Annual Report 2010
Growing the success of Irish food & horticulture
Bord Bia Irish Food Board
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Annual Report & Accounts
Growing the success of Irish food & horticulture
STRATEGIC PRIORITIES
To deliver on its mission, Bord Bia’s programmes and
activities focus on the following strategic priorities:
• Promoting Ireland – the Sustainable Food Island
OUR MISSION
• Delivering business development initiatives to broaden
export reach
• Enhancing the position of Irish food, drink and
horticulture on the Irish market
To grow the success of a
world class Irish food and
horticulture industry by
providing strategic market
• Driving consumer focused innovation through
market knowledge
• Pursuing a repositioning and differentiation strategy
for Irish meat
• Supporting a dynamic and growth oriented small
business sector
development, promotion
and information services.
FOOD & DRINK SUMMIT
(Farmleigh, 6th May 2010)
The output from the Food & Drink Summit, Pathways for
Growth, as now incorporated into Food Harvest 2020 will
formally guide Bord Bia’s strategic focus and priorities from
2011, evolving into the necessary milestone plans to achieve
specific aims and outcomes by 2020.
In Pathways for Growth, Professor David Bell and Mary
Shelman of the Harvard Business School outlined a vision for
the future where “we can certainly imagine that in 20 years
time Ireland will be the most efficient, most highly innovative
food and drink country in the world”.
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Bord Bia Irish Food Board Annual Report 2010
CONTENTS
Our Business
3
5
10
16
26
32
38
44
48
50
Food and Drinks Industry
Export Figures
Chairman’s Statement
Chief Executive’s Review
Meat and Livestock
Consumer Foods, Dairy and Beverages
Small Business and Organic Sectors
Horticulture
Quality Assurance
Services
Our Governance
54
57
58
59
60
61
61
62
62
Corporate Statement
Statement on Internal Financial Control
Organisation Structure
Staff Structure
Bord Bia Board
Bord Bia Consumer Foods Board
Bord Bia Meat and Livestock Board
Bord Bia Quality Assurance Board
Bord Bia Horticulture Board
Our Accounts
64
65
67
68
69
70
71
81
Report of the Comptroller and Auditor General
Statement of Accounting Policies
Income and Expenditure Account
Statement of Total Recognised Gains and Losses
Balance Sheet
Cash Flow Statement
Notes Forming Part of the Financial Statements
Marketing Finance Grant Payments
Presentation to the Minister for Agriculture, Fisheries and Food
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 2010.
On behalf of the board*
Frank Hayes
Board Member
*The term of office of the Chairman expired on 9th April 2011
The Irish
food and drink industry
3
Bord Bia Irish Food Board Annual Report 2010
Increased exports by 11% in 2010
to €7.88bn
Supports almost 270,000 jobs
Has an annual gross output valued
at €24bn
Represents 16 per cent of industrial
output
Sources more than 70 per cent of
its inputs domestically compared
with 30 per cent for manufacturing
in general
Represents 9 per cent of merchandise
exports
Accounts for 64 per cent of
manufacturing exports by indigenous
companies
Bord Bia Irish Food Board Annual Report 2010
4
Exports of Irish food and Drink (€m)
*includes export refunds
(e) = 2010 figures are estimated
5
Bord Bia Irish Food Board Annual Report 2010
Source: Bord Bia Estimates
Irish food and drink exports (€m)
Dairy Products & Ingredients*
Beef*
Prepared Foods
Beverages
Pigmeat
Seafood
Edible Horticulture & Cereal
Poultry
Sheepmeat
Live Animals
2009
€m
1,948
1,427
1,281
1,067
294
332
198
185
163
213
2010 (e)
€m
2,273
1,570
1,375
1,152
335
375
193
203
163
245
2010/2009
% +/+17
+10
+7
+8
+14
+13
-2
+10
+15
TOTAL FOOD & DRINKS
7,108
7,884
+11
*includes export refunds
Source: Bord Bia Estimates
(e) = 2010 figures are estimated
Bord Bia Irish Food Board Annual Report 2010
6
Market distribution of Irish food and drink exports (%)
Other EU
34%
2010 (e)
50
45
40
United Kingdom
43%
2009
46
Int. Mkts
23%
43
35
33
30
34
25
20
21
23
15
10
5
0
United Kingdom
Other EU
The United Kingdom remained the principal destination
at almost €3.4bn, an increase of 3% on 2009. Despite
the increase in exports, the proportion of food and drink
exports destined for the UK fell by three percentage
points from 46% in 2009 to 43% in 2010.
The share of exports destined for other EU markets
showed a further rise in 2010, helped by stronger dairy,
prepared foods, beverage and seafood exports. In total,
exports to the region are estimated to have exceeded
€2.68bn, a rise of 14% on 2009 levels. This leaves
Continental EU markets accounting for 34% of food and
drink exports.
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Bord Bia Irish Food Board Annual Report 2010
Int. Markets
International markets are estimated to have accounted
for 23% of total exports in 2010 at €1.84bn, 20% ahead
of 2009. Trade was helped by strong performances in
beverages, pigmeat, seafood and dairy. The strongest
performing markets were the Middle East, Russia, Asia,
Australia and Africa
International markets
are estimated to have
accounted for
23%
of total exports in 2010
2010 was a year that
surpassed expectations
for Irish food and
drink exports.
Chairman’s Statement
Against the backdrop of some of the most
difficult economic conditions on record, 2010 was
a year that surpassed expectations for Irish food
and drink exports. Following the contraction of
2009, the industry demonstrated not just
resilience but the capacity to grow afresh, at
levels many doubted would be recorded in our
economy for some time
Irish food and drink exports were valued at
€7.88bn in 2010, an increase of 11% or almost
€800m in absolute terms, a performance all the
more noteworthy given the continuing economic
challenges faced both domestically and in key
export markets. Setting these results against
annual outputs over the preceding decade, the
figures are even more encouraging – almost 8%
ahead of the 2000-2009 average – underlining
the sense of real achievement for the sector.
A number of positives in the macro-economic
sphere undoubtedly facilitated this strong
performance: higher global prices for most
agricultural commodities, a more stable consumer
environment and reduced exchange-rate
pressures, as the euro eased somewhat against
both sterling and the US dollar. On average, the
euro was almost 4% weaker against sterling in
2010, following a 30% strengthening during the
2008-2009 period. As against this, it should be
noted that, while the first half of 2010 saw
optimism internationally that economic recovery
was gaining momentum, the year ended with
fresh question marks over the strength of this
recovery and, in many markets, growth forecasts
were revised downward for 2011.
Ireland’s export prowess, at a time when the
domestic economy remains weak, has been the
source of much comment and, while the macroeconomic dimensions are highly significant, the
resilience and resourcefulness of Irish food and
drink companies must also be noted. The sector’s
ability to meet the changing needs of retailers
and foodservice providers as they reorient their
offerings to the ‘new normal’ was critical to
growth in 2010.
Significance
With a common consensus emerging that
Ireland’s export sector is the pathfinder to
economic recovery, the 2010 figures also affirm
the central role of the agri-food industry on this
journey and, short-term challenges aside, are a
reminder of the scale of opportunity created by a
growing world food market. Given the
predominantly indigenous nature of the sector, its
deep roots in the cultural and economic life of the
country, and its span of employment, linking rural
and urban communities, this must be seen as
highly significant on a number of fronts. The
food and drink industry has always been
distinguished by regional diversity in employment
and wealth creation, and employment figures
have largely held up in the sector, in spite of the
inevitable impact of restructuring in some areas
and an all-pervasive need for cost efficiencies. A
renewed interest by young people in the sector,
as demonstrated by the surge of applicants for
agriculture-related education programmes and
our own Bord Bia Marketing Fellowship
programme over the last two years, confirms that
future employment prospects are widely regarded
as positive.
The positive picture for exports must, of course,
be set against a range of challenges that
manufacturers continue to face on the domestic
front. The vast majority of Irish food and drink
exporters also supply the domestic market and
have been directly impacted by the issues of weak
consumer demand, and a pervasive retail culture
of discounting and price competitiveness,
throughout 2010. While these show little sign of
abating in 2011, some positives can be drawn
from the stabilisation of buying behaviour
evidenced in 2010 and, in particular, the
recognition by consumers that locally-sourced
foodstuffs represent a direct investment back into
the economy. The prolonged banking crisis has
meant the issue of curtailed access to credit
continues to overhang all sectors of the economy,
with no significant improvement anticipated in
2011. In this context, both the achievements of
the export sector in 2010 and the confidence
expressed by it for 2011 must be seen as all the
more commendable.
Strategic Alignment
Throughout 2010, Bord Bia has worked closely
with industry, aligning its activities to respond to
emerging needs, while also establishing a
strategic framework for growth in the longer
term. The launch of the Pathways for Growth
report at Bord Bia’s Food and Drink Summit, in
May 2010, was significant in this respect, as it
brought the expertise of the world-renowned
Harvard Business School to bear on the Irish food
and drink industry. In an assessment that was, in
equal parts, insightful and uncompromising, it set
out the potential for the industry to grow over
the next decade, offering an ambitious roadmap
Bord Bia Irish Food Board Annual Report 2010
10
Chairman’s Statement
In February, Bord Bia welcomed over 400 international (from 27 countries) and Irish buyers to its marketplace Ireland event held in Croke Park
Conference Centre, Dublin. The international buyers engaged in over 3,800 pre-scheduled meetings, speed dating style, designed to build new
business relationships with 150 leading Irish food and drink companies. Pictured at event were Dan Browne, former Chairman, Bord Bia; Eve
Zhang from Mandarin Fine Food, a food distributor for 5 star hotels in Beijing and Aidan Cotter, CEO, Bord Bia
for progress that has been widely endorsed by the
industry.
the 2009 figure as almost €2.52bn in output
reflected a confident and buoyant sector.
The Department of Agriculture, Fisheries and
Food, Food Harvest 2020, meanwhile, was
published in July 2010, and proved of further
significance, setting out its vision of ‘smart, green
growth’ for Irish agri-food. Affirming the need
for a culture of innovation if the industry is to
reach its potential, the findings of Food Harvest
2020 fused seamlessly with the Pathways for
Growth recommendations and, collectively, offer
a cohesive basis for producers, processors and
manufacturers to move forward.
Sales of quality assured Irish beef have
undoubtedly benefitted from Bord Bia’s
repositioning and differentiation strategy which,
matched with the logistical sophistication of
suppliers, continues to drive a sustainable future
for the sector at the premium end of the market.
Firm prices internationally also underwrote strong
performances by pigmeat and poultry exporters,
while a decrease in supplies by key competitors
contributed to a 17% rise in lamb prices and a
strong performance for Irish sheepmeat exporters.
Export Performance
Dairy producers, equally, welcomed a recovery in
commodity prices following a difficult 2009. A
surge of 17% in exports to reach €2.27bn in
value reflected strong demand in emerging
economies such as China, Russia and Latin
America. While not all categories were equally
strong, those particularly significant to Irish
producers – butter and powders, for example,
were where price rises were most in evidence.
The key export sectors of meat, dairy, beverages,
seafood and prepared foods all returned strong
performances in 2010, in line with strengthening
commodity prices and a weakened euro. Meat
and livestock exports recorded one of the
strongest sectoral performances with demand for
Irish beef, live animals, pigmeat, poultry and lamb
setting the framework for a 10% increase over
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Bord Bia Irish Food Board Annual Report 2010
Chairman’s Statement
Prepared food is something of a bell weather
sector in terms of consumer demand and Irish
manufacturers once again showed their
competitive capability as they recorded an
increase of 7% over 2009, bringing exports
to €1.38bn.
Exports from Ireland’s beverage sector,
meanwhile, recovered strongly after a difficult
2009. A resurgence in consumer demand for
brands was matched by an industry commitment
to competitiveness. Whiskey, cream liqueur, beer
and cider all put in strong performances to lift
exports by 8% to €1.15bn.
Irish seafood producers benefitted too from a
particularly strong performance in 2010, as a
13% increase in exports was built on an improved
exchange rate and firm prices connected with
lower supplies in many species. In all, Irish
seafood exports were worth an estimated €375m
in 2010.
Mushrooms have been the keynote success of
Irish edible horticulture exports and a solid
performance in 2010 was achieved within a
highly competitive context. Overall, horticulture
and cereal exports were worth €193m, a marginal
decline on 2009.
The enduring significance of the UK for Irish food
and drink exports was reaffirmed by sales worth
almost €3.4bn in 2010. Geographical proximity
and a strong trading relationship are undoubtedly
significant advantages but the achievements of
2010 saw Irish exporters meet the challenge of a
highly price sensitive and competitive market
place, with the risk of uncertainty in the sterling
exchange rate never far from the surface.
Diversification into continental EU markets gained
momentum over the course of 2010, and a
convincing 14% increase in exports to the market
saw the overall figure reach €2.68bn. Strong
performances were particularly in evidence in
dairy, prepared foods, beverages and seafood.
Diversification into the international markets also
grew apace and, collectively, the Middle East,
Russia, Asia, Australia and Africa absorbed
€1.84bn in Irish food and drink exports,
representing 23% of total output.
Domestic Activity
Bord Bia’s commitment to the home market has
evolved as part of its ongoing engagement with
industry and consumers. Its important role in
promoting and implementing quality assurance
schemes (QAS) has given it a significant position
of trust among consumers and, in 2010, QAS
continued to play a vital role underpinning the
excellent domestic and international reputation of
Ireland’s beef, lamb, pigmeat and poultry outputs.
QAS is informed by best practice, ongoing review
and assessment. The inclusion of sustainability
criteria in quality assured Irish beef, which rolls
out commercially in 2011, is a world first,
highlighting the position of Irish meat production
as a world-class undertaking.
Bloom, the annual showcase of Irish horticulture,
enjoyed its most successful year ever in 2010 and
has won a distinguished place in the Irish festival
calendar. Over the June Bank Holiday, some
60,000 visitors came from all corners of the
country, and beyond, to witness the
transformation of the Phoenix Park Visitor’s
Centre into a stunning showcase for Ireland’s top
garden designers and our artisan food producers.
Marketplace 2010 also proved an outstanding
success for the 150 participants who met 400
international and Irish buyers at a one day event
held in Croke Park in early February. This event
sent out a clear signal that Irish suppliers were
determined to make the year ahead one of
significant gain. Bord Bia Vantage, meanwhile,
continued to deliver on its commitment to
support small businesses, offering practical advice
and assistance as the sector adapts to a less
affluent but more locally-committed food
consumer. The Brand Forum also played to its
strengths as the country’s leading meeting place
for food and drink brand managers, while major
events such as the Food and Drink Summit
confirm Bord Bia’s determination to engage with
Irish food and drink companies in new and
innovative ways. At the summit, an audience of
CEOs and senior executives was present to
witness the launch of the Pathways for Growth
report, prepared by Professors David Bell and
Mary Shelman of Harvard Business School, a
moment which may, in time, be seen as
historically significant for the entire industry.
International Context
In an environment where governments
internationally find themselves in fire fighting
mode with regard to economic policy, it is
perhaps not surprising to note little movement in
terms of the World Trade Organisation (WTO) in
2010. It is likely that any appetite for progress
will only re-emerge as a fuller recovery of the
global economy takes hold. A resurgence of
Bord Bia Irish Food Board Annual Report 2010
12
Chairman’s Statement
bilateral agreements has, however, emerged to fill
the gap. Negotiations between the EU and
Mercusor are ongoing and, while no firm
proposals are yet on the table, any agreement
that increases access to the EU market for the
South American trading bloc would undoubtedly
impact on the market returns for Irish farmers
and beef production in particular. The volatility
experienced in international commodity trading
over the last few years provides much to reflect
on for policy makers and it behoves those with
influence to advance negotiations in a manner
that prioritises a sustainable future for European
consumers and European agri-food production.
The next review of the Common Agriculture
Policy (CAP), meanwhile, takes place in 2013 and
will undoubtedly become a growing focus for
debate towards the end of 2011. Once again, an
approach that safeguards sustainable production
and the maintenance of a high-quality supply
base, that promotes security of supply within
Europe, is necessary if food production in Ireland,
and across the EU, is to reach its full potential in
the coming decade.
Conclusion
In 2010, Irish food and drink businesses revisited
their strategies as they adapted to challenge at
home and abroad. This combination of fresh
initiatives and production efficiencies can only be
achieved with great discipline and the positive
outcome, notably a strong export performance, is
testament to this.
With strong leadership in evidence, the sector is
strategically well placed to play its part in the next
phase of Ireland’s economic recovery and Bord Bia
is committed to playing its role in tandem with
this to the fullest extent possible.
I would like to acknowledge the contribution of
our Board and our Subsidiary Boards over the
course of 2010. The wealth of expertise and
insight they routinely bring to the table is
exceptional and has allowed the organisation to
review and respond to challenge with great
acuity.
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Bord Bia Irish Food Board Annual Report 2010
I would also like to acknowledge the contribution
of outgoing Minister for Agriculture, Fisheries and
Food, Brendan Smith, T.D. who has been both
passionate and unequivocal in his commitment to
the food and drink industry and to welcome the
opportunity to serve under incoming Minister for
Agriculture Fisheries and Food, Simon Coveney,
T.D. who brings both clarity of vision and
determination to the role. To all in the
Department of Agriculture, Fisheries and Food, in
particular Secretary General Tom Moran and his
staff, I express my sincere thanks for their
unstinting commitment to our promotional and
marketing activities. Bord Bia also benefits from
the support and assistance of Ireland’s
ambassadors and embassy staff and to them, and
the semi-state bodies and Government
departments with whom we routinely work, and
who share with us a commitment to promoting
Irish food and drink, I express my sincere thanks.
Finally, I would like to commend Chief Executive
Aidan Cotter for the leadership he has shown in
these challenging times and to all the staff of
Bord Bia who have remained determined and
focused on delivering on the ambitious goals of
the organisation. In 2011, Bord Bia will continue
to develop new, world-class services that align to
the needs of our industry as well as casting a
fixed light on the long-term opportunities ahead.
Those of us who have been around long enough
cannot but be familiar with the cyclical nature of
economic upswings and downturns. I believe
that we can conclude from the experience of
2010 that a wider recovery in our economy is not
only feasible but on its way. On behalf of the
Board, I would like to thank all those, both within
and outside the organisation, who strive for
excellence, who share our vision of a vibrant food
industry and who are committed to delivering on
its potential for the benefit of our economy, our
people and our future.
NOTE: The term of office of the former Chairman, Dan
Browne expired on 9th April 2011.
Chairman’s Statement
Over 60,000 people visited Bord Bia’s Bloom 2010 event held in the Phoenix
Park, Dublin. Pictured at the official opening were the President of Ireland
Mary McAleese and Senator Martin McAleese with Dan Browne, former
Chairman, Bord Bia
Twenty five graduates selected and recruited for Bord Bia’s
inaugural Marketing Fellowship Programme graduated in
December at a ceremony in UCD. The bespoke Fellowship
programme aims to increase Ireland’s food exports and
broaden the industry’s export reach. The 2009/2010 Fellows
completed in excess of 165 commercial projects on behalf of
113 companies. Pictured at the graduation were l-r Tania
Daly; John Lawlor and Doreen Mallon.
