a n nual
r e p o rt 2008
Growing the success of Irish food & horticulture
Our Mission
To grow the success of a world class Irish food and horticulture
industry by providing strategic market development, promotion
and information services.
Our Services
Bord Bia’s services can be broken down into four key areas:
Informing
Marketing
Promoting
Developing
Bord Bia provides analysis
and knowledge of
consumer and customer
preferences and markets
for the industry, in Ireland
and worldwide.
Bord Bia provides strategic
support for the industry
on a geographic, account
and category-specific
basis, while helping the
industry to anticipate
changes in markets and
consumer tastes.
Bord Bia invests in
appropriate trade
communications to
promote the market
position of Irish food
and horticulture
industry, nationally and
internationally. We also
target specific audiences
through branding,
advertising and public
relations.
Bord Bia provides
resources and develops
strategies to enhance
the industry’s position
in its target markets.
In addition, we provide
quality assurance schemes
for meat, eggs and
horticulture.
Contents
Our business
Our governance
Our accounts
02 Key Industry Statistics
38 Corporate Statement
04 Export Figures in Detail
40 Statement on Internal Financial Control
48 Report of the Comptroller and Auditor General
07 Chairman’s Statement
13 Chief Executive’s Review
17 Meat and Livestock
21 Consumer Foods, Dairy and Drinks
25 Small Business and Speciality Foods
29 Horticulture
50 Statement of Accounting Policies
41 Organisation Structure
52 Income and Expenditure Account
42 Staff Structure
53 Statement of Total Recognised Gains and Losses
43 Bord Bia: Board
44 Bord Bia: Consumer Foods Board
44 Bord Bia: Meat & Livestock Board
45 Bord Bia: Quality Assurance Board
45 Bord Bia: Horticulture Board
35 Quality Assurance
36 Services
54 Balance Sheet
55 Cash Flow Statement
56 Notes Forming Part of the Financial Statements
67 Marketing Finance Grant Payments 2008
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 2008.
Dan Browne Chairman
Bord Bia Irish Food Board Annual Report 2008
1
The indigenous nature of the agri-food industry,
its deep foundation in the Irish economy, its
international orientation and potential for
development, places it in a unique position to
actively contribute to a national drive to secure a
sustainable economic renewal for the Irish economy.
Directly supports
230,000 jobs
2
Represents 16% of
industrial output
The industry sources
almost 75% of its
inputs domestically
compared with 30%
for manufacturing
in general
Ou r b u sin ess
2008 exports
Ireland
valued
at
€8,169 billion
Represents 10%
UK
of merchandise
exports
Accounts for 66%
of manufacturing
exports by
indigenous
companies
3
Export Figures in Detail
2008 (p)
2007
Exports of Irish Food and Drink (€m)
Livestock
2008 (p)
Sheepmeat
2007
Poultry
Ed. Hort & Cereals
Seafood
Pigmeat
Beverages
Prepared Foods
Beef
Dairy
0
500
(p) = 2008 figures are estimated
4
Bord Bia Irish Food Board Annual Report 2008
Sheepmeat 2%
Poultry 3%
Ed Hort. & cereals 3%
Live animals 2%
1000
1500
2000
2500
Ou r b u sin ess
Livestock
2008 (p)
Sheepmeat
2007
Poultry
Exports of Irish Food and Drink
Ed. Hort & Cereals
Seafood
2007
€m
2008
€m (p)
2008/2007
% +/-
Dairy
2,364
2,290
-3
Beef
1,570
1,687
+7
Prepared Foods
1,824
1,496
-18
Beverages
1,409
1,235
-12
Seafood
359
335
-7
Poultry
244
203
-17
Pigmeat
370
343
-7
Edible Horticulture and Cereals
252
265
+5
Pigmeat
Beverages
Prepared Foods
Beef
Dairy
Sheepmeat
500
0
1000
Live Animals
TOTAL
1500
184
2000
167
-9
2500
170
148
-13
8,746
8,169
-6.6
(p) = 2008 figures are estimated
Sheepmeat 2%
Poultry 3%
Live animals 2%
Ed Hort. & cereals 3%
Seafood 4%
Pigmeat 4%
Dairy products &
ingredients 28%
Beverages 15%
Prepared Foods 18%
Beef 21%
Bord Bia Irish Food Board Annual Report 2008
5
1Pictured at the Brand Forum
Annual Dinner 2008 were l-r
Dan Browne, Chairman, Bord
Bia; Denis O’Brien, guest speaker
and John Noonan, Chairman,
Brand Forum.
2Pictured at Bord Bia’s Trade
Reception in Paris l-r were Dan
Browne, Chairman, Bord Bia;
H.E. Anne Anderson, Ireland’s
Ambassador to France;
Minister for Agriculture,
Fisheries and Food, Brendan
Smith TD and Aidan Cotter, CEO,
Bord Bia.
3An Taoiseach Brian Cowen
speaking during a Trade
Mission to China in October.
1
2
3
6
Ou r b u sin ess
Chairman’s Statement
Over the course of 2008, a series of unprecedented events have rocked
the world’s financial systems and triggered an economic downturn
of truly historic proportions causing a profound impact on an Irish
economy hugely reliant on global trading conditions.
dan browne chairman
The challenge for Irish food and
horticulture has been further
compounded by a unique confluence
of events, from the rapid depreciation
of Sterling in which the largest share
of our exports are traded to a high
cost base that leaves little room for
manoeuvre for an industry already
operating on tight margins.
The UK market is our most significant
trading partner accounting for 45
per cent of exports of Irish food and
horticulture exports. The decline
in Sterling has been of an order
sufficient to explain away the full
decline in our export values during
2008, when their total value declined
by 6.6 per cent to €8,169 billion.
It highlights the critical urgency of
restoring competitiveness, in areas
such as labour and energy costs, for
the industry to recover its market
positions while contributing to
the export-led recovery that offers
the sole prospect of sustainable
economic renewal.
Failure to address our cost base
will result in the certain loss of
jobs. Restoring competitiveness
can not only help restore lost
market positions, but can herald
a new and more expansive era for
industry and the Irish economy. The
diversification to other EU markets
continued throughout 2008 with 32
per cent of exports now destined
for Eurozone markets. Investment
by Bord Bia continued in these
markets assisting Irish companies
to identify opportunities, obtain
listings with continental retailers and
undertake valuable research in these
stable currency markets. The beef
marketing strategy of repositioning
and differentiating meat primarily
around Angus, Hereford, prime
and organic ranges have resulted in
higher value sales with key accounts
in France, Spain and Italy.
Exports outside Europe suffered
from a significantly weaker Dollar
and a slower dairy market. Bord Bia
continues to seek out and create
opportunities for Irish companies
through its international presence in
New York, Shanghai and Moscow.
In the home market, a reduction in
consumer confidence and spending
became more evident as the year
progressed and compounded the
challenges faced by exporters. Rising
unemployment, credit contraction and
a squeeze on incomes all impacted
on consumer confidence and
continues to do so into 2009. Credit
availability and business confidence
have also affected investment activity.
Recognising the importance of a
strong and vibrant home market, an
essential for companies wishing to
expand overseas, Bord Bia focused
on the strategic priority of building
the awareness and market share
for Quality food and horticulture
through extensive promotion of the
Qmark throughout 2008. Research
has indicated that 79 per cent of Irish
consumers show a greater propensity
to buy products displaying the Bord
Bia Quality Assurance Mark than
products without the mark. Other
Bord Bia initiatives to assist Irish
companies in their immediate market
included a Marketing Finance grants
programme, research and brand
development initiatives, the Bord Bia
Vantage programmes, the Bloom
garden festival, the Brand Forum and
many others.
Beef exports performed very strongly
during 2008, offsetting lower export
values for pigmeat, poultry, sheepmeat
and live animals. A significant easing
in dairy prices and a slower market
for alcoholic beverages affected
export values in these categories.
The importance of the food industry
to the Irish economy should not
be underestimated accounting
for 16 per cent of total industrial
output and 8.5 per cent of national
employment. The potential of the
Bord Bia Irish Food Board Annual Report 2008
7
Chairman’s statement continued
8
food industry, with its high level
of gross value added of some €7
billion, to contribute to an export-led
recovery is a real one. Fundamental
change is underway in consumer
markets, characterised in particular
by a search for value, yet there is no
risk of a collapse in market demand
in a world where people must
continue to eat. On the contrary, all
the demographic indicators point to
a growth in global demand that is
virtually assured far into the future.
of growth in agricultural productivity;
climate change and the demand
for sustainable production in the
developed world. Collectively, the
demand responses to these issues
have not been significantly altered
by the current situation as they focus
on the need for long term solutions
rather than short term reactions. It
is the pursuit of quality, value for
money and sustainability that will
bring longer term unique advantages
to Ireland, the Food Island.
It is critical, as we attend to immediate
problem solving, that it is not at the
expense of recognising and embracing
the longer-term initiatives and
opportunities. Though the present
outlook is uncertain, it is neither a
local phenomenon nor a permanent
set of conditions. The ‘green shoots’
of recovery are predicted to emerge
internationally in 2010, and Bord Bia
will play its role in charting the strategic
response of Irish food exporters as
global trading conditions improve.
In a world where sustainability will be
central, a unique set of advantages can
bring ‘Ireland, the Food Island’ to new
prominence internationally, as well as
contributing significantly to our national
economic renewal and revitalisation.
The restoration of competitiveness and
the relentless pursuit of quality and
differentiation will assure our continued
position and prominent repositioning
in global markets.
