1%
increase permitted in the run up to
quota removal in 2015.
The Irish dairy sector continues to
establish and grow a portfolio of
markets that offer more options for
exporters. This will be increasingly
important over the medium term as
Bord Bia Irish Food Board Annual Report 2011
the ending of dairy quotas approaches
and the sector prepares for an increase
in the volume of dairy exports.
Prepared Foods
The prepared foods category includes
a wide range of primary products that
have been further processed, such as
ready-to-eat foods, main-meal centres,
some added-value dairy products,
snacks, confectionery and bakery
products.
For prepared foods producers, 2011
was a challenging year with continued
pressure on margins due to increases
in input costs and sustained price
pressure from customers. While
exchange rate movements were
more favourable than in recent years,
as both sterling and the US dollar
strengthened, access to credit and
export credit insurance continued to be
a challenge.
However, the sector has undoubtedly
become much more focused on
cost reductions and efficiencies,
improving its competitive position in
overseas markets. Notwithstanding
the challenges faced by the sector,
there continues to be a strong focus
on NPD and on expanding the range
of markets served to continental and
non-EU markets.
Overall, the sector performed very well
in 2011, with exports growing by 3%
to €1.42 billion. Exports of prepared
foods to the UK fell to 40%, of total
prepared foods exports. This is a
reduction of 3% on 2010 and reflects
the competitive nature of that market.
Frozen ready meals have benefited as
cost conscious consumers trade down
from chilled and leading players in the
sector highlight the benefits of frozen
foods in terms of convenience, nutrition
and waste reduction. Overall exports of
frozen ready meals held steady in 2011.
The pizza category is one of the most
competitive product categories in the
UK market and Irish market share was
maintained in this very cost-conscious
market. Prepared foods exports to
international markets grew strongly
and now account for 27% of the total
exports, up from 24% in 2010. Much
of this growth is from added-value
dairy, such as infant formula.
The total value of exports to
Continental Europe remained
unchanged at 33% of total exports.
Notwithstanding this, there is renewed
recognition of potential opportunities
in France, the Netherlands and
Germany as companies lessen their
dependence on sterling exports.
Prospects for 2012 remain challenging.
Consumer retrenchment as a result
of the euro crises will see consumers
shopping around for better value and
may see further growth in private-label
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 these increased
costs. Competition from UK and
continental manufacturers is set to
remain intense. Currency volatility will
make planning very difficult in the
period ahead.
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 products
to satisfy consumer demand.
Bakery
Exports of bakery products grew
modestly in 2011. The UK continues
to be the most important market
for this sector, accounting for the
bulk of exports. An increase in the
number of European markets served
by some of the smaller manufacturers
has helped to increase exports. New
opportunities are also being explored
by Irish companies in markets further
afield, including the Middle East and
Australia. Continued investment in
automation has helped to counteract,
to some degree, the rising costs of
doing business.
With prices for key inputs such as flour
and sugar continuing to fluctuate,
maintaining competitiveness will be a
challenge. However, the outlook for
Irish bakery exports is mainly positive,
as manufacturers exploit market
opportunities particularly where the
product offer is unique or customers
are receptive to NPD. Consumers are
expanding their repertoire of products
purchased, and increased innovation
of both healthier and indulgent ranges
will continue to contribute to growth
within the market.
Confectionery
Chocolate confectionery exports grew
modestly in 2011 as consumers continue
to view chocolate as an affordable
treat. Sales grew strongly to some
new markets, such as the Middle East,
Southern Asia and Australia. This was
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 also held
up well, with modest growth among
businesses developing opportunities
across some of the European and the
Middle East markets.
Beverages
Exports of beverages (both alcoholic
and non-alcoholic) performed very well
in 2011. This followed on from another
year of strong growth in 2010. Overall,
beverage exports grew by an estimated
4% to €1.22 billion. A strong focus on
NPD and increased sales to emerging
markets contributed to the increased
export figures.
Alcoholic Beverages
Laois-based Paddy’s O’Granola exhibited at CATEX 2011 in the RDS, Ireland’s largest foodservice
trade fair, alongside nine other Irish food companies, all participants of the Bord Bia and Enterprise
Ireland Supplier Development Programme. The development programme aims to deliver increased
foodservice sales for Irish food suppliers. Pictured at the event were (from l-r) Paddy O’Connell and
Reg White.
Once again, the Irish whiskey category
continued to show tremendous growth
with double digit increases in exports.
It remains the star performer in the
alcoholic beverage category. The
continued strong performance of the
Bord Bia Irish Food Board Annual Report 2011
31
US market contributed to increased
exports with sales growth reported
both in control and open US states.
Other markets showing good growth
were Australia, South Africa, Russia
and Eastern Europe.
The cream liqueur category showed
growth in 2011 as sales volumes
increased. Price discounting was still
evident in the sector but this slowed
during the year. The sector saw the
introduction of new product variants/
flavours that helped counter slower
consumer demand in traditional
markets. The best performing markets
were the USA, Latin America and Asia.
Exports of cider built on the 2010
performance and showed single digit
volume growth to the UK market.
Sales improved in other European and
North American markets as well as in
Australia. Overall, exports increased by
4%. The launch of flavour variants also
helped to broaden the consumer base.
Beer exports reported difficulties in
the UK market in 2011 as consumers
continued their shift from the ontrade to the off-trade. However, other
markets reported more positive growth
in beer exports, showing an overall
modest growth over the previous year.
The economic downturn and pub
closures also contributed to the lower
sales results.
Non-Alcoholic Beverages
Exports of non-alcoholic beverages
increased in 2011, with water and
coffee performing particularly strongly.
The UK continues to be the main
export market.
The increase in the uptake of hot
beverages benefited from colder
weather as well as a general increase
in global consumption. The ongoing
challenges of high commodity prices,
weaker crop yields from exporting
countries and strong competition from
soft drinks still remain. Commodity
prices for coffee, in particular, reached
record levels in 2011.
Within cold beverages, the main
factors driving the increase in exports
are a strong NPD and innovation
focus, product range extensions,
consolidating business with existing
customers and a proactive approach
to seeking out new customers
and markets. In addition, some
manufacturers are targeting new
segments and channels in markets
outside of the UK.
Beverage prospects for 2012
Prospects for beverage exports remain
positive for 2012, with stronger
demand likely to be maintained as
emerging markets continue to increase
purchases of Irish beverages. Whiskey
is likely to maintain its upward trend
as brand owners invest heavily to
promote and develop their portfolios.
This is especially true in the US, the
market with the biggest potential in
the medium to long term, where brand
owners are focusing the bulk of their
promotional efforts and resources.
Issues facing the alcoholic beverage
sector include higher dairy and other
raw material prices, which have
a negative impact on the sector.
Manufacturers of wine-based cream
liqueur products continue to face the
likely abolition of intermediary excise
tax, which could result in higher retail
pricing and increased competition.
Overall, the prospects for non-alcoholic
beverage exports remain very solid for
2012, with strong demand likely to be
maintained, in part due to major public
events in the UK, including the Queen’s
Jubilee and the Olympics.
Fish and Seafood
Drogheda-based McCloskey’s Bakery also exhibited at CATEX 2011 as participants of the Bord
Bia and Enterprise Ireland Supplier Development Programme. Pictured at the event were Patrick
McCloskey and Martina Byrne.
32
Bord Bia Irish Food Board Annual Report 2011
Seafood exports in 2011 showed
good growth, increasing by an
estimated 13% compared to 2010 to
reach a value figure of €418 million.
This increase was achieved against a
backdrop of falling volumes, which
decreased by a fifth during the same
period. France remains the largest
export market, accounting for an
estimated 26% of Ireland’s seafood
exports, followed by Spain at 13%;
Nigeria at 8%, and the UK at 10%.
Overall, the European market remains
the key outlet for Irish seafood
exports accounting for around 63%
of total exports. Exports during 2011
showed significant improvement as
lower supplies across most of the
main species helped boost prices.
During 2011, Irish seafood exporters
put in a strong performance in export
sales to a number of international
markets, led by Asia, Russia and Africa
with markets outside of Europe now
accounting for more than a quarter of
Irish seafood exports.
France continues to dominate, with in
excess of 50% of the overall production
sold to this market on both organic
and conventional products. The UK and
Germany remain stable, however, there
is a growing trend in the price-conscious
German market towards purchasing the
raw material from Norway at a lower
price point and so the market needs
focus and further development in 2012.
Due to limited supply issues, the sector
has been unable to develop sales to the
BRIC countries, preferring to develop,
for now, its existing client base and NPD.
The popularity of organic salmon in
Europe helped boost Irish exports
in 2011, as around 86% of Irish
production is now certified organic.
The conventional salmon market has
witnessed a sharp decline in price levels
due to the volume of product entering
the market from Chile. This will impact
on sector profitability and may impact
the price returns for Irish organic
products as the differential between
conventional and organic increases.
According to the FAO, whitefish
supply is expected to improve slightly
by around 4% in 2011/2012 as stocks
remain healthy. This may lead to price
pressure, especially in the context of
a potential increase in global salmon
production. The fresh whitefish
market remains the most accessible
for Irish exporters and offers some
protection against global supplies
of cheaper origins, such as Alaskan
pollock, tilapia and pangasius, which
are prepared frozen.
A key concern may be a potential
increase in Norwegian organic salmon
certified to the EU organic label. This
could impact on the price return as
the Norwegian organic product would
have a lower cost base and would be
offered at a lower price point, which
could encourage dilution of country
of origin. The key focus for the Irish
industry will be to brand and promote
the Irish Organic Salmon origin and
maintain the high-quality image of
Ireland to encourage segmentation by
country of origin. However, to achieve
this, it is also necessary to have the
critical mass to satisfy demand and
comply with EU country of origin
labelling through achievement of PGI
status for example.
Demand for whitefish continued to be
positive in 2011, driven by a number of
factors including continued high salmon
prices, good cod supplies from Norway
and a shortage of whiting as a result of
poor fishing in Scotland and Ireland.
Shellfish processors in the fresh and
frozen sectors reported good growth
in 2011, particularly in the main
markets of France and Italy. Gains
were secured by some companies
in Asian markets where some of
the main shellfish exporters have
concentrated their efforts in 2011.
Poor fishing in the last quarter led to
a shortage of many products for the
important Christmas market.
Exports of live shellfish to the
traditional export markets of France,
and Portugal have been difficult
in 2011, particularly for bulk live
crab. Within these markets, there is
significant competition between Irish
suppliers servicing these markets,
as well as competition from the UK
regularly supplying an already oversupplied market, especially France
where there is also a significant local
supply. Consumer demand in France,
Spain and Portugal has dropped
significantly for live brown crab, with
a slight movement to consuming
more cooked product. On the positive
side, Irish live shellfish exporters
made significant gains in developing
new export markets, particularly
with the export of live brown crab by
airfreight to China, to both Beijing
and Shanghai and also to Hong Kong.
Some business has also been secured
in developing live shellfish sales in the
US and Canada.
The mussel sector experienced a
challenging year in 2011, with both
volumes and value down considerably.
Severe competition from Chile made
trading conditions very challenging,
with many Irish suppliers now
seeking to differentiate their offer
with an organic proposition to secure
a premium price in the market,
particularly in markets such as Germany
and France. Companies are also looking
to expand into new markets such as
Eastern Europe and China.
Key markets for Irish oysters were
France, accounting for an estimated
82% of exports, followed by Hong
Kong and the Netherlands. Exports to
Spain increased strongly during this
period from a small base and other
notable growth markets included
Singapore, Japan and China. The
main issue for Irish oyster producers
is access to raw material. Companies
do not have enough oysters to sell
to satisfy market demand at the
particular grade they wish to sell at. It
is expected that by 2013, as additional
products are available to market,
there will be a substantial increase in
sales. The sector also runs the risk that
the high prices currently prevailing
will deter consumers and encourage
switching to alternative species.