Bord Bia’s stand at SIAL Paris, the world’s leading food innovation trade show
Dalton Philips, CEO Morrisons, pictured here with Dan Browne, former
Chairman, Bord Bia and John Fanning, Chairman, Bord Bia’s Brand Forum.
Dalton addressed Brand Forum members in November on “Winning in the
UK Market”
Children enjoying Bloom 2010
Bord Bia Irish Food Board Annual Report 2010
14
.....the scale of the sector’s
contribution to export-led
recovery with food and
drink accounting for some
two thirds of indigenous
exports and close to one
fifth of the growth in total
merchandise exports.
Chief Executive’s Review 2010
A highly commendable performance by Irish
food, drink and horticulture exporters in 2010, in
trading conditions that could hardly be described
as favourable, saw a return to double digit
growth and a convincing reversal of the decline
recorded in 2009.
The 2010 figures also provide tangible evidence
of the scale of the sector’s contribution to exportled recovery with food and drink accounting for
some two thirds of indigenous exports and close
to one fifth of the growth in total merchandise
exports.
A survey conducted by Bord Bia in late 2010
offered some insight on how this growth had
been achieved and saw the strong role of
relationship management, always a core strength
of the sector, confirmed through the economic
downturn. In all, some 76% of respondents
described increased business with existing
customers as their main route to growing sales,
while 34% pinpointed winning back business
with former customers and 18% identified
business with new customers as their route. A
further noteworthy finding was that, in spite of
ongoing difficulties in accessing credit in the Irish
economy, and the imperative to cut costs, more
than half of respondents had increased their
expenditure on business development over the
year. Looking ahead to 2011, some 70% of
respondents viewed prospects as good or very
good, a picture supported by industry analyst
predictions of relatively good global demand for
commodity products and a tightening supply in a
number of key product categories. Additionally, a
number of major markets are beginning to see
the first signs of a return to growth in their
consumer price indices. The UK market led the
way, as the British index rose by 3% during 2010.
While ongoing promotional activity by retailers
will remain an issue, consumer prices are likely to
come under renewed pressure to increase in
2011.
Export performance
The broad extent of export growth was confirmed
by strong showings in meat, dairy, beverages,
seafood and prepared foods. The industry
benefitted from improved commodity prices and
a weaker euro, and a sector-by-sector analysis
throws further light on the opportunities realised
and challenges overcome.
• Meat and livestock
Meat and livestock have long been at the heart of
the Irish export industry and the country has an
enduring reputation as Europe’s leading source of
grass-fed beef and lamb, as well as a supplier of
high-quality pigmeat and poultry, with an
increasing emphasis on innovative and addedvalue products. Exports in the sector grew by a
vigorous 10% in 2010, to reach €2.52bn in
output, with strong performances recorded in
beef, live animals, pigmeat, poultry and lamb.
Beef led the way in terms of overall volume, and
an increase of 10% or €143m in value reflected
both stable prices and supply shortfalls in key
markets. Quality assured Irish beef now
represents a €1.57bn export industry and, given
the general trend for consumers to favour
cheaper meats at times of recession, this level of
growth reflects the marketing sophistication and
logistical capability of suppliers and the success of
Bord Bia’s repositioning and differentiation
strategy. Though some volume declines are
anticipated in 2011, this is also an opportunity to
reinforce the focus on the premium end of the
market, where the most sustainable future for the
industry lies.
A strong performance from the pigmeat sector in
2010 provided a welcome boost for producers
and an increase of 10% in export volumes
confirmed the efficiencies achieved in a sector
which, like the beef industry, has benefitted from
largely unchanged market prices, delivering
€335m in export output in total. Sharply rising
feed costs and increased pigmeat supply in
Europe did, however, begin to seriously impact on
profitability as the year progressed. An equally
strong export performance from Ireland’s poultry
sector also provided a shot in the arm for
producers who compete in a very price-
Bord Bia Irish Food Board Annual Report 2010
16
Chief Executive’s Review 2010
competitive marketplace. As with pigmeat, feed
prices in 2011 will significantly impact profitability
and output in the year ahead.
Irish sheepmeat suppliers benefited from a 17%
increase in lamb prices in 2010, with lower
supplies from New Zealand, the UK and Ireland.
The French market remained the cornerstone of
activity, accounting for half of Irish sheepmeat
exports. Live cattle and pig exports also put in a
strong performance, with a 15% rise bringing the
value of exports to €245m. A strong demand for
Irish calves and higher shipments to Italy and
Spain were key drivers of this growth, while
shipments of pigs to Northern Ireland grew by
20%.
• Dairy
Volatility in commodity prices has been a concern
for dairy producers over the last number of years,
and the recovery and relative stabilisation of
prices in 2010 from the lows of 2009 was widely
welcomed. Price increases were recorded across
the board with variations in Europe of between
7% and 40% noted in different product
categories. The strongest increases were,
however, evident in the export categories most
significant to Ireland: butter and powders. In all,
dairy exports rose by an impressive 17% to reach
almost €2.27bn in value and growing demand in
China, Russia and Latin America has led to a
tightening of supplies, though with volatilities still
likely.
• Prepared foods
In a straightened economic environment,
prepared food manufacturers sustained market
share against fierce competition, delivering an
overall increase of 7% in export output to
€1.38bn. Given sluggish consumer demand in
the UK, its principal market, there were inevitably
losers as well as winners. However, while
consumer-ready products recorded a fall of 6%,
this was compensated by strong performances in
ready meals, sandwich ingredients, bakery and
sugar confectionery. Rising ingredient costs will
pose a challenge through 2011, however Irish
manufacturers will continue to sharpen their
competitive edge and invest in new product
development.
Bord Bia’s “Food & Drink Summit” took place in May at Farmleigh House, Dublin. The event attracted over 120 representatives from Ireland’s
food and drink sector, including many of the industry’s leading CEOs. Pictured at Farmleigh were Aidan Cotter, CEO, Bord Bia with keynote
speakers Mary Shelman and David Bell, Harvard Business School.
17
Bord Bia Irish Food Board Annual Report 2010
Chief Executive’s Review 2010
• Beverages
Ireland’s globally-recognised drinks industry
recovered strongly from a challenging 2009 with
a consumer return to brand propositions. Higher
volumes were recorded in most categories and, in
all, exports rose by 8% in 2010 to reach €1.15bn.
Whiskey, cream liqueur and beer were among the
strongest performers, although cider exports also
gained momentum in the latter part of year.
While higher input costs, notably in dairy and
grain, are expected to present a challenge in
2011, overall prospects remain positive.
• Seafood
Lower supplies in most species, and a more
favourable exchange rate, played a significant role
in the strong export performance of Irish seafood
in 2010. Indeed, the sector recorded one of the
strongest percentage improvement of any export
category, rising by 13% to an estimated €375m.
• Horticulture
Edible horticulture and cereal exports saw a
modest decline of 2% in 2010 to an estimated
overall value of €193m. The success of Irish
mushroom producers in the UK remains the
shining light of the sector and, in 2010, in spite
of tight margins, another convincing performance
was recorded.
• Geographic analysis
It will be no surprise that the UK remains the
principal destination for Irish food and drink
exports, and sales of €3.4bn confirm the
overriding significance of our nearest neighbour
as a key market outlet. Although closest, the UK
is also the market where many export challenges
are most pronounced, with price competitiveness,
changing consumer demand and the issue of
currency fluctuations all concerns. Ireland’s
performance in 2010 was, therefore, a
determined one with a number of positives to be
drawn. Overall growth of 3% in a market
experiencing dampened consumer demand was
impressive, with all major categories delivering
higher export returns. Critical to this has been
ongoing investment in new product development,
allowing Irish suppliers to respond to challenges
and to leverage strong relationships and goodwill
built up over a long history of trade.
The fact that the overall proportion of food and
drink exports destined for the UK fell by three
percentage points to 43% can also be seen as
evidence of suppliers looking further afield for
new markets. Reflecting this move, exports to
other EU markets showed the most significant
rise in 2010. An overall increase of 14%, to
reach €2.68bn, was helped by stronger demand
and supply gaps in areas where Ireland has much
to offer: dairy, prepared foods, beverages and
seafood. Continental EU markets are now the
destination for 34% of Irish food and drink
exports and increased confidence among
suppliers of their ability to deliver premium
products to diverse audiences will see further
progress made in 2011.
The story of Ireland’s performance in the
international marketplace also reflects the
determination of exporters to look afresh at new
markets. A sizeable 23% of total food and drink
exports are now sold outside the EU, 20% ahead
of year earlier levels. Trade was helped by overall
solid performance in markets such as the Middle
East, Russia, Asia, Australia and Africa, over a
range of categories, including meat, dairy and
beverages, with the market worth €1.84bn in
total.
Strategic framework
In 2009, Bord Bia identified six strategic priorities
for engagement as the organisation supported
food, drink and horticulture companies operating
in some of the most difficult trading conditions
encountered in decades. These are worth
reiterating in the context of this review:
•
•
•
•
•
•
Promoting Ireland as a sustainable food
producer
Delivering business development initiatives
that enable suppliers to broaden export reach
Enhancing the position of Irish food, drink and
horticulture on the Irish market
Driving consumer-focused innovation through
market knowledge
Pursuing a repositioning and differentiation
strategy for Irish meat
Supporting a dynamic and growth-oriented
small business sector
Bord Bia Irish Food Board Annual Report 2010
18
Chief Executive’s Review 2010
Pathways for Growth
Recognising the need for a longer-term strategic
framework, Bord Bia launched the Pathways for
Growth report at its Food and Drink Summit in
Farmleigh on 6 May 2010. Co-authored by David
Bell, Professor of Business Administration, and
Mary Shelman, Director of the Agribusiness
Program of the Harvard Business School,
Pathways for Growth offered an authoritative and
fresh perspective on the Irish food and drink
industry and was notable for its objective but
engaged tone – enthusiastic about the
possibilities for the sector but honest in assessing
the need for a major realignment of skills and
resources if the industry is to capitalise on
expanding global demand for food.
Enjoying a hugely positive response at its launch,
Pathway for Growth fed directly into another
strategic milestone: the publication of Food
Harvest 2020 by the Department of Agriculture,
Fisheries and Food in July 2010. Expounding a
vision of Irish agriculture driven by ‘smart, green
growth’ it has, like Pathways for Growth, quickly
become required reading for those passionate
about unlocking the potential of our sector and
its publication has already had a measurable
impact on the strategic approach of the industry.
Within Bord Bia, Pathways for Growth has
provided the impetus for concrete action and five
major themes addressed in the report have been
prioritised as five key programme areas within the
organisation: branding; education; innovation;
entrepreneurship; and ‘co-opetition’. Some
initiatives undertaken in these programmes will
already be familiar to those who work with Bord
Bia, while others represent significant new
departures. All areas will, however, gain in
momentum and scope over the coming years.
The development of an ambitious new ‘brand
Ireland’ umbrella brand, with a range of in-built
sustainability credentials is the flagship endeavour
of the branding programme, with initial
groundwork laid in the latter half of 2010.
Developments will gather pace in 2011, as a
brand concept is introduced to stakeholders and
feedback garnered. Under the ‘education’
banner, meanwhile, Bord Bia has positioned its
19
Bord Bia Irish Food Board Annual Report 2010
Marketing Fellowship, the second of which
commenced in July 2010, while, also, in 2010, a
range of endeavours to attract and encourage
entrepreneurship were implemented, foremost of
which was the launch of the Food Entrepreneurs
Network.
foresight4food, meanwhile, continues to facilitate
the innovation process and, in 2010, supported
Irish companies as they reflected changed
consumer priorities in their offerings. ‘Coopetition’ may not yet be in the lexicon of every
Irish food and drink executive but preliminary
work by Bord Bia on the concept, whereby
companies pool resources to deliver supply chain
efficiencies in export markets, has identified a
range of opportunities. Specific research in the
bakery sectors in the Netherlands, Sweden and
Spain has identified a range of opportunities and
the first projects are expected to come to fruition
in 2011.
Collectively, these programmes share a vision that
the full potential for Irish food and drink will only
be realised by manifesting change within the
sector and overcoming structural limitations that
have curtailed growth in the past. It is a
commonly stated maxim that Ireland’s greatest
resource is its people. The Pathways for Growth
programme makes it clear that this is the case for
the food and drink industry as for any other.
Marketplace 2010
Marketplace has established itself as the preeminent showcase for Irish food and drink
suppliers and, in 2010, Bord Bia incorporated a
number of new elements to reinforce the value of
the programme to participants, including a
preparatory ‘pitching’ workshop and follow-up
seminars. On 9 February, Marketplace 2010 saw
close to 400 international and Irish buyers engage
with more than 150 companies as a remarkable
3,863 meetings were held over the course of a
single day at the Croke Park conferencing centre.
Feedback confirmed the substantial value of the
event, as 100% of buyers surveyed said they
would engage in new business as a result of the
day’s meetings. Research conducted six months
Chief Executive’s Review 2010
later indicated that annualised sales at over €8m
had already been achieved, with the year-end
target of €10m set to be comfortably exceeded.
Bord Bia brought Marketplace Roadshow to
Amsterdam later in 2010, with fifteen Irish
companies, while a number of inward buyer
events over the year attracted senior buyers from
China, Japan, Malta, Russia and the US.
Food and Drink Summit
The launch of Pathways for Growth was, as noted
earlier, a keynote event for Bord Bia. The
occasion of its launch, the Food and Drink
Summit, themed on ‘Building Ireland’s largest
indigenous industry’, was held at Farmleigh
House on 6 May. The symbolism of the venue,
the former home of the Guinness family, was not
lost on the 140 senior executives in attendance,
including the CEOs of a number of major
companies. Officially opened by the Minister for
Agriculture, Fisheries and Food, Brendan Smith
T.D., it featured joint presentations by David Bell
and Mary Shelman of the Harvard Business
School, as well as contributions from industry
leaders, with a speech by the Taoiseach, Brian
Cowen T.D., concluding the event.
Marketing Fellowship Programme
The Bord Bia Marketing Fellowship programme,
first launched in 2009, was designed to attract
and retain the talent of a new generation of
marketing professionals within the food industry.
A Bord Bia initiative, partnering with the UCD
Michael Smurfit Graduate Business School, the
programme aims to broaden the international
footprint of the Irish food industry and, following
its highly successful first year, a second
programme commenced in July 2010. Under this
programme, 80 companies were assisted in over
100 research assignments in 12 different markets.
At year end, plans for the third Marketing
Fellowship programme were well underway,
building on lessons from the previous
programmes.
Launched in December 2010, the Food Industry
Strategic Growth Programme (the ‘alumni’
programme) will play a further role in securing,
retaining and developing leadership talent in the
industry. Geared specifically towards developing
strategic business development skills at senior
management level, the programme rolls out over
2011 and involves a major assignment to
strategically reposition each participant’s
company.
Brand Forum
The Brand Forum is a key meeting point for
marketing professionals in the Irish food and
drink industry and, in 2010, provided a range of
opportunities to learn from international best
practice. Participants were introduced to
promotions with a proven ability to drive sales;
the use of social media to build brand equity; EU
labelling law; the challenge of counterfeit brands;
and on-line marketing and e-commerce.
Bord Bia research presented included ‘Feeling the
Pinch’, a series of four reports incorporating
consumer research in Ireland and the UK, and
benefitting from significant Irish industry input. It
stressed the opportunity for industry to rebuild
trust with consumers through products that are
fit for purpose and help them regain control of
their lives. In 2011, the Brand Forum will
continue to focus on issues of market relevance
with presentations on exporting brands, food
tourism and sustainability, as well as practical
branding workshops and one-to-one mentoring.
Home Market
The Bord Bia Quality Mark is at the heart of the
organisation’s marketing activities in the domestic
market. Research in 2010 confirmed both the
high level of awareness and trust the mark enjoys
among Irish consumers, with 85% consumer
awareness and an impressive 78% of consumers
indicating a propensity to buy products with the
mark. These figures, as well as the overall market
share of products bearing the Quality Mark, far
exceed that of any comparable mark in the UK or
Continental Europe. In addition to a series of
marketing campaigns endorsing the value to the
Quality Mark, thirteen product-specific consumer
Bord Bia Irish Food Board Annual Report 2010
20
The Bord Bia
Quality Mark is at
the heart of the
organisation’s
marketing activities in
the domestic market.
Chief Executive’s Review 2010
campaigns were also run throughout 2010,
relating to beef, pork and bacon, lamb and eggs.
The Home Chef TV series, which featured
celebrity chef Neven Maguire and interviews with
a range of quality assured producers on what the
Bord Bia Quality Mark means to them, proved a
particular success. Home market promotions in
2010 also focused on organic food, fish and the
‘Just Ask’ foodservice promotion, which
encourages diners to look for the origin and
suppliers of their food on the menu when eating
out.
The value of the Quality Mark is, of course, built
on the robust programme of technical compliance
that underwrites it. The world-class credentials of
Bord Bia’s Quality Assurance Schemes (QAS) were
further strengthened in 2010 as a pilot scheme
undertook a full assessment of the carbon
emissions of some 200 participating beef farms,
working in conjunction with the UK’s Carbon
Trust. This initiative will be extended to support
continuous enhancement of the environmental
performance of all 32,000 Beef QAS participating
farms in 2011, representing a world-first for the
sector and providing Irish beef with a platform on
which to build a leadership position in
sustainability.
At a time of uncertainty, communications take on
a new urgency and producer communications
were a priority for Bord Bia in 2010. Newsletters
tailored directly to beef, lamb, and pigmeat
producers updated QAS participants on Bord Bia
marketing strategy and the promotional activities
undertaken to secure the best possible returns for
quality assured produce.
Since its inception, it has been clear that Bloom,
Ireland’s annual showcase of horticulture and
gardening excellence, has struck a chord with the
Irish public. Evolving in response to visitor
feedback, it is now virtually synonymous with the
June Bank Holiday weekend. In addition to its
obvious appeal as a platform for Irish ornamental
horticulture, the promotion of artisan food has
been a natural and successful extension. The
Bloom food market proved an outstanding
success in 2010 with 48 small businesses
participating. In addition, the new ‘Lost and
Forgotten Skills’ and ‘Best in Season’ features
showcased traditional Irish food skills and linked
them with food production today. The support of
Her Excellency President Mary McAleese as patron
of Bloom continues to add value and prestige to
the event.
Research commissioned by Bord Bia on local food
in Ireland illustrated the substantial headway
made in the sector since the last research in 2007.
One keynote finding was that, while in 2007,
41% of consumers thought of local food as
‘produced within the Republic of Ireland’, in
2010, almost half of the population defined local
food as ‘food that is produced or grown by local
people’. Some 35% of people are buying from
farmers’ markets, as compared to 29% in 2007.