The future agenda for our industry
has been dictated by the relentless
rise in the world population;
changing dietary habits in developing
countries; water scarcity and the
reduced availability of agricultural
land globally; evidence of falling rates
Bord Bia continues to develop, adapt,
and implement its strategy which
is built around the delivery of its
strategic objectives and designed
to achieve its mission which is
to grow the success of a world
class Irish food and horticulture
Identifying the
opportunities
industry through strategic market
development, promotion and
information services. In January 2009
Bord Bia launched its Statement of
Strategy for 2009-2011 identifying
six key opportunities for Ireland’s
food, drink and horticulture industry
to return to sustained growth,
and to deliver exports worth up to
€10 billion by 2011, with strong
incremental growth beyond that.
While this target may be ambitious in
light of recent international events,
it is one which is rooted in long
term initiatives and which industry
and Bord Bia continually strive to
achieve. Opportunities continue to
present themselves as consumers
switch their purchasing habits in their
search for value for money. These
shifts in purchasing habits have seen
consumers switch to eating at home
and to be more succinct in their new
determination of the quality/price
ratio as they switch to value lines
and products which they perceive
as saving money. Whilst a short
term response to market change
is important, none of us should
lose sight of the longer term and
the importance of planning for the
recovery before it begins. It is now
more important than ever to engage
in strategic and innovation planning
to seize the opportunities that a
recovery will ultimately bring.
Ou r b u sin ess
Ireland, the Sustainable Food
Island
The UN estimates that, in just two
decades, the world will need to
produce 50% more food with
substantially less land, water and
energy available to it. The food
industry must aim to curb the level
of resources it uses in its production
and distribution and to be valued for
its contribution to biodiversity, society
and food security . Ireland’s food and
horticulture industry is in a position to
take a firm lead in the area of longterm sustainability, and to capitalise
on current and emerging trends.
Ireland’s natural and green image
provides the foundation stone for an
integrated approach to sustainable
food production, and Bord Bia will
work closely with industry towards
developing a strategy that can
unlock the potential that sustainable
production, distribution and
consumer sentiment offers.
Broadening export reach
While the UK will always be a key
market, the significant opportunities
presented by the Eurozone markets
continue to be highlighted by Bord
Bia activity. The absence of exchange
rate volatility underpins their long
term attractiveness. Beyond Europe,
a full time Bord Bia presence in
Shanghai, marks our commitment
to the expanding Asian opportunity,
Central and Eastern European
Countries and Russia remain as critical
markets of international potential.
The USA is a crucial market for
broadening exports and for informing
the effective product development
potential in all markets as a global
leader in consumer trends.
Consumer-focused innovation
Innovation is critical to enhancing
the position of Irish products. Bord
Bia will continue to work with food
and horticulture manufacturers
to minimise the high cost and
risks attached to new product
development and to increase speed
to market while also working to
maximise the potential of the
innovative opportunities presented.
Differentiating Irish meat
The Irish market
Food imports have continued to
rise in line with higher consumer
spending, amounting on a per capita
basis to 50 per cent between 2000
and 2007. Exchange rate volatility
and increasing price sensitivity among
consumers have however exacerbated
the challenge from imports in the last
12 months. Bord Bia will intensify
its focus on the Irish market in 2009
and, through a range of initiatives,
support the evolution of a dynamic
domestic supply base which actively
promotes our local food culture. The
Bord Bia Quality Mark, which now
enjoys 79 per cent awareness levels
among consumers, will be integral
to strengthening awareness of the
quality of our output.
Against a range of challenges, Irish
beef exports delivered 7 per cent
growth in 2008 and the industry
now has listings in 70 retailers
across Europe. The repositioning
and differentiation of Irish beef will
continue to be a marketing priority
for Bord Bia with further traction to
be gained in 2009.
Following the pigmeat recall, a
rebuilding of the domestic and
international markets is critical and
Bord Bia is committed to this process.
Quality assured Irish lamb will also
benefit from continued promotion in the key Irish and French markets
in 2009.
Bord Bia Irish Food Board Annual Report 2008
9
Chairman’s statement continued
Supporting the Small Business
Sector
Dynamic and growth oriented
small businesses are integral to our
industry, enhancing not just the
choices of consumers but the cultural
wealth of our Food Island and the
future potential of Irish food and
horticulture. The speciality food
sector in Ireland is estimated to be
worth almost €500 million at retail
prices and is continuing to grow
strongly. The Vantage Programme
supports SMEs, local food producers
and organic suppliers through direct
and indirect routes to market as
part of Bord Bia’s dynamic growth
strategy for the small business sector.
Adapting to change
Competitiveness has always been
fundamental to the success of
our agri-food industry. This is an
industry where margins are hard
earned and incomes are under
constant pressure yet our grass based
systems are capable of producing
the highest quality meat and dairy
products. The relentless, tenacious
and cumulative building of markets
through investment in marketing
and innovation along all steps
of the supply chain is key to the
10
maintenance of competitiveness for
our food industry. This track record
and commitment to competitiveness is
still capable of giving our industry the
necessary competencies to adapt and
evolve beyond the current uncertainty.
Agri-food is Ireland’s largest
indigenous industry as well as its
most global, reaching over 170
markets around the world. This is
an industry with deep roots in our
history and economy, built on our
abundant natural resources, and
enhanced by a world-class skills and
technology base. Significantly, its
relative importance to our economy
has grown steadily over the last
decade: in 2002, it accounted for
7 per cent of total Irish exports,
while, in 2007, the figure was 10 per
cent. And because of its low import
content, which sees almost 75% of
inputs sourced locally, the wider agrifood-related sector accounts for 32%
of net foreign earnings for all primary
and manufacturing industries
This growth demonstrates a
sustained track record of meeting
complex consumer demands, the
successful leveraging of our worldrenowned reputation for quality
food production and high levels of
customer service. Going forward, the
relationship between agri-food and
the broader economy will be stronger
than ever. Indeed, food, drink and
horticulture will increasingly be
recognised as a conduit connecting
our resource-rich island with our
ambitions to be leaders in the
knowledge economy.
Potential
Of course, we cannot ignore the
immediate concerns that must be
addressed before we fully realise this
potential. Some of these issues are,
unfortunately, beyond our control.
The ongoing issue of credit liquidity
has put particular strain on the SME
sector; while currency fluctuations and
our higher cost base have undermined
what were previously more
competitive positions in key markets.
The pork recall of last December
added further pressure to the industry
and served to remind us that our
commitments to food safety are not
made lightly. In making consumer
safety an absolute priority, even
where the risk to health was minimal,
Ireland gained much credibility
among key influencers and left no
doubt that we are prepared to act
unequivocally and with determination
to protect the integrity and reputation
of our food and drink exports.
Ou r b u sin ess
Stability
While competitive issues cannot be
sidelined, it is also worth stressing
that food and horticulture purchases
remain relatively stable during periods
of economic downturn, and though
consumer patterns may change,
opportunities continue to emerge.
More stable exchange rates would,
undoubtedly, act as a significant
stimulus for recovery in all sectors of
the industry. In the medium-term,
while recognising the current severe
difficulties facing it, significant
growth potential exists in the dairy
sector as quotas rise and some
buoyancy returns to the market.
Similarly, opportunities for growth
also exist in prepared foods, beef
and alcoholic beverages. An easing
of exchange rates would also benefit
suppliers to the domestic market
confronted with increased import
competition, often in tandem with an
international retailer presence with its
own overseas supply base.
Thanks
It is my ongoing privilege to serve
as Chairman of Bord Bia and there
are many people both within and
outside the organisation whose help
and support I would like to gratefully
acknowledge. Firstly, Minister for
Agriculture, Fisheries and Food
Brendan Smith T.D. and Minister for
Food and Horticulture Trevor Sargent
T.D.; also Tom Moran, Secretary
General, and his officials at the
Department of Agriculture, Fisheries
and Food, whose assistance to Bord
Bia is always given unstintingly,
and whose service during the pork
recall was invaluable. I would like to
extend thanks also to the stakeholder
organisations who contribute to Bord
Bia through a variety of means and
to my colleagues on the main board
and sub boards. Bord Bia benefits
enormously from their contribution
and their commitment was unfailing
in 2008. Finally, can I thank Chief
Executive Aidan Cotter and the
Bord Bia team for their dedication
and professionalism during a period
of many challenges. I am highly
appreciative of their support of the
Irish food, drink and horticulture
industry.
of our largest indigenous industry,
and support strong and sustainable
growth into the future.
Dan Browne
Chairman
Bord Bia is a high performing
organisation and, though current
challenges must be given their due
attention, I believe this organisation
has a significant role to play as we
prepare to build on the capability,
the integrity and the commitment
Bord Bia Irish Food Board Annual Report 2008
11
1Gold medal garden at Bloom 2008,
designed by Paul Martin.
2Minister for Agriculture, Fisheries and
Food, Mr. Brendan Smith TD, Michael
Maloney, Director, Bord Bia with the
“Food Dudes” from Shercock NS, Co
Cavan – celebrating the consumption
of 4.3 million pieces of fruit by primary
school children nationwide.
3 Darina Allen and Minister of State at the
Department of Agriculture, Fisheries and
Food, Trevor Sargent TD, speaking at
Salone del Gusto, Turin, Italy. 4Karen Coyle, Manager of Bord Bia’s New
York office, pictured at the official
opening of the new office.
5Minister for Agriculture, Fisheries and
Food, Brendan Smith TD pictured at the
European Meat Forum event in Kilkenny.
1
2
4
12
3
5
Ou r b u sin ess
Chief Executive’s Review of 2008
2008 will long be remembered as a year of turmoil in the world’s financial
markets. The challenges that confronted Irish food, drink and horticulture
exporters as a result of global economic conditions were considerable, and
exacerbated further by significant ‘local’ issues, such as currency volatility
with key trading partners, the December pork recall, and reduced access to
credit, an issue that impacted on all business over 2008.
aidan cotter Chief Executive
However, given the range of pressures
faced by exporters, the performance
of the industry as a whole must be
reckoned as impressive. In total, food,
drink and horticulture exports declined
during the year by 6.6 per cent to
€8.17 billion, leaving them at just
above the 2006 figure.