Bord Bia Irish Food Board Annual Report 2011
33
Demand remains strong for pelagic fish
in the main export markets. However,
there may be a price correction
from the high price levels currently
prevailing. The inflated prices of
pelagic fish have led to substitution in
some of the main markets, notably in
Russia and Nigeria.
Prospects for 2012
The prospects for Irish seafood exports
in 2012 remain positive. However,
much will depend on supply levels
from competing sources across a
number of species and the level of
consumer demand given the high
prices currently prevailing. Other issues
facing the sector include the ongoing
exchange rate uncertainty and export
credit insurance.
The outlook for salmon in 2012
is reasonably good, although
uncertainty remains over supplies from
Chile and Norway. Any weakening of
the euro should improve US demand
for Irish product. It is anticipated
that available organic volume will be
up slightly on 2011 levels. However,
price may come under pressure as
34
increased production from Chile
comes on stream. Producers will focus
on existing market development,
particularly Germany, as well as
driving sales in other important
markets such as Switzerland and
further developing sales into the US
market. There is also a growing focus
by the sector on further growth in
value added products. The ongoing
challenge for the sector is its inability
to maintain supply to the market
which has allowed other origins,
most notably Norwegian Organic, to
enter the market. This has resulted
in retailers putting less emphasis on
country of origin, which may impact
negatively on the long-term price
return achievable for Irish organic
products. To counteract this, increased
critical mass accompanied with strong
marketing support will be necessary
to emphasise the different quality
attributes of Irish organic salmon. The
development of new production sites
to enable the industry to expand and
increase output is essential.
Some increase in global whitefish
supplies may lead to some price
Bord Bia Irish Food Board Annual Report 2011
pressure as the year progresses,
particularly if global salmon production
increases.
The prospects for shellfish exports
remain positive as new market
development and product variations
boost the sector. However, this growth
is dependent on access to quotas and
stability in the key prawn markets of
Italy and Spain. In terms of oysters,
inadequate supply is likely to remain an
issue in 2012.
The output for the pelagic sector is
largely dependent on the Norwegian
industry, which is generally the price
maker in pelagic fish. As output in the
sector is regulated by quotas, exports
are not likely to be greater by volume.
The sector should benefit from the
restoration of the blue whiting quota
in 2012, increasing six-fold compared
to the 2011 quota, which had been
severally reduced. This will contribute
to the volume and value of exports
from the pelagic sector. The sector will
also be boosted by the increase in the
boarfish quota to an estimated 56,000
tonnes during 2012.
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.
During 2011, 183 companies were
approved a total of €1.023 million in
marketing grants under the Bord Bia
Marketing Finance Grant Programme.
Seventeen small food producers
had 22 projects across nine overseas
markets progressed under the Bord
Bia Marketing Fellowship Programme,
assisting those companies to enter
and gain a foothold in export markets
during 2011. Over 140 food owners/
managers attended the Bord Bia
Small Business Seminar. Themed ‘Get
business-fit for 2011’ participants
heard how consumer trends and
changing consumer behaviour
will impact on businesses in 2011.
Participants were also given varied
perspectives, by a panel of industry
experts, on how to best use branding,
marketing and finance to bring sales to
life in the current climate.
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 three key service platforms of
Bord Bia Vantage are:
Bord Bia Vantage Point – Vantage
Point is Bord Bia’s online resource guide
for small businesses. This is a focused
internet space for small food and drink
businesses at www.bordbiavantage.
ie. The website was redeveloped and
re-launched in January 2011 and is
designed for quick and easy access
to information which can assist small
food and drink businesses. The aim
of the website is to provide the small
food business community with access
to timely and relevant information
24/7. The new site is easy to navigate
with three clear information choices:
‘starting your business’, ‘marketing
your business’ and ‘local food’. The
main body of information is in the
‘marketing your business section’
where 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. The site has had over 11,000
visits and 36,000 page views since it
was re-launched in January 2011. The
most frequently visited pages include
the producer map, starting your
business, event listings and marketing
your business. To complement the
text, a number of videos have been
developed with themes on NPD,
branding, exporting, and Marketplace
International 2012. Some 56 small
food producers were scheduled to
participate in Marketplace International
2012, to meet with a selection of the
400 international and 100 domestic
food and beverage buyers in the
Convention Centre, Dublin on 7
February 2012.
Bord Bia Vantage Plus – As part of
the Vantage Plus finance programme,
one to one financial mentoring with a
finance expert was available to small
food and drink producers to provide
guidance and advice on managing
costs, product costings, pricing and
competitor analysis.
The perceived multi-level structure
and complexity of the small business
distribution network poses problems for
many small business companies. These
complexities were addressed as part of
the ongoing Vantage Plus Distribution
programme in 2011, which focused
on the creation of distribution clusters,
promoting collaborative distribution and
integration into business plans. Through
a process of audits examining current
logistics arrangements, the exploration
of various distribution models, and the
subsequent identification of a number
of distribution options, savings and
efficiencies can be identified and made.
Distribution remains a key challenge for
many small businesses. Competency
in key account management and
distribution management are essential
to company growth.
In 2011, the Vantage Plus packaging
programme was run and consisted of a
one-day interactive workshop attended
by over 30 small food and drink
producers. A pocket-sized packaging
guide was published by Bord Bia and
presented at the workshop. This guide
included topics such as the practical
application of new packaging trends,
Bord Bia Irish Food Board Annual Report 2011
35
drink industry: Lorem ipsum dolor sit amet
labelling regulations, and marketing
opportunities to use packaging more
effectively to sell products.
In 2011, Bord Bia launched the
Vantage Plus Market-Led Product
Development Programme. The
programme is designed to help
owner/managers of food and drink
SMEs understand, and improve their
innovation capability. The programme
objectives were to:
• Increase the number of NPD
launches on the domestic and
overseas markets.
• Increase the number of product
listings in retail and foodservice,
thereby growing value in the sector.
• Change mindsets in the process for
product innovation.
• Provide training and online supports
and enhance the innovation
knowledge base.
The programme was delivered via
regional workshops in Cork and Dublin
along with online support through
www.bordbiavantage.ie (toolkits, case
studies and information).
Bord Bia Vantage Partner – is a
development programme for highpotential small business companies.
A total of 30 companies participated
on the Vantage Partner Programme in
36
the period 2007-11. Vantage Partner
and Foresight4food were integrated
in 2011, enabling participants to
improve their packaging, market
positioning and marketing plans in line
with consumer insights. The Vantage
Partner programme will be integrated
with the Irish and UK retail and
foodservice programmes in 2012.
Business Development and
Promotion
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 2011 through trade
and consumer fair participation and the
organisation of media activities.
In 2011, trade fairs continued to be
an important source of new business
(trade and consumer) for small
business clients. All Bord Bia events
are open to small businesses and
the following events in 2011 were
key among those attended by small
business companies:
• ISM Cologne, Germany, the largest
and most important confectionery
and biscuits fair in the world.
Bord Bia Irish Food Board Annual Report 2011
• Biofach, Nuremburg, Germany,
the largest organic trade fair in the
world.
• Bloom Garden Festival Artisan Food
Market.
• Speciality & Fine Food Fair London,
a key event for the speciality and
premium food sector.
At Bloom 2011, 48 small food and
drink producers showcased and sold
their products at the Artisan Food
Village at the largest Bloom market to
date, with some 90,000 visitors over
the five days.
Organic Food
Some 169 applications from 50
Irish organic food companies were
received for the National Organic
Awards in 2011. This was the
fifth year of the awards which are
established as a key event for the
organic industry coinciding with
National Organic Week. Judging
took place on 1 September and
the awards were presented at
a ceremony and lunch on 12
September in the Bord Bia Food
Centre. The overall prize winner was
Happy Heart Organic Garlic Flavour
Irish Rapeseed Oil from Second
Nature Oils.
The objective of National Organic
Week is to raise consumer awareness
of the benefits of organic food and
promote increased frequency of
consumption of locally produced
organic food. Themed ‘Enjoy
Organic, it’s Only Natural’, National
Organic Week 2011 took place week
commencing 12 September. The week
consisted of a range of activities,
including a major media partnership
with TV3 with weeklong TV coverage,
digital presence and TV3 webpage
coverage. In addition to TV3 national
coverage, there was also regional press
advertising, PR and online activities.
Over 60 events were hosted by organic
producers, retailers and farmers
markets on a nationwide basis.
The National Organic Conference
took place on 14 June in the Limerick
Institute of Technology and there were
170 delegates in attendance. The
agenda and topics for the day were
broad and appealed to both the organic
farmer and the processor. Speakers
and contributors came from the UK,
Ireland, France and Germany and the
day provided a great opportunity for
networking within the sector.
Fourteen organic producers
participated on the Ireland stand at
Biofach in Nuremburg, Germany.
Biofach is the world’s largest organic
trade fair, with several of the
companies securing new business
directly as a result of the show.
Ten companies engaged in a market
study visit to Austria following trade
and market research that identified
significant potential for premium
quality and organic fish and shellfish
from Ireland to this small but niche
lucrative market. Key target sectors
included organic fresh and smoked
salmon, organic mussels and premium
shellfish for supply to the retail and
foodservice sector. Research has also
been commissioned for the Swiss
seafood market.
During the recent visit by the US
foodservice company Performance
Food Group to Ireland, one day was
allocated to seafood business visits
in West Cork, with the focus on
organic fresh and smoked salmon,
organic mussels and crab. Four fish
companies were visited as part of a
very comprehensive itinerary.
The Bord Bia stand at Club de
Gourmets Trade Fair, Madrid, Spain
featured an ‘organic corner’ purposely
designed to highlight Ireland’s
commitment to organic production
and sustainability.
The National Organic Awards, organised by Bord Bia, marked their fifth year in 2011, and are an important highlight of National Organic
Week. A total of 169 individual products were judged with awards given in eight different categories. Pictured were Shane McEntee T.D.,
Minister of State at the Department of Agriculture, Food and the Marine with responsibility for Food Safety, Forestry and Horticulture, Eileen
Bentley, Food and Beverage Division, Bord Bia and Kitty Colchester, Second Nature Oils, who won the Best Overall Organic Product award.
Kitty received the award for her Happy Heart Organic Garlic Flavour Irish Rapeseed Oil which she produces on Drumeen Farm in Kilkenny.
Bord Bia Irish Food Board Annual Report 2011
37
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 area include
nursery stock production, protected
flowers / ornamentals, Christmas
trees, cut foliage and bulbs. In
recent years, the key development at
production level in edible crops has
been consolidation, with a reduction in
the number of growers and increased
production scale on existing farms.
In the amenity sector, the impact of
the collapse in the construction and
housing market has had an adverse
effect on the demand for landscaping
services and plants and has led to a
reduction in output from this sector.
The key market for the horticultural
industry continues to be the domestic
market. The main exports are
mushrooms to the UK market, which
absorbs over 75% of total mushroom
production. In the amenity sector,
exports valued at €12 million consist
of nursery stock plants, cut foliage and
Christmas trees.
Fresh Produce
The retail market is the key market
for fresh produce. In 2011, the retail
market for fresh produce was valued at
over €1.2 billion, which was an increase
of 1.7% on 2010. Volume increase
was also recorded, up 2.2% in 2011
when compared with 2010. The growth
came from a 2.8% increase in purchase
frequency and an increase of 2.3% in
the volume purchased per buyer. Both
the volume purchased per trip and the
average price per unit was back slightly
by about 0.5%. In 2011, the chilled
prepared fruit and vegetable retail
category was valued at €79 million,
which was 4% lower than 2010.