Supporting this, Bord Bia was happy to play its
role in the development of a voluntary Code of
Practice for farmers’ markets, with a view to
putting these vibrant outlets for locally-produced
food on a firm foundation.
Since it began in 2007, the Food Dudes Healthy
Eating Programme has supported a positive
attitude to eating fruit and vegetables among
children at a time when childhood obesity levels
are rising. The 2010 programme commenced
with the new school year in September, bringing
a total of 1,660 schools and 240,892 pupils,
almost half the country’s total primary school
population, into the programme.
Initiatives in Meat
Beef output increased by almost 8% in 2010, as
the lower level of live exports of calves and
weanlings in 2008 boosted finished cattle
availability in 2010. The Bord Bia marketing
strategy of repositioning and differentiation
continues to build positions at the top end of the
European beef market and Quality Assured Irish
beef is stocked in three or more of the top 10
retailers in the UK, Netherlands, France, Italy,
Spain, Portugal, Sweden and Germany, and listed
by over 70 European retailers and high end
foodservice operators in total. The UK remains
the major destination for output and, reflecting
this, three nationwide promotional campaigns
were undertaken in 2010. In Continental Europe,
beef promotions are increasingly tailored around
retailer and foodservice accounts. In the Italian
market, for example, beef and lamb promotions
Bord Bia Irish Food Board Annual Report 2010
22
Chief Executive’s Review 2010
included in-store, on-pack, newspaper and
magazine advertising, while, in the Netherlands,
the Irish Beef Recipe Magazine, on-pack
promotions and cookery demonstrations through
the Chefs’ Irish Beef Club were among the key
promotional activities undertaken.
Beef Expo 2010, a showcase of Irish cattle
breeding held in Kilkenny in October provided an
ideal opportunity to promote the excellence of
Irish beef to buyers, with retailer and foodservice
executives from the UK, Germany, Switzerland,
Denmark, among others, in attendance.
Following the success of the three-year
collaborative programme between Bord Bia and
its counterparts in the UK and France, all
stakeholders agreed to extend the Agneau Presto
lamb campaign in France for a further three years.
This trade promotion supports value-added
listings for Irish lamb within key retailers.
Pigmeat promotions in 2010 focused on quality
assured products on the home market. As fresh
pork loins return the greatest premiums to
producers, the aim of the autumn campaign was
to highlight pork as a versatile, delicious and
everyday meal option. Bord Bia also worked
closely with Irish catering colleges to promote
quality assured pork and increased usage of
secondary cuts.
Initiatives in Dairy
The volume of milk produced in Ireland in 2010
increased by 8%, reflecting renewed producer
confidence following a recovery in milk prices and
favourable grass growth for much of the year. As
a result, the volume of dairy products, particularly
cheese, available for export increased strongly.
A Bord Bia commissioned research project,
initiated in 2010, set out to establish the
acceptability of Irish farmhouse cheese with
German consumers. This follows pan-European
research in 2008, which highlighted the cheese
category, both hard and soft, as offering some of
the biggest opportunities for the Irish dairy sector.
Meanwhile, research on farmhouse cheese
production in Ireland found it represents 10% of
the total speciality cheese market, with
23
Bord Bia Irish Food Board Annual Report 2010
approximately 270,000 households purchasing in
the category on average 2.5 times per year.
Initiatives in Seafood
Bord Bia’s market development and promotional
programme for Irish seafood enjoyed its first full
year of activity in 2010, since marketing and
promotion was transferred to Bord Bia from BIM,
and saw a number of major promotional
campaigns in the Irish market. The first, in May,
centred on hake, while the second, in November,
focused on haddock. A strong year for exports
was supported by the publication of a directory of
fish and seafood exporters, while opportunities
for engagement with buyers in the major seafood
consumption markets in Europe were identified.
These included opportunities for Irish crabmeat
processors in the Swedish market; opportunities
for mussel producers in the French foodservice
market; a broad look at opportunities in the
Austrian seafood market; and the opportunity in
the Italian market for Irish nephrops and other
prawn species.
Initiatives in Horticulture
EU approval for €1.3m in funding towards a
€2.6m Bord Bia programme promoting
mushrooms in the UK market was announced in
late 2010. The three-year campaign, co-funded
by Irish and UK mushroom producers,
commences in 2011. Meanwhile, the ‘It’s garden
time’ campaign encourages the public to take
advantage of the rich amenity their garden offers.
The website www.bordbia.ie/itsgardentime
provides hints and tips, as well as pointers on
where to go for advice and to avail of special
offers. Research into the behaviour and attitudes
of Irish consumers, and how they purchase and
use fruit and vegetables in recessionary Ireland,
was published in early 2010 and widely
distributed within the sector.
A range of ‘Best in Season’ fresh produce
promotions were run over the year on the
domestic market, supporting soft fruit, new
season potatoes, mushrooms and Bramley apples,
while the Incredible Edibles Schools Programme
2010 encouraged children to engage in a grow-ityourself initiative at school. Feedback from
Chief Executive’s Review 2010
teachers and pupils indicated the programme was
seen as fun, practical and worthwhile.
Research
A Bord Bia seminar to present the findings of the
Drinks 2025 project was one of the highlights of
its engagement with the beverage industry in
2010 and brought together fourteen drinks
industry representatives, from the multinational
and indigenous sectors. The research identified
eight forces of change for the industry, including
competition for provenance, mainstreaming of
connoisseurship, the social cost of alcohol and
polarisation of retail.
In addition to research projects already
referenced, those underway include an
investigation into opportunities for Irish food
producers in the area of ‘free from’ foods such as
gluten free, wheat free, sugar free and dairy free
foods, as well as the concept of ‘virtual’
innovation and entrepreneurial greenhouses,
which will feed directly into the entrepreneurial
objectives of Pathways for Growth.
The Bord Bia project ‘Price elasticity in Ireland’
won the overall innovation category in the
Marketing Society’s inaugural Research Excellence
awards in 2010.
Events
Conclusion
Bord Bia’s events calendar includes major national
and international events, targeted at both trade
and consumers. The National Ploughing
Championships provides an unrivalled opportunity
to engage with farming community stakeholders
and, in 2010, Bord Bia’s information stand
provided updates on key promotional and quality
assurance activities.
Internationally, key trade events attended
included CIBUS, Italy; the European Seafood
Exposition, Brussels; and SIAL, Paris. Participation
at the China International Meat Industry
Exhibition; the Shanghai Meat Exhibition; and
Biofach, Europe’s largest organic trade fair, which
saw a record 14 Irish companies exhibit on the
Ireland stand, confirmed the determination of
Irish companies to target new growth
opportunities. All in all, some 30 Irish companies
participated in the Speciality and Fine Food Fair in
London, a key showcase for the speciality sector,
while representatives of the beverage industry
attended the 67th Annual Wine & Spirit
Wholesalers of America Annual Convention and
Exposition in Las Vegas and five Irish drinks
companies participated, for the first time with
Bord Bia, at Vinexpo Asia, Hong Kong.
Given the significant volatility encountered by
Irish food and drink exporters over the course of
the last few years, the performance in 2010 is
noteworthy for a number of reasons. The
international trading environment, though more
benign than in 2009, is still an uncertain one and,
by any objective measurement, a challenging
backdrop against which to secure double digit
growth. The performance of Irish exporters must
also be set against the range of issues that
confront businesses domestically.
Initiatives in Beverages
In the lead-in period to the current recession,
competitiveness was frequently identified as a
major concern for the industry. The performance
in 2010 has shown the industry’s impressive
ability to respond. An enduring commitment to
delivering food and drink of the highest quality, a
strong and growing market knowledge base, and
a proven track record of building and sustaining
strong supplier relationships have all played their
part in the success of 2010. We take our next
steps in this new era recognising that, while there
are major challenges ahead, Ireland’s unique
offering is strengthened by the industry’s now
proven ability to adapt to change and to proceed
with determination. Bord Bia looks forward to
working with the Irish food and drink industry as
we build on emerging opportunities, making
innovation and sustainability the twin engines of
growth and job creation.
Bord Bia Irish Food Board Annual Report 2010
24
The value of beef
exports grew by 10%
or €143m in 2010
Meat and Livestock
The value of beef exports grew by
10% or €143m in 2010, as increased
export volumes and stable prices
supported trade.
For the year in total, export volumes
reached 507,000 tonnes cwe with
beef exports valued at €1.57bn.
Following difficult trading conditions
due to weak market demand over
much of 2009 and early 2010,
particularly for higher-value cuts, the
European beef market stabilised
during the course of 2010. A
combination of tighter availability, a
more positive currency situation and
increased demand for European beef
from markets such as Russia and
Turkey facilitated growth.
Irish finished cattle supplies at meat
plants are estimated to have
increased by almost 8% to around
1.64m head, with broadly stable
cattle prices and higher disposals
evident across all categories.
Some 98% of beef exports were
destined for EU markets in 2010.
Across Europe, Irish beef is stocked in
three or more of the top 10 retailers
in each major market and in over 70
retailers in all. More than 200,000
tonnes were destined for the highervalue standard and premium retail,
and premium foodservice markets,
with a further 75,000 tonnes of
quality assured beef destined for the
high-quality, high-volume, quickservice restaurant sector.
Higher finished cattle availability,
recovering retail sales and a better
currency situation saw shipments of
Irish beef to the United Kingdom
grow during 2010. Export volumes
increased by 6% to reach 260,000
tonnes and were valued at some
€705m. This represents an increase
of more than €45m in the value of
exports. Export volumes to
Continental EU markets increased by
11% over 2010 to reach 239,000
tonnes, with trade valued at €840m.
Trade was helped by stronger
availability and improving market
demand as the year progressed.
Shipments were boosted by
increasing exports from other EU
suppliers to Russia and Turkey. The
strongest growth in exports was
evident in France, Italy and the
Netherlands. Having started the year
at very slow levels, exports of Irish
beef to international markets picked
up considerably during the latter part
of 2010, helped largely by increased
demand from Russia as other EU
suppliers diverted increasing volumes
to Turkey. For the year overall, it is
estimated that exports to
international markets reached around
8,000 tonnes.
Beef Promotion
Bord Bia’s Marketing Strategy for Irish
beef aims to build a position at the
top end of the European beef market
through repositioning and
differentiation. A great deal has
been achieved in this regard over the
past three years and this has led to
growth of approximately 9,000
tonnes cwe (5%) to standard retail,
6,800 tonnes (64%) to premium
retail and 4,800 tonnes (36%) to
premium foodservice between 2007
and 2010. As a result of lower
imports of steaks from Argentina,
there are further opportunities to
build Irish premium markets. With
Ireland’s volume availability set to
decline considerably in 2011 and
2012, the country now has the
opportunity to prioritise and target
customers returning highest prices on
a consistent basis and increase
returns across the sector.
The emergence of the sustainability
agenda and the widening of
consumer niches for beef around
Europe represent an opportunity to
build the Irish suckler herd and
extensive grass-based system to meet
the needs of these markets and
spread the price premium across a
wider base of the Irish national herd.
Key initiatives for 2011 include:
• Supporting premium beef brands
• Image building via Chefs’ Irish
Beef Club and media in flagship
regions across Europe
• 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
• Developing innovation in the
sector
Bord Bia Irish Food Board Annual Report 2010
26
Meat and Livestock
Livestock Exports
Live cattle exports reached almost
340,000 head in 2010, their highest
level since 2000. This represented an
increase of more than 60,000 on
2009 and some 200,000 ahead of
2008 levels. The value of trade, at
€183m, was 15% higher than the
year-earlier figure. Higher exports of
calves were a key driver of this
growth. Calf shipments reached a
record high of almost 160,000 head,
representing 47% of total live
exports for the year. The Dutch
market accounted for slightly fewer
Irish calves than in 2009, while calf
exports to Belgium, Spain and Italy
collectively increased by 36,000 head.
Exports of weanlings and store cattle
also performed strongly, rising by
around 10,000 to reach 120,000
head in total. Feedlot owners in Italy,
and to a lesser extent Spain,
recognise the improvements that
have been made in the health, quality
and consistency of Irish weanlings in
recent years. Irish live exports to Italy
increased by 25%, reaching almost
71,000 head, in spite of total imports
to the market falling by an estimated
5%. While imports from France were
stable, all other suppliers, including
Germany and Poland, recorded lower
shipments. This may be partly
attributed to these countries
exporting live cattle to Turkey when
the market opened in the latter part
of the year. Irish exports to Spain
also rose by 25% to 61,000 head.
Calves continue to account for more
than half of Irish exports to this
market.
Exports to the UK remained strong in
2010 at around 104,000 head for the
year, with 95,000 of these destined
for Northern Ireland, an increase of
20% on the previous year. Of the
animals which went north of the
border, finished cattle accounted for
55,000 head. Live cattle exports to
Britain declined slightly from 10,000
to 8,600 head.
In July, Bord Bia launched a major promotional drive for lamb. Pictured at the launch were celebrity chefs Neven Maguire and Catherine Fulvio
with Teresa Brophy, Ireland Market Manager, Bord Bia and mini chefs Brandon Noble and Holly McGuinness
27
Bord Bia Irish Food Board Annual Report 2010
Meat and Livestock
Shipments of live pigs to Northern
Ireland also remained strong,
reaching an estimated 570,000 head,
which represents an increase of
almost 20% on 2009 levels. This
trade was valued at €57m for the
year.
Following a strong year in 2009, live
sheep exports eased by 40% during
2010 to an estimated 65,000 head,
reflecting the tight supply situation
and the stronger prices prevailing in
Ireland. This trade was valued at
approximately €5m.
Overall, the value of Irish livestock
exports increased by 15% in 2010 to
an estimated €245m.
Lamb
Lamb Promotion
Lower availability of product on the
domestic and main European markets
contributed to a stronger trading
environment for sheepmeat in 2010.
Over the year, total Irish sheep
disposals fell by 12% or 310,000
head to 2.12m. This decline occurred
in spite of a drop of 50% on live
exports to 47,000 head, and a live
import rise of 130,000 head.
The focus for Irish lamb promotion
for 2010 was on the Irish and French
markets. The Irish consumer
campaigns took place in July and
September/October. These
promotions focused on the delicious
taste of quality assured lamb and
targeted light-to-medium shoppers
within the category via a wide range
of media including outdoor, radio,
press, PR, online, in-store and street
tastings. A foodservice campaign ran
throughout the year, encouraging
chefs to increase their lamb offerings
and to consider it for more
economical meal propositions.
Average producer prices increased by
65c/kg, or 14% on the previous year,
to €4.39/kg dw. With greater
confidence in the sector, higher
retention rates were reflected in
culled ewe disposals falling back by
21% to 305,000.
Exports for the year dropped 12% to
38,000 tonnes, but stronger market
demand led to a similar overall value
of exports at €163m.
The French market absorbed more
than 50 per cent of Irish sheepmeat
exports. However, the market
diversification evident in recent years
was largely maintained, with a
quarter of shipments destined for
markets other than France and the
UK in 2010.
Consumer demand on the home
market continued to reflect the
weaker economic conditions with
retail volumes for the year down
9.5%, although the last quarter of
the year showed a slight
strengthening in demand.
Entering its third year, the Agneau
Presto campaign in France was the
main focus for Irish promotional
activity for the sector. The success of
this three-year collaborative
programme between Bord Bia and its
counterparts in the UK and France
led all stakeholders to agree an
extension of the programme for a
further three years. In addition, a
trade promotion of Irish lamb in
France and Belgium capitalised on
Ireland’s involvement in the Agneau
Presto campaign. This trade
promotion supported value-added
listings for Irish lamb with key
retailers.
Bord Bia Irish Food Board Annual Report 2010
28
Meat and Livestock
Pork and Bacon
European pigmeat output was
relatively stable in 2010, with
increased production levels evident in
the final quarter. However, despite
sluggish domestic and European
market demand, prices at year end
were running around 8% ahead of
the corresponding period in 2009.
European exports are estimated to
have increased by around 14% in
2010, reaching 2.7m tonnes. All
major import destinations showed
higher shipments with Russia, Japan
and China showing the strongest
increase in demand. The dramatic
increase in feed costs, as the year
progressed, significantly added to
production costs, particularly in
Ireland where feed tends to represent
a higher proportion of total costs.
With little softening in feed costs
expected in 2011, lower EU output is
likely as the year progresses.
Following the re-introduction of depopulated herds in early 2010, total
Irish pig disposals in 2010 increased
by 11% to 3.17m head. Within this,
supplies at export meat plants in the
Republic of Ireland increased by 10%
and live exports to Northern Ireland
increased by a significant 18% to
568,000 head. Total pig disposals in
2010 were 3.5% ahead of 2008 or
pre- recall levels, showing that, in the
latter stages of 2010, the Irish herd
was growing through the expansion
and development of new units and
increased productivity.
However, given the fact that, under
normal circumstances, feed costs
account for between 60-70% of the
cost of producing pigs, the surge in
feed prices has placed the domestic
Irish pig industry in an extremely
difficult financial situation. In the
latter half of 2010, the dramatic
increase in feed costs severely
impinged on margins, with producers
estimated to be losing 20 c/kg or
€16/pig as of January 2011.
29
Following a slow start to 2010, Irish
pig prices moved ahead of year
earlier levels from the mid-year
onwards and, for the year as a
whole, were largely unchanged, as
the international market environment
for Irish pigmeat exports improved.
Improved domestic demand in major
importing nations such as Russia,
China and Japan, a weakening of the
euro against the US dollar and more
expensive North American product
led to European exports being more
competitive on international markets.
The combination of stronger supplies
and reasonably stable prices led to
the value of Irish pigmeat exports
rising by 14% to an estimated
€335m or 134,000 tonnes over the
year.
Exports to the United Kingdom were
affected by a drop of around 3% in
UK import demand, stronger supplies
of competitively-priced Dutch
pigmeat and a greater focus by Irish
exporters on international markets.
During the year, it is estimated that
exports to the UK fell by around 10%
to an estimated 65,000 tonnes
product weight, with trade worth
some €200m. The UK market
accounts for around half of total
exports in terms of volume and
approximately two thirds in terms of
value. There was a marginal increase
in shipments to Continental Europe
with an estimated 40,000 tonnes
exported at a value of €75m. Lower
shipments to Germany and France
were largely offset by stronger
demand from ‘new markets’ such as
the Czech Republic, Poland and
Estonia. Irish exports to international
markets performed strongly over
2010, following suspensions on Irish
pigmeat exports during the product
recall in late 2008. Exports to Russia
are estimated to have exceeded
7,000 tonnes while China accounted
for a further 4,000 tonnes.
Combined with a strong rise in
exports to Japan, this led to exports
increasing by around 17,000 tonnes
to reach 27,000 tonnes.
Bord Bia Irish Food Board Annual Report 2010
Pork and Bacon Promotions
Pigmeat promotions in 2010 focused
on quality assured products on the
home market. There were two main
pigmeat promotions in 2010, in
March/April and October/November,
which were supported by quality
assurance promotions. From 8 March
to 4 April, the focus was on quality
assured rashers and cooked ham.