Bord Bia recognises the huge amount
of work done by Irish companies to
defend market position in often very
difficult conditions, particularly in the
UK, the destination of 45 per cent
of our exports, where the average
depreciation of Sterling against the
Euro was almost 20 per cent. It is
further encouraged by the success
of ongoing strategic repositioning,
including the continued diversification
of exports to Continental Europe, and
the premiumisation and differentiation
strategy for Irish beef.
With 32 per cent of exports now
supplying key Eurozone markets,
Irish exporters are building significant
scale in markets where currency
volatility is not an issue and where the
evolving consumer profile points to
considerable opportunities in the long
term.
Meanwhile, the best performing
sector in 2008 was one which has,
in the past, suffered its fair share of
volatile market conditions. The value
of Irish beef exports increased by an
estimated 7 per cent to reach almost
€1.69 billion, in turn lifting meat and
livestock exports to overall growth
of 2 per cent. Pigmeat exports saw
an estimated fall of 7 per cent to
€343 million as the product recall
brought trade to a virtual standstill in
December. The value of Irish poultry
exports, meanwhile, eased back
by 17% to €203 million reflecting
highly competitive market conditions.
Sheepmeat exporters benefited from
an increase in lamb prices but a sharp
fall in availability saw exports decline
by 9 per cent.
The prepared foods category has
been one of our strongest performing
categories in recent years and its
overall export performance must
be considered positive in light of
increased costs (in particular energy
related input costs), currency pressure
(volatility), increased competition, and
the price sensitivity of consumers.
While exports in the prepared foods
category, overall, fell by 18 per cent
to €1.5 billion, key products such as
ready meals, pizzas, luxury chocolate
confectionery, and bakery continued
to perform well.
A significant easing in dairy prices
resulted in export sales dropping back
by 3 per cent to €2.29 billion. Exports
of alcoholic beverages, affected by
slower consumer spending and the
weakness of the US Dollar, declined
by 12 per cent to almost €1.24 billion.
The value of edible horticulture and
cereal exports was 5 per cent higher at
€265 million, with mushroom exports
increasing by 9% due to higher prices
and volumes exported. However the
increase in mushroom exports was
partly offset by a slowdown in cereal
exports and a weaker demand for
other vegetables and fruit.
While the macro issues of 2008 will
remain significant into 2009, the
challenges of the last year have, at
least, served to underline the real
significance of agri-food to the
maintenance of employment in the
Irish economy. Notwithstanding
the current challenges facing the
industry and the Irish economy,
agriculture represents not only our
most significant renewable resource,
but constitutes a competitive
manufacturing sector that contributes
to employment right through the
primary, secondary and tertiary sectors.
As the priorities of Irish economic
activity realign, there will be challenges
in the short term. However, we need
to embrace the opportunity for our
largest indigenous industry and export
contributor to play its role at the heart
of sustainable economic recovery.
2008 was a year of significant
development across all Bord Bia
activities. Our role as a partner to food,
drink and horticulture companies was
enhanced through the delivery of a
range of services, some new, others
initiated in recent years and advanced
Bord Bia Irish Food Board Annual Report 2008
13
Chief executive’s review continued
significantly in 2008. Over the course
of the pigmeat recall in December,
Bord Bia played a significant role in
communicating the facts of the recall
to consumers, and to the food industry
nationally and internationally. The
focus throughout was to underline the
values of trust and quality behind the
recall and at the heart of the Ireland,
the Food Island’s reputation.
2008 also marked a year of
continuous strategic review for
Bord Bia and the development of 6
new strategic priorities designed to
refocus our support for Irish Food
and Horticulture. These priorities are
designed to embrace the new and
integrated opportunities of promoting
Ireland the Sustainable Food Island,
expanding new export potential,
strengthening our position on the
Ireland market, driving consumer
focused innovation, building a
repositioning and differentiation
strategy for Irish meat, supporting a
dynamic and growth oriented small
business sector.
In 2009, our programmes will evolve
to embrace and embed these new
priorities and Bord Bia will build even
closer partnership with industry as we
promote the message of a sustainable
food, drink and horticulture resource
with a proven ability to deliver to
markets around the world.
Highlights
Bord Bia’s inaugural CEO Leadership
Summit brought together leaders
of the Irish food and drink industry
for a two day event focused on the
future of retailing and supported by
a range of impressive speakers. The
14
Retail Immersion Programme, also
held over two days, continued in the
same vein, informing participants
about retail strategies and retail chain
forecasts for Ireland and Europe.
and differentiating Irish beef. Visits to
specialist beef and lamb production
systems, and processors, were part of
the event which addressed the future
of Europe’s premium meat market.
The Brand Forum, established in
2001, had a busy and successful
year, meeting six times in 2008,
with keynote speaker Denis O’Brien
at the Annual Dinner. Its relevance
strengthened by 100 highly active
food, drink and horticulture members
over the year.
Later in the year, a new event Beef
Expo Ireland, also in Kilkenny,
showcased 500 of Ireland’s best
pedigree beef cattle across all 13 of
Ireland’s pedigree beef breeds. Over
300 breeders and AI stations from
22 countries attended the event and
a supporting conference highlighted
Ireland’s beef production capability.
Bord Bia’s eighth Food and Drink
Industry Day provided a forum for
the industry to meet with Bord Bia’s
overseas personnel. Centrepieces of
this year’s event were Bord Bia ‘need
state analysis’ study of consumers, and
the tracking of retailer’s sustainability
strategies across Europe.
The Marketplace Roadshow
involved one-to-one meetings with
retail, foodservice, industrial and
distribution buyers in Benelux and Italy,
while the foresight4food innovation
programme facilitated 12 companies
in testing their new product ideas
amongst consumers prior to launch.
Recognising the current pressures
facing the industry, a number of
Commodities and Currency
Briefings also took place throughout
the year and had a strong attendance
from all sectors of the industry.
The European Meat Forum, held
in Kilkenny in June brought 194 key
buyers, importers and media from 16
European countries to Ireland’s beef
heartland to learn first hand about
Bord Bia’s strategy of repositioning
Bord Bia’s Quality Assurance
Schemes continued to develop in
2008 and now includes horticulture
following the extension of Bord Bia
EN45011 to include the Prepared Fruit
and Vegetable Scheme. There are
now 25,000 farms accredited under
the Beef Quality Assurance Scheme
and 7,000 farms accredited under the
Lamb Quality Assurance Scheme.
Bord Bia’s Quality Beef and Lamb
Producer Awards were held in
Citywest, Dublin in September, with
lamb promotions in the summer
and autumn aimed at encouraging
younger consumers to eat more lamb.
The Fourth Irish Poultry and Egg
Conference was attended by over
250 delegates and included high
profile speakers from Ireland, the UK,
the US and Europe.
Bloom 2008 built on the success of
its first year in 2007 with more than
50,000 people attending over the
course of June bank holiday weekend
in the Phoenix Park. Officially opened
by Bloom Patron President Mary
McAleese, it saw 46 medals awarded
Ou r b u sin ess
for excellence in garden design and
plant/nursery display, and had a host
of new features added.
Also in the Phoenix Park,
SeptemberFest provided another first
for Bord Bia. Organised in partnership
with the Office of Public Works, it
featured 14 independent Irish drinks
companies from across the island of
Ireland. Over 8,000 visitors sampled the
beers, ciders and whiskeys on offer in
the relaxing environment of Farmleigh.
The emergence of Sustainability
as an issue for leading European
retailers and food manufacturers was
examined in some detail, and Bord
Bia’s proactive approach is feeding into
the development of a sustainability
strategy, which will be evaluated and
implemented in conjunction with the
industry.
2008 was the first full year of the
Bord Bia Vantage Programme
which supports dynamic and
growth-orientated small businesses
with a dedicated small-business
website, seminars, and a mentoring
programme for high-performance
companies. The website www.
bordbiavantage.ie has enjoyed
strong growth in visitor numbers since
it was launched in 2007.
In conjunction with Fáilte Ireland, Bord
Bia organised its inaugural presence at
Salone del Gusto, one of the largest
consumer food shows in Europe.
The Ireland stand allowed consumers
experience the variety and depth of
Irish artisan produce including beef,
lamb, farmhouse cheese, smoked fish,
micro brew beers and soda bread.
Key trade events in 2008 included
SIAL Paris, the world’s leading food
industry show; FHC, Shanghai
and Gulfood, Dubai, the largest
in China and the Middle East
respectively; Tax Free World
Exhibition; Health Ingredients
Europe, Paris; Speciality and Fine
Food Fair, London; and Vitafoods
International.
The number of national schools
participating in Food Dudes Healthy
Eating rose to over 1,000 in 2008,
and the programme now reaches
146,000 children. Funded by the
Department of Agriculture, Fisheries
and Food, it encourages positive and
healthy eating habits.
2008 was designated by the United
Nations as the International Year of
the Potato. As part of its involvement,
Bord Bia sponsored the Meet the
Spuds Potato Challenge developed
and coordinated by Agri Aware.
The National Organic Food
Conference held in Waterford in
September 2008 attracted over 200
delegates. Organised by Bord Bia,
in conjunction with the Department
of Agriculture, Fisheries & Food, it
addressed scenarios for the future of
the Irish organic sector.
Finally, Ireland’s Trade Mission
to South Africa in January 2008
involved the participation of six
consumer food and drink companies
while Trade Visit to Japan in
February also involved Bord Bia
participation.