38
The market for amenity products
and services offered by this sector
are focused, to a large extent, on the
domestic market. The retail market
for plant/flower sales is estimated
to be €224 million per annum. The
retail market is serviced by garden
centres, DIY shops, lifestyle centres
and supermarkets. In addition, the
commercial gardening and landscape
market is an important part of this
sector, which includes landscape
designers and contractors.
Protected Food Crops
Mushrooms
Tomatoes and lettuce are the most
significant crops in this sector, with the
Irish retail market their key outlet. Irish
tomato production has consolidated in
recent years, with good demand from
the multiple retail sector for high-value
lines such as tomatoes on the vine.
The retail value of the tomato market
rose nearly 2% over the year while
volume contracted by almost 8%.
Vine tomatoes and cherry tomatoes
fell back slightly while round tomatoes
improved their share, probably on the
back of reduced consumer spending.
The value of the retail sales of lettuce
was down slightly in 2011 while
volume grew marginally.
There are 78 growers principally located
in Monaghan, Tipperary, Cavan and
Mayo and they produce an estimated
55,000 tonnes of mushrooms annually.
2011 was an encouraging year for the
mushroom sector, with the industry
recording a 4% increase in sales volumes.
In the Irish market, both the value and
volume of retail sales were up in 2011
compared with 2010. The year was
characterised by extremely cold weather
at the beginning of the year, which
helped mushroom sales, as they are
chiefly associated with hot, filling meals.
Exports also increased, by 2%, on the
back of increased consumer demand.
A major mushroom promotion in
the UK, jointly funded by the EU and
industry, and supported by Bord Bia,
had a positive influence on consumer
demand. The effect of the mushroom
promotion is seen in the demographic
shift in purchasing, with a 5 % growth
in the volume of sales to consumers
under the age of 45. The retail market
in the UK, which is the most important
outlet for Irish mushrooms, grew in
volume by 1 % to 117, 000 tonnes.
Investment in new state-of-the-art
production facilities in the mushroom
sector has been continuing, which
boosts overall production and has also
led to higher exports.
Bord Bia Irish Food Board Annual Report 2011
There are 150 protected crop growers
mainly located in North Dublin, Louth
and Wexford. The main crops grown
under protection are tomatoes, peppers,
cucumbers, lettuce, herbs and some
flower/amenity crops. The areas and
values of output overall have decreased
over the years due to competition and
high capital and running costs. Despite
this, there has been some significant
investment by individual businesses in
this sector in recent years.
Fruit Crops
Over 70 growers are involved in
soft fruit production and the main
crops grown are strawberries,
raspberries and blackcurrants. The
most important crop is strawberries,
which are now mainly grown under
protection. There are approximately
40 apple growers producing culinary,
dessert and cider apples.
The retail value of the total fruit
category was valued at €535 million
in 2011, which was an increase of
4.1% on 2010 figures. Contributing
factors to this growth included an
increase in the volume purchased per
buyer and an increase in the volume
purchased per shopping trip. Purchase
frequency was also up. Apples and
strawberries are the two main fruit
crops produced in Ireland. Demand for
Irish eating apples remains strong and
2011 was a satisfactory season with
a reasonable supply of Irish apples
and good demand. Demand for cider
apples was reasonably strong, as
supplies of apples from the continent
became harder to source.
In the soft fruit market, strawberries
are by far the most important crop and
investment in the sector has extended
the strawberry growing season to the
end of December. The value of retail
sales of strawberries grew in 2011
marginally, while volumes continued
to grow. Soft fruits such as raspberries,
blueberries, gooseberries and red
currants continue to show strong
growth, with retail volume and value
both up over 15% on 2010 levels.
Berries apart from strawberries account
for nearly 50% of the value of soft
fruit sales.
Potatoes
There are estimated to be 540
commercial potato growers in Ireland.
Over 375,000 tonnes of potatoes
were produced from 10,003 hectares
in 2011. It was a good growing
year with good yields and quality,
which led to a temporary surplus
in the market at the end of 2011.
The Rooster accounts for 56% of
potatoes grown, while other main
crop varieties are as follows; Kerrs
Pink (10%), Queens (8%), Golden
Wonder (3%) and Records (2%). The
counties with the highest percentage
of area involved in potato production
are Meath (27%), Dublin (16%) and
Louth (15%), closely followed by
Wexford (13%), Donegal (10%) and
Cork (6%). Recent years have seen a
decline in fresh potato consumption
with market being lost 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 potato
category retail value was €143 million
in 2011.
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 cold weather
at the beginning of 2011 made crop
production and harvesting challenging
and resulted in some crop losses.
Growing conditions post spring were
favourable with crop yields and quality
reported as good. The domestic retail
market is the key market for vegetables
with the value of the fresh vegetable
category reaching €526 million in 2011,
up 3.1% on the previous year. The
increase in the frequency of purchase
and the volume purchased per buyer
were the key reasons for this growth.
Amenity
There are over 100 nursery stock
producers located mainly in Kildare,
Tipperary, Kilkenny and the east of the
country. Crop losses were sustained
due to adverse weather conditions
during 2010 and in early 2011, which
impacted particularly on cut foliage,
flower bulbs and garden plants. An
optimistic start to the 2011 season saw
strong demand for plants in the first
half of the year. Demand in the second
half of the year was disappointing.
The domestic retail market for plant/
flower sales is estimated to be in the
region of €224 million per annum.
The total gardening market, including
household purchases and commercial
landscaping, is estimated to be valued
close to €1 billion.
2011 exports of amenity horticulture
crops and products were valued at
approx €12.25 million. This represents
an increase on 2010 exports and is
largely due to increases in exports of
nursery stock. Exports consist of cut
foliage used in floristry, which is valued
at €2.5 million, daffodil bulbs and cut
daffodil flowers valued at €1 million,
nursery stock (trees and shrubs) valued
at €5 million and Christmas trees
valued at €3.75 million. Most export
sales were achieved in the UK with
small quantities sold across Europe.
Only micro propagated plants were
sold further afield. The development
of new plant varieties through micro
propagation also generates an export
income through the licensing of
the intellectual property to overseas
growers.
Horticulture Programmes
Promotions
The horticulture promotions campaign
had two key elements in 2011, the
generic promotional campaigns of
Best in Season (fresh produce) and
Garden Time (gardening and plants).
These were implemented nationally
over a number of months during the
year and the activity used a number
of different promotional channels
including press, radio (ads and
competitions) and on-line. All activity
focused on driving consumers back
to the two campaign websites. There
were specific promotional activities
organised around strawberries with
National Strawberry Week held in
June, a promotion for Bramley apples
in November and a promotion for
Christmas trees at the end of the year.
A new consumer website called www.
potato.ie was launched in 2011, which
was a joint initiative between Bord
Bia and the Irish Potato Federation,
to assist in promoting the potato to
consumers and support other potato
promotional activities.
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. The schools
programme ‘Incredible Edibles’ ran
again in 2011. It is a jointly funded
campaign between Bord Bia and
the fresh produce industry and
it is managed by Agriaware. The
programme was taken up by more
than half of national schools in 2011.
It teaches children how to grow fruit
and vegetables, their origin and the
benefit of eating healthy by getting the
recommended five a day.
A joint three-year EU and industry
funded generic promotion of
Bord Bia Irish Food Board Annual Report 2011
39
mushrooms in the UK market
commenced in 2011, which
contributed to growing the mushroom
export market.
Marketing, Innovation,
Training and Information
A total of 27 horticultural companies
were assisted, to a total of €135,000,
through the Bord Bia Marketing
Assistance Programme for a range of
activities including packaging, website
and marketing material development,
as well as attendance at trade shows.
Assistance was also provided to a
number of horticulture companies
through the innovation programme
in the areas of NPD and branding.
Market research was carried out on
the amenity market, which included
measuring the size and trends in the
market and the attitude of consumers
to amenity product purchases. This
data was disseminated to the sector
to assist amenity businesses plan their
marketing strategies.
A schedule of training sessions was
developed to assist businesses to
overcome current challenges identified
in the Amenity Sector Strategy.
Training in specific areas, included
buyer meeting skills, presentation
skills, customer service, and one-to-
one mentoring. In addition, a supplier
development programme has been
developed to assist nursery growers
to deliver profitable sales growth for
their businesses, in a sustainable way,
via retail markets. The programme
includes workshops and one-to-one
business mentoring.
Bloom 2011
In 2011, 90,000 visitors came to Bloom,
which was an increase in attendance
of 50% on 2010. There was a 97%
satisfaction rate measured at the event.
Bloom 2011 included a number of new
features including the new Food Village
and the Ire-Su Garden, along with
craft and fashion elements. Post event
awareness of the event was measured
at 53% of the adult population with
30% of those claiming to have engaged
in increased gardening activity and
spend to the benefit of the domestic
horticulture industry, a key objective of
Bloom. The Food Village provided the
ideal high-profile platform for artisan
food/beverage and fresh produce
companies to display, promote and
market their products.
Horticulture Action Group
The Food Harvest 2020 Horticulture
Action Group, on which Bord Bia
participated, was convened to
input and report on the horticulture
recommendations in Food Harvest
2020 and other relevant actions that
would assist in the development of
the horticulture sector over the next
numbers of years. The group report
was presented to the Food Harvest
2020 Higher Level Implementation
Group. The report details a number
of key areas that have a significant
impact on the sector and will play a key
role in how the industry develops and
evolves up to 2020. These include cost
competitiveness and credit; the retail
sector; co-operation; promotion; State
support; regulation and implementing
the amenity-sector strategy. In addition,
the report sets out the horticulture
recommendations in Food Harvest 2020
and proposes a number of actions on
how these can be addressed.
Amenity Sector Strategy
The implementation of the
recommendations in the Amenity
Sector Strategy continued in 2011 and
included progressing the NPD plants
programmes, the cut foliage variety
trials, piloting a trading website to
facilitate domestic plant sales and
working with nurseries on export
market initiatives. Bord Bia also assisted
in the organisation and supported key
trade events including the industry
trolley fairs and the new amenity trade
show Garden Landscape Amenity
Showcase (GLAS), both of which are
clearly focused on promoting and
facilitating local plant sales.
Amenity Quality Programmes
One of Ireland’s top rugby stars, Tommy Bowe launches the ‘Best in Season’ campaign aimed at
helping consumers identify when certain fruit and vegetable are in season and so at their most
nutritious.
40
Bord Bia Irish Food Board Annual Report 2011
A total of 40 garden centres and 15
landscape contractors participated
in the three sector-specific Bord Bia
Amenity Quality Programmes in 2011.
These provide horticultural enterprises
with the guidelines on ‘best practice’
in managing their businesses. The year
also saw the transfer of the existing
Nursery Quality Programme with 35
members, to the EN45011 certification
standard with structured audit criteria
to ensure continuation of the use of the
Bord Bia Quality Mark on plant labels.
Quality and Environmental Assurance
The increasing focus and importance
of demonstrating environmental
sustainability in Irish food production
is now reflected in the Quality and
Environmental Assurance function
of Bord Bia. In March 2011, Bord Bia
received certification from The Carbon
Trust for the calculation methodology
of a carbon footprint on beef farms
that were members of the Bord Bia
Quality Assurance Scheme. Bord Bia
worked with Teagasc to develop this
model and gratefully acknowledges its
important contribution. The certification
against PAS 2050 (a specification
for the assessment of the lifecycle
greenhouse gas emissions of goods and
services) was the first to be awarded
in Ireland and provides independent
and international recognition of this
work. It followed detailed surveying
of a representative sample of beef
production systems in Ireland.