The key consumer message was to
choose rashers and cooked ham
bearing the Bord Bia Quality Mark.
As fresh pork loins return the greatest
premiums to producers, the aim of
Bord Bia’s autumn campaign was to
highlight pork as a versatile, delicious
and everyday meal option. Bord Bia
also worked closely with Irish catering
colleges to promote quality assured
pork and the increased usage of
secondary cuts.
Meat and Livestock
Poultry
Irish poultry exports benefitted from
stronger prices for fresh/chilled
poultry meat, helping the value of
trade in 2010. Some recovery in
domestic production as the year
progressed helped to offset reduced
import volumes due to lower
shipments of frozen and processed
poultry to Ireland.
After a slow start to the year,
European broiler prices picked up
and, for the year as a whole, were
just marginally below 2009 levels.
However, prices in November were
around 7% above year-earlier levels.
The increase in prices helped to partly
offset the significant rise in feed
prices in the second half of 2010.
Demand across Europe was stable
over the year, with estimates from
the EU Commission suggesting that
EU-27 consumption remained
unchanged at 11.6m tonnes. Overall
EU poultry production was around
2% higher, while imports are
estimated to have fallen by 14% due
to new regulations regarding the use
of frozen poultry. Most of the drop
was evident in shipments from Brazil
and Chile, which were 15% lower in
the first nine months of 2010. For the
year as a whole, the value of Irish
poultry meat exports increased by
10% to €203m.
Bord Bia Irish Food Board Annual Report 2010
30
The improvement in
global dairy markets in
late 2009 continued for
much of 2010 with
significantly higher
prices prevailing.
Consumer Foods, Dairy and Beverages
Dairy Products and
Ingredients
The improvement in global dairy
markets in late 2009 continued for
much of 2010 with significantly
higher prices prevailing.
For most products, European prices
increased by between 10% and
40%, with the strongest increases
evident in butter and powders, both
of which had recorded significant
declines in 2008 and the first part of
2009. Cheese prices recorded slower
growth but, like infant formula, had
withstood much of the pressure on
price in previous years.
Milk output in Ireland increased
strongly as the year progressed,
following a slow start, as better
prices and good grass growth
boosted output. For the year as a
whole, total milk deliveries are
estimated to have increased by more
than 6%. In terms of production,
there was a shift towards increased
cheese production while skim milk
powder and whole milk powder
outputs declined.
The year also saw the removal of a
considerable volume of SMP and
butter from storage across Europe,
with Ireland alone releasing 20,000
tonnes of SMP and 5,000 tonnes of
butter.
Overall, it is estimated that the value
of exports for the year increased by
17% to reach €2.27bn. This,
combined with improved global
demand and stronger prices, all
helped to boost export values.
The strongest performing categories
over the year were cheese, powders
and butter. The volume of infant
formula exported showed some
decline after a relatively strong year
in 2009 as some Asian markets
increased domestic output, which led
to reduced import demand.
In terms of market share, increased
sales were recorded to Continental
Europe, particularly Germany, while
exports to emerging markets in Africa
and parts of the Middle East also
showed strong growth.
The volume of cheese exports
performed well. The UK remained
the key destination, accounting for
two thirds of exports, while
shipments to other EU destinations
and international markets continued
to make progress. The UK cheese
market has performed well, with
volumes through retail continuing to
increase and average prices also
rising slightly.
Prepared Foods
The prepared foods category includes
a wide range of primary products
that have been further processed,
such as ready-to-eat foods, mainmeal centres, snacks, confectionery
and bakery products.
For prepared foods producers, 2010
was a challenging year with
continued pressure on margins due
to input prices rising as the year
progressed and sustained price
pressure from customers. While
currency fluctuations did not impact
to the degree they did in 2009,
volatility of movements in both
sterling and the US dollar made
planning difficult. Access to credit
and export credit insurance were
both ongoing challenges.
Bord Bia Irish Food Board Annual Report 2010
32
Consumer Foods, Dairy and Beverages
However, the sector has undoubtedly
become much more focused on cost
reduction and efficiencies and is,
therefore, better able to compete in
foreign markets. There is a
continued strong focus on new
product development and on
expanding the range of markets
served. More companies within the
sector are targeting continental
markets for new business streams.
Overall, the sector performed
confidently in 2010, with exports
growing by 7% to €1.38bn in 2010.
Exports of prepared foods to the UK
fell by 6%, reflecting the competitive
nature of that market. The strongest
performers in the UK were ready
meals, ingredients for the sandwich
and manufacturing sectors, and
sugar confectionery. Frozen ready
meals have benefited as costconscious 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. The
pizza category had a tough year as a
key European competitor invested in
a UK manufacturing operation.
The UK remains the single most
important market for the sector and
accounts for 43% of prepared foods
exports, a 5% decline from 2009.
The total value of exports to
Continental Europe grew from 31%
to 34% in 2010. Renewed
recognition of the opportunities in
France, the Netherlands and
Germany, in particular, has come
about as companies recognise a need
to lessen dependence on sterling and
grow euro-area exports.
Exports of bakery products continued
to perform strongly, aided by a more
positive market environment as the
year progressed. The main export
market is the UK, although the
export reach of some smaller
33
companies has broadened with sales
to continental European markets
increasing. New product
development and a focus on addedvalue solutions are the main drivers
of new sales.
With prices in key inputs such as
flour rising, maintaining
competitiveness will be a challenge.
However, the outlook for Irish bakery
exports is very positive, as most
segments within the category
recorded strong growth. Strong
consumer demand for both healthy
and indulgent products will continue
to stimulate growth.
Confectionery
While overall exports of chocolate
confectionery decreased in 2010,
export performance in the standard
and luxury chocolate segments
differed. Luxury chocolate, although
a smaller market in terms of volume,
performed well, entering new
markets and growing in existing
markets. Exports of standard
chocolate were down on 2009,
largely due to currency issues, as the
UK is the only export market for this
product. In contrast, exporters in the
luxury chocolate segment reported a
more positive year in the UK,
increasing sales through existing and
new customers. Strong
performances in the Middle East,
Southern Asia and Australia have
been helped by luxury chocolate
manufacturers opening a number of
cafes in these markets.
Sugar confectionery represents a
smaller part of the market and
exports were down marginally on the
previous year due to a decrease in
demand from France and Russia.
Sales to the UK were strong,
however, with new product
development offerings meeting
Bord Bia Irish Food Board Annual Report 2010
consumer demand for sugar-free
products.
Beverages
Exports of beverages (both alcoholic
and non-alcoholic) performed
strongly in 2010, following a very
challenging 2009. In all, beverage
exports grew by an estimated 8%
to €1.15bn. The sector’s recovery in
2010 was linked to a return to more
normal trading conditions, with
higher volumes recorded across most
product categories. There was also a
strong focus on value propositions in
line with the current global recession.
Exports of non-alcoholic beverages
such as water, tea and coffee all
recorded increases, with sales to the
UK, the main export market in this
category, driven by new product
development as consumers demand
high quality, functional beverages.
Alcoholic Beverages
The Irish whiskey category continued
its upward trend with very strong
results, especially in the key US
market, where sales of the leading
brand reached the one million case
mark for the first time. Other
markets showing good growth were
South Africa and Australia. Irish
whiskey is now a leading growth
category in the brown spirits market
and its performance is being
monitored closely by analysts in the
industry.
Cream liqueur exporters had a much
improved year in 2010, following a
very difficult 2009. However,
increasing pressure on prices,
currency fluctuations and higher raw
material costs meant that the rate of
increase in export values was lower
despite the increase in volume sales.
The best performing markets were
the United States, Germany and Latin
Consumer Foods, Dairy and Beverages
America, thanks to a combination of
increased marketing investment and
strong economies. The UK market
performed well but most of the
volume was driven by deep price
discounting in retail.
Exports of cider picked up during the
year after a slow start, helped by a
stronger performance in the UK and
selected emerging markets. Markets
reporting good growth included
Australia and North America.
The beer category reported growth in
2010 due to better retail
performances in the UK, France,
Germany and Benelux. The on-trade
continues to suffer as a result of the
economic downturn with pub
closures and a reduction in consumer
spending contributing to lower sales.
Non Alcoholic Beverages
The UK continues to be the main
export market for non alcoholic
beverages. Exports of mineral water
improved, despite ongoing issues
with sterling. The market for
premium soft drinks has held up well
in the UK compared with the
Republic of Ireland, resulting in good
growth in this segment.
Sales of juices and smoothies
continued to be negatively affected
by developments in the UK market,
which recorded a 33% decline in
value for smoothies in the period
2007-2009. Exports of juices have
been affected by higher input prices,
which have resulted in lower
volumes. Deflation at the top end of
the market combined with inflation
at the lower end has resulted in a
blurring of market segments.
Exports of tea and coffee recorded
growth in 2010. Demand for hot
beverages is outstripping supply due
to a rise in global consumption.
Input prices have risen to
unprecedented levels as a result of
production falls due to adverse
weather conditions and financial
speculation in coffee as a traded
commodity. Growth in the market
has been driven by premium and
speciality variants.
Overall, the prospects for beverage
exports remain positive for 2011,
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 its
consumer base broadens and new
brands and variants are launched
each year.
Issues facing the alcoholic beverage
sector include higher dairy and other
raw material prices. Manufacturers
of wine-based cream liqueur
products also face the likely abolition
of intermediary excise tax relating to
these products, which could result in
higher retail pricing. Soft drink
manufacturers will also face higher
commodity prices, most notably in
sugar.
Fish and Seafood
Seafood exports in 2010 showed
good recovery with an overall
increase of 13% to €375m. France
remains the largest export market in
value terms accounting for an
estimated 26% of Ireland’s seafood
exports, followed by Spain at 12%;
Russia at 10%; and the UK at 8%.
Exports during 2010 showed
significant improvement as lower
supplies across most main species
helped boost prices, while the
exchange rate environment was more
benign. Generally, there was some
swing to euro zone markets,
following the severe exchange rate
volatility with sterling over recent
years.
Growing demand for organic salmon
in Europe helped Irish exports in
2010 as around 70% of Irish
production is organic. Poor growth
rates globally in 2009, coupled with
the severe decline in Chilean salmon
production, left a supply gap in the
market which continued into 2010.
A strong Norwegian Kroner also
reduced the competitiveness of the
leading market supplier and led to a
strong jump in prices, which seems
set to be maintained in 2011.
However, this tight market situation
may impact negatively on the market
with the possibility of rising salmon
prices penalising both processors and
consumers and, therefore,
encouraging displacement to other
species.
Strong sales of whitefish on the
French market and a consumer
preference for fresh product
benefitted Irish exports during 2010.
Some reports regarding the supply
situation of whitefish stocks on the
European market suggest that there
was a scarcity of whitefish with quota
allocations having been used up too
early in the year. These tight supplies
helped price levels for much of the
year.
It has been reported, however, that
supplies in 2011 will be more
consistent due to better quota
management to ensure a year-round
supply of raw material. It is also
suggested that current price rises are
being driven by increased demand in
BRIC countries (Brazil, Russia, India
and China) that are now increasing
consumption of whitefish, particularly
China, which processes immense
volumes of whitefish for re-export
but is now also turning into a
consumer nation as purchasing
power increases. As a result of the
current shortfall in supply, whitefish
prices are currently strong although
Bord Bia Irish Food Board Annual Report 2010
34
Consumer Foods, Dairy and Beverages
price movements remain uncertain
because of a number of factors,
including competition from farmed
species e.g. pangasius, tilapia,
seabass and seabream, which offer
stable and regular supplies.
The shellfish market improved in
2010 with crustaceans in greater
demand in emerging markets,
leading to a tighter situation in the
prawn market. The crab market also
performed better in 2010 with the
fishing season starting later due to
the exceptionally cold winter of
2009/10. There was also less stock
available on the European market,
mainly as a result of the poor supplies
(and consequently high prices) of
tropical prawns, resulting in
consumers seeking alternative
shellfish species. Similarly, the
market for frozen-at-sea prawns was
very strong, with very high demand
reported in the run up to Christmas
and all Irish processors reporting poor
availability or no stock.
Both oyster and mussel production
had lower outputs in 2010, which led
to rising prices in the last quarter of
2010. France continues to be the
main market for Irish mussels,
however, the competition from
Chilean-processed mussels in the
foodservice sector continues to affect
the sales of Irish cooked mussels. In
response to this, the incorporation of
the Irish quality scheme (QSP) into
major French retailers’ schemes is
helping to build loyalty. Also, the
gradual move from foodservice sales
to retail sales is enabling Irish mussels
to reach market segments where the
level of price competition is not as
severe. Oyster mortalities in France
led to increased demand during 2010
and a product shortage for the endof-year market helped boost prices.
Within the pelagic sector, one of the
main factors impacting on growth in
35
2011 is the decision by the European
Coastal States to reduce the blue
whiting quota by 90% for the year.
This is forecast to have a serious
impact on the Irish pelagic sector,
given that this species accounts for
an estimated 25% of annual
production, with global markets in
West Africa, Russia and China built
up over the past eight years. Due to
rising fish meal prices, increased
demand and a drop in anchovy
stocks, pressure is also emerging to
use traditional food species, such as
horse mackerel and herring, as raw
meal material.
The prospects for seafood exports in
2011 remain broadly positive with
ongoing tight supplies expected in a
number of major species, most
notably salmon and oysters. Limited
increases are anticipated in
Norwegian salmon production for
2011, while Chilean output is likely
to take some time to recover.
However, there are some concerns
that the strong rise in salmon prices
may lead to some displacement by
other species. It has also been
reported that Norway is producing
organic salmon, which will be
available for sale in 2011 and which
could have a negative impact on Irish
exports in this sector.
Demand for oysters should remain
high as mortality at production level
over the past three years reaches its
peak of impact in terms of lack of
availability of market-size oysters in
2011. Exports should be higher if no
abnormal mortality is noted here in
2011. Production prices for gigas
oysters are anticipated to reach
historical highs during the 2010/2011
season as mortalities of half of the
grown oysters during the summer of
2008 take full effect. The French
Shellfish Association (CNC) is
forecasting a drop of 40-60% in the
volume of commercial sales. This
Bord Bia Irish Food Board Annual Report 2010
scenario seems set to impact on the
market environment up to 2015 and,
while it is likely to lead to significant
changes in the structure of the
European market, the Irish sector,
with its young and dynamic
companies, is well set to compete
effectively, provided survival rates
remain acceptable.
The mussel market may become
competitive as Spanish growers
target the French market. Irish
mussel growers, however, have again
shown their commitment to new
product development by being first
to produce organic mussels that
comply with the European organic
standard. As of early 2011, Irish
organic mussels have begun to be
placed on the French market and
should yield promising results.
Consumer Foods, Dairy and Beverages
Pictured in Paris during the Agneau Presto Week (lamb campaign)
were James Murphy, IFA; Noreen Lanigan, Manager, Bord Bia
Paris; Emmanuel Coste, Interbev and chef William DeLeuil.
In May, Bord Bia launched a seafood promotional campaign fronted by TG4
weatherman and keen fisherman Daithí O Sé.
ESE 2010
In November, Bord Bia hosted a Marketplace Roadshow event in Amsterdam,
whereby Irish food companies met with key Dutch retailers. Pictured at the event
were l-r Declan Fennell, Manager, Bord Bia Netherlands; Breda Maher, Cooleeney
Cheese and Ms. Sabine Elings, Buyer, Superunie.
Meetings underway at Bord Bia’s Marketplace Ireland event in
Croke Park, Dublin
Bord Bia Irish Food Board Annual Report 2010
36
...end-of-year figures for
2010 indicated average
annual turnover value
growth of 7% for the
sector since 2007.
Small Business and Organic Sectors
For most companies in the small-business food sector, 2010 was a difficult
and challenging year where growth and profitability recorded over previous
years was eroded. Notwithstanding this, end-of-year figures for 2010
indicated average annual turnover value growth of 7% for the sector since
2007. The Bord Bia Vantage Programme responded to the financial and
retail challenges of 2010 by increasing business development opportunities
for the sector. This included involving small business companies in
Marketplace for the first time and increasing participation at trade and
consumer fairs.
Bord Bia Vantage
In 2007, Bord Bia launched the
Vantage programme, which services
over 350 SMEs with individual
turnovers of less than €3.5m. Since
its launch, Bord Bia Vantage 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 – Bord Bia’s
online resource guide for small food
businesses. Vantage Point is a
focused space for small food
businesses on the internet, accessed
at www.bordbiavantage.ie .
Information on the site is quick and
easy to access and provides practical
help in the day-to-day running and
planning of a small food business. In
2010, there were almost 9,000
visitors, of which 70% were first-time
visitors to the site and Irish visitors
accounted for the majority of traffic.
Content most frequently searched for
on the site includes information on
grant aid, distribution, farmers’
markets and packaging. In 2010,
work was started to redevelop the
website to provide improved layout
and content for users, and to create a
new discussion forum to allow
owner/managers to exchange views,
news and recommendations. The
site was re-launched on 25 January
2011.
Bord Bia Vantage Plus – In 2010,
Vantage Plus activities concentrated
on the distribution programme. A
seventh regional cluster was
launched, bringing the total number
of companies participating in the
clusters programme to over 40. The
clusters facilitate groups of
companies to collaborate on areas
such as delivering product to market,
route sharing and resource pooling.
Also, in 2010, a new online
distributor database was launched to
provide information to food
producers on over 280 distributors of
food, drink and horticulture products.
The database is accessed via
bordbiavantage.ie
Bord Bia Vantage Partner is a
development programme for high
potential small business companies.
In 2010, seven companies,
representing a wide range of product
categories and company life stages,
joined the Vantage Partner
programme. Each company
participated on a total of seven
workshops and received 10 days of
one-to-one mentoring each. In
addition, the programme included a
market study visit to London and two
rounds of consumer research. A total
of 22 companies participated on the
Vantage Partner Programme in the
period 2007-10. An additional five
small business companies
participated on the Vantage Partner
and Retail Excellence Programmes in
the UK in 2010.
Regional and Local Food
Awareness
In February 2010, Bord Bia published
a qualitative and quantitative
research report on Local Food,
updating a previous study in 2007.
The main findings of the report were
that local food is now considered a
food category in its own right, with
93% consumer awareness recorded.
Since 2007, the definition of what
local food is has evolved from ‘food
produced in Ireland’ to the point
where 50% of consumers describe it
as ‘food that is produced or grown
by local people’ and 20% of
consumers seeing it as ‘food that is
not mass produced’. According to
Bord Bia Irish Food Board Annual Report 2010
38
Small Business and Organic Sectors
the research, taste and naturalness
are the key motivators for the
purchase of local food.