Conclusion
The challenges which confronted the
Irish and international economies in
2008 were unprecedented, and there
is little doubt they will continue to
put pressure on our industry through
2009. However, this is a resilient and
dynamic sector, and an important
component of a sustainable and real
economy, with a fundamentally sound
business strategy that we believe will
not be undermined by adverse market
conditions. Ireland, the Food Island,
has both the marketing and capability
strengths, and the confidence and
momentum, to steer its way though
these immediate medium term
challenges. Indeed, as an industry that
is deeply rooted in the Irish economic
story it clearly has longevity, it is lean,
flexible and agile, and focused on
delivering innovative solutions to
consumers and suppliers around the
world. As such this is an industry that
could well be regarded as a template
for others.
An organisation is only as dynamic
as the people within it and I believe
that, in Bord Bia, we have a body
of people with the vision to guide
Ireland’s largest indigenous sectors
through these uncertain times and,
in collaboration with our many
stakeholders, to capitalise on the new
opportunities emerging in the coming
decade. We look forward to working
with you throughout 2009.
Aidan Cotter
Chief Executive
Bord Bia Irish Food Board Annual Report 2008
15
1Noreen Lanigan, Manager of Bord Bia’s
Paris office, pictured with a french
butcher at the launch of Agneau Presto,
a promotional lamb campaign in France.
2Minister of Agriculture, Fisheries and
Food, Brendan Smith TD pictured with
l-r Dan Browne, Chairman, Bord Bia and
Gerard Brickley, Director of Meat, Bord
Bia at the Beef Expo Event, Kilkenny.
3Minister for Agriculture, Fisheries and
Food, Brendan Smith TD speaking at the
National Poultry and Egg Conference,
Monaghan.
4Renowned chef Neven Maguire pictured
with a catering student as part of Bord
Bia’s pork promotional activities with
third level colleges.
1
2
3
16
4
Ou r b u sin ess
Chief executive’s review continued
MEAT AND LIVESTOCK
Beef
The value of Irish beef exports
increased by more than seven per
cent to almost €1.69 billion in 2008.
Trade was helped by lower UK
production and a reduced presence
of Brazilian beef on the market.
That said, the weakening of Sterling
made trade more difficult as the
year progressed. This increase in
the value of exports was achieved
despite a drop of almost seven per
cent in export meat plant supplies at
1.58 million head. Exports to the UK
fell by six per cent to over 261,000
tonnes. However, the value of beef
exports to the UK rose by more than
nine per cent to €847 million.
After six consecutive years of growth,
shipments of beef to Continental
EU markets fell back to 2006 levels,
due to lower supplies available in
Ireland. Shipments are estimated
to have fallen by eight per cent to
217,000 tonnes. Shipments to the
Netherlands, France and Italy were
lower as reduced availability and
increased volumes of French young
bull-beef impacted on trade.
Shipments to non-EU markets
amounted to 5,000 tonnes, Russia
being the principal destination.
However, rising stock levels and
difficulties securing export credit
insurance, impacted on trade as the
year progressed.
Average prices across all categories
of cattle increased significantly in
2008. Steer prices were 15 per cent
higher at €3.18 /kg dead weight
(dw) excluding VAT, R3 heifers rose
by 40 c/kg or 14 per cent to €3.22 /
kg dw excluding VAT. O3 cow prices
increased by 44 c/kg or 20 per cent
to €2.68 /kg excluding VAT.
Beef promotion
With the numbers of retailers
stocking Irish beef in Europe standing
at 62 at the beginning of 2008, retail
penetration of Irish beef in Europe
was already very high. However over
the course of the year, the industry
was successful in winning five new
retail and foodservice accounts and
24 new premium beef lines were
launched. Bord Bia supported this
development with activities such as
the European Meat Forum held in
June, attended by 194 international
buyers. Promotions were carried
out with 30 retail and foodservice
customers and 15 business
development events.
Since the implementation of the new
beef marketing strategy at the start
of 2008, the market has evolved,
due to a combination of factors such
as the rising cost of food, slowing
of economies in Europe, lower
cattle supplies in Europe and lower
imports from South America. This has
altered the marketing environment
somewhat, with increased demand
for steak cuts from European
markets that traditionally imported
large volumes from South America,
but an overall decline in demand
for the more expensive cuts, as
consumers searching for value, trade
down to burgers and other cheaper
forequarter alternatives.
However, the overriding aim
remains to seek out the highestpriced markets in the EU for Irish
Beef and gain access by supplying
a superior product on a year-round
basis, with excellent packaging,
presentation and customer
service. Given the altered market
situation Bord Bia’s focus has
shifted to “Differentiating and
Repositioning Irish Beef”.
Livestock Exports
Exports of live cattle from Ireland in
2008 amounted to 148,000 head,
a drop of 60,000 head, or 30 per
cent, on 2007 levels. The trade had
an estimated value of €93 million.
Exports of calves fell by 35 per cent,
with the most dramatic decline in calf
shipments being to the Netherlands
(-34 per cent) and Spain (-41 per
cent). This effect can be partly
attributed to the poor performance
of the respective markets throughout
the year. The Dutch veal market was
oversupplied with German calves for
much of the year because of livestock
movement restrictions associated
with Bluetongue. Also, consumer
demand for veal has fallen as a result
of the economic slowdown.
Exports of weanlings and store
animals were 31 per cent lower than
2007 levels. Exports of this category
to Spain fell by 71 per cent, while
exports to Italy fell by just 1.5 per
cent. Much of the decline in Spain
may be attributed to large numbers
of farmers exiting beef production
on the back of heavy losses. In late
2008, French cattle exports have
Bord Bia Irish Food Board Annual Report 2008
17
Chief executive’s review continued
been particularly competitive in both
of these markets, as more vaccinated
animals became available. Cattle
exports to UK and Northern Ireland
were 4.5 per cent lower than 2007,
at 33,000 head.
Live exports to third countries fell
slightly to 500 head; the majority of
these being in-calf Holstein-Friesian
heifers which went to Russia towards
the end of 2008.
Exports of live sheep to Continental
EU are estimated to have risen
slightly with the principal destinations
being Portugal, Italy, Belgium and
France.
Live pig exports to Northern Ireland
fell by 13 per cent to 450,000, as a
result of lower availability of finished
pigs and higher domestic prices.
While live exports of commercial pigs
declined, the export of breeding pigs
increased. Over 5,000 high-quality
gilts were exported to Russian farms
in 2008, to improve their breeding
lines.
Lamb
The continued fall in sheep supplies
saw a further 12 per cent drop
in 2008 production to 58,000
tonnes, and exports for the year
are estimated at 42,000 tonnes.
Trade was affected during the year
by poor consumer demand on both
the Irish and French markets, along
with increased competition from UK
exports due to the weak value of
Sterling against the Euro.
The second half of the year saw
an easing in demand on the Irish
market, which accounted for 21,000
18
tonnes. Exports to France fell back
by an estimated 25 per cent, but still
accounted for half the total export
volumes at 21,000 tonnes. Due to
the economic slowdown, consumer
demand in the French retail channel
declined by 8 per cent compared
with the previous year.
Exports to the UK remained stable
for the year at 12,500 tonnes, in
spite of Sterling’s losses against the
Euro. Volumes to Sweden increased
by 20 per cent to 2,500 tonnes,
and much of these exports were
high value boneless cuts. The light
lamb markets, specifically Italy and
Portugal, reversed the decline on
the 2007 volumes, and there was
a notable increase in live sheep
shipments to these markets in 2008.
Average prices for 2008 finished at
€3.69/per kg, 4.2 per cent above the
2007 average. This rise was mainly
driven by the fall in availability of
product across all main producing
markets. The total value of exports
for 2008 is estimated at €166 million,
back 10 per cent on the previous
year. Continued growth in the
amount of boneless product being
exported has increased to 35 per
cent of overall exports.
Lamb promotion
Bord Bia’s lamb marketing campaigns
focused on the two largest markets
in 2008 - Ireland and France. The
Irish campaign emphasised the
versatility and convenience of lamb.
Promotions, which ran in May/June
and September/October, included TV,
radio and press advertising.
In France, promotional activity
was split across two marketing
campaigns. Firstly, Agneau Presto
– a three-year campaign launched
in 2008, is a collaboration between
Bord Bia, Interbev and Eblex –
should explain the rationale for this
and the fact that this is an EU co
funded project – this is important
for producer communications –
why would Bord Bia do this?. The
campaign, which aims at reversing
the declining consumption trend in
France, will invest a total marketing
spend of €3.9 million over 3 years.
The second Bord Bia campaign in this
market is a generic lamb campaign
- Premium Lamb. The activities
of both campaigns ran from July
to November in over 100 outlets,
during which Irish lamb was sold in
1,000 stores. The promotions were
supported by in-store, radio and
online activity.
Pork and bacon
A gradual improvement in EU pig
prices during 2008 helped improve
the market environment for Irish
pigmeat. However, the recall of
pigmeat products due to a small
sample of pigmeat produced
between September 1st and
December 6th having traces of
dioxin, impacted on trade towards
the year end. It will take some time
before the full impact of the product
recall on 2008 exports is finalised.
Due to the declining breeding herd,
finished pig supplies, at export meat
plants in Ireland fell by 2 per cent
in 2008. Lower domestic supplies
combined with a reduced level of
Ou r b u sin ess
trade in December led to a drop in
the volume of exports by 8 per cent
to 131,000 tonnes.
Higher pig prices more than offset the
reduced supplies. However the impact
of the pigmeat recall on trade towards
the end of December combined with
a competitive UK market, reduced
the overall value of pigmeat exports
in 2008 to €343 million.