Having achieved this certification, Bord
Bia incorporated a survey into the Beef
and Lamb Quality Assurance Audit to
provide additional information about
the beef enterprise. Producers consent
was sought to access information from
the Animal Identification & Movement
(AIM) database operated by the
Department of Agriculture, Food and
the Marine. Combining the details of
each animal from each herd, together
with the farm enterprise information
collected, and applying it to the
calculation methodology enabled
Bord Bia to provide an indication of
the carbon footprint for individual
farms that are members of the
Quality Assurance Scheme. This work
commenced in May and, by year end,
data had been collected from over
13,000 farms. Bord Bia is providing
initial feedback to producers showing
them how their performance compares
with their peers and this is broken
down into the principal contributing
components. It is planned to provide
further feedback so that producers can
begin to reduce their carbon footprint
and improve their efficiency.
Providing a carbon footprint
assessment to each individual
beef producer member of the
Beef and Lamb Quality Assurance
Scheme is unique and underlines
the commitment Bord Bia has to
providing evidence of the sustainability
credentials of Irish food production. A
similar project commenced in autumn
Bord Bia rolled out its carbon footprint initiative across more than 13,000 Irish beef farms, with all 32,000 member farms in its Quality
Assurance Scheme set to receive their first sustainability audit by the end of next year. Using a calculation model appropriate to Irish
conditions, developed in close collaboration with Teagasc and accredited by The Carbon Trust in the UK, Bord Bia is collecting data from
up to 500 farms per week through an initiative that is unrivalled anywhere in the world. Pictured are Mark Zieg and Margaret McCarthy
of Bord Bia at Bord Bia’s sustainability exhibit at the National Ploughing Championships.
Bord Bia Irish Food Board Annual Report 2011
41
2011 to develop a carbon footprint
model for dairy farms in collaboration
with Teagasc. It is anticipated that
this will provide a basis for application
to a broad group of dairy farms
in 2012. Bord Bia is also intent on
providing metrics further along the
supply chain and is developing a
measurement capability for the beef
processing sector. Other environmental
sustainability parameters are also being
considered and work got underway in
assessing the water footprint of Irish
beef and dairy farms.
The ongoing work of certifying farms,
packers and processors in the meat,
egg and horticulture sectors against
the relevant Bord Bia Quality Assurance
Standard continued to progress in
2011. This has a significant impact in
Ireland, with 1.5 million households
consuming Quality Assured products
each month. Consumer awareness of
42
the Quality Assurance logo has grown
to 89% with over 60% of consumers
citing it as an encouragement to
purchase product carrying the mark.
Bord Bia regularly reviews the Quality
Assurance Standards and revises them
periodically. Work commenced on
revising the pig producer standard
to ensure that it is aligned to best
international practice. This involves
consultation with all relevant
stakeholders so that the published
standard will be fit for purpose. On
completion, it will be submitted to the
Irish National Accreditation Board for
inclusion under EN45011 accreditation,
which applies to all Bord Bia Quality
Assurance Standards. Similarly a
revision of all the meat processing
standards was undertaken and a
new standard will be issued in 2012
covering all species.
Bord Bia Irish Food Board Annual Report 2011
During 2011, under the Horticulture
Quality Assurance Scheme the new
casing standard was finalised and
submitted to INAB for consideration
and inclusion under EN45011
accreditation. The horticulture
producer and pre-packer standard
was updated. The new standard
took a modular format and covered
the different steps of production
and supply: growing, packing and
distribution of fresh produce. A new
ornamental horticulture standard
was commenced, completed and
submitted to INAB for consideration
under EN45011. Bord Bia achieved
accreditation as a certification body
for the new version (Version 4, March
2011) of the GlobalGAP standard.
A laptop software programme was
developed and implemented in the
field to facilitate the management of
simultaneous multiple audits.
Services
Strategic Information Services
Consumer Insight
Following the selection of ‘innovation’
as one of the five work streams of the
Pathways for Growth programme,
Bord Bia moved to allocate more
resources into this area in 2011. Bord
Bia’s focus is on 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 Inspiration Expeditions),
ideation (developing ideas into
concepts), 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 such a consumer
perspective in generating new product
ideas or branding initiatives. Some
20 individual company projects were
completed or started in 2011. A
‘syndicated’ version of this, where the
consumer research was shared by a
group of companies, was introduced
during the year for smaller businesses
and had 24 participants.
Bord Bia piloted the use of
‘crowdsourcing’, consumer-focused
online collaboration programmes, with
two Irish companies. Crowdsourcing
enables organisations to engage with
consumers, partners or other crowds to
co-create new products and services,
develop solutions for technology or
R&D needs, test product or marketing
concepts, discover emerging demands
and assist with brand development.
Dairy immersion studies were also
introduced in 2011. The studies take
the form of ethnographic research,
capturing first hand the lifestyle,
food culture and dairy consumption
habits in selected emerging markets.
They offer a deeper understanding
of cultural orientation, consumer
and market trends to support the
continued development and innovation
of the Irish dairy industry.
•
•
Published Research
A programme of original research
was continued through 2011 and was
published through the Bord Bia web
site. In 2011, this included:
• PERIscope 6, a tracking study of
Irish, British and Northern Irish
consumer attitudes and behaviours
in relation to food, cooking and
shopping.
• What Ireland Ate Last Night,
which explores evening meal time
behaviour in Ireland and the types
of food we buy and consume.
• The Consumer Lifestyle Trends
programme has been ongoing
since 2006, tracking change in
broader shifts in global consumer
attitudes, values, and behaviours
that will shape needs within the
food and drink industry within
Ireland and key international
•
•
markets. 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.
Food and Drink in the Future of
Health and Wellness, a study that
explored consumer motivations
and the future opportunity spaces
for food and drink companies
constituted an in-depth exploration
of the Quest for Health and
Wellness trend.
Feeling the Pinch was the fifth
iteration of a companion study
to Consumer Lifestyle Trends
which looked into the impact of
the recession on Irish and British
consumer behaviour and how food
and drink companies can respond
to the challenges presented. The
research found that not all consumers
have been affected equally by the
recession or face the same challenges.
Businesses that understand the
changed mindset of consumers can
unlock the spending power that still
exists by adopting the appropriate
tactics and strategies.
Irish Foodservice Channel Insights
is a project looking at the casual
dining and café channel within the
Irish foodservice market.
Dairy studies in Russia and China
involved trade studies in these key
territories, looking at opportunities
for both ingredients and consumerready products.
Weekly Newsletter
The weekly FoodAlert, also published
on the Bord Bia website, offers a Bord
Bord Bia Irish Food Board Annual Report 2011
43
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 inquiries using an
array of international reports, trade
press and databases as well as our
own original research. There were over
a thousand external inquiries during
2011 with a similar number of internal
inquiries made by staff on behalf of
Irish food manufacturers.
Marketing Services
Brand Forum
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 oneto-one mentoring. The programme
has recently become part of the Insight
and Innovation department to ensure
that consumer insight remains central
to brand building.
The focus in 2011 was to showcase
brands (both international and Irish)
that have succeeded in exporting
their brand overseas, and examples
of great brand building stories (food
and non-food) in Ireland and abroad.
Speakers in 2011 have included
Kelloggs, Interbrand, Kerry Foods
(Cheestrings), Glenisk, Voya, Tayto,
Cooleeney and Dee’s Wholefoods.
The end of year speaker was Irial
Finan, Executive Vice President The
Coca-Cola Company and President,
Bottling Investments Group.
In 2011, there were 83 members
of Brand Forum, with almost a
third having availed of one-to-one
mentoring offered to assist with brand
strategy. The programme also had
workshops on social media and food
styling, which was repeated due to the
demand from the industry.
44
Sponsorships
During 2011, Bord Bia sponsored
the second 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 314,000 and a 19% share, made
Neven the most popular chef on RTE.
The programme featured both
producers and end-users (chefs) of
Irish food, and included overseas
location reports from London, Paris,
Berlin, Amsterdam, Dusseldorf and San
Sebastian. The products included in
the series covered beef, duck, cheese,
lamb, dairy, whiskey and seafood.
Research following the television
series, indicated that almost two-thirds
of those reached agreed that Bord Bia’s
sponsorship of the Home Chef series
gave them a better understanding of
the value of the Bord Bia Quality Mark
on food, a 10% increase on 2010.
Quality assured products and local
produce were promoted at key food
festivals throughout the country.
Award sponsorships in 2011 included
the food, beverage and seafood
categories of the Small Firms
Association and Irish Exporter Awards
and the Best Producer Category in
the Blás na hEireann and Good Food
Ireland awards.
Bord Bia worked with the TASTE
Council in the design and delivery
of the first Summer School for Food
– The Future is Food and hosted a
dinner made exclusively with Wicklow
produce for 200 guests.
Bord Bia Quality Mark and increase
the proportion of consumers only
buying food with the mark. In 2011,
a new consumer proposition was
developed, ‘Your Food is our Passion’,
which was integrated across all red
meat, poultry and egg campaigns and
inspired consumers to make delicious
meals with the range of qualityassured food. Consumers were also
segmented and targeted according to
their level of affinity with the Bord Bia
Quality Mark.
In total, 14 campaigns took place
across beef, lamb, pork and bacon,
chicken, eggs and generic activities on
the Quality Mark.
In addition, campaigns took place for
fish and organic food while the ‘Just
Ask’ campaign continued to encourage
consumers to check for the origin and
suppliers of meat on the menu when
dining out.
In terms of results, consumer research
indicates that 87% of Irish consumers
are now aware of the Bord Bia Quality
Mark. This compares with 70% in
2006 and is the highest level of
awareness of any food mark. In terms
of consumer understanding of the
mark, 64% of Irish adults associate
rigid safety controls and traceability
most strongly with the Quality Mark
- an increase of 16% since 2006. In
addition, 61% say that they would
be more likely to buy a food product
having seen the Quality Mark on it –
up from 54% in 2006.
Home Market
In the most recent retail audit in
December 2011, 70% of facings of
eligible meat products in retail outlets
carry the Bord Bia Quality Mark. This
compares with 63.5 % at the end
of 2010. The increase can mainly be
attributed to the inclusion of lamb
in the Quality Mark Programme and
significant increases in the proportion
of beef, chicken, cooked ham and
rashers carrying the Mark.
The focus of marketing activities in
the domestic market was to maximise
retail market share of food with the
Bord Bia’s ‘Your Food is Our Passion’
television advertising campaign ranked
Bord Bia arranged a pop-up restaurant
in IMMA for visiting jurors for Dublin’s
qualification as a finalist for Design
Capital 2011 and advised Dublin City
Council of the food element of the
jurors’ itinerary.
Bord Bia Irish Food Board Annual Report 2011
69 in all TV advert media spend on Irish
television, yet it measured in research
in the top 10 most remembered
television advertisements in 2011.
Social Media
During 2011, Bord Bia continued
to integrate social media into all
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 at
home and overseas. Bord Bia was also
nominated in the 2011 Social Media
Awards in the Public Sector category.
Bord Bia hosted the second annual
Irish Food Blogger’s Day at our offices
on Lower Mount Street in Dublin. Over
50 Irish food bloggers attended and
participated in food styling and food
photography workshops with the aim
of improving the image of Irish food
as a search term on internet search
engines. Bord Bia also sponsored the
Irish food and drink category of the
Irish Blog Awards, the winner of which
was Aoife Cox who writes The Daily
Spud blog.