As part of the ongoing development
of farmers’ markets, a third call was
made in 2010 for applications to the
voluntary Code of Good Practice,
launched in 2009 by then Minister of
State with responsibility for Food and
Horticulture, Trevor Sargent. There
are now 39 farmers’ markets carrying
the standard. Markets signing up to
the Good Practice Standard
undertake to hold markets regularly;
to source a substantial proportion,
ideally 50%, of local produce from
the county or neighbouring counties;
to accommodate seasonal and local
garden/allotment produce; and to
comply with food safety/labelling
rules and criteria on good
governance.
In late 2010, a comprehensive
research study was commenced to
determine the value of farmers’
market as a route to market for small
producers and the role played by the
markets in consumer’s lives. The
results of this research will be used to
develop a platform for the promotion
of markets in early 2011.
Research and Development
In December 2010, a qualitative and
quantitative study was conducted of
the opportunities within the ‘freefrom’ sector (gluten free/dairy
free/wheat free) which is largely
dominated by imported brands. The
findings revealed significant
opportunities for Irish companies in a
growing sector with a very engaged
customer base who are open to
seeking out new brands and product
options. These findings will be
presented to client companies in a
workshop format where
opportunities for developing
marketing and product development
activities will be further explored.
In addition, category analysis of the
Irish multiple retail market showed
Bellingham Blue won the Supreme Cheese Award at the 2010 Irish Cheese Awards. Pictured at the event were Peter Thomas, Bellingham
Blue with Kevin Sheridan, Sheridans Cheesemongers
39
Bord Bia Irish Food Board Annual Report 2010
Small Business and Organic Sectors
that spend on dairy accounts for
13% of average grocery spend across
the year, with households spending
on average €723 on dairy in 2010.
The speciality cheese market is valued
at €26m, with farmhouse accounting
for 10% of sales. Total farmhouse
cheese sales are down in line with
overall market trends in 2010.
However, there are great
opportunities for growth in the sector
through attracting new shoppers to
the category. For example, a 1%
increase in purchases could generate
€154k in sales. Research findings will
be used to deliver a growth strategy
for the sector in 2011.
Business Development and
Promotion
Development and promotion of the
small business and speciality sector in
2010 was conducted via trade and
consumer fairs and events, public
relations activities, sponsorship of
awards and inclusion on the
itineraries of inward media visits.
At Marketplace 2010, a one day
event in Croke Park on 9 February, 55
small business companies, one third
of the total participants, engaged in a
total of 1,200 meetings with
domestic and international buyers,
averaging 22 meetings per company.
To date, nearly €3m in new sales
have been secured by the small
business companies as a result of the
Marketplace event.
Trade fairs in 2010 which included
participation by small business
companies were ISM Germany, where
six confectionery companies exhibited
on the Ireland stand and the
Speciality & Fine Food Fair in London,
where over thirty companies,
including consumer foods companies
were featured.
At Bloom, 49 food and drink
producers showcased and sold their
products to visitors. In addition,
artisan produce was showcased
through gourmet breakfasts prepared
and provided for broadcasters in
media outlets such as RTE Radio 1,
Lyric FM and Newstalk. A new
In October, Bord Bia and representatives from Ireland’s artisan food sector travelled to Turin, Italy to participate in Salone del Gusto, the
international trade fair and food exhibition with an emphasis on small scale producers and artisan products. The event attracted in excess of
200,000 visitors over five days.
Bord Bia Irish Food Board Annual Report 2010
40
Small Business and Organic Sectors
feature at Bloom in 2010 was the
‘Lost & Forgotten Skills’ display area,
which provided an opportunity to link
Ireland’s traditional food heritage and
contemporary food skills by way of a
series of four daily talks, with
demonstrations and tastings from
food practitioners, food historians,
chefs and experts.
In October, Bord Bia showcased a
variety of small and artisan
producers, as well as Irish beef and
lamb, at the biennial consumer fair
Salone del Gusto in Turin, Italy. Over
200,000 visitors are estimated to
have attended the five-day event.
The Ireland stand was managed by
Bord Bia and, with the support of
volunteers from Slow Food Ireland,
sold over 2,000 plates of Irish food.
The event was attended by the
Minister of State for Horticulture,
Ciaran Cuffe, as well as the Irish
ambassador to Italy.
TASTE Council
A Collaborative Approach
The TASTE Council is an independent
voluntary body representing the
artisan and speciality sector. Its
secretariat is Bord Bia. In 2010, the
Council made submissions on behalf
of the artisan and speciality sector to
Food Harvest 2020, Your Country
Your Call, and policy submissions to
the FSAI and the Department of the
Environment’s Green Public
Procurement plan. During the year,
the Council continued to work on a
local food initiative and supported
the publication of the Traditional
Food Skills for Tomorrow – Food
Heritage in Living Memory booklet.
Bord Bia continued to work in
partnership with key government
departments, agencies and
associations in the development and
implementation of support for the
small business sector. These included
the Small Firms Association, the Irish
Exporters Association, the County
Enterprise Boards and LEADER
networks, Invest Northern Ireland,
the Department of Community, Rural
and Gaeltacht Affairs, the
Department of Agriculture, Fisheries
and Food and Enterprise Ireland.
Also in 2010, Bord Bia sponsored the
food and drink category of the Small
Firms Association annual awards and
the artisan category of the Blas na hEireann awards. In addition, support
was given to Irish entries in the Great
Taste Awards, the British Cheese
Awards and the World Cheese
Awards.
In the UK, the Irish speciality sector
was the focus of the St. Patrick’s Day
consumer public relations campaign,
which included print media and radio
promotions, recipes and hampers,
and a media lunch on 17 March for
key opinion formers in food and
drink.
41
Bord Bia Irish Food Board Annual Report 2010
Small Business and Organic Sectors
Organic Food
Research conducted in advance of
National Organic Week 2010
indicated that the main reasons
consumers purchase organic food in
Ireland is because it is free from
pesticides and chemicals (source:
Ipsos MRBI). The research also
revealed that the overall value of the
organic market fell by 9.7% in the
12-week period to July 2010, but
that 62% of consumers contend that
they are buying the same amount as
12 months ago. The overall aim of
National Organic Week is to raise
consumer awareness of the benefits
of organic food, how to recognise it
when shopping and where to buy it.
A new campaign was introduced in
2010 with the message ‘Enjoy
organic. It’s only natural’. Research
following the campaign indicated
that 40% of consumers who were
aware of the National Organic Week
campaign were likely or very likely to
buy more organic food as a result of
seeing the campaign. There were 44
national print articles on the
campaign plus RTE News coverage
and over 70 local events celebrating
organic week.
In all, there were 175 applications for
the National Organic Awards in 2010,
an increase on the previous year.
Products were judged on the criteria
of taste, packaging, branding and
price and, this year, the awards were
also open to the horticulture sector.
The overall prize winner was
Mossfield Organic Mature Cheese.
In February, eight small businesses
took part in a total of 14 exhibitors
on the Ireland stand at Biofach in
Nuremburg, Germany. Biofach is the
world’s largest organic trade fair and
several companies secured new
business directly as a result of the
show.
Bord Bia Irish Food Board Annual Report 2010
42
Mushrooms, potatoes, field
vegetables, fruit and
protected crops, nursery
stock, protected flowers /
ornamentals and Christmas
trees
Horticulture
Overview
Key crops in the food sector include
mushrooms, potatoes, field
vegetables, fruit and protected crops.
Key outputs in amenity horticulture
include nursery stock production,
protected flowers/ornamentals and
Christmas trees.
The key market for the horticultural
industry is the domestic market, with
the main areas of export being
mushrooms to the UK and amenity
horticultural products (including
nursery stock plants, cut foliage and
Christmas trees).
Background
The domestic retail market is the
most important market for Irish fresh
produce. Market research carried out
on behalf of Bord Bia showed that
the total value of the retail fresh
produce market in 2010 decreased
by 1% on the year earlier figure. The
retail market is currently valued at
€1.18bn, down from €1.19bn in
2009, and mainly comprises
vegetables (€505m), fruit (€514m),
and potatoes (€150m).
Retail sales of chilled prepared fruit
and vegetables (including wet salads)
were valued at €86m in 2010,
showing a decrease of 3% on the
previous year. However, volumes
purchased increased and some 91%
of all households are now regular
consumers from this category of
products.
Market research commissioned by
Bord Bia in 2010 values the
household amenity market in Ireland
at €717m. Of this, the retail market
for plant/flower sales was estimated
to be in the region of €235m pa.
Outdoor and flowering plants
account for 31% of all purchasing
occasions, but just 18% of spend.
Hard landscaping products account
for almost half of the market value.
Mushrooms
2010 was a satisfactory year for the
mushroom sector, with the industry
recording a 3% increase in sales
volumes. In the Irish market, both
the value and volume of retail sales
were up in 2010 compared with
2009. The year was characterised by
extremely cold weather at the
beginning and end of the year which
helped mushroom sales, as they are
chiefly utilised in hot meals.
Exports also increased by 1%,
although currency fluctuations
affected demand. A major
mushroom promotion in the UK,
supported by Bord Bia, had a positive
influence on consumer demand. The
retail market in the UK, which is the
most important outlet for Irish
mushrooms, grew in value by 3.3%
to £353m. Button and closed cup
mushrooms have been losing volume
as consumers switch to flat and
brown mushroom types. This trend
has also seen new shoppers enter the
mushroom market with the flat and
brown mushroom segments
recording impressive value and
volume growth year on year.
Overall winner at Bloom 2010 Jane McCorkell
Bord Bia Irish Food Board Annual Report 2010
44
Horticulture
Investment in new state-of-the-art
production facilities has been taking
place, which will boost overall
production and should also lead to
higher exports.
Protected Food Crops
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 6% over the year while
volume contracted by almost 4%.
Vine tomatoes held their market
share while cherry tomatoes fell back
slightly and round tomatoes
improved their share. The value of
the retail sales of lettuce was up 9%
in 2010 but volume was back slightly.
Butterhead lettuce makes up nearly
two thirds of the market.
Fruit Crops
Fruit is the largest fresh produce
category for consumers at retail level
and apples and strawberries are the
two main fruit crops produced in
Ireland. Demand for Irish eating
apples remains strong and 2010 was
a reasonably good season with
supply and demand evenly matched.
A promotion for Bramley apples in
November involved food bloggers to
reach out to the online community.
Demand for cider apples continued
to decline due to lower than
anticipated demand for cider.
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 grew in 2010 by
10%, while volumes remained static.
Soft fruits such as raspberries,
blueberries, gooseberries and red
currants continue to grow in
popularity, with retail volume and
value both up 7% over 2009 levels.
45
Potatoes
Food Security
From a production perspective, 2010
was an excellent year for potato
growing and harvesting, following
30-40% losses in the 2009/2010
cropping season due to frost
damage. The majority of output, in
the region of 462,000 tonnes,
supplies the domestic market.
However, 2010 marked the first
potato season ever where Irish
packers and growers exported
potatoes to Russia and Eastern
Europe, to fill supply deficits there. It
was estimated that some 30,000
tonnes of Irish potatoes were sold
into these markets.
Weather is the single greatest
influence on potato, fruit and
vegetable growing both in Ireland
and around the world, with 2010
demonstrating how extreme weather
conditions can cause major
disruptions to normal market trading
patterns. Such events highlight the
importance of a domestic fresh
produce industry.
In Ireland, the fresh potato share of
the total fresh produce retail market
fell to approximately 13% of the
category in 2010 and was valued at
€150m. The fall-off can be
attributed to a combination of
factors, most notably a switch to
convenience frozen potato products,
pasta and rice. Discounting activity
also contributed to a reduction in the
overall value of the category.
Roosters dominate with over 31% of
the volume market share, and an
increase in popularity of ‘baby’ and
‘salad’ potatoes was recorded.
Vegetables
Overall, 2010 proved a challenging
year for the Irish vegetable sector as
high input costs, a competitive retail
market and difficult weather
conditions made it a difficult year for
many producers. The retail market
was worth €505m to the sector, a
small increase on 2009 and positive
volume growth was recorded for
most outputs including carrots,
lettuce, peppers, mushrooms,
parsnips, scallions, leeks, Brussels
sprouts and herbs.
Bord Bia Irish Food Board Annual Report 2010
Amenity
Like other sectors, amenity crop
producers were confronted with
difficult weather conditions, reduced
consumer spend and access to
finance in 2010. Retailers reported
an increase in plant sales for the first
two quarters of 2010 with a slowing
of demand from July onwards. Bad
weather in December led to cancelled
orders and difficulties in delivering
stock.
In the commercial landscaping sector,
demand for services remains weak in
the context of the general downturn
in the economy and in the
construction sector in particular.
Amenity exports were valued at
approximately €10m and included
nursery stock, cut foliage, Christmas
trees and bulbs, primarily within
the EU.
Horticulture
Horticulture Programmes
Promotions
Bord Bia implemented the new look
‘It’s Garden Time’ campaign in spring
2010, with advertising across
national, regional and local press,
and a radio advertising campaign.
The It’s Garden Time website provides
tips, advice and information on
special offers. In May, the Bord Bia
‘Best in Season’ fresh produce
campaign included radio and press
advertising and a variety of online
activity, while, at the end of the year,
a PR campaign promoted the
purchase of real Christmas trees and
seasonal indoor plants.
A major promotion of strawberries
was carried out in conjunction with
the Irish Soft Fruit Growers
association at the start of June,
involving celebrity chef Catherine
Fulvio.
The Incredible Edibles School
Challenge now involves two thirds of
national schools and highlights the
role of fruit and vegetables in a
healthy balanced diet.
EU approval was given for €1.3m in
funding towards a €2.6m Bord Bia
programme promoting mushrooms
on the UK market. Involving Irish and
UK mushroom producers, the threeyear ‘More to Mushrooms’
programme commences in 2011.
Marketing, Innovation and
Information
Twenty seven amenity and food
horticulture companies were
approved for grants in the Marketing
Assistance Programme, which offers
assistance in a range of activities
including website development, trade
fair participation, market research,
quality measure training, marketing
activities. Grants were worth a total
of €137,200.
Meanwhile, the Horticulture
Innovation Programme involved six
companies and explored the
possibilities of the internet, branding
and new product development in
building business.
Research studies were also conducted
on consumer behaviour and attitudes
to gardening/garden products, fresh
produce and organic food purchase
and consumption.
Bloom 2010
A showcase for Irish horticulture and
its services, Bloom attracted 60,000
visitors in 2010. Industry participants
included garden/floral designers,
garden builders, garden centres and
plant nurseries, as well as producers
of fresh produce, artisan food and
craft beverages.
Visitor feedback indicated that:
• 99% rated the event ‘worthwhile’
or ‘very worthwhile’
• 84% indicated they had
purchased products or services at
the event
• 63% indicated that they will
purchase products or services as a
result of their visit
Horticulture Action Group
A horticulture action group to review
and report on the relevant
recommendations in the Food
Harvest 2020 report was established
by the then Minister of State for
Horticulture, Ciaran Cuffe. Bord Bia
was appointed to the group which
will report to the High Level
Implementation Group in 2011.
Amenity Sector Strategy
A strategic review of the amenity
sector by Bord Bia in 2010 set out a
strategy for economically sustainable
development. A number of initiatives
commenced in 2010 as a result,
including:
• A new product development
programme for Irish plants
• Identification of varieties of cut
foliage that grow well in Ireland
and meet the standard demanded
by export market
• Online trading website and
industry directory
• National Plant Fairs to exhibit and
sell plants to buyers including
garden centres
• Export development support,
including marketing assistance,
training and mentoring
• Support for better co-ordination
and communication within the
sector
A newly formatted national show for
the amenity horticulture industry will
commence in 2011.
Amenity Quality Programmes
A total of 40 garden centres, 35
nurseries and 17 landscape
contractors participated in the three
sector-specific Bord Bia Amenity
Quality Programmes in 2010. These
provide horticultural enterprises with
the guidelines on ‘best practice’ in
managing their businesses. The year
also saw the piloting of extension of
the Bord Bia Quality Mark to plant
labels, for which strict criteria was
developed in consultation with the
industry.
Bord Bia Irish Food Board Annual Report 2010
46
A significant
proportion of all meat
produced in Ireland
now comes from
farms that are
quality assured by
Bord Bia.
Quality Assurance
A significant proportion of all meat
produced in Ireland now comes from
farms that are quality assured by Bord
Bia. This ranges from 95% of poultry
and pigmeat, to 75% of beef and
close to 50% of lamb. Although
voluntary, the significant uptake in
membership of the quality assurance
schemes is testament to their value in
accessing higher-return markets. In
the UK alone, for example, it is
estimated that, in 2010, providing
quality assured beef yielded an
additional €140m in returns to the
Irish beef sector.
All Bord Bia quality assurance
schemes are accredited to the Irish
National Accreditation Board and it is
a condition of accreditation that
there is a process of continuous
improvement of the standards.
However, this is also important in the
marketplace to ensure that the
schemes continue not only to be
relevant but to anticipate the future
requirements of customers, thereby
exploiting the long-term potential to
drive volume and value growth.
In 2010, the separate Beef Quality
Assurance Scheme and Lamb Quality
Assurance Scheme for producers
were reviewed, updated and
amalgamated into one standard - the
Beef & Lamb Quality Assurance
Scheme. Not only is this a higher
standard, it also improves the
efficiency of auditing. The
introduction of hand-held digital
units to conduct the audits has
significantly reduced the cost of
auditing while improving efficiency,
with an overall reduction of 24% in
the certification cycle, i.e., from
application to certification.
Research by Bord Bia identified
environmental sustainability as an
issue of increasing importance for
leading retailers and manufacturers in
our export markets. The perception
of Ireland was of a trustworthy food
source operating in a sustainable
manner. However, it needs to prove
its sustainability credentials. In 2010,
Bord Bia developed a model for
calculating the carbon footprint of
Irish beef at farm level. This model
was developed in association with
Teagasc and involved extensive
surveys of some 200 sample beef
farms. Independent accreditation
from the Carbon Trust in the UK
ensures international recognition and
acceptability. All future audits in the
Beef & Lamb Quality Assurance
Scheme will incorporate the
collection of sustainability data,
which will provide ongoing
measurement of the carbon footprint
of the beef sector. This is the first
national quality assurance scheme in
the world to capture such
information. Bord Bia also proposes
to extend the model to the meat
processing sector so that a carbon
footprint for packaged meat ready
for sale will also be available for
Ireland and selected EU destination
countries.
In the Horticulture Quality Assurance
Scheme, work began on a new
standard designed specifically for
packers and distributors of fresh
produce. Research also started on
the introduction of a sustainability
auditing programme for horticulture.
Over the year, both the mushroom
compost and mushroom casing
standards were completely revised
and updated. Bord Bia also became
an auditing body for the Tesco
Nurture audits during the year.
Significant progress also took place
on the development of the Feed
Quality Assurance Scheme, the Live
Export Scheme and the Retail Butcher
Assurance Scheme, all of which will
be finalised in 2011.
Bord Bia’s Quality Mark Pavilion attracted a lot of attention during Bloom 2010
Bord Bia Irish Food Board Annual Report 2010
48
Bord Bia’s ‘consumer
lifestyle trends’ and
‘feeling the pinch’
continued to provide
consumer focused
innovation through
market knowledge.