Irish pig prices recorded a recovery
of nine per cent in 2008 to €1.44/
kg with the strongest increases
evident in the July to September
period before easing off over the
final months of 2008. The weakness
of Sterling impacted strongly on
trade to the UK during the year while
higher than anticipated supplies on
the Continent reduced the scope for
further price increases.
The UK remains the principal
destination for Irish pigmeat with
exports estimated to have reached
73,000 tonnes carcase weight
equivalent (cwe), which represents
a decline of nine per cent on 2007
levels. However, it remains to be seen
how much will be returned as part
of the recall. A more competitive UK
market with strong supplies of Dutch
and Danish product combined with
the ongoing weakening of Sterling
impacted on our export trade.
In terms of Continental EU markets,
shipments were broadly similar to
the previous year levels with some
diversion of product from the UK
market evident. Shipments were
expected to reach almost 40,000
tonnes cwe. However, as with the
UK it remains to be seen how much
product will be returned to Ireland.
Somewhat stronger shipments to
Germany helped by a better import
demand helped to offset lower trade
to markets such as France and Italy.
Exports to other non EU markets
held up reasonably well for much of
the year although slower shipments
to Russia were evident during the
autumn as higher stock levels, and
difficulties faced by importers in
securing credit, affected demand.
Also the strength of the Euro against
the Dollar for much of the year
impacted on trade. Prior to the
recall, shipments to International
markets were on target to reach
around 25,000 tonnes cwe, broadly
similar to corresponding 2007 levels.
A stronger presence of US pigmeat
on the Japanese market impacted
on Irish trade with shipments for
the year estimated at 5,500 tonnes
cwe prior to the recall. Shipments
to Russia also showed some decline
reaching an anticipated 6,000 tonnes
cwe prior to the recall. However,
exports to China and Hong Kong
continue to grow and were on course
to reach 7,000 tonnes cwe in 2008.
Pigmeat promotion
In response to the difficult financial
pressure on producers, Bord
Bia’s pigmeat promotion on the
home market was concentrated
in the first half of the year, with
additional promotion in the run
up to Christmas. Following the
product recall last December Bord
Bia carried out an intensive consumer
information campaign combined
with the launch of the Approved
Pork and Bacon label to highlight the
facts surrounding the recall and the
return of Irish pigmeat products.
Poultry
The Irish poultry industry faced
a challenging year in 2008 as
competitive pressures in the UK
impacted on returns. Overall, the
value of Irish poultry meat exports is
estimated to have fallen by 17 per
cent to €203 million. Broiler prices
increased by three per cent, in line
with overall EU trends. However,
production levels continue to fall
with a drop of almost five per cent
anticipated for the year 2009 as a
whole. Lower output was recorded in
broiler, turkey and duck production.
Poultry consumption across Europe
showed some further improvement,
which led to better import demand in
key markets. Overall, poultry imports
into Europe were marginally lower
due to a drop in shipments from
Brazil, which wasn’t fully offset by
increased imports from Thailand.
Higher prices combined with a
moderation in feed prices helped
producers, although higher energy,
packaging and labour costs resulted
in a competitive market environment
being maintained.
Exports continue to focus on
value-added products and chilled
cuts. Exports of processed poultry
account for 70 per cent of the total
in value terms. The UK continues to
be the key market for Irish poultry,
accounting for almost 80 per cent of
total exports. The sector continues to
face stiff competition from processed
poultry products coming into the
EU from markets such as Thailand
at very competitive prices. In 2008
EU imports of processed and salted
poultry is estimated to have exceeded
500,000 tonnes.
Bord Bia Irish Food Board Annual Report 2008
19
1 David Shriver, Strategic Advisor
to the CEO, Carrefour and
guest speaker at Bord Bia’s CEO
Leadership Summit 2008.
2Pictured at Bord Bia’s Food
and Drink Industry Day, IMI,
Sandyford were l-r guest
speaker Dr Chris Brown with
Aidan Cotter, CEO, Bord BIa.
3L-R: Ron Koks, Sligo Food Group,
Declan Fennell, Bord Bia and
Tom McKiernan, Lakeland Dairies
pictured during the Marketplace
Roadshow, Benelux region.
1
2
3
20
Ou r b u sin ess
Chief executive’s review continued
CONSUMER FOODS, DAIRY AND BEVERAGES
Prepared Foods/Chilled
and Frozen Foods
This category includes a wide range
of primary products, which have
been further processed and includes
ready to eat foods, pizzas, chilled and
frozen snack foods, yogurt, ready
meals and ice cream. In the chilled
sector, products include salads and
food to go items such as sandwiches
and wraps.
The overall export performance of
the category in 2008 was positive
considering the competitive
environment in which exporters were
operating. Export values of product
covered under the prepared foods
category fell by an estimated 18
per cent to €1.5 billion. However
indigenous exports were largely
maintained at 2007 levels. The sector
faced highly competitive trading
conditions in the main markets as
well as the effect of the substantial
devaluation of Sterling during 2008.
Export performance in the prepared
foods category continues to be driven
by product development initiatives
with a focus on convenience,
product innovation and investment
in marketing support and trade
relationships. There is also an ongoing
drive to expand the range of markets
served with increased penetration
to markets on the Continent,
predominantly in The Netherlands,
Belgium and Scandinavia. The drive
by the sector to premiumise product
offerings and highlight the health
aspects of products, has also helped
to boost sales.
and additives and a greater focus
on premium offerings, is driving
increased demand in this category.
An overall growth of 12 per cent
in the market is predicted by 2013,
although the frozen segment is
expected to decline, albeit at a
slower rate than in recent years.
In 2008 prepared food manufacturers
however, continued to face a number
of significant challenges, including
exchange rate volatility, rising costs of
production, higher ingredient costs,
price pressures from customers, and
slowing consumer spending.
Exports of pizzas continue to perform
well, with the UK retail market
remaining strong, combined with
expanding sales to other European
markets helping trade volumes. It is
anticipated that sales growth in 2009
will continue to be positive with
new listings being sought in other
continental European markets. The
pizza category continues to show the
fastest volume growth in the frozen
food segment in the UK at almost
seven per cent.
Although the sector is expanding
the range of markets served, the UK
continues to remain the key export
market. In 2009, it is anticipated that
the sector will continue to explore
export sales outside of the UK with
a particular focus on Germany,
The Netherlands, Belgium, and
Scandinavia.
The market for frozen ready meals
has been under pressure in recent
years due to negative health
perceptions in relation to salt and
fat levels. There are increasing
indications however that strong
innovation incorporating health
claims, a reduced emphasis on salt
Bakery
Bakery products contributed a
steady export performance during
2008. Bread showed its resilience
as a household staple, while cake
purchases were encouraged by a
consumer desire for indulgence and
treats. Health concerns have also
driven innovation, as consumers
seek out better quality ingredients
and new flavours. The resurgence
of the packed lunch, and reduced
Bord Bia Irish Food Board Annual Report 2008
21
Chief executive’s review continued
eating out of home, has also helped
the market for high quality bakery
products.
Overall, export values increased by
around four per cent with the UK
remaining the principal market. Value
sales were also boosted by increased
shelf prices in the key UK market.
However, rising production costs and
currency fluctuations continued to
place pressure on margins.
Confectionary
Exports of chocolate confectionery
performed well in 2008 with the value
of trade increasing by more than three
per cent. The cool summer boosted
trade with sales holding well into
the autumn period. The significant
weakening of Sterling however
created a more difficult market
environment as the year progressed.
Exports of luxury chocolates also
recorded a good performance, helped
by a wider customer and market
portfolio. While the UK remains the
principal market, exports continue to
develop to markets such as Australia,
Russia and the United States. A
number of manufacturers have
opened cafés and stores in the United
States to boost their market presence.
Sugar confectionery and biscuit
exports remained under pressure
as a combination of movement of
manufacturing to other countries
and competition in the marketplace
combined to more than offset
exports. The best prospects for growth
continue to be for products with an
absence of colourings and additives.
22
Crisp and snack foods are regaining
strength and a majority market
share on the home market by Irish
manufacturers continued in 2008.
A renewed interest in home baking in
recessionary times is giving domestic
suppliers of cooking ingredients an
upsurge in sales in the home market.
Dairy
The dairy sector continues to form
a central part of the Irish food
industry with export revenues in 2008
estimated to have reached some €2.29
billion out of total food and drink
exports of €8.17 billion. This leaves
the sector accounting for 28 per cent
of total food and drink exports.
Following an excellent performance
in 2007, dairy prices came under
considerable pressure as 2008
progressed reflecting a considerable
slowdown in the global dairy market.
The weakness of the US Dollar and
Sterling relative to the Euro also
impacted on Irish export levels, which
for the year fell by five per cent.
The breakdown of Irish exports in value
terms focuses on three key product
areas, namely butter, cheese and infant
formula, which between them account
for almost two thirds of exports. The
strongest growth in export values
over recent years has been evident in infant formula and cheese.
In terms of destinations for Irish dairy
products and ingredients, the UK
continues to account for more than
35 per cent of exports with trade in
2008 worth in the region of €800
million. Trade to other EU countries
was valued at around €550 million
while the ongoing growth in the
volume of infant formula and milk
powder exports helped trade to
international markets, which account
for 35 per cent of exports in value
terms.
The recently agreed ‘CAP Health
Check’ which allows for a one per
cent annual increase in EU milk
quotas over the next five years,
paves the way for their abolition
from 2015. For Ireland, this provides
the opportunity to boost output
given the competitive nature of the
production base and even more so
given the fact that a number of key
Member States are unlikely to fill
their milk quota over the medium
term. However, it is important that
any increase in output is guided
by developments in market and
consumer demand.