Bord Bia Paris office worked closely
with Irish food blogger Donal Skehan
for St. Patrick’s Day where it hosted
tasting sessions at La Defence offering
Irish stew, Irish smoked salmon and Irish
farmhouse cheeses to the general public
to celebrate Ireland’s national day.
By the end of 2011, Bord Bia’s Facebook
page generated just under half a
million interactions with fans while our
following grew organically on Twitter
to over 5,500. In Bord Bia photosharing
on www.pix.ie reached approximately
140,000 photo views in 2011. The
Bord Bia channel on YouTube reached a
broadcast level of 177 videos pertaining
to the Irish food industry with a
viewership of over 56,000.
Events and Exhibitions
Bord Bia’s trade fair programme
offers Irish companies a platform
for developing, building and forging
business-to-business relationships,
which are central to broadening
their export reach. In 2011, Bord Bia
organised 50 events and exhibitions
supporting its strategy of broadening
export reach for companies in the
food, beverage and horticulture
sectors. In all, 228 exhibitors,
representing 125 Irish food companies,
participated on Bord Bia organised
trade fairs. Flagship events in 2011
included Anuga, Bloom and ESE.
There is continued interest in sector
events and companies targeting
the foodservice sector attended
Sirah Trade Fair in Lyon, France,
and The Foodservice Conference
and Showcase in London. Organic
companies were serviced by
attendance at Biofach Trade Fair
in Nuremburg and the Organic
Conference in Limerick. Building on
the promotion of premium meat
products in Europe, meat companies
participated at Anuga, Germany, and,
for the first time, Tuttofood in Milan.
The European Seafood Exhibition
in Brussels, the largest seafood fair
in the world, was a pivotal part
of the seafood sector’s marketing
programme along with participation
at Conxemar in Vigo. Trade fairs
targeting niche sectors such as food
ingredients, travel retail, speciality
foods/artisan foods were FIE in Paris,
Speciality & Fine Food Fair London and
TFWA Cannes. Two regional food fora
took place in Kilkenny and Limerick to
showcase locally-produced product to
the local buying community.
The high quality of Irish food produce
was highlighted to global audiences
with Bord Bia’s involvement in menu
selection and product display during the
Queen’s visit to Ireland in both Dublin
and Cork, as well as the Leadership
Summit in June and the Global Irish
Forum in Dublin Castle in October.
International Communications
Broadcaster Ella McSweeney, actor Lochlann O’Mearainn from the Bord Bia Quality Mark Advert and
Ella Gleeson (aged six) launched Bord Bia’s Quality Mark Christmas campaign, which encouraged
consumers to look for food with the Quality Mark when shopping at Christmas to ensure it has
been produced to the highest-quality standards and can be traced back to the farm.
Bord Bia’s International
Communications programme
worked in close collaboration
with our 10 overseas offices
during 2011 to achieve print and
Bord Bia Irish Food Board Annual Report 2011
45
online media coverage in foreign
press by providing information,
photography, and press releases to
international consumer and trade
media, as well as international social
media commentators on food and
horticulture issues. Coverage for Bord
Bia’s events and campaigns spanned
some of Europe’s leading publications
from the UK’s Grocer & Farmweek
publications, to China TV coverage via
CCVT6, CCTV9 and CCTV13. French
publications Lineaires and Marianne
reported on Irish beef and artisan
food products stemming from inward
media visits.
Bord Bia’s Bloom 2011 received
international coverage across 11
markets through foreign media
(including TV crews and bloggers) from
as far afield as China and the United
Arab Emirates. Other markets included
France, Netherlands, Denmark,
Belgium, Hungary, Germany, Czech
Republic and UK.
In June of 2011, in close collaboration
with our sister agencies Failte Ireland
and Tourism Ireland, Bord Bia hosted
the Travel Classics group of American
and Canadian food and travel writers
in Trinity College, Dublin. The group
included writers and editors from
prominent publications such as
National Geographic, Bon Appetit,
Saveur and Everyday with Rachel Ray
magazines. The group sampled some
of the best of Irish food and drink with
a unique cooking demonstration by
chef Neven Maguire.
Bord Bia organised Irish food for over
600 media accommodated in the
environs of Dublin Castle during the
State Dinner for her Majesty Queen
Elizabeth II and, in partnership with
Cork City Council and the English
Market, created the potential for
outstanding images of Irish food to be
broadcast around the world.
Supporting its trade fair programme,
The Taste Council of Ireland’s inaugural Food Summer School, which took place at the
BrookLodge Hotel, Co. Wicklow involved a series of presentations and panel discussions with
a range of industry experts, and talks and debates on the current and future contribution of
the artisan and speciality food producer. Over 150 representatives from the artisan food sector
attended the event, held in association with Bord Bia. Pictured are Kevin Sheridan, Sheridan’s
Cheesemongers, Taste Council Member; Una Fitzgibbon, Marketing Director, Bord Bia; and John
McKenna, Bridgestone Irish Food Guides.
46
Bord Bia Irish Food Board Annual Report 2011
Bord Bia advertised and assisted in
the editorial of nine editions of Irish
Food magazine. The presence of the
magazine at overseas trade shows
continues to provide a touch point for
over 500,000 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
TASTE Council
The TASTE Council is an independent
voluntary body representing the
artisan and speciality sector. Bord
Bia provides a secretariat role for the
TASTE Council. The TASTE Council in
association with Bord Bia hosted the
inaugural Food Summer School on 31
August 2011, which was attended by
over 150 delegates.
The objective of the summer school
was to discuss and examine the
current contribution of the artisan
and speciality food producer to
the Irish economy and to look
to the future, incorporating the
recommendations of Food Harvest
2020 and the development of Brand
Ireland. The event, which is set to
become an annual event in the food
industry calendar, involved a series of
presentations and panel discussions
with a range of industry experts and
lively discussion on the current and
future contribution of the artisan
and speciality food producers. A final
closing panel discussion was chaired
by Aidan Cotter, CEO, Bord Bia with
a closing address by Minister for
Agriculture, Food and the Marine,
Simon Coveney, TD. The event also
incorporated a dinner showcasing the
best of local Wicklow produce.
Marketing Finance
Bord Bia’s Marketing Assistance
Programme (MAP) provides small
drink industry: Lorem ipsum dolor sit amet
and medium-sized enterprises with
assistance towards improving their
marketing techniques and capabilities.
In 2011, grant aid was provided
to companies in the farmhouse
cheese, beverages, chilled dairy,
confectionery, charcuterie, seafood
and horticulture sectors.
Participating companies have an annual
turnover of between €100,000 and
€3.5 million. In 2011,189 applications
were received and 183 approved.
Grants totalling €748,770 were paid to
134 companies during the year.
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.
Markets
In addition to the implementation of
programmes and projects Bord Bia’s
markets personnel in 2011:
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 2011, Bord Bia’s Scandinavian
office opened in the Irish Embassy in
Stockholm with a resource transfer
from Paris. In order to meet the needs
of Irish companies, promoting Irish
products and showcasing Irish supply
• Undertook 904 buyer meetings and
presentations.
• Responded directly to 986
individual buyer requests for
detailed information on the Irish
food and drink industry, particularly
suitable suppliers.
• Conducted 883 business planning
meetings with Irish client
companies.
• Responded to 2,608 market
information requests from Irish
client companies.
• Delivered bespoke business
development projects with
approximately 40 client companies
per month.
• Represented the industry in 65
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
During 2011, Bord Bia continued
to work in partnership with key
government departments, agencies
and associations in the development
and implementation of support for the
food and drink industry. These included
the Department of Agriculture,
Food and the Marine, Teagasc, BIM,
Department of Foreign Affairs and
Trade, Enterprise Ireland, Failte Ireland
(and Tourism Ireland), Food Safety
Authority and the Environmental
Protection Agency, among others.
Aidan Cotter
Chief Executive
Bord Bia Irish Food Board Annual Report 2011
47
Corporate Statement
Corporate Governance
Freedom of Information
Bord Bia was established under the
Bord Bia Act 1994 and operates in
accordance with the provisions of
the Bord Bia Acts 1994 & 2004 and
under the aegis of the Minister for
Agriculture, Food and the Marine.
Bord Bia is a prescribed organisation
under the Freedom Of Information
Acts 1997 and 2003. The Freedom
of Information Acts established three
statutory rights:
Governance
The Board has adopted the Code of
Practice for the Governance of State
Bodies and the provisions of the
Code are being implemented. For
the purposes of applying the Code
of Practice for the Governance of
State Bodies, Bord Bia is regarded as
a non-commercial State Body. The
Board is committed to maintaining
the highest standards of Corporate
Governance and Best Practice,
has a formal schedule of matters
specifically reserved to it for decision,
provides strategic guidance, monitors
the activities and effectiveness of
management and monitors compliance
on an ongoing basis ensuring relevant
legislation, regulations and guidelines
are complied with.
Ethics in Public Office
The provisions of the Ethics in Public
Office Act 1995 and the Standards
in Public Office Act 2001 have been
implemented. Board members and
staff members holding designated
positions furnish statements of
interests on appointment and each
year to the Secretary.
48
• A legal right for each person to
access information held by public
bodies;
• A legal right for each person to
have official information held by a
public body, relating to him/herself,
amended where it is incomplete,
incorrect, or misleading;
• A legal right to obtain reasons for
decisions affecting oneself taken by
a public body.
In addition to the requirements of the
Freedom of Information Acts, the Data
Protection Acts 1988 and 2003 also
apply to Bord Bia. The Data Protection
Acts protect the privacy of individuals
whose personal data is being processed.
Personal data is information relating to
a living individual who can be identified
from the data itself or in conjunction
with other information held.
Equality
Bord Bia is committed to ensuring
equality of opportunity and 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, jobsharing and career breaks. Bord Bia
Bord Bia Irish Food Board Annual Report 2011
is also committed to implementing
government policy in relation to the
employment of disabled people in
the public sector. Specific additional
provisions were made for disabled
visitors in the construction of Bord Bia’s
Food Centre. There is a policy on sexual
harassment in operation to support and
protect the dignity of each person.
Safety, Health and
Welfare at Work
Bord Bia is implementing the provisions
of Safety, Health & Welfare at Work
legislation, including the preparation
and operation of a Safety Statement
embracing all matters affecting safety,
health and welfare of staff and visitors
to Bord Bia’s premises.
Clients’ Charter
Bord Bia’s Clients’ Charter sets out
its commitment to the Principles
of Quality Customer Service for
Customers and Clients of the Public
Sector. The Charter is supported by an
Action Plan and appropriate internal
procedures to give practical effect to
this commitment.
Energy Efficiency and
Conservation
Bord Bia is committed to making
every effort possible to be energy
efficient and to operating appropriate
conservation and recycling measures.
Light and heat, supplied by electricity,
are the main areas of energy use
in Bord Bia. Annual energy usage
has been reduced by 18% since
commencing a review of energy
usage in 2008. Usage within Bord
Bia’s main office is as follows:
2011
MWh of electricity
350
Actions undertaken in 2011
Bord Bia undertook a review
of office glazing, however, the
payback on investment in this area
precluded any action at this time.
A number of light fittings were
upgraded to low voltage where the
changed level of lighting and cost/
benefit were acceptable.
Actions planned for 2012
In 2012 and beyond Bord Bia
intends to further improve our
energy performance by undertaking
a number of initiatives, where
financially justified, including a
review of air conditioning units,
upgrades to lower voltage lighting,
occupancy sensors and a further
review of the level of lighting in all
work areas.
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.
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 54.
The Roles of the Chairman
and the Chief Executive
The Chairman leads the Board in
the determination of its strategy
and in the achievement of its
objectives. The Chairman is
responsible for organising the
business of the Board, ensuring
its effectiveness and setting its
agenda. The Chairman facilitates
the effective contribution of all
board members and constructive
relations between the executive and
board members, ensures that board
members receive relevant, accurate
and timely information.