Services
Strategic Information
Services
Bord Bia’s ‘consumer lifestyle trends’
and ‘feeling the pinch’ continued to
provide consumer focused innovation
through market knowledge.
Consumer lifestyle trends, illustrate
through real-life examples gathered
by ‘streetscapers’ scattered across the
globe, how new products and other
innovations capitalise on fresh
consumer trends. Feeling the Pinch
continues to report on the ‘new’
consumer emerging in the wake of
the economic shock and offers
insight into how companies can
respond to shifting behaviours.
Three inspiration expeditions during
2010 provided fresh stimuli to
marketing executives offering them
through study visits the opportunity
to innovate and view consumer
trends; and, the foresight4food
programme continues to enable,
through the appropriate consumer
research, consumer testing of new
product concepts.
In 2010, Continental PERIscope was
extended to cover 14 markets,
including the USA and New Zealand,
to provide even greater insight into
how consumers can differ in different
markets.
Our Inquiry Team identifies work
commissioned or undertaken by Bord
Bia, as well as published reports,
journals and on-line data bases, in
response to internal and external
industry queries.
Opportunities in the Chinese dairy
market were examined in 2010 and
made available on the Bord Bia
website. Support was also provided
on research exploring the
opportunities for co-opetition, arising
from the Pathways for Growth
report.
Marketing Services
A number of research projects
centred on ‘business-to-business’
rather than consumer trends, in, for
example, the Irish foodservice
market, while Retail Futures was
published in early 2011.
The weekly FoodAlert, published on
our website, includes contributions
from across the Bord Bia organisation
and highlights new developments
along with price series on key
commodities relevant to the Irish
industry.
Brand Forum
Through the Brand Forum, Bord Bia
continued to work with member
companies, large and small,
developing and expanding branding
know-how to encourage growth in
food and horticulture. During the
year 75 food, drink and horticulture
companies took part in workshops
and individual brand mentoring as
well as a record nine Brand Forum
events which were designed to
deliver relevant insights in the context
of fast changing market demands.
The Brand Forum events provide
insights and inspiration to the group,
as well as invaluable networking
opportunities for brand owners and
marketing practitioners. The first
event set out the challenges and
opportunities for brands in 2010
through a panel debate with Eoin
In November, Bord Bia teamed up with the National College of Art and Design (NCAD) to run a competition asking students to redesign the
branding and packaging for Bord Bia’s Brand Forum food and drink companies. The judges presented awards to six students including
Malwina Ostrowska, pictured here with her award winning design and packaging.
Bord Bia Irish Food Board Annual Report 2010
50
Services
McGettigan, former MD of
Musgraves and Financial Controller of
Dunnes Stores along with Francis
Killeen who is now Trade Consultant
with Love Irish Food.
The second event focused on the very
real and practical value of research
based, insightful ways in which to
maximise in-store promotions with
inputs from Kantar Worldpanel
(formally TNS Ireland) and dedicated
promotions agency, Goosebump. At
a later event in May, the focus was
on export branding recognising the
renewed interest in creating export
opportunities. Presentations from
two Irish brands that have extended
their reach overseas included
Dermott Rowan, MD of Orla Kiely
and Alexandre Ricard, CEO and
Chairman of Irish Distillers. In
October, Willie Harcourt Cooze,
Entrepreneur (who came to public
prominence in 2008 with the airing
of the “fly on the wall” of Willie’s
Wonka Chocolate fame) shared his
insights on his efforts to grow, import
and produce his own chocolate now
sold extensively in the UK and
abroad. The Brand Forum’s end of
year event in November was
attended by 115 industry
representatives to hear keynote
speaker Dalton Philips, CEO of
Morrisons who offered advice on
how to do business with the fourth
largest retailer in the UK.
A new initiative during 2010 were
the Brand Forum breakfasts with
practical, interactive morning sessions
including Trademarks with FR Kelly;
Exporting to Africa with John Jordan,
Marketing Director of the Irish Dairy
Board; and, brand utilisation of
Facebook with Rick Kelly, Facebook
Head of Mid Market Sales for Europe,
Middle East and Africa.
Brand Forum workshops during 2010
were short practical half day courses
51
covering brand building using social
media as well as e-commerce and
selling online.
The Brand Forum programme piloted
a new initiative in 2010 with the
National College of Art and Design
(NCAD) on packaging redesign. Final
year students worked with eight
brands to redesign their packaging.
The standard was very high with
some great ideas for companies to
incorporate into their branding.
Finally, 26 companies took part in the
one-to-one brand mentoring that is a
feature of the programme.
Sponsorships
During 2010, Bord Bia sponsored the
first series of Neven Maguire’s Home
Chef on RTE 1 which achieved an
average audience of 308,000, to
promote the Bord Bia Quality Mark
through interviews with quality
assured producers. Research
following the television series,
indicated almost 750,000 Irish adult
consumers said, they would now
seek out the Bord Bia Quality Mark
when shopping as a result of the
Home Chef programmes.
To promote Quality Assured products
during the Christmas period, Bord Bia
sponsored chef demonstrations at
both the Food and Wine Show in the
RDS and the inaugural Taste of
Christmas at the National Convention
Centre.
Quality Assured products and local
produce were also promoted at key
food festivals. Award Sponsorships
in 2010 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.
Social Media
During 2010, Bord Bia integrated
social media into all its consumer
Bord Bia Irish Food Board Annual Report 2010
facing marketing communications
activity by increasing the use of
Twitter and Facebook to converse
with clients, stakeholders and
consumers. Facebook was used to
target consumers in Ireland, the UK
and France. In the UK, dedicated
twitter and facebook accounts under
the name “Grasstronomy” were
introduced. Bord Bia also developed
relationships with Irish food bloggers
during 2010; attended and
participated in the inaugural Kilkenny
Foodcamp at which the Irish Food
Bloggers Association was created;
sponsored the Irish food and drink
category of the Irish Blog Awards, the
winner of which, Donal Skehan
worked with Bord Bia at home and
overseas. Bloggers were invited to
Bord Bia for a Pork Bloggers Day
where they learned about the pork
industry with cookery and butchery
demonstrations, a food photography
class and received a short
presentation on what Quality
Assurance means for pigmeat.
By the end of 2010, Bord Bia’s
Facebook fan base reached 2,000
with 2,400 twitter followers. A
google image search on Bord Bia
generates 14,000 results. In 2010
we commenced photosharing on
www.pix.ie and www.flickr.ie. In
2010 the Bord Bia channel on
Youtube broadcast 87 videos of our
TV adverts and events.
International Communications
Bord Bia’s International
Communications programme worked
in close collaboration with our nine
overseas offices during 2010 to
achieve print and 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 food
commentators on food and
horticulture issues. Coverage for
Services
Bord Bia’s events and campaigns
spanned across some of Europe’s
leading publications from the UK’s
Fine Food Digest and Saturday
Telegraph to French publications
Marianne and Rungis Actualités and
included events, campaigns and
issues such as Marketplace 2010,
Bloom 2010, Agneau Presto, Chefs
Irish Beef Club and the results of
Bord Bia research studies.
Bord Bia’s Dutch and French offices
secured coverage on our Chef’s Irish
Beef Club programme in regional
trade publications targeting
foodservice. The Dutch chapter of
the Chef’s Irish Beef Club received
regional and national features in
many top trade titles and the French
chapter of the club generated
significant press attention with the
opening of the Belgian chapter. The
Spanish office took part in a radio
broadcast on Cadena Ser ROS “Dias
Del Verano” radio show with Spanish
Chef Andres Madrigal and discussed
Bord Bia, Irish food and Irish products
available in the Spanish market. The
Polish TV programme, Robert
Maklowicz on Tour, with an audience
of approximately two million viewers,
filmed on location in Ireland from 22
February until 2 March. Four
episodes with coverage on Ireland,
and its food and beverage culture
were created. The crew visited
Dublin, Galway and Cork regions
with Irish whiskey, farmhouse cheese,
Irish meats and beverages all being
featured.
Bord Bia’s Bloom 2010 received
international coverage across 10
markets through foreign media
journalists (including TV crews) and
bloggers. Markets covered included
France, Netherlands, Denmark,
Belgium, Hungary, Germany, Czech
Republic and Finland. Twenty Irish
photo bloggers conducted a photowalk at Bloom and posted images to
www.pix.ie.
Supporting our trade fair programme
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 buyers visiting the Irish stands and
facilitates further contact after the
show. Bord Bia continues to share
coverage stemming from visiting
international media online in video
format via Youtube.com/bordbia and
in static image format via image
sharing sites. Bord Bia also shares
coverage and information with our
followers on twitter.com/bordbia and
facebook.com/bordbia
Events and Exhibitions
Bord Bia staged over 40 events and
exhibitions in 2010 with the aim of
supporting the successful growth of
food and horticulture, nationally and
internationally. Flagship events in
2010 included Marketplace, Bloom,
the European Seafood Exposition
(ESE, Brussels) and SIAL (The Global
Food Marketplace, Paris). 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. Bord Bia saw the demand for
its overseas trade fair programme rise
with 111 firms exhibiting at 19
overseas tradeshows during 2010.
Firms use a trade fair presence as part
of an overall sales development
strategy to retain and grow revenue
in new and existing markets.
Continuing the promotion of
premium Irish meat products in
Europe was the main objective for
the meat sector in 2010 supported
with participation at SIAL, Cibus and,
for the first time, at InterMeat in
Germany.
Sixteen Irish producers exhibited
under the newly developed Ireland
branding for the seafood sector at
ESE, the world's largest seafood fair
and the global fair for the seafood
industry. The seafood sector was also
represented at Conxemar in Vigo,
Spain and the Bremen Seafood Show
in Germany.
The organic industry covers a number
of sectors including meat, seafood
and speciality food and eighteen
companies participated at the key
organic show for the sector at
Biofach in Nuremberg.
Niche trade fairs continue to rise in
importance particularly in the
confectionery, alcoholic drinks,
speciality foods, premium meat,
gourmet food and travel retail areas.
Targeting the exclusive gourmet
sector, Bord Bia participated with
meat and consumer food companies
at Tavola in Brussels and Club de
Gourmet in Madrid.
Reflecting the growing importance of
the speciality and artisan sectors Bord
Bia participated at the Speciality and
Fine Food Show in London and
Salone del Gusto in Turin which
showcased the best of Irish produce.
The Speciality and Fine Food Fair in
London is now rated as the most
popular food trade fair in Britain
among targeted UK retail buyers.
Our Middle East/Asia strategy was
supported by participation at Sial
China, CIMIE, Gulfood and for the
first time VinExpo Asia.
Marketing Finance
Bord Bia’s Marketing Assistance
Programme (MAP) provides small and
medium-sized enterprises with
assistance towards improving their
marketing techniques and
capabilities.
In 2010, grant aid was provided to
companies in the farmhouse cheese,
beverages, chilled dairy,
confectionery, charcuterie and
horticulture sectors.
Participating companies have an
annual turnover of between
€100,000 and €3.5m. In 2010, 186
Bord Bia Irish Food Board Annual Report 2010
52
Services
applications were received and 157
approved. Grants totalling €706,096
were paid to 114 companies during
the year.
Markets
Bord Bia’s global footprint extends to
nine overseas locations; six in Europe
and three internationally. In addition,
the Irish market and other
international markets are served
directly from Dublin. The allocation
of resources and overall structure
were reviewed in 2010 to meet the
evolving needs of the Irish food, drink
and horticulture companies through
a market prioritisation process.
companies
• Responded to 1,657 market
information requests from Irish
client companies
• Delivered bespoke business
development projects involving
approximately 60 client
companies per month
• Represented the industry in 75
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 online references
In 2010, Bord Bia consolidated its
German offices into Dusseldorf with
the closure of the Frankfurt office. In
order to meet the needs of Irish
companies, promoting Irish products
and showcasing Irish supply
capability, these offices and personnel
were resourced to:
• Undertake increased buyer
contact activity
• Supply market place 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
In addition to the implementation of
programmes and projects, Bord Bia’s
markets personnel in 2010:
• Undertook 986 buyer meetings
and presentations
• Responded directly to 746
individual buyer requests for
detailed information on the Irish
food and drink industry,
particularly suitable suppliers
• Conducted 686 business planning
meetings with Irish client
53
Bord Bia Irish Food Board Annual Report 2010
Corporate Statement
Corporate Governance
Bord Bia was established under the
Bord Bia Act 1994 and operates in
accordance with the provisions of the
Bord Bia Acts 1994 & 2004 and
under the aegis of the Minister for
Agriculture, Fisheries and Food.
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 noncommercial State Body. The Board is
committed to maintaining the
highest standards of Corporate
Governance and Best Practice, has a
formal schedule of matters
specifically reserved to it for decision,
provides strategic guidance, monitors
the activities and effectiveness of
management and monitors
compliance on an ongoing basis
ensuring relevant legislation,
regulations and guidelines are
complied with.
Ethics in Public Office
The provisions of the Ethics in Public
Office Act 1995 and the Standards in
Public Office Act 2001 have been
implemented. Board members and
staff members holding designated
positions furnish statements of
interests on appointment and each
year to the Secretary.
Freedom of Information
Bord Bia is a prescribed organisation
under the Freedom Of Information
Acts 1997 and 2003. The Freedom
of Information Acts established three
statutory rights:
• A legal right for each person to
access information held by
public bodies;
Safety, Health and Welfare
at Work
• 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;
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.
• 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, job-sharing and career
breaks. Bord Bia is also committed to
implementing government policy in
relation to the employment of
disabled people in the public sector.
Specific additional provisions were
made for disabled visitors in the
construction of Bord Bia’s Food
Centre. There is a policy on sexual
harassment in operation to support
and protect the dignity of each
person.
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. In 2008 Bord Bia
commenced a review of its energy
usage and has reduced annual
energy costs by 18% or €11,700.
Usage within Bord Bia’s main office is
as follows:
2010
MWh of electricity used 379
Actions undertaken in 2010
Bord Bia has undertaken a range of
initiatives to improve our energy
performance including setting up an
energy tracker to record bills,
developed an energy awareness
campaign encouraging people to
Bord Bia Irish Food Board Annual Report 2010
54
Corporate Statement
turn off lights and appliances when
not in use, reviewed the level of
lighting in a number of areas and
de-lamped accordingly and installed
software to automatically turn off
computers in the evening.
Actions planned for 2011
In 2011 and beyond Bord Bia intends
to further improve our energy
performance by undertaking a
number of initiatives, where
financially justified, including a review
of office glazing, upgrades to lower
voltage lighting, occupancy sensors
and a 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
55
Chairman and fourteen ordinary
members appointed by the Minister
for Agriculture, Fisheries and Food.
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, Fisheries and Food. The
Chairman of each Subsidiary Board is
a member of the Board.
The board meets regularly and is
responsible for the proper
management of Bord Bia. It takes
the major strategic decisions and
retains full and effective control while
allowing executive management
sufficient flexibility to run the
business efficiently and effectively
within a centralised reporting
framework.
Board Members and
Independence
All board members have access to
advice and services of the
Secretary/Director of Corporate
Services who is responsible to the
board for ensuring that board
procedures are followed, and
applicable rules and regulations are
complied with. Bord Bia’s
professional advisors are available for
consultation by board members as
required. Individual board members
may take independent professional
advice if necessary.
Bord Bia Irish Food Board Annual Report 2010
Composition of the Board
Details of members of the Board of
Bord Bia are set out on page 60.
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.
Corporate Statement
Board Members and
Meeting Attendance
The number of Board meetings held
during 2010, together with details of
each member’s attendance, is set out
below. The total number of meetings
held by the Board during the year
was seven.
Board
Member
D. Browne
J. Byran
M. Byrne
J. Cahill
R. Carolan
N. Cawley
V. Cleary
P. Cusack
A. Dennison
K. Dunne
F. Hayes
J. Hyland
F. O’Gara
K. O’Leary
M. O’Rourke
B. Rodgers
Number of Board
Meetings Attended
7 out of 7
6 out of 7
7 out of 7
6 out of 7
7 out of 7
6 out of 7
5 out of 7
7 out of 7
3 out of 4
5 out of 7
7 out of 7
7 out of 7
0 out of 1
5 out of 5
6 out of 7
1 out of 1
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 2010. 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 nonfinancial 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.
The Pensions and Remuneration
Committee, which comprises three
members of the Board, met on one
occasion during 2010. The Pensions
and Remuneration Committee
determines on behalf of the Board
the appointment, remuneration and
assessment of the performance of,
and succession planning for, the
Chief Executive; and significant
amendments to the pension benefits
of the Chief Executive and staff.
The Strategy Committee, which
comprises three members of the
Board, met on one occasion during
2010. 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.
Board Responsibilities
Section 21 of An Bord Bia Act 1994
requires the Board to “keep in such
form and in respect of such
accounting periods as may be
approved by the Minister, with the
consent of the Minister for Finance,
all proper and usual accounts of
monies received or expended by it,
including an Income and Expenditure
Account, a Cash Flow Statement and
a Balance Sheet and, in particular,
shall keep in such form as aforesaid
all such special accounts as the
Minister may, or at the request of the
Minister for Finance shall, from time
to time direct and the Board shall
ensure that separate accounts shall
be kept and presented to the Board
by any Subsidiary Board that may be
established by the Board under this
Act and these accounts shall be
incorporated in the general
statement of account of the Board.”
In preparing these financial
statements the Board is required to:
1. Select suitable accounting policies
and then apply them consistently.
2. Make judgements and estimates
that are reasonable and prudent.
3. Prepare the financial statements
on the going concern basis unless
it is inappropriate to presume that
the Board will continue in
operation.
4. State whether applicable
accounting standards have been
followed, subject to any material
departures disclosed and
explained in the financial
statements.
The Board is responsible for keeping
proper books of account, which
disclose, with reasonable accuracy at
any time, the financial position of
Bord Bia. The Board is also
responsible for safeguarding the
assets of the organisation and hence
for taking reasonable steps for the
prevention and detection of fraud or
other irregularities.
During 2010, a programme of work
was devised to improve the
effectiveness of the Board following
an independent evaluation.
Frank Hayes
Board Member
Aidan Cotter
Chief Executive
Bord Bia Irish Food Board Annual Report 2010
56
Statement on Internal Financial Control
On behalf of the Board of Bord Bia, I
acknowledge our responsibility for
ensuring that an effective system of
internal financial control is
maintained and operated.
The system can provide reasonable,
but not absolute, assurance that
assets are safeguarded, transactions
authorised and properly recorded and
that material errors or irregularities
are either prevented or would be
detected in a timely period.