It also highlights the necessity to
ensure that the industry is in the best
possible position to utilise any extra
production by having the ability to
capitalise on market opportunities
as they emerge, both globally and
within Europe. The capital investment
programme that has been taking place
over the last number of years in the
Irish dairy sector is helping to bring
more flexibility to Irish dairy processing
although challenges remain in terms
of being able to alter the product mix
to meet emerging demand.
Beverages
This sector includes all alcoholic and
non-alcoholic beverages, waters,
carbonates and juices, manufactured
in Ireland by multinational and
indigenous producers.
Ou r b u sin ess
For the first time in more than five
years, exports of Irish beverages came
under pressure during 2008. The
weakness of the US Dollar and Sterling,
especially in the last quarter of the
year, combined with lower consumer
spending, had a negative impact on
the market for Irish exporters.
Overall, exports are estimated to
have declined by 12 per cent to
almost €1.24 billion. The strongest
performing category was whiskey,
with exports recording double-digit
growth. Beer and cider exports
slowed in 2008 while overall liqueur
exports were affected by structural
changes in distribution.
Increased consumer price
consciousness, a competitive water
market, and a poor summer, led to a
difficult market environment for nonalcoholic beverage exports.
Alcoholic drinks
The principal growth in exports
during the year was in whiskey, which
recorded double-digit growth. Trade
was helped by increased sales to a
broader range of markets. Strongest
growth was evident in the United
States, Russia, Eastern Europe and
South Africa. Trade within the EU also
performed to expectations. However,
other European suppliers continue to
exert competitive pressure.
The global market for cream liqueurs
continues to show steady growth.
Exports of cream liqueurs from Ireland
were affected by a structural change
in distribution among the leading
producers, while the weakening
Sterling also affected trade as the
Non-alcoholic drinks
year progressed. The range of
markets for liqueurs continues to
develop, which offers good long
term potential for the category.
In 2008, exports of Irish cider
performed well in developing markets
such as the USA, Australia, France and
the Middle East. There were mixed
performances across more mature
markets, with exports to Northern
Ireland growing strongly, helped in
part by cross border trading, while
poor summer weather and increased
levels of price competition affected
growth in the rest of the UK. For most
of the year, the UK off-trade alcohol
market was under pressure from the
Government in terms of legislation
against low-cost promotions and duty
increases, as well as price pressure
from retailers.
The export performance in recent
years has been helped by an increased
emphasis on premiumisation within
the category as consumers sought to
trade up. Brand leaders in the Irish
whiskey and cream liqueur category
continue to invest heavily in consumer
marketing campaigns in an effort
to recruit new consumers and drive
home their brand message. During
the economic downturn however
there is likelihood that performance
may be affected by a short-term
switch to more value-driven brands.
Other issues facing the sector include
currency fluctuations, higher costs of
glass bottles and difficulty in securing
price increases despite relatively strong
raw material prices.
Sales of non-alcoholic drinks came
under pressure in 2008 as consumers
cut back on spending, and switched
to less expensive product options.
Exports of mineral water slowed
again as the category remains very
competitive. Figures from the UK
suggest a fall of around six per cent
in sales, not helped by the poor
summer. Water products that are
performing most strongly include
those that offer an added functional
benefit or product feature. The bulk
of mineral water exports continue to
go to the UK.
Sales of smoothies have also shown
signs of slowing down, due to the
high price point of the product and
increased pressure on the impulse
trade in the latter part of 2008.
Functional drinks and fruit juices
performed better, reflecting ongoing
consumer demand for products that
meet specific needs.
Tea and coffee performed well in
2008 with increased sales to the UK
helping exports to grow by around
six per cent. Within coffee, specific
segment niches such as speciality
and certified coffees are enjoying
buoyant sales, while sophisticated
domestic coffee making machines
are becoming increasingly popular.
Within tea speciality variants are
contributing to increased sales, a
trend driven by increased consumer
interest in healthy, organic and
naturally sourced products.
Bord Bia Irish Food Board Annual Report 2008
23
1Pictured at the Organic
Awards 2008 were l–r Vincent
Cleary, Glenisk; Minister of
State at the Department of
Agriculture, Fisheries and
Food, Trevor Sargent TD and
Eileen Bentley, Manager of
Small Business, Bord Bia 2008.
1
2
3
2 Carlo Petrini, President
and Founder of Slow Food
International speaking at
Bord Bia’s National Organic
Conference, Waterford.
3Pictured at the launch of
Bord Bia’s sponsorship of Fresh
From the Farmers Market were
l – r David Llewellyn; Minister
of State at the Department
of Agriculture, Fisheries and
Food Trevor Sargent TD; Aidan
Cotter, CEO, Bord Bia and TV
presenter Clodagh McKenna.
24
Ou r b u sin ess
Chief executive’s review continued
SMALL BUSINESS AND SPECIALITY FOODS
2008 was the first full year of Bord Bia’s Vantage Programme in action. The programme
provides a platform for structured client interaction on individual and group levels.
Throughout the year, Bord Bia worked on behalf of the small business sector to drive
growth in a market worth €475 million in Ireland, and €6.1 billion when combined with
the UK market for premium foods.
Research and
Development
In 2008, two pieces of bespoke
research were carried out for the
small food business client sector.
The first piece was a report entitled
‘Understanding and targeting
the Foodies’, which looked at the
audience for speciality and premium
food in Ireland and the UK. The
research was a mix of qualitative
and quantitative exploration. A
key finding for the food producers
was that the combined ‘Foodie’
segments represent a sizeable target
audience – nearly one third of all
grocery shoppers both in Ireland and
in Britain. The research went on to
explore ways of connecting with this
segment from a brand positioning
perspective.
A second research project was
undertaken during the year on behalf
of the premium chocolate category in
Ireland. The qualitative study sought
to unlock consumer perceptions,
behaviours and attitudes in this
category, and to identify new growth
opportunities for premium chocolate
producers.
Bord Bia Vantage –
Centre of Excellence for
Small Business
In 2007 Bord Bia launched Bord
Bia Vantage – Centre of Excellence
for Small Business, which services
over 350 SME’s with a turnover of
less than €3.5 million. In the first
full year since launch, the Vantage
Programme has enabled owner/
managers to access best-practice
resources, expertise and processes to
help to build their respective markets.
The three key service platforms of
Bord Bia Vantage are:
Bord Bia Vantage Point – Vantage
Point, Bord Bia’s online resource
guide for small food business was
launched in November 2007. It
is a focused space for small food
businesses on the internet – www.
bordbiavantage.ie. The information
on the site is designed to be quick
and easy to access to help in the
day-to-day running and planning for
small food business. Since its launch,
the site has attracted over 12,500
visits. The most frequently visited
pages include the events calendar,
starting a business, and marketing.
Content most frequently searched
for on the site by users includes grant
aid, distribution, farmers markets,
and packaging. A key focus for this
website in 2009 is to develop the
interactive platform. This will be
achieved through audio and video
and will enable small businesses to
engage with the site at a higher level.
Bord Bia Vantage Plus – In 2008,
the focus was on distribution and
specifically on providing workshopbased training for small business
companies that focused on practical
steps to improve their distribution
planning and management. A total
of 130 client companies participated
in 10 nationwide workshops.
Additionally, there were 140
delegates at the Bord Bia Vantage
Distribution Seminar in October
2008. Themed ‘Collaborating
Today for Tomorrow’, the seminar
was addressed by a mix of academic,
industry and producer speakers. A
number of innovative distribution
models were also presented
specifically targeted to meet the
needs of the smaller producer.
A comprehensive Guide to Distribution
was launched at the seminar which
will provide an overview of the
supply chain process, and outlines
distribution options available to small
food businesses in Ireland.
Bord Bia Irish Food Board Annual Report 2008
25
Chief executive’s review continued
Bord Bia Vantage Partner is a
development programme for highpotential small business companies.
In 2008, a total of 15 companies
representing a wide range of product
categories opted to join the Vantage
Partner programme.
Regional and Local Food
Awareness
The importance of food provenance
and local sourcing continued to
occupy consumers’ minds in 2008.
The topic was addressed at the
beginning of the year when Bord Bia
and the Department of Agriculture,
Fisheries and Food hosted a meeting
of 150 local council representatives
to discuss the importance of farmers’
markets in Ireland and their positive
contribution to the local economy.
A second series of ‘Fresh from the
Farmers’ Market’ on RTE1 television
was sponsored by Bord Bia and
featured 13 different markets and
a total of 44 small food producers.
Hosted by Clodagh McKenna, the
programme raised the profile of
markets and producers alike, and
showcased the variety of local
produce available.
26
In September, Bord Bia sponsored
the inaugural Terra Madre food
event in Waterford, a four-day food,
business, social and cultural event
for producers and the general public
from the 32 counties. The highlight
of the event was the conference
of workshops and plenary session
addressed by President Mary
McAleese.
In Italy, Bord Bia participated at
Salone del Gusto, the most important
consumer event on the Slow Food
calendar attracting 150,000 visitors.
Themed ‘A Taste of Ireland’, Bord
Bia’s stand showcased the variety
and quality of Irish artisan produce
including beef, lamb, farmhouse
cheese, smoked fish, micro brew
beers and soda bread.
Speciality Food
Promotion
At home, the 40-stall strong food
market at Bord Bia’s Bloom was a key
attraction for visitors. The market and
some producers also featured on the
Late Late Show build up to Bloom.
Throughout 2008 Bord Bia worked
with small food producers to
showcase their craft and quality both
domestically and internationally. In
the UK, there were over 30 stalls at
the St Patrick’s Day food market in
Covent Garden. The market and Irish
food generally received significant
press and radio coverage in the run
up to March 17th and quality food
was also showcased at a variety
of retailer and gourmet food hall
promotions. In September, Bord Bia
participated at the Speciality and Fine
Food Fair in London with 12 Irish
producers.