The Chief Executive has direct charge
of Bord Bia on a day to day basis and is
accountable to the Board for Bord Bia’s
financial and operational performance.
Board Members and Meeting
Attendance
There were six Board meetings held
during 2011 and the details of each
member’s attendance, is set out on the
following page.
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 Irish Food Board Annual Report 2011
49
Board Member G. Brown
D. Browne
J. Bryan
M. Byrne
J. Cahill
R. Carolan
M. Carey
N. Cawley
V. Cleary
M. Cronin
P. Cusack
A. Dennison
K. Dunne
F. Hayes
R. Holland
J. Hyland
J. Kingston
F. O’Gara
M. O’Rourke
B. Sweeney
Board Meetings
Attended
2 out of 2
2 out of 2
3 out of 6
6 out of 6
6 out of 6
2 out of 2
2 out of 2
3 out of 6
2 out of 2
2 out of 2
2 out of 2
5 out of 6
4 out of 6
4 out of 6
2 out of 2
2 out of 2
2 out of 2
5 out of 6
4 out of 6
2 out of 2
The Pensions and Remuneration
Committee, which currently comprises
three members of the Board, met
on one occasion during 2011.
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.
In preparing these financial
statements the Board is required to:
The Strategy Committee, which
comprises five members of the
Board, met on three occasions during
2011. 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.
4. State whether applicable accounting
standards have been followed,
subject to any material departures
disclosed and explained in the
financial statements.
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 2011. 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.
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 2011, the
briefing session, presented by senior
executives, comprised a comprehensive
overview of the main activity areas of
the organisation.
50
Board Responsibilities
Section 21 of An Bord Bia Act 1994
requires the Board to “keep in such
form and in respect of such accounting
periods as may be approved by the
Minister, with the consent of the
Minister for Finance, all proper and
usual accounts of monies received or
expended by it, including an Income
and Expenditure Account, a Cash Flow
Statement and a Balance Sheet and,
in particular, shall keep in such form
as aforesaid all such special accounts
as the Minister may, or at the request
of the Minister for Finance shall, from
time to time direct and the Board shall
ensure that separate accounts shall
be kept and presented to the Board
by any Subsidiary Board that may
be established by the Board under
this Act and these accounts shall be
incorporated in the general statement
of account of the Board.”
Bord Bia Irish Food Board Annual Report 2011
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.
The Board is responsible for keeping
proper books of account, which
disclose, with reasonable accuracy
at any time, the financial position of
Bord Bia. The Board is also responsible
for safeguarding the assets of the
organisation and hence for taking
reasonable steps for the prevention
and detection of fraud or other
irregularities.
Michael Carey Chairman
Aidan Cotter
Chief Executive
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:
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.
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 2011 the Board conducted
a review of the effectiveness of the
system of internal financial control.
On behalf of the Board
• Clearly defining management
responsibilities and powers.
• Establishing formal procedures
for monitoring the activities and
safeguarding the assets of the
organisation.
• Developing a culture of
accountability across all levels of the
organisation.
The Board has established processes to
identify and evaluate business risks by:
• Identifying the nature, extent and
financial implication of risks facing
the body, including the extent
and categories which it regards as
acceptable.
• Assessing the likelihood of identified
risks occurring.
• Working closely with Government
and various Agencies to ensure
that there is a clear understanding
of Bord Bia goals and support for
the Board’s strategies to achieve
those goals.
Bord Bia has an outsourced internal
audit function, which operates in
accordance with the Framework Code
of Best Practice set out in the Code of
Practice for the Governance of State
Bodies and, which reports directly
to the Board Audit Committee. The
work of internal audit is informed by
analysis of the risk to which the body
is exposed and annual internal audit
plans are based on this analysis. The
analysis of risk and the Internal Audit
plan are endorsed by the Board Audit
Committee and reported to the Board.
The risk register is reviewed at each
Board Audit Committee meeting and
at each Board meeting.
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.
The Board’s monitoring and review
of the effectiveness of the system of
Bord Bia Irish Food Board Annual Report 2011
51
Organisation Structure
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.
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
Quality &
Food
Dudes
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.
Marketing
Services
Strategic
Information
Services
Corporate
Communications
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.
Human
Resources
General Information
Head Office:
Clanwilliam Court, Lower Mount
Street, Dublin 2.
Auditors:
Comptroller and Auditor General
Bankers:
Allied Irish Banks
Solicitors:
Philip Lee Solicitors
52
Bord Bia Irish Food Board Annual Report 2011
Corporate
Services &
Finance
Staff Structure
Chief Executive
Aidan Cotter
Markets
International Markets
Quality and Environmental Assurance
Marketing Services
Meat
Food and Beverages
Small Business
Horticulture/Food Dudes
Strategic Information Services
Corporate Communications
Human Resources
Corporate Services
Finance
Michael Murphy
James O’Donnell
Michael Maloney
Una Fitzgibbon
Jim O’Toole
Tara McCarthy
Eileen Bentley
Mike Neary
Julian Smith
Rosaleen O’Shaughnessy
Susan Doyle
Frank Lynch
Gerry Bailey
Market Contacts
Ireland Market
Amsterdam
Dusseldorf
London
Madrid
Milan
Moscow
New York
Paris
Shanghai
Stockholm
Teresa Brophy
Margaret McCarthy
Liam MacHale
Beatrice Blake
Cecilia Ruiz
John Keane
Alla Barinova
Karen Coyle
Noreen Lanigan
Breiffini Kennedy
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 maximization 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 2011
53
Bord Bia Board
Chairman
Mr Michael Carey
Executive Chairman, Jacob Fruitfield
Food Group
Members
Mr Gary Brown
Chief Executive Officer, Below the Line
Marketing
Mr John Kingston
Beef & Dairy Farmer
Prof Fergal O’Gara
Department of Microbiology, University
College Cork
Mr Brody Sweeney
Food Entrepreneur
Chief Executive
Changes during 2011
Terms Expired 9th April
Mr Dan Browne (Chairman), Director
Dawn Meats Grannagh
Mr Joseph Hyland, Managing Director,
Irish Country Meats.
Terms Expired 10th April
Mr Ray Carolan, Cattle Breeder
Mr Vincent Cleary, Managing Director,
Glenisk Organic Ireland
Aidan Cotter
Mr John Bryan
President, Irish Farmers’ Association
Secretary/Director
Ms Marian Byrne
Principal Officer, Department of
Agriculture, Food and the Marine
Frank Lynch
Dr Noel Cawley
Chairman, Teagasc
Mr John Comer
President, Irish Creamery Milk
Suppliers’ Association
Mr Michael Cronin
Former Chairman, Irish Dairy Board
Ms Anne Maria Dennison
National President, Irish
Countrywomen’s Association
Term Expired 27th April
Dr Paul Cusack, Former Principal,
College of Amenity Horticulture,
National Botanic Gardens.
Appointed 19th September
Mr Michael Carey (Chairman)
Appointed 7th October
Mr Gary Brown
Mr Michael Cronin
Ms Rhona Holland
Mr John Kingston
Mr Brody Sweeney
Resigned 31st December
Mr Jackie Cahill, Former President, Irish
Creamery Milk Suppliers’ Association
Changes during 2012
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.
54
Bord Bia Irish Food Board Annual Report 2011
Appointed 8th February
Mr John Comer
Terms Expired 23nd March
Mr John Bryan
(re-appointed 24th March)
Ms Marian Byrne
(re-appointed 28th March)
Mr Mel O’Rourke, Managing Director,
Sylvan Ireland
Bord Bia Consumer Bord Bia Meat and
Foods Board
Livestock Board
Chairman
Changes during 2011
Chairman
Changes during 2011
Dr Noel Cawley
Chairman, Teagasc
Terms Expired 14th June
Mr Mike Doyle
(re-appointed 15th June)
Mr Noel McPartland,
Chairman, The Food Hub
Mr John Bryan
President, Irish Farmers
Association
Term Expired 10th April
Mr Ray Carolan (Chairman),
Cattle Breeder
Members
Mr Pat Connors
Sales & Processing Director,
Marine Harvest
Mr Bernard Coyle
Chairman, Mr Crumb
Mr Mike Doyle
Managing Director, Meat
and 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 Jack Teeling
Managing Director, Cooley
Distillery
Members
Resigned 19th September
Mr Michael Carey, Executive
Chairman, Jacob Fruitfield
Food Group
Terms Expired 2nd
December
Ms Paula Mee, Food
& Nutrition Consultant
Mr Joe O’Flynn,
Managing Director,
Consumer Foods Division,
the Irish Dairy Board
Mr Henry Burns
Chairman, Livestock
Committee, IFA
Mr Vincent Carton
Chief Executive, Carton
Group
Mr Tim Cullinan
Chairman, National Pigs
& Pigmeat Committee, IFA
Mr Jim Hanley
Chief Executive, Rosderra
Irish Meats
Mr John Horgan
Managing Director, Kepak
Group
Mr Brendan Mallon
Associated Craft Butchers
of Ireland
Term Expired 15th April
Mr Gerry Maguire,
Managing Director, Slaney
Foods Group
Appointed 23rd June
Mr Brendan Mallon
Terms Expired 2nd October
Mr John Horgan
(re-appointed 12th
December)
Mr Brendan Mallon
Mr Alo Mohan
Mr James Murphy
(re-appointed 3rd October)
Appointed 8th November
Mr John Bryan (Chairman)
Term Expired 7th December
Mr Tim Cullinan
(re-appointed 8th
December)
Appointed 8th December
Mr Finbarr McDonnell
Mr Finbarr McDonnell
Managing Director, ABP
Changes during 2012
Mr Martin McMahon
Irish Creamery Milk
Suppliers’ Association
Mr Alo Mohan
Chairman, National Poultry
Committee, IFA
Resigned 20th February
Mr Michael Doran, Former
Chairman National Livestock
Committee, IFA
Appointed 24th February
Mr Henry Burns
Mr James Murphy
Chairman, National Sheep
Committee, IFA
Bord Bia Irish Food Board Annual Report 2011
55
Bord Bia Quality
Assurance Board
Bord Bia
Horticulture Board
Chairman
Changes during 2011
Chairman
Changes during 2011
Vacant
Terms Expired 18th February
Mr Vincent Carton, Chief
Executive, Carton Group
Mr Cornelius Traas, The
Apple Farm
(re-appointed 19th
February)
Mr Kieran Dunne
L & K Dunne Nurseries
Mr Paddy Callaghan
Nature’s Best Ltd.