The Board has taken steps to ensure
an appropriate control environment is
in place by:
• Clearly defining management
responsibilities and powers
• Establishing formal procedures for
monitoring the activities and
safeguarding the assets of the
organisation
• Developing a culture of
accountability across all levels of
the organisation
The Board has established processes
to identify and evaluate business risks
by:
• Identifying the nature, extent and
financial implication of risks facing
the body, including the extent and
categories which it regards as
acceptable
• Assessing the likelihood of
identified risks occurring
• Working closely with Government
and various Agencies to ensure
that there is a clear understanding
of Bord Bia goals and support for
the Board’s strategies to achieve
those goals
The system of internal financial
control is based on a framework of
regular management information,
administration procedures including
segregation of duties and a system of
delegation and accountability. In
particular it includes:
57
• A comprehensive budgeting
system with an annual budget
which is reviewed and agreed by
the Board
• Regular reviews by the Board of
periodic and annual financial
reports which indicate financial
performance against forecasts
• Setting targets to measure
financial and other performance
Bord Bia has an outsourced internal
audit function, which operates in
accordance with the Framework
Code of Best Practice set out in the
Code of Practice for the Governance
of State Bodies and, which reports
directly to the Board Audit
Committee. The work of internal
audit is informed by analysis of the
risk to which the body is exposed and
annual internal audit plans are based
on this analysis. The analysis of risk
and the Internal Audit plan are
endorsed by the Board Audit
Committee and reported to the
Board. The risk register is reviewed at
each Board Audit Committee
meeting and at each Board meeting.
The Board Audit Committee meets
on a regular basis throughout the
year to review and confirm the
ongoing adequacy and effectiveness
of the system of Internal Financial
Control.
The Board’s monitoring and review of
the effectiveness of the system of
internal financial control is informed
by the work of the Internal Auditor,
the Board Audit Committee which
oversees the work of the internal
auditor, the executive managers
within Bord Bia who have
responsibility for the development
and maintenance of the financial
control framework and informed by
the work of the Comptroller and
Auditor General in his annual audit.
Bord Bia Irish Food Board Annual Report 2010
I confirm that in the year ended 31
December 2010 the Board conducted
a review of the effectiveness of the
system of internal financial control.
On behalf of the Board
Frank Hayes
Board Member
Organisation Structure
Main Board
Chairman
Meat & Livestock
Board
Chairman
Horticulture Board
Chairman
Consumer Foods
Board
Chairman
Quality Board
Chairman
Chief Executive
Markets
European &
International
Sectors
Food, Drink &
Horticulture
Quality &
Food
Dudes
Marketing
Services
Strategic
Information
Services
Corporate
Communications
Human
Resources
Corporate
Services &
Finance
Bord Bia is comprised of the Board, four Subsidiary Boards, the Chief Executive
and the Executive, which provide a range of services required to implement
Board policy and programmes.
The Board is comprised of a
Chairman and 14 ordinary members
appointed by the Minister for
Agriculture, Fisheries and Food. There
are four Subsidiary Boards (Meat and
Livestock, Consumer Foods, Quality
Assurance and Horticulture)
comprised of a Chairman and 12
ordinary members, who are
appointed by the Board with the
consent of the Minister. The
Chairman of each Subsidiary Board is
a member of the Board.
The following Board Committees are
in place: Audit Committee,
Remuneration and Pensions
Committee and Strategy Committee.
The Executive is comprised of staff
based in the Board’s head office and
overseas.
General Information
Head Office:
Clanwilliam Court, Lower Mount
Street, Dublin 2.
Auditors:
Comptroller and Auditor General
Bankers:
Allied Irish Banks
Solicitors:
Philip Lee Solicitors
Bord Bia Irish Food Board Annual Report 2010
58
Staff Structure
Chief Executive
Markets
International Markets
Quality/Food Dudes
Quality Assurance
Marketing Services
Small Business
Meat
Consumer Food and Beverages
Horticulture
Strategic Information Services
Corporate Communications
Human Resources
Corporate Services
Finance
Aidan Cotter
Michael Murphy
James O’Donnell
Michael Maloney
Jim O’Toole
Una Fitzgibbon
Eileen Bentley
Gerard Brickley
Tara McCarthy
Mike Neary
Julian Smith
Rosaleen O’Shaughnessy
Susan Doyle
Frank Lynch
Gerry Bailey
Market Contacts
Ireland Market
Dusseldorf
Teresa Brophy
Declan Fennell
Liam MacHale
London
Beatrice Blake
Madrid
Cecilia Ruiz
Milan
John Keane
Moscow
Alla Barinova
New York
Karen Coyle
Paris
Noreen Lanigan
Scandinavia
Nicolas Ranninger
Shanghai
Breiffini Kennedy
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, maximising
outputs and delivering 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.
Amsterdam
59
Bord Bia Irish Food Board Annual Report 2010
BORD BIA BOARD
CHAIRMAN
Vacant
MEMBERS
Mr John Bryan
President, Irish Farmers’ Association
Ms Marian Byrne
Principal Officer, Department of
Agriculture, Fisheries and Food
Mr Jackie Cahill
President, Irish Creamery Milk
Suppliers’ Association
Dr Noel Cawley
Chairman, Teagasc
Ms Anne Maria Dennison
National President, Irish
Countrywomen’s Association
Mr Kieran Dunne
L and K Dunne Nurseries
Mr Frank Hayes
Director Corporate Services, Kerry
Group Plc.
Prof Fergal O’Gara
Department of Microbiology,
University College Cork
Changes during 2010
Changes during 2011
Resigned 22nd January
Mr Padraig Walshe, Former President
Irish Farmers’ Association
Term Expired 9th April
Mr Dan Browne (Chairman),
Director, Dawn Meats (Grannagh Ltd)
Mr Joseph Hyland
Managing Director, Irish Country
Meats
Appointed 22nd January
Mr John Bryan
Terms Expired 14th February
Mr Jackie Cahill (re-appointed 23rd
March 2010)
Mr Frank Hayes (re-appointed 23rd
March 2010)
Ms Bríd Rodgers, Former Minister for
Agriculture and Development
Northern Ireland
Appointed 28th June
Ms Anne Maria Dennison
Term Expired 10th April
Mr Ray Carolan
Cattle Breeder
Mr Vincent Cleary
Managing Director, Glenisk Organic
Ireland
Term Expired 27th April
Mr Paul Cusack
Former Principal, College of Amenity
Horticulture, National Botanic
Gardens
Term Expired 17th September
Ms Katherine O’Leary, Dairy Farmer,
Home Economics Teacher &
Columnist with the Irish Farmers’
Journal
Term Expired 25th November
Mr Kieran Dunne (re-appointed 29th
November)
Appointed 2nd December
Prof Fergal O’Gara
Mr Mel O’Rourke
Managing Director, Sylvan Ireland
Chief Executive
Aidan Cotter
Secretary/Director
Frank Lynch
Bord Bia Irish Food Board Annual Report 2010
60
BORD BIA
CONSUMER FOODS BOARD
CHAIRMAN
Dr Noel Cawley
Chairman, Teagasc
MEMBERS
Changes during 2010
Term Expired 3rd April
Ms Eilis Gough, Managing
Director, Mileeven Fine
Foods
Mr Michael Carey
Executive Chairman, Jacobs
Fruitfield Group
Term Expired 22nd June
Mr Tom Harrington
(re-appointed 27th July)
Mr Pat Connors
Sales & Processing Director,
Marine Harvest
Appointed 27th July
Mr Pat Connors
Mr Bernard Coyle
Mr Jack Teeling
Mr Bernard Coyle
Chairman, Mr Crumb
Mr Colin Gordon
Chief Executive, Glanbia
Consumer Foods
Mr Tom Harrington
Public Representative
Ms Paula Mee
Food and Nutrition
Consultant
Mr Larry Murrin
Managing Director, Dawn
Farm Foods
Term Expired 10th
October
Mr Colin Gordon
(re-appointed 11th
October)
Changes during 2011
Term Expired 14th June
Mr Mike Doyle
General Manager, Kerry
Foods
Mr Noel McPartland
Chairman, The Food Hub
Mr Joe O’Flynn
Marketing Development
Director, The Irish Dairy
Board
Mr Jack Teeling
Managing Director, Cooley
Distillerry
BORD BIA
MEAT AND LIVESTOCK BOARD
CHAIRMAN
Vacant
MEMBERS
Mr Vincent Carton
Chief Executive, Carton
Group
Mr Tim Cullinan
Chairman, National Pigs &
Pigmeat Committee, IFA
Mr Michael Doran
Chairman, National
Livestock Committee, IFA
Mr Jim Hanley
Chief Executive, Rosderra
Irish Meats
Mr John Horgan
Managing Director, Kepak
Group
Mr Martin McMahon
Irish Creamery Milk
Suppliers’ Association
Mr Alo Mohan
Chairman, National Poultry
Committee, IFA
Mr James Murphy
Chairman, National Sheep
Committee, IFA
Changes during 2010
Appointed 5th January
Mr Vincent Carton, Chief
Executive, Carton Group
Resigned 7th January
Mr Ned Morrissey, Former
Chairman, National Poultry
Committee, IFA
Appointed 21st January
Mr Alo Mohan
Appointed 11th February
Mr Jim Hanley
Appointed 16th March
Mr James Murphy
Term Expired 28th
November
Mr Vincent Carton
(re-appointed)
Term Expired 4th
December
Mr Paul Clarke, National
Executive of the Livestock
Trade
Resigned 7th December
Mr Tommy Fitzgibbon
Associated Craft Butchers
of Ireland
Changes during 2011
Term Expired 10th April
Mr Ray Carolan (Chairman)
Cattle Breeder
Term Expired 15th April
Mr Gerry Maguire
Managing Director, Slaney
Foods Group
61
Bord Bia Irish Food Board Annual Report 2010
BORD BIA
BORD BIA
QUALITY ASSURANCE BOARD HORTICULTURE BOARD
CHAIRMAN
Mr Mel O’Rourke
Managing Director, Sylvan
Ireland
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 Dermott Jewell
Chief Executive,
Consumers’ Association of
Ireland
Mr Paul Nolan
Group Development
Manager, Dawn Group
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
Changes during 2010
Re-appointed 21st
January
Mr John O’Leary
Resigned 16th March
Mr John Bryan, President,
IFA
CHAIRMAN
Appointed 16th March
Mr Michael Doran
Mr Brendan Gleeson
MEMBERS
Terms Expired 22nd July
Mr Dermott Jewell
(re-appointed 23rd July)
Mr Paul Nolan
(re-appointed 23rd July)
Appointed 26th July
Mr Mel O’Rourke
Term Expired 27th
September
Mr John Cunningham
(re-appointed 28th
September)
Mr Michael Doran
(re-appointed 28th
September)
Changes during 2011
Term Expired 18th
February
Mr Vincent Carton, Chief
Executive, Carton Group
Mr Cornelius Traas, The
Apple Farm
Term Expired 29th May
Mr Brendan Gleeson
Meat and Meat Policy
Division, Department of
Agriculture, Fisheries and
Food
Mr Brendan Smyth
Former Chief Adviser
Glanbia
Mr Kieran Dunne
L & K Dunne Nurseries
Mr Paddy Callaghan
Nature’s Best Ltd.
Ms Rachel Doyle
Arboretum Garden Centre
Mr John Hogan
Dublin/Meath Growers
Mr Martin Jones
Islandview Nurseries
Ms Caroline Keeling
Keeling Fruit
Growers/Importers
Changes during 2010
Terms Expired 10th
October:
Mr Paddy Callaghan
(re-appointed 11th
October)
Mr Martin Jones
(re-appointed 11th
October)
Mr Ciaran O’Brien
(re-appointed 11th
October)
Term Expired 25th
November:
Mr Kieran Dunne
(Chairman) (Re-appointed
29th November)
Mr Gary McCarthy
Chairman, Fruit Growers
Association
Ms Jane McCorkell
Landscape Architect &
Horticultural Consultant
Mr Philip Moreau
Glenbrook Nurseries
Mr Ciaran O’Brien
Peter O’Brien Landscapes
Mr Eoin Reid
Fernhill Garden Centre
Ms Lavinia Walsh
Munster Mushrooms Ltd.
Mr Maurice Whelton
Potato Grower
Term Expired 14th
February
Ms Bríd Rodgers, Chairman
Bord Bia Irish Food Board Annual Report 2010
62
Financial Statements 2010
Our Accounts
63
64
Report of the Comptroller and Auditor General
65
Statement of Accounting Policies
67
Income and Expenditure Account
68
Statement of Total Recognised Gains and Losses
69
Balance Sheet
70
Cash Flow Statement
71
Notes Forming Part of the Financial Statements
Bord Bia Irish Food Board Annual Report 2010
Bord Bia Irish Food Board Annual Report 2010
64
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 Grantin-Aid 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 Floriculture
programes and Food Promotions
Special Funding is released to
revenue in line with related
expenditure and any balances due to
or from Bord Bia are included in
Debtors or Creditors as appropriate.
Income arising from the statutory levy
is accounted for on the accruals basis
with the exception of live exports of
sheep and pigs which are accounted
for on a cash receipts basis.
Income arising from the recovery of
overseas VAT under the EU 8th
Directive represents the actual
receipts from this source in the
period.
65
(d) Fixed Assets and
Depreciation:
transferred to Bord Bia with effect
from 1 July 2004.
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 10%
Furniture & fittings
121/2%
Office equipment
20%
Computer equipment
331/3%
Motor vehicles
20%
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-inAid received in the year to discharge
pension payments.
(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 is an
unfunded scheme. Under the terms
of the Financial Measures
(Miscellaneous Provisions) Act, 2009,
the assets of the scheme were
transferred to the National Pension
Reserve Fund with effect from 31
December 2009. The scheme
continues in being for existing
members. As of 1 January 2010,
funding to meet pension payments
on this scheme will be provided
through the annual Oireachtas Grantin-Aid.
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
Bord Bia Irish Food Board Annual Report 2010
Actuarial gains or losses arising on
scheme liabilities are reflected in the
Statement of Recognised Gains and
Losses and a corresponding
adjustment is recognised in the
amount recoverable from the
Department of Agriculture, Fisheries
and Food.
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, Fisheries
and Food.
(g) Leased Assets:
Assets held under leasing
arrangements that transfer
substantially all the risks and rewards
of ownership (finance leases) to Bord
Bia are included in the balance sheet
as tangible fixed assets at cost less
accumulated depreciation and the
capital element of future rentals is
treated as a liability. The interest
element is charged to the Income
and Expenditure Account over the
period of the lease in proportion to
the balance of the capital
repayments.
Rentals in respect of operating leases
are charged to the Income and
Expenditure Account as incurred.
STATEMENT OF ACCOUNTING POLICIES
(h) Tangible assets:
Tangible assets are financed out of
revenue. Provision is made in the
Income and Expenditure Account for
a transfer to the Capital Account of
amounts allocated for such capital
purposes less credits to revenue over
the life of the related assets.
(i) Stocks:
Stocks of stationery are stated at
cost.
(j) Provision for bad and
doubtful debts:
Known bad debts are written off
and specific provision is made for any
amounts the collection of which is
considered doubtful.
(k) Foreign currencies:
Foreign currency balances are
translated at the rates ruling at the
balance sheet date. Revenues and
costs are translated at the exchange
rates ruling at the dates of the
underlying transactions.
Profits and losses arising from foreign
currency translations and on
settlement of amounts receivable and
payable in foreign currency are dealt
with in the Income and Expenditure
Account.
(l) Taxation:
Provision has been made in respect of
all VAT liabilities and the PRSI
contributions of Irish persons
attached to overseas offices.
(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 2010
66
INCOME AND EXPENDITURE ACCOUNT
year ended 31 December 2010
2010
2009
Notes
€'000
€'000
1a
28,491
28,221
Food Dude National Roll Out
1b
2,609
2,132
Quality Assurance Schemes: Special Funding
1c
3,676
3,570
Food Promotions Special Funding
1d
406
104
Statutory Levy
1e
5,273
4,972
Project and Other Income
1f
2,906
4,495
15b
1,991
192
45,352
43,686
72
83
45,424
43,769
25,004
22,540
Food Dude National Roll Out
2,609
2,132
Quality Assurance Schemes
3,676
3,570
INCOME
Oireachtas Grant-in-Aid
Oireachtas - Other Funding:
Net deferred funding for pensions
Transfer from Capital Account
2
Total Income
EXPENDITURE
Marketing and Promotional Expenditure
3
Marketing Finance
4
706
629
Pay
5
11,113
9,943
Operating Expenditure
6
3,004
3,606
46,112
42,420
(Deficit)/Surplus for Year
(688)
1,349
Balance at 1 January
1,416
67
728
1,416
Total Expenditure
Balance at 31 December
The results for the year relate to continuing operations.
The Statement of Accounting Policies and Notes 1 to 19 form part of these financial statements.
67
Frank Hayes
Aidan Cotter
Board Member
Chief Executive
Bord Bia Irish Food Board Annual Report 2010
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
year ended 31 December 2010
Notes
(Deficit) / Surplus for Year
2010
2009
€'000
€'000
(688)
1,349
Actuarial Gain on Pension Scheme Liabilities
15a
(1,142)
(1,590)
Adjustment to Deferred Pension Funding
15a
1,142
1,590
Transfer of Assets to National Pension Reserve Fund
15b
-
(15,641)
Increase in Deferred Pension Funding
15b
-
15,641
(688)
1,349
Total Recognised Gains and Losses for the Year
The Statement of Accounting Policies and Notes 1 to 19 form part of these financial statements.
Frank Hayes
Aidan Cotter
Board Member
Chief Executive
Bord Bia Irish Food Board Annual Report 2010
68
BALANCE SHEET
as at 31 December 2010
2010
2009
Notes
€'000
€'000
Tangible Assets
7
352
424
Financial Assets
8
-
8
352
432
4
11
1,438
1,445
8,962
8,989
10,404
10,445
9,046
8,398
1,358
2,047
630
639
728
1,408
1,080
1,840
ASSETS EMPLOYED
Fixed Assets
Current Assets
Stocks
9
Debtors
Cash at bank and in hand
Creditors
(amounts falling due within one year)
10
Net Current Assets
Creditors (amounts falling due after more than one year)
Provision for Liabilities and Charges
12
Net Current Assets less Liabilities
Total Assets less Liabilities before Pensions
Deferred Pension Funding
15b
24,018
23,169
Pension Liabilities
15b
(24,018)
(23,169)
1,080
1,840
352
424
728
1,416
1,080
1,840
Total Assets less Current Liabilities
FINANCED BY
Capital and reserves
2
Capital account
Income and expenditure account
The Statement of Accounting Policies and Notes 1 to 19 form part of these financial statements.