In September, Bord Bia partnered
with the OPW to host an inaugural
event for artisan beer, cider and spirit
companies. 8,000 visitors attended
the 2-day event in Farmleigh.
Also in 2008, Bord Bia sponsored the
Food and Drink category of the Small
Firms Association annual awards and
supported the Irish entries into the
Great Taste Awards and the World
Cheese Awards, held in Dublin in
September.
Ou r b u sin ess
TASTE Council
The TASTE Council is an independent
body representing the artisan and
speciality sector. Its secretariat is Bord
Bia. In 2008 the TASTE Council made
a number of key submissions to the
Oireachtas on behalf of the sector
in the areas of HACCP regulation
and food labelling. Submissions
were also made to the Department
of Agriculture Fisheries and Food
about raw milk sales, and to the
European Commission in response
to the Commission’s Green Paper on
agricultural product quality. Other
projects included an organoleptic
cheese seminar and the creation of
a report and database documenting
lost and forgotten traditional food
skills of Ireland.
A Collaborative
Approach
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.
Organic Food
2008 was a positive year for the
profile of organic food in Ireland
and this is reflected by strong sales
performance to year end. Bord Bia/
TNS research in August 2008 valued
the organic market in Ireland at
over €104 million, a jump of 82 per
cent from 2006. Although growth
slowed during the year, it was still
at 14 per cent in the six months to
July ’08. The report also showed that
an increasing number of people had
started buying organic products on a
more regular basis in recent years.
by the Minister of State for Food
and Horticulture, Mr. Trevor Sargent
T.D. Organic week in mid-September
saw the launch of a new consumer
message ‘Organic – Good for Nature,
Good for You’. Bord Bia supported
the week with a national campaign
using outdoor media, press and
radio. Additionally, there were 42
local events supporting organic week
across 18 counties. At the end of the
campaign, consumer awareness of
the new organic message reached
59 per cent amongst the core target
group.
2008 was also the second year of the
National Organic Awards at SHOP
in the RDS. This year a new organic
meat category was created. The
overall prize winner was Glenisk for
their new organic butter.
September was a busy month for
organic activity on the Irish market.
It started with Bord Bia and the
Department of Agriculture Fisheries
and Food hosting an organic
conference in Waterford themed
‘Maximising Ireland’s Potential’. The
conference was attended by over
150 delegates and was addressed
Bord Bia Irish Food Board Annual Report 2008
27
1Her Excellency President Mary
McAleese, Patron of Bloom,
pictured with Paul Doyle,
Winner of Best in Show at
Bloom 2008 .
2Pictured at the launch of
the Meet the Spuds initiative
were schoolchildren from
St. Tighearnach’s NS, Cullohill,
Co.Laois and back row l-r
Mairead Lavery, Agri Aware;
Liam Glennon, Irish Potato
Federation; Mike Neary,
Manager of Horticulture, Bord
Bia Minister of State at the
Department of Agriculture,
Fisheries and Food, Trevor
Sargent TD and potato
producer Thomas Carpenter,
Carpenter Bros.
1
2
28
Ou r b u sin ess
Chief executive’s review continued
HORTICULTURE
2008 proved to be a very challenging year for the horticulture sector on both the
domestic and export markets. In addition to the difficult economic environment
there were many issues impacting the sector during the year including cost
increases, a very competitive retail market and poor weather conditions, which
made the growing and harvesting of crops difficult. In addition the poor weather
reduced the sale of plants in the amenity sector. Towards the end of the year the
weakening in the value of Sterling was a negative development for the mushroom
category which exports two thirds of its production to the UK market.
A key focus for Bord Bia during the
year was the implementation of the
recommendations from the strategic
review of the sector which was
completed in 2007. A number of
promotional campaigns highlighting
the availability of new season produce
were carried out as well as a range of
promotional activities to promote 2008
as the International Year of the Potato.
A number of activities were carried
out during the year which contributed
towards business development and
enhanced competitiveness through
support for innovation, market and
product development, and market
research. The promotion of amenity
horticulture at Bord Bia’s Bloom
provided a magnificent platform for
the best in Irish garden design and
construction, plants and flowers. In
2008 the development of a strategy
for the amenity horticulture sector
was initiated in consultation with
the different sub-sectors within the
industry.
Mushrooms
There was no further consolidation
in the mushroom category in 2008
with 80 growers now in production.
The biggest factor affecting the
viability of the category has been the
volatility and weakness of Sterling
as the UK market is the key outlet
for Irish mushrooms. The UK retail
market continued its recovery in 2008
growing at a rate of 8.1 per cent in
value, driven mainly by price increases.
There was good news on the domestic
retail front as well with strong
growth in value of 25.1 per cent. The
value increases were due to higher
penetration and higher trip spend.
Protected Crops
Tomatoes, lettuce and peppers
remain the most significant crops
in this area. Tomato production has
consolidated in recent years. There
has been a good demand for Irish
tomatoes from the multiple retail
sector with high value lines such
as tomatoes on the vine, to the
extent that there has been some
growth in the area of production
for the alternative types to the
standard round tomato types. The
lettuce sector came under pressure
again in 2008, with overcast and
rainy conditions for the majority of
summer causing some production
problems, and dampening the
demand for salad lines in general.
Fruit Crops
Fruit is the largest fresh produce
category for consumers at retail level.
Apples and strawberries are the two
main fruit crops produced in Ireland.
The demand for Irish eating apples
is on the increase, with the premium
Celtic Orchard brand, which Bord
Bia helped the Irish Apple Growers
Association develop, contributing
to this trend. There has been an
anticipated strong demand for
cider apples and this has led to
the expansion of some orchards
country-wide with more plantings
continuing in 2008. Producers had
a bumper crop in 2008, but faced
difficult marketing conditions.
Cider manufacturers reduced their
intake of apples due to lower than
anticipated demand for cider. A
promotion for Bramley apples was
carried out in November and this
helped to drive sales in what was a
difficult month for producers.
The market for soft fruit has been
characterised by strong demand
for all berry crops. Strawberries are
by far the most important crop,
but significant niches exist for
raspberries, blueberries, gooseberries
and red currants. Irish strawberry
producers have continued to invest
in their category with the result that
the Irish season has been extended
considerably with Irish strawberries
now available right to the end of
October. A significant increase in
the area of covered production,
Bord Bia Irish Food Board Annual Report 2008
29
Chief executive’s review continued
both glasshouses garden and
tunnels, boosted the availability
of strawberries in 2008. A major
strawberry promotion took place
over the June bank holiday weekend
and helped start a successful selling
season, with sales up 17 per cent
year on year.
Potatoes
The potato acreage grown is
estimated to be around 10,000
hectares. Weather was extremely
problematic for potato growers in
2008, with high rainfall impeding
both growing and harvesting
resulting in potato yield losses in the
field (industry estimates suggested
this to be as high as 30 per cent).
The fresh potatoes share of the total
retail fresh produce market fell to 14
per cent of the total category which
was estimated to be worth €175
million in 2008. This is largely due
to a fall off in market consumption
in recent years. There has been an
average sales volume decline of 15
per cent per annum recorded over
the past two years. This has been
attributed to households making on
average, six less trips per annum to
buy potatoes (i.e. a reduced purchase
frequency) and consumers switching
away from larger pack sizes to
30
smaller ones. There has also been
significant competition from other
substitute products including frozen
value added potatoes, pasta and rice.
There was some evidence of a
slight increase in market demand
towards the end of 2008, as the
potato proved its ‘value for money’
credentials with consumers, as a
result of the economic downturn.
Roosters and Kerr’s Pink are
increasing their market share with
other lesser known varieties in
decline. There has been a marked
increase in popularity of ‘baby’ and
‘salad’ potatoes with consumers. It is
the convenience aspect of these latter
product categories in particular that
give them their consumer appeal.
Field Vegetables
While market demand was good
for all fresh vegetables in 2008,
the industry was challenged by a
number of factors including poor
weather conditions (resulting in
poor establishment, plant growth
and difficult harvesting) and higher
input costs. The weakness of Sterling
exposed the sector to the threat
of increased imports of cheaper
produce from the Sterling area.
This fed into a very competitive
retail market for produce which put
downward pressure on prices. It will
be a key challenge going forward, to
remain competitive in a very difficult
economic environment and to hold
and maximise the share of the market
held by domestically-grown produce.
Ongoing improvements in productivity
brought about by increased economies
of scale and cost reduction will
continue to be important in an effort to remain competitive.
The total retail fresh produce
market in Ireland was valued at
€1.25 billion in 2008. The fresh
vegetables element of the fresh
produce market was worth €680m
and grew a modest 4.1 per cent in
2008. However, there was significant
positive double-digit growth recorded
for a number of key lines including
parsnips, scallions, broccoli, onions,
celery and leeks.
Amenity Crops
Sales in early 2008 were buoyed
by good gardening weather and
favourable soil conditions for
tree planting. Most nursery stock
producers recorded an increase on
their first quarter sales over 2007.
However, the un-seasonal weather
conditions experienced from midMay, and the sudden decline in
consumer spending and construction
Ou r b u sin ess
of new gardens, impacted negatively
on both garden centre sales and
commissioning of garden design
and landscape contracting. Exports
were hampered by the fluctuation in
Sterling/Euro exchange rates.
Programmes
Horticultural Labour
Issues
A major survey was carried out
on the horticultural labour market
in Ireland in 2007. A series of
recommendations were made in
the survey and these were followed
through in 2008 with a series of
projects. Bord Bia continues to
support the Seasonal Horticultural
Workers Scheme. This brings
horticultural students from nonEU European countries and EU
accession states to Ireland, providing
the industry with a source of semiskilled labour and the students with
valuable work experience.