Terms Expired 27th
September
Ms Rachel Doyle
Ms Caroline Keeling
(re-appointed 28th
September)
Mr Maurice Whelton, Potato
Grower
Ms Rachel Doyle
Arboretum Garden Centre
Appointed 12th December
Mr Brian O’Reilly
Mr John Hogan
Dublin/Meath Growers
Changes during 2012
Members
Mr Ray Bowe
Food Safety & Quality
Manager, Musgrave Retail
Partners
Mr Vincent Carton
Chief Executive, Carton
Group
Mr John Cunningham
Ex-Dairygold Food Products
Mr Michael Doran
Chairman, National
Livestock Committee, IFA
Mr Brendan Gleeson
Meat & Meat Policy Division,
Department of Agriculture,
Food and the Marine
Terms Expired 14th June
Mr Brendan Gleeson (reappointed 30th May)
Mr Brendan Smyth, Former
Chief Adviser Glanbia
Term Expired 11th
September
Mr Declan Troy (reappointed 28th September)
Members
Mr Martin Jones
Islandview Nurseries
Changes during 2012
Ms Caroline Keeling
Keeling Fruit Growers/
Importers
Term Expired 23rd March
Mr Mel O’Rourke
(Chairman), Sylvan Ireland
Mr Gary McCarthy
Chairman, Fruit Growers
Association
Mr Dermott Jewell
Chief Executive, Consumers’
Association of Ireland
Ms Jane McCorkell
Landscape Architect &
Horticultural Consultant
Mr Paul Nolan
Group Development
Manager, Dawn Group
Mr Philip Moreau
Glenbrook Nurseries
Mr John O’Leary
Deputy President, Irish
Creamery Milk Suppliers’
Association (ICMSA)
Mr Cornelius Traas
The Apple Farm
Dr Declan Troy
Head of Centre, National
Food Centre, Teagasc
56
Bord Bia Irish Food Board Annual Report 2011
Mr Ciaran O’Brien
Peter O’Brien Landscapes
Mr Brian O’Reilly
National Chairman, IFA
Horticulture Committee
Mr Eoin Reid
Fernhill Garden Centre
Resigned 7th February
Ms Lavinia Walsh, Munster
Mushrooms Ltd.
A significant
proportion of all
meat produced
in Ireland comes
from farms that
are quality
assured by
Bord Bia
Bord Bia Irish Food Board Annual Report 2011
57
Financial Statements 2011
Our Accounts
59
Report of the Comptroller and Auditor General
60
Statement of Accounting Policies
62
Income and Expenditure Account
63
Statement of Total Recognised Gains and Losses
64 Balance Sheet
65
Cash Flow Statement
66
Notes Forming Part of the Financial Statements
58
Bord Bia Irish Food Board Annual Report 2011
Report of the Comptroller and Auditor General
Bord Bia Irish Food Board Annual Report 2011
59
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:
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
60
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.
(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%
33½%
3
(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
Bord Bia Irish Food Board Annual Report 2011
(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.
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
Statement of Accounting Policies
and Losses and a corresponding
adjustment is recognised in the amount
recoverable from the Department of
Agriculture, Food and the Marine.
(i) Stocks:
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.
(j) Provision for bad and
doubtful debts:
(g) Leased Assets:
(k) Foreign currencies:
Assets held under leasing
arrangements that transfer
substantially all the risks and rewards
of ownership (finance leases) to
Bord Bia are included in the balance
sheet as tangible fixed assets at cost
less accumulated depreciation and
the capital element of future rentals
is treated as a liability. The interest
element is charged to the Income and
Expenditure Account over the period of
the lease in proportion to the balance
of the capital repayments.
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.
Rentals in respect of operating leases
are charged to the Income and
Expenditure Account as incurred.
Provision has been made in respect
of all VAT liabilities and the PRSI
contributions of Irish persons attached
to overseas offices.
(h) Tangible assets:
Tangible assets are financed out of
revenue. Provision is made in the
Income and Expenditure Account for
a transfer to the Capital Account of
amounts allocated for such capital
purposes less credits to revenue over
the life of the related assets.
Stocks of stationery are stated at cost.
Known bad debts are written off and
specific provision is made for any
amounts the collection of which is
considered doubtful.
(l) Taxation:
(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.
Bord Bia Irish Food Board Annual Report 2011
61
Income and Expenditure Account
Year ended 31 December 2011
2011
2010
NOTES
E’000
E’000
1a
27,637
28,491
Food Dude National Roll Out
1b
2,835
2,609
Quality Assurance Schemes: Special Funding
1c
3,717
3,676
Food Promotions Special Funding
1d
660
406
Statutory Levy
1e
5,005
5,273
Project and Other Income
1f
4,343
2,906
14b
2,107
2,012
46,304
45,373
Income
Oireachtas Grant-in-Aid
Oireachtas - Other Funding:
Net deferred funding for pensions
Transfer from Capital Account
2
Total Income
105
72
46,409
45,445
25,230
25,004
Expenditure
Marketing and Promotional Expenditure
3
Food Dude National Roll Out
2,836
2,609
Quality Assurance Schemes
3,717
3,676
Marketing Finance
4
749
706
Pay
5
10,319
10,350
Operating Expenditure
6
2,841
3,004
45,692
45,349
717
96
(830)
(784)
(113)
(688)
Balance at 1 January
728
1,416
Balance at 31 December
615
728
Total Expenditure
Operating Surplus for the year
Less: Contribution to Exchequer
14a
Deficit for Year after Exchequer Contribution
The results for the year relate to continuing operations.
The Statement of Accounting Policies and Notes 1 to 18 form part of these financial statements.
Michael Carey
Chairman
62
Bord Bia Irish Food Board Annual Report 2011
Aidan Cotter
Chief Executive
Statement of Total Recognised Gains and Losses
Year ended 31 December 2011
NOTES
Deficit for Year
2011
2010
E’000
E’000
(113)
(688)
Actuarial Gain on Pension Scheme Liabilities
14a
632
408
Adjustment to Deferred Pension Funding
14a
(632)
(408)
(113)
(688)
Total Recognised Gains and Losses for the Year
The Statement of Accounting Policies and Notes 1 to 18 form part of these financial statements.
Michael Carey
Chairman
Aidan Cotter
Chief Executive
Bord Bia Irish Food Board Annual Report 2011
63
Balance Sheet
As at 31 December 2011
2011
2010
E’000
E’000
247
352
3
4
1,733
1,438
5,863
8,962
7,599
10,404
6,360
9,046
1,239
1,358
624
630
Net Current Assets less Liabilities
615
728
Total Assets less Liabilities before Pensions
862
1,080
Assets Employed
NOTES
Fixed Assets
Tangible Assets
7
Current Assets
Stocks
Debtors
8
Cash at bank and in hand
Creditors (amounts falling due within one year)
9
Net Current Assets
Creditors (amounts falling due after more than one year)
Provision for Liabilities and Charges
11
Deferred Pension Funding
14b
26,117
24,751
Pension Liabilities
14b
(26,117)
( 24,751)
862
1,080
247
352
615
728
862
1,080
Total Assets less Current Liabilities
Financed by
Capital and reserves
Capital account
2
Income and expenditure account
The Statement of Accounting Policies and Notes 1 to 18 form part of these financial statements.
Michael Carey
Chairman
64
Bord Bia Irish Food Board Annual Report 2011
Aidan Cotter
Chief Executive
Cash Flow Statement
Year ended 31 December 2011
2011
2010
E’000
E’000
Deficit for year
(113)
(688)
Net Interest receivable
(136)
(162)
181
186
(105)
(72)
Loss/(Gain) on disposal of tangible fixed assets
2
(4)
Loss on disposal of financial asset
-
8
Reconciliation of Deficit to Net Cash Outflow
from Operating Activities:
Depreciation
Capital account transfer
(295)
8
1
6
(1,625)
490
12
(39)
(1,073)
197
(6)
(9)
(3,157)
(79)
(3,157)
(79)
136
162
(3,021)
83
(78)
(110)
(3,099)
(27)
(3,099)
(27)
Net funds at 1 January
8,962
8,989
Net funds at 31 December
5,863
8,962
(Increase)/Decrease in debtors
Decrease in stocks
(Decrease)/Increase in trade creditors
Increase/(Decrease) in taxation and PRSI
(Decrease)/Increase in accruals & deferred income
Decrease in provision for liability and charges
Net cash outflow from operating activities
CASHFLOW STATEMENT
Net cash outflow from operating activities
Returns on investment and servicing of finances:
Bank interest received
Net current (outflow)/inflow of funds
Capital Expenditure:
Payment to acquire tangible assets
Decrease in Cash
Reconciliation of net cash flow to movement of funds
Decrease in Cash
The Statement of Accounting Policies and Notes 1 to 18 form part of these financial statements.
Michael Carey
Chairman
Aidan Cotter
Chief Executive
Bord Bia Irish Food Board Annual Report 2011
65
Notes forming part of the Financial Statements
Year ended 31 December 2011
1. Income
(a) Included in Oireachtas Grant-in-Aid is €5,635,000 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 €2,835,373 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 €3,717,433 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:
Bloom Garden
Domestic & Small Business Organic Promotion
Biofach Organic trade fair
Asia- Beef & Pork Promotion
"More to Mushrooms" Promotion
2011
2010
E’000
E’000
10
10
228
187
-
89
63
103
359
17
660
406
(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 €136,173 (2010: €162,439).
2. Capital account
2011
2010
E’000
E’000
352
424
Amount capitalised in respect of purchased tangible assets
78
110
Amounts released on disposal of tangible assets
(2)
4
Amortisation in line with asset depreciation
(181)
(186)
Net transfer to Income and Expenditure Account
(105)
(72)
247
352
Balance at 1 January
Balance at 31 December
66
Bord Bia Irish Food Board Annual Report 2011
Notes forming part of the Financial Statements
Year ended 31 December 2011
3. Marketing and Promotional Expenditure
2011
2010
E’000
E’000
Promotions
7,467
7,855
Marketing Development
5,077
5,135
Trade Fairs and Exhibitions
4,075
3,151
Information Services - Research
2,679
2,546
418
359
Quality Assurance
1,236
984
Trade Development
2,574
3,335
153
75
1,551
1,564
25,230
25,004
749
706
Marketing & Promotion
7,764
7,864
Administration
2,555
2,486
10,319
10,350
Wages and salaries
7,592
7,735
Social welfare costs
558
538
2,169
2,077
10,319
10,350
E
E
160,082
160,082
-
-
160,082
160,082
Information - Other Services
Other Client Services
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
Performance-related pay
Total
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 2011 was 93 (2010: 94). The cost of certain
part-time employees amounting to €89,197 (2010: €84,440) is included in Marketing and Promotional Expenditure.
A total of €447,389 (2010: €445,809) 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 2011
67
Notes forming part of the Financial Statements
Year ended 31 December 2011
6.
Operating expenditure
2011
2010
E’000
E’000
205
222
Rent, rates and insurance
1,043
1,082
Telecommunications costs
184
211
General business expenses
1,201
1,282
25
25
181
186
2
(4)
2,841
3,004
E
E
Mr. D. Browne
5,566
20,520
Mr. G. Brown
2,820
-
Mr. J. Bryan
11,970
11,232
Mr. J. Cahill
11,970
10,740
Board and Sub-Board Members' fees and expenses
Audit fee
Depreciation (Note 7)
Loss/(Gain) on disposal of tangible assets
Board members' fees included in the above totals are as follows:
Mr. M. Cronin
2,820
Mr. R. Carolan
3,312
11,970
Dr. N. Cawley
11,970
11,970
Mr. V. Cleary
3,312
11,970
Mr. P. Cusack
8,559
5,018
Ms. A. Dennison
11,970
6,133
Mr. K. Dunne
11,970
11,921
Mr. F. Hayes
11,970
10,740
Mr. J. Hyland
3,247
11,970
Ms. R. Holland
2,820
-
Mr. J. Kingston
2,820
-
Prof. F. O'Gara
11,970
984
-
8,576
11,970
11,970
Ms. B. Rodgers
-
1,475
Mr. B Sweeney
2,820
-
-
689
133,856
147,878
12,641
13,727
Ms. K. O'Leary
Mr. M. O'Rourke
Mr. P. Walshe
Total
Board members’ travel and subsistence expenses included in the above
68
Bord Bia Irish Food Board Annual Report 2011
Notes forming part of the Financial Statements
Year ended 31 December 2011
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 2011
1,704
671
586
362
3,323
Additions in year
-
32
40
6
78
Disposals
-
(32)
-
(13)
(45)
1,704
671
626
355
3,356
1,564
612
464
331
2,971
93
12
69
7
181
-
(31)
-
(12)
(43)
1,657
593
533
326
3,109
At 31 December 2011
47
78
93
29
247
At 31 December 2010
140
59
122
31
352
At 31 December 2011
Depreciation
At 1 January 2011
Charged in year
Disposals
At 31 December 2011
Net Book Amounts
Bord Bia Irish Food Board Annual Report 2011
69
Notes forming part of the Financial Statements
Year ended 31 December 2011
8.