69
Frank Hayes
Aidan Cotter
Board Member
Chief Executive
Bord Bia Irish Food Board Annual Report 2010
CASH FLOW STATEMENT
year ended 31 December 2010
2010
2009
€'000
€'000
(Deficit)/Surplus for year
(688)
1,349
Net Interest receivable
(162)
(119)
Depreciation
186
185
Capital account transfer
(72)
(83)
(4)
21
Loss on disposal of Financial asset
8
-
Decrease in Debtors
8
122
Decrease in stocks
6
-
Increase /(Decrease) in trade creditors
490
(837)
Decrease in taxation and PRSI
(39)
(152)
Increase in Accruals & Deferred Income
197
409
(9)
(53)
(79)
842
(79)
842
162
119
83
961
(110)
(123)
(27)
838
(27)
838
Net funds at 1 January
8,989
8,151
Net funds at 31 December
8,962
8,989
Reconciliation of (Deficit)/Surplus to Net Cash (Outflow)/
Inflow from Operating Activities:
(Gain)/Loss on Disposal of tangible fixed assets
Decrease in provision for liability and charges
Net cash (outflow)/inflow from operating activities
CASHFLOW STATEMENT
Net cash (outflow)/inflow from operating activities
Returns on investment and servicing of finances:
Bank interest received
Net current inflow of funds
Capital expenditure
Payment to acquire tangible assets
(Decrease)/Increase in Cash
Reconciliation of net cash flow to movement of funds
(Decrease)/Increase in Cash
The Statement of Accounting Policies and Notes 1 to 19 form part of these financial statements.
Frank Hayes
Aidan Cotter
Board Member
Chief Executive
Bord Bia Irish Food Board Annual Report 2010
70
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
year ended 31 December 2010
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 €2,608,627 arise in respect
of funding made available by the Department of Agriculture, Fisheries and Food 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 €3,675,942
arise in respect of funding made available by the Department of Agriculture, Fisheries and Food to cover the
costs of independent on-farm 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, Fisheries and Food in respect of the following programmes:
Beef Expo Ireland
Bloom Garden
Domestic & Small Business Organic Promotion
Biofach Organic trade fair
Asia- Beef Pork Offal-Promotion
More to Mushrooms
2010
2009
€'000
€'000
-
(29)
10
-
187
-
89
68
103
65
17
-
406
104
(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 €162,439 (2009: €119,241).
2. CAPITAL ACCOUNT
Balance at 1 January
424
507
Amount capitalised in respect of purchased tangible assets
110
123
4
(21)
(186)
(185)
Net transfer to Income and Expenditure Account
(72)
(83)
Balance at 31 December
352
424
Amounts released on disposal of tangible assets
Amortisation in line with asset depreciation
71
Bord Bia Irish Food Board Annual Report 2010
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
year ended 31 December 2010
2010
2009
€'000
€'000
Promotions
7,855
5,529
Marketing Development
5,135
4,341
Trade Fairs and Exhibitions
3,151
4,520
Information Services - Research
2,546
2,688
3. MARKETING AND PROMOTIONAL EXPENDITURE
Information Services - Other
359
648
Quality Assurance
984
1,168
Trade Development
3,335
2,994
Other client services
75
72
Fellowship Plus
1,564
580
25,004
22,540
706
621
-
5
4. MARKETING FINANCE
Marketing Assistance Programme
Marketing Improvement Assistance Programme
Market Participation Programme
-
3
706
629
Marketing & Promotion
7,865
8,322
Administration
3,248
1,621
11,113
9,943
Wages and salaries
8,497
8,096
Social welfare costs
539
594
2,077
1,253
11,113
9,943
5. PAY
Pay costs are comprised of:
Pension costs (Note 15a)
The remuneration of the Chief Executive included in the above Pay costs is as follows:
Salary
€
€
160,002
166,865
Performance-related pay
-
-
Company Car benefit-in-kind
-
6,096
160,002
172,961
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 superannuation scheme.
The total number of employees (including part-time persons) at 31 December 2010 was 94 (2009: 94). The cost of
certain part-time employees amounting to €84,440 (2009: €90,757) is included in Marketing and Promotional
Expenditure.
A total of €445,809 (2009: €424,948) was deducted from employees during the year by way of pension levy and
was paid over to the Department of Agriculture, Fisheries and Food.
Bord Bia Irish Food Board Annual Report 2010
72
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
year ended 31 December 2010
2010
2009
€'000
€'000
222
431
Rent, rates and insurance
1,082
1,282
Telecommunications costs
210
197
General business expenses
1,282
1,465
25
25
187
185
(4)
21
3,004
3,606
€
€
Mr. D. Browne
20,520
22,300
Mr. J. Bryan
11,232
-
-
-
Mr. J. Cahill
10,740
13,008
Mr. R. Carolan
11,970
13,008
Dr. N. Cawley
11,970
12,749
Mr. V. Cleary
11,970
13,008
Mr. P. Cusack
5,018
-
Ms A. Dennison
6,133
-
Mr. K. Dunne
11,921
13,008
Mr. F. Hayes
10,740
13,008
Mr. J. Hyland
11,970
13,008
-
595
Prof. F. O'Gara
984
-
Ms. K. O'Leary
8,576
13,008
11,970
11,052
1,475
13,008
689
11,052
147,878
161,812
13,727
18,895
6. OPERATING EXPENDITURE
Board and Sub-Board Members' fees and expenses
Audit fee
Depreciation (Note 7)
(Gain)/Loss on disposal of tangible assets
Board members' fees included in the above totals are as follows:
Ms. M. Byrne
Mr. M. Kilcoyne
Mr. M. O'Rourke
Ms. B. Rodgers
Mr. P. Walshe
Total
Board members' travel and subsistence expenses included in the above
73
Bord Bia Irish Food Board Annual Report 2010
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
year ended 31 December 2010
7. TANGIBLE FIXED ASSETS
Improvements
Furniture
Computer
Office
to Leasehold
and fittings
Equipment
equipment
Total
Property
Cost
€'000
€'000
€'000
€'000
€'000
At 1 January 2010
1,704
675
481
372
3,232
Additions in year
-
-
110
-
110
Disposals
-
(4)
(5)
(10)
(19)
1,704
671
586
362
3,323
1,466
607
396
339
2,808
98
9
75
4
186
-
(4)
(7)
(12)
(23)
1,564
612
464
331
2,971
At 31 December 2010
140
59
122
31
352
At 31 December 2009
237
68
86
32
424
At 31 December 2010
Depreciation
At 1 January 2010
Charged in year
Disposals
At 31 December 2010
Net Book Amounts
8. FINANCIAL FIXED ASSETS
The Irish Food Board (An Bord Bia) France SARL was wholly-owned by An Bord Bia. The company did not
trade and was dissolved during 2010.
Bord Bia Irish Food Board Annual Report 2010
74
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
year ended 31 December 2010
2010
2009
€'000
€'000
Trade debtors
1,437
1,728
Less: Provision for Bad Debts
(648)
(514)
789
1,214
649
231
1,438
1,445
2,827
2,337
Taxation and social welfare (Note 11)
207
246
Withholding tax
441
432
Accruals
4,343
4,722
Deferred Income
1,228
661
9,046
8,398
134
166
73
80
207
246
9. DEBTORS
Amounts falling due within one year:
Prepayments and accrued income
10. CREDITORS
(amounts falling due within one year)
Trade creditors
11. 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.
75
Bord Bia Irish Food Board Annual Report 2010
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
year ended 31 December 2010
12. PROVISIONS FOR LIABILITIES AND CHARGES
Value Added Tax
Provision for Dilapidations
At 1 January
Provided
Released
At 31 Dec
2010
during year
during year
2010
€'000
€'000
€'000
€'000
56
-
(9)
47
583
-
-
583
639
-
(9)
630
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.
13. 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 €652,515 made up as follows: Payable on leases on which the commitment expires:
€
75,635
Within one year
Within two to five years
113,195
Six years and over
463,685
652,515
14. 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
2010
2009
€'000
€'000
914
963
Management estimate that the contingent liabilities under this heading will be settled within one year.
Bord Bia Irish Food Board Annual Report 2010
76
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
year ended 31 December 2010
15. SUPERANNUATION
2010
2009
€'000
€'000
793
785
1,284
1,231
-
(763)
2,077
1,253
a i) Pension costs
Current service cost
Interest cost
Expected return on scheme assets
Total
a ii) Analysis of amount recognised in Statement of Total Recognised Gains and Losses
Experience gains and (losses)
Changes in assumptions
1,142
3,060
-
(1,470)
1,142
1,590
24,018
23,169
-
-
(24,018)
(23,169)
24,018
23,169
b i) Net Pension Liability
Present value of scheme obligations
Fair value of scheme assets
Net liability
Deferred Funding Asset
An Bord Bia recognises these amounts as an asset corresponding to the unfunded deferred liability for pensions on
the basis of the set of assumptions described below and a number of past events. These events include 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 contributions by employees and the annual estimates
process. An Bord Bia has no evidence that this funding policy will not continue to meet such sums in accordance
with current practice.
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. All future pension costs will be paid by Oireachtas Grant-in-Aid.
Present value of scheme obligations at beginning of year
Current Service Cost
Interest Costs
Actuarial (gain)/loss
Pension contributions and benefits paid
Present value of scheme obligations at end of year
77
Bord Bia Irish Food Board Annual Report 2010
23,169
21,732
793
785
1,284
1,231
(1,142)
(350)
(86)
(229)
24,018
23,169
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
year ended 31 December 2010
2010
2009
€'000
€'000
Fair value of scheme assets at beginning of year
-
12,807
Expected return on scheme assets
-
763
Actuarial gain/(loss)
-
1,239
Employer contributions
-
995
Member contributions
-
418
Benefits paid
-
(581)
Pension Reserve Fund (Note 15b i)
-
(15,641)
Fair value of scheme assets at end of year
-
-
2,077
1,253
(86)
(1,061)
1,991
192
15. Superannuation (contd.)
b iii) Change in scheme assets
Transfer of Assets to the National
b iv) Net Deferred Funding for Pensions in Year
Funding recoverable in respect of current year pension costs
Oireachtas Grant-in-Aid applied to pay pension contributions
and pension benefits
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 15b i) 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 2010 for the purpose of
preparing this FRS17 disclosure. The liabilities and costs have been assessed using the projected unit method.
The financial assumptions used to calculate the retirement benefit liabilities under FRS 17 were as follows:
Financial assumptions
The principal actuarial assumptions used to calculate the retirement benefit obligations under FRS17
were as follows:
31/12/2010
31/12/2009
Discount Rate
5.60%
5.60%
Inflation Rate
2.00%
2.00%
Salary increases
4.25%
4.25%
Pension increases
3.75%
3.75%
Bord Bia Irish Food Board Annual Report 2010
78
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
year ended 31 December 2010
15. SUPERANNUATION (CONTD.)
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
21.6
23.2
65 in 25 years
24.8
26.0
Actual return less expected return on scheme assets
2010
2009
€'000
€'000
Actual return
-
2,002
Less: expected return
-
(763)
-
1,239
In developing the expected long-term rate of return on assets assumption, regard was had to the current level of
expected returns on risk free investments (primarily government bonds), the historical level of the risk premium
associated with the other asset classes in which the portfolio is invested and the expectations for future returns of
each asset class. The expected return for each asset class was then weighted based on the actual asset allocation
to develop the expected long-term rate of return on assets assumption for the portfolio.
d) History of defined benefit obligations, assets and experience gains and losses
Defined benefit obligations
2010
2009
2008
2007
2006
€'000
€'000
€'000
€'000
€'000
24,018
23,169
21,732
20,380
21,464
-
-
12,807
17,367
17,349
(24,018)
(23,169)
(8,925)
(3,013)
(4,115)
1,266
1,822
(920)
(226)
236
-
1,239
(6,685)
(1,489)
736
Fair value of scheme assets (Note 15b i)
Deficit on Superannuation Schemes
Experience adjustments on scheme obligations
Experience adjustments on scheme assets
e) FRS 17
The information on pensions has been presented in line with new disclosure requirements
required from 2008 under an amendment to FRS 17.
79
Bord Bia Irish Food Board Annual Report 2010
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
year ended 31 December 2010
16. 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.
17. 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.
18. 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 2010 was €355,970. In
addition, the Board occupies nine other properties in various locations internationally. The total rent paid on these
premises in 2010 was €337,616.
19. Approval of Financial Statements
The Board approved the financial statements on 13th July 2011.
Bord Bia Irish Food Board Annual Report 2010
80
MARKETING FINANCE GRANT PAYMENTS 2010
Company
Amount €
ABC Nutrition Ltd
9,175
Annascaul Black Pudding Co
1,056
Ardsallagh Goat Products Ltd
1,125
Babylon Foods Ltd
757
Ballybrado Ltd
5,000
Beal Organic Cheese
2,668
Beeline Health Foods Ltd
11,106
Belvelly Smokehouse
4,000
Boozeberies Ltd
985
Broadway Bagels Ltd
14,294
Burren Smokehouse Ltd
475
Cahill's Farm Cheese Ltd
13,747
Carrigaline farmhouse Cheese Ltd
9,000
Celtic Chocolates Ltd
15,000
Celtic Pure Ltd
13,114
Connemara Seafoods Ltd
10,000
Connemara Smokehouse Ltd
1,376
Coolea Farmhouse Cheese
2,989
Corleggy Cheese
1,244
Country Cooking Company Ltd
5,000
Crossogue Preserves
3,000
Cuinneog Ltd
5,798
Cybercolors Ltd
20,000
Dee's Wholefoods
3,000
Deliciously Different Cakes Company Ltd
7,604
Design by Nature
2,000
Drumshanbo Community Council Ltd
t/a The Food Hub
2,937
Dunhill Cuisine Ltd
7,000
Durrus Farmhouse Cheese
2,791
Emerald Cheese Co t/a Fermoy Natural Cheese
2,000
Fitzgerald Nurseries Ltd
12,000
Flair Confectionery
3,000
Flannery's Nurseries Ltd
161
Follain Teoranta
29,276
Foods of Athenry Ltd
5,000
Fusco Foods Ltd
10,855
Gallagher's Irish Chocolates Ltd
4,053
Garryvoe Foods Ltd
6,000
Glenbrook Nurseries Ltd
3,275
Glenilen Farm Ltd
20,000
Green Saffron Spices Ltd
7,350
Healy Fine Foods Ltd t/a Wicklow Fine Foods
7,560
Healy's Honey Ltd
886
Heatherfield Ltd
13,068
Henchill Ltd t/a The Good Snack Company
1,599
Hickey's Bakery Ltd
2,000
Hot Irishman Ltd
6,000
Hughes Roses Ltd
4,995
Hyde Ltd
15,000
Inagh Farmhouse Cheese Ltd
18,000
Ina's Kitchen Desserts Ltd
16,059
Irish Concentrates (IC) Ltd
777
Irish Flapjack & Muffin Co Ltd
1,788
Itsa Bagel Ltd
5,000
Janet's Country Fayre Ltd
4,990
Jinny's Bakery Ltd
2,267
JM Food Services Ltd
25,000
Kavanagh Christmas Trees
2,630
Company
Amount €
Kearney's Homebaking Ltd
3,000
Kelly's Nursery Ltd
3,017
Kelly's of Newport
10,000
Kilbeg Dairy Delights
3,000
Kildare Nursery Growers Ltd
3,397
Kilfera Food Manufacturers Ltd
12,000
Kohinoor Ltd
9,890
Kush Seafarms Ltd
5,000
Larry Whelan Potatoes
8,000
Lios na Grai Foods Ltd
4,665
Lough Allen Foods Ltd
4,000
M&S Browne Ltd
20,816
Magnetti Foods Ltd
6,825
Mannings Bakery Ltd
14,217
Marchminder Ltd t/a Cooleeney Farmhouse
Cheese
17,833
McGeough's Connemara Fine Foods
4,523
Mediterranean Flavours
259
Michael Waldron meats Ltd
4,847
Milleens Cheese Ltd
1,873
Mr Middleton Garden Shop Ltd
8,000
Munster Mushrooms Ltd
2,555
New Market Foods Ltd t/a Gourmet Foods
2,730
Nightpark Nurseries
4,000
Noirins Bakehouse Ltd
3,232
Nutweave Ltd t/a Bombay Pantry
5,000
O'Callaghan Delicious Gourmet Foods Ltd
750
OHCO Ltd t/a Organic Herb Co
3,239
Oishii Foods Ltd
3,171
Olvi Oils Ltd
1,592
O'Neills Garden Centre
1,175
Perfect Gifts of Ireland Ltd t/a Wildes Irish
Handmade Chocolates
2,007
Prue & Simon's Ltd
2,452
Rathcreedan Ltd t/a Sushi King
3,000
Rose Manufacturing Ltd
21,917
Sam's Cookies Ltd
12,000
Sceaclaidi Na Sceilge Teoranta
2,133
Schram Plants Ltd
1,136
Sillis Green Ltd
4,614
Solaris Botanicals Ltd
2,500
Sowan's Organic Bread Mix
2,819
Spice O Life Ltd
7,679
Stam's Bamboo Nurseries Ltd
2,500
Straight Sausages Lts t/a Jane Russell's
Original Irish
4,015
Stuart and McLean Ltd t/a Laragh Stuart Foods
10,105
Taste a Memory Foods
2,263
Taste of the Caribbean Ltd
1,828
The Food Store
5,243
The Hooker Brewery
305
The Real Food Company Ltd
640
The Scullery
6,000
Tipperary Organic Ice Cream Ltd
3,604
Trudies Catering Kitchen Ltd
7,616
Waterford Chocolates Ltd t/a Gallweys
Irish Handmade Chocolates
1,408
Whelan Food & Meat Processors Ltd
13,061
Wicklow Farmhouse Cheese Ltd
1,815
Young Nurseries Ltd
4,000
TOTAL
81
Bord Bia Irish Food Board Annual Report 2010
706,096
BORD BIA OFFICES
HEAD OFFICE
Clanwilliam Court
Lower Mount Street
Dublin 2, Ireland
T +353 1 668 5155
F +353 1 668 7521
AMSTERDAM
World Trade Centre
Strawinskylaan 1351
1077 XX Amsterdam
The Netherlands
T +31 20 754 6969
F +31 20 754 6961
MADRID
Casa de Irlanda
Paseo de la Castellana
No 46 - 3a planta
28046 Madrid
Spain
DUSSELDORF
Rolandstrasse 44
40476 Dusseldorf
Germany
T +49 211 8681 497
F +49 211 8681 499
LONDON
201-203 Great Portland
Street
London
W1W 5AB
United Kingdom
T +44 20 7307 3555
F +44 20 7307 3556
MILAN
Via S. Maria Segreta 6
20123 Milano
Italy
MOSCOW
Orlikov per, 3B
Moscow 107139
Russia
T +39 02 7200 2065
F +39 02 7200 4062
T +7 495 607 8150
F +7 495 607 8460
PARIS
Maison d’Irlande
33, rue de Miromesnil
75008 Paris
France
SHANGHAI
(ASIA OFFICE)
Suite 728
Shanghai Centre
No. 1376 Nan Jing Xi
Road
Shanghai 200040
China
T +34 91 435 6572
F +34 91 435 6211
NEW YORK
Ireland House
345 Park Avenue
17th Floor
New York
NY 10154-0037
USA
T +1 212 935 4505
F +1 212 935 4385
T +33 1 42 66 22 93
F +33 1 42 66 22 88
T +86 21 627 98829
F +86 21 627 98849
Bord Bia Irish Food Board Annual Report 2010
82