Debtors
2010
E’000
E’000
Amounts falling due within one year: Trade debtors
1,087
1,437
Less: Provision for Bad Debts
(593)
(648)
494
789
1,239
649
1,733
1,438
Trade creditors
1,201
2,827
Exchequer pension contributions
1,219
618
Taxation and social welfare (Note 10)
219
207
Withholding tax
340
441
Accruals
2,146
3,725
Deferred Income
1,235
1,228
6,360
9,046
155
134
64
73
219
207
Prepayments and accrued income
9.
2011
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 noncommercial 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. 70
Bord Bia Irish Food Board Annual Report 2011
Notes forming part of the Financial Statements
Year ended 31 December 2011
11. Provisions for Liabilities and Charges
At
1 January
2011
Provided
during
year
Released
during
year
At
31 December
2011
E’000
E’000
E’000
E’000
47
-
(6)
41
583
-
-
583
630
-
(6)
624
Value Added Tax
Provision for Dilapidations
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 €664,884 made up as follows:
Payable on leases on which the commitment expires:
E
106,564
Within one year
94,635
Within two to five years
463,685
Six years and over
664,884
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 Programmes operated by Bord Bia as follows:
Marketing Assistance Programme
2011
2010
E’000
E’000
1,009
914
Management estimates that the contingent liabilities under this heading will be settled within one year.
Bord Bia Irish Food Board Annual Report 2011
71
Notes forming part of the Financial Statements
Year ended 31 December 2011
14. Superannuation
2011
2010
a i) Pension costs
E’000
E’000
Service cost
1,186
1,172
Employee contributions
(387)
(379)
799
793
Interest Cost
1,370
1,284
Total
2,169
2,077
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 from surplus revenue amounted to e830,515 in the year
(2010: e783,710).
An amount of e1,219,458 was due at 31 December 2011 in respect of employee deductions and contributions
payable to the Exchequer (2010: e617,778).
a iii) Analysis of amount recognised in Statement of Total Recognised Gains and Losses
751
408
(119)
-
632
408
24,751
23,169
Service cost
1,186
1,172
Interest costs
1,370
1,284
Actuarial gain
(632)
(408)
Benefits paid
(558)
(466)
26,117
24,751
Experience gains and (losses)
Changes in assumptions
b i) Present value of scheme obligations
Present value of scheme obligations at beginning of year
Present value of scheme obligations at end of year
72
Bord Bia Irish Food Board Annual Report 2011
Notes forming part of the Financial Statements
Year ended 31 December 2011
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 e26.117 million equal to the pension liability is recognised at 31 December 2011 (2010:
e24.751 million). The deferred funding asset at the year end was determined after taking into account Net Deferred
Funding for Pensions in the year of e2.1 million and adjustments arising from the actuarial gain of e632,000 and
from pensions payable under the Bord Bia scheme of e497,455 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)
2011
2010
E’000
E’000
2,169
2,077
(62)
(66)
2,107
2,011
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, Fisheries and Food 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 2011 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 2011
73
Notes forming part of the Financial Statements
Year ended 31 December 2011
14. Superannuation (Cont’d)
Financial assumptions
The principal actuarial assumptions used to calculate the retirement benefit obligations under FRS17 were as follows:
31/12/2011
31/12/2010
Discount Rate
5.75%
5.60%
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
21.7
23.4
65 in 25 years
24.9
26.1
d) History of defined benefit obligations, assets and experience gains and losses
2011
2010
2009
2008
2007
E’000
E’000
E’000
E’000
E’000
Defined benefit obligations
26,117
24,751
23,169
21,732
20,380
Fair value of scheme assets
-
-
-
12,807
17,367
(26,117)
(24,751)
(23,169)
(8,925)
(3,013)
632
408
1,822
(920)
(226)
-
-
1,239
(6,685)
(1,489)
Deficit on Superannuation Schemes
Experience adjustments on scheme obligations
Experience adjustments on scheme assets
e) Presentation
The presentation of information on pensions has been revised in relation to pension costs and matching income.
The comparative pension liability and assets have been restated to take account of staff transferred from Bord
Iascaigh Mhara. Overall these changes have no net effect on the deficit or Net Assets for 2011 or 2010.
74
Bord Bia Irish Food Board Annual Report 2011
Notes forming part of the Financial Statements
Year ended 31 December 2011
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 Finance 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. Comparatives
Certain amounts have been re-grouped in these financial statements and the comparative figures have been restated to
ensure consistency with the new presentation.
17. 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 2011 was €355,982. In addition, the Board occupies nine other properties in various locations
internationally. The total rent paid on these premises in 2011was €308,742.
18. Approval of Financial Statements
The Board approved the financial statements on 6 September 2012.
.
Bord Bia Irish Food Board Annual Report 2011
75
Marketing Finance Grant Payments 2011
Company
ABC Nutrition Ltd
Adare Farm Foods
Aines Chocolates
Algaran Teoranta
Alternative Pizza Company Ltd
Amour Nurseries Ltd
Ardee sauce Company Ltd t/a Aruna Sauces
Ardrahan Dairy Products Ltd
Ariosa Coffee Ltd
Beechlawn Organic Farm
Beeline Health Foods Ltd
Belvelly Smokehouse
Broadway Bagels Ltd
Brookridge Farm Ltd
Caherbeg Free Range Pork Products Ltd
Carlow Craft Brewery Ltd
Carrigaline Farmhouse Cheese Ltd
Carrigbyrne Farmhouse Cheese Co Ltd
Castlecor Potatoes Ltd
Celtic Chocolates Ltd
Celtic Pure Ltd
Central Fish Markets Ltd
Chia Booster Distribution Ltd t/a Chia Bia
Clanwood Farm
Connemara Fine Foods Ltd
Connemara Seafoods Ltd
Coolanowle Organics
Coolea Farmhouse Cheese Ltd
Corleggy Cheese
Couverture Ltd
D&S Gourmet Foods t/a Gran Clarkes
Dee's Wholefoods
Deliciously Different Cakes Ltd
Divine Oysters Ltd
Dungarvan Brewing Company Ltd
Durrus Cheese
Eden Farms Ltd
Elite Cuisine Ltd
Fitzgerald Nurseries Ltd
Flair Confectionery Ltd
Gallaghers Irish Chocolates Ltd
Garden of Eden
Glenbrook Nurseries Ltd
Green Hill Fruit Farm Ltd
Green Pastures Donegal Ltd
Green Saffron Ltd
Greenvalley Farm Ltd t/a Killowen
G's Gourmet Jams Ltd
Harrington Home Bakery Ltd
Healy Fine Foods Limited
Heatherfield Ltd t/a Seerys Bakery
Henchill Limited t/a The Good Snack Company)
Heron Quality Foods Ltd
Hickey's Bakery Ltd
Hogan Continental Ltd t/a Everyday Foods
Holycross Stores
Hot Irishman Ltd
Hughes Roses Ltd
Ina's Kitchen Desserts Ltd
Irish Cone and Wafer Co Ltd
Irish Direct Confectionery Ltd t/a Tea Time Express
Island Seafoods Ltd
Island View Nurseries
ITSA Bagel Ltd
J&L Grubb Ltd
Jinny’s Bakery Ltd
Kearney’s Homebaking Ltd
Amount €
30,283
6,535
12,698
1,583
3,000
543
3,000
5,593
1,157
2,076
8,000
3,815
5,121
4,998
2,358
12,000
8,508
6,540
5,000
10,000
15,000
1,629
2,000
3,000
5,000
10,000
1,770
3,000
2,413
13,637
3,000
4,000
5,748
5,000
3,000
4,467
9,740
1,939
12,000
3,000
3,000
2,034
11,961
4,000
18,081
5,438
5,000
5,768
4,000
3,332
14,170
1,500
8,754
2,000
4,000
1,943
6,000
822
35,828
4,249
7,993
7,713
4,000
745
23,000
964
3,000
Company
Kellys Nursery Ltd
Kelly's Organic Dairy Products Ltd
Kilbeg Dairy Delights
Kilfera Food Manufacturers Ltd
Kilkenny Flower and Bulb
Kinvara Smoked Salmon Ltd
Knockanore Farmhouse Cheese
Knockdrinna Farm
Kohinoor Ltd
Kooky Dough Ltd
Kush Seafarms Ltd
Laurence Whelan Potatoes
Linalla Ice Cream
Lolly and Cooks Ltd
M&M Products Ltd
M&S Browne Ltd
Magnetti Foods Ltd
Mannings Bakeries Ltd
Marchminder Ltd t/a Cooleeney Farmhouse Cheese
Mc Evoy Family Foods
Mediterranean Flavours
Michael Waldron Meats Ltd
Mileeven Ltd
Milleens Cheese Ltd
Milseoga Ui Mhurchu Teo
Mossfield Organic Farm
Mr. Middleton Garden Shop Ltd
Munster Mushrooms Ltd
Nightpark Nurseries
Nutweave Ltd t/a Bombay Pantry
O'Callaghan Delicious Gourmet Foods Ltd
O'Neills Garden Centre
Paddy's O'Granola
Pandora Bell
Paul Brophy Vegetables
Peter Keogh and Sons Ltd t/a Keoghs Crisps
Ponaire Ltd
Prue & Simon's Ltd
Quarrymount Free Range Meats
Rathcreedan Ltd t/a Sushi King
Rose Manufacturing Ltd
Safa Food Ltd
Sam's Cookies Ltd
Sceaclaidi Na Sceilge Teoranta
Shannon Estuary Oysters Ltd
Shellfish Ireland
Sillis Green Veg Ltd
Solaris Botanicals Ltd
Sowans Organic Bread Mix Ltd
Spice O' Life
Stams Bamboo Nursery Ltd
Straight Sausages Ltd
Straight Sausages Ltd t/a Jane Russell's Original Irish
Stuart and McLean Ltd t/a Laragh Stuart Foods
Taste a Memory Foods
The Burren Smokehouse Ltd
The Food Store
The Foods of Athenry Ltd
The Hooker Brewery
The Scullery
Thomas Butterly and Sons
Trudies Catering Kitchen Ltd
Veronica Molloy t/a Crossogue Preserves
Whelan Food and Meat Processors Ltd
Wicklow Farmhouse Cheese Ltd
Yawl Bay Seafoods Ltd
TOTAL
76
Bord Bia Irish Food Board Annual Report 2011
Amount €
4,000
1,103
3,000
12,000
1,500
6,109
12,000
3,000
925
1,186
6,000
4,000
2,000
1,242
5,000
4,843
7,235
12,000
14,584
2,389
106
4,639
7,055
4,008
1,546
1,006
8,000
210
5,500
7,402
455
625
973
3,500
5,000
3,000
3,500
4,233
6,000
3,500
10,000
3,000
10,000
5,205
5,000
5,000
10,000
2,000
3,000
7,000
1,207
4,137
3,059
3,000
2,002
13,000
3,757
12,649
2,851
5,000
4,000
6,038
3,000
10,000
4,798
4,247
748,770
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Bord Bia Irish Food Board Annual Report 2011
77
The value of
beef exports
grew by 17%
or e1.86bn
in 2011
Head Office: Clanwilliam Court, Lower Mont Street, Dublin 2, Ireland.
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