Innovation Programme
The horticultural innovation
programme continued with a mix
of workshops, study tours and
mentoring sessions. Five companies
participated with some new products
under development. Horticultural
producers are also accessing all the
services of the foresight4food
programme which ranges from
simple idea generation, to complex
consumer validation of new products.
The innovation programme has also
offered companies brand services
which can turn a new idea into a
market ready proposition. Brand
work in 2008 consisted of website
redevelopment, consumer brand
audits, new product naming and
packaging design.
The Food Dudes
Programme
The Food Dudes Programme which is
being rolled out to national schools
by Bord Bia and which is funded
by the Department of Agriculture,
Fisheries and Food, operates on
the basis that a liking for fruit
and vegetables can be developed
through repeated tastings and
video communication. Children are
encouraged to taste the pieces of
fruit and vegetables presented to
them in school. Very quickly, healthy
eating patterns are established
which are long-lasting. In 2008 a
total of 625 additional schools took
part. To date 1,027 schools and
146,000 children have participated
in the programme. Assessment
of the programme has shown
that children who have taken part
have maintained their increase in
consumption of fresh produce long
after the initial introduction in school.
International Year of the
Potato
2008 was designated by the United
Nations as the International Year
of the Potato. This world-wide
celebration was aimed at raising
awareness of the importance of the
potato (and of agriculture in general)
in addressing issues of global concern,
including hunger, poverty and threats
to the environment. The International
Year of the Potato committee was
established which included Bord
Bia and representatives from the
Department of Agriculture, Fisheries
and Food, the Irish Potato Federation,
Teagasc, the Irish Farmers Association
and Safefood. A calendar of events
was organised to celebrate the year.
The focus of these events was to
highlight and promote, at national
level, awareness of the nutritional
and health benefits of the potato in
the Irish diet to all age groups.
A special website was developed
which provided a range of
information on the potato including
the history of the potato, general
facts on potato production and the
Bord Bia Irish Food Board Annual Report 2008
31
Chief executive’s review continued
market, and listing the activities being
carried out to celebrate the year. A
major Schools Programme called
Meet the Spuds Potato Challenge
was developed and co-ordinated by
Agri Aware. Each school received
a potato growing kit and were
challenged to grow and learn about
potatoes and keep a diary recording
their experience over the time of the
project. An awards ceremony for the
best diaries was held in June at the
end of the project with schools from
the different provinces picking up
prizes. Some 2000 national schools
participated in this initiative. A “Meet
the Spuds” exhibit was on display at
Bord Bia’s Bloom in the Phoenix Park
over the June bank holiday weekend.
The promotion of potatoes was
carried out throughout the year and
a major campaign was carried out to
highlight and promote new season
potatoes when they came on stream
in the summer.
Plant Protection Products
Bord Bia continues to work closely
with the horticultural industry to
facilitate it to have access to the range
of Plant Protection Products which
allow it to grow crops competitively
and efficiently. Under this programme
particular attention has been paid to
products which are environmentally
friendly and safe to use.
32
Business/Development
Training
This programme assists businesses
to improve their competitiveness
and is available to all sectors. In
2008 training was provided in the
area of Health and Safety and a
programme ran on the subject of
National Account Management
which was developed to assist
businesses improve their marketing
and negotiating skills.
Bord Bia’s Bloom
The second Bloom show took place
over the June bank holiday weekend
in 2008 and was well received by
the public, the trade and the media.
In excess of 50,000 people visited
and 46 medals were awarded for
excellence in garden design and
plant/nursery display. New features
included 30 new show gardens,
interactive and retail exhibits coordinated by the Craft Council of
Ireland, a gardening advice service
offered by OPW gardeners, an
extensive all-covered artisan food
market and a new childrens’ area
managed by Imaginosity. Bloom’s
patron President Mary McAleese
graciously opened the show and
numerous journalists from across
Europe and Ireland ensured that
the show achieved its primary aim
of raising the profile of Irish garden
design and horticulture at home and
abroad.
Amenity Sector Strategy
Review
The 2007 Strategic Review of Irish
horticulture recommended that
further study be undertaken in the
amenity sector. To that end a number
of exploratory meetings took place
with a Horticulture Board subcommittee, at which representatives
addressed some of the main
challenges and opportunities
facing the sector. Mid year, when
the extent to which the wider
economic downturn was impacting
on the sector became clearer, the
consultation process was redirected
in order to identify more immediate
actions to support continued
profitability among amenity client
companies. New initiatives agreed,
include the organisation of crosssector regional meetings, the
commissioning of a spring gardening
campaign, a new marketing/PR
training programme for clients, and
the formation of a national amenity
council.
Ou r b u sin ess
National Amenity
Horticulture Council
The Poetry of Plants
Conference
National Plant Fair
The strategic review of the horticultural
sector described amenity horticulture
as disparate, uncoordinated and
fragmented, and recommended the
formation of an amenity council.
Following an exploratory meeting of
nursery stock producers representatives
from across the sector were brought
together in early November for the
inaugural meeting of the amenity
council. The council provided the ideal
platform to address current challenges,
and in the future will be used to
assist in developing long-term
strategies for the sector
In co-operation with Dublin City
Library and Trinity University
Bord Bia sponsored a high profile
consumer conference linking
literature, plants, garden design
and the history of plant hunting. A
panel of internationally renowned
speakers addressed approximately
200 delegates in a widely reported
event that was also used to promote
Bord Bia’s Bloom and highlight the
amenity horticulture sector with
gardening among serious gardeners
and horticulturalists.
Super Garden
Trading Profitably in
Difficult Times
In co-operation with top independent
TV production company Vision
Independent Productions, RTE
scheduled a six-episode garden
design series which profiled a number
of aspiring garden designers. The
series which also highlighted Bord
Bia’s Bloom each week was watched
by over 500,000 viewers per episode
during the first showing and by over
400,000 during the second run.
The highly-acclaimed programme
introduced many newcomers to the
benefits of good garden design and
horticultural skills promoting amenity
horticulture suppliers to consumers.
In November, the National Nursery
Stock conference organised by
Teagasc, and supported by Bord
Bia, was used to disseminate timely
information on strategies for trading
profitably during recessionary times.
Top UCD economist Colm McCarthy
was engaged to provide an overview
of the Irish and global economy and
specialist business advisors visited and
assessed a number of nurseries in
advance of the conference. Following
the conference, papers were
circulated to all nursery clients, which
detailed new strategies geared for the
more challenging trading environment
Bord Bia sponsor the The National
Plant Fair which takes place annually.
The event was first held in 2005
and is organised by The Kildare
Growers and The Irish Nursery Stock
Association.
The National Plant Fair has become
the unofficial start of the season
for Irish plant growers and buyers
alike. It is an important part of
Bord Bia’s strategy to support Irish
horticultural enterprises facing the
significant challenge of competing
with imported produce. The show
has one overarching objective that is,
to encourage Irish plant buyers, both
retailers and landscape professionals,
to purchase Irish-grown plants and to
trade with Irish-based nurseries.
Kildare Growers Trade
Show
Bord Bia participated as a major
sponsor at the Kildare Growers
Trade Show held at Punchestown
in Co Kildare. Bord Bia used the
opportunity to show the industry
its range of services, as well as
presenting the results of the market
research to the Amenity Market in
Ireland.
Bord Bia Irish Food Board Annual Report 2008
33
1Pictured at the Beef and Lamb Producer
Awards, Citywest, were l-r Aidan Cotter,
CEO, Bord Bia; Minister of State at the
Department of Agriculture, Fisheries
and Food, Trevor Sargent TD; Joe
Brennan, Attanagh, Co. Kilkenny, winner
of Quality Beef Producer Award 2008;
Michael Doyle, Boolavogue, Co.Wexford,
winner of Quality Lamb Producer Award
and Liam O’Neill, Irish Farmers Journal.
2Pictured during the Trade Mission to
Tokyo were L-R Michael Murphy; Director
of Markets, Bord Bia; David Nolan,
Chief Veterinary Officer, Department
of Agriculture, Fisheries and Food; Tom
Moran, Secretary General, Department
of Agriculture, Fisheries and Food;
Mr. Brendan Scannell, Ambassador
of Ireland to Japan Tánaiste Mary
Coughlan and Tom Moran, Secretary
General, Department of Agriculture,
Fisheries and Food.
1
2
34
Ou r b u sin ess
Chief executive’s review continued
QUALITY ASSURANCE
Bord Bia has developed a comprehensive suite of Quality Assurance Schemes (QAS)
for primary producers and processors in the main sectors of the food industry.
These include beef, horticultural produce, eggs, lamb, pigmeat and poultry. These
schemes have been developed in consultation with the relevant sectors of industry
and have been accredited by the Irish National Accreditation Board (INAB) to the
internationally recognised EN45011 standard.
In 2008 the Horticultural Quality
Assurance Scheme, which had
previously been audited and
certified by NSAI, for Bord Bia, was
harmonised with the other Bord
Bia quality assurance schemes. This
resulted in all of the QAS being
certified by the Bord Bia certification
process under the auspices of
INAB. The total process across all
the schemes can be summarised as
follows:
- The standards in all the Bord
Bia Quality Assurance Schemes
are developed, established and
revised by technical advisory
committees specific to each
sector.
- Inspection to the standard is
conducted by independently
appointed auditors, for example
in the case of the beef and lamb
schemes this is carried out by
South Western Services (SWS)
and for the horticultural schemes
by Management Systems Ltd
(MSC).
- Bord Bia has appointed a team of
reviewers to independently check
the auditor reports and make
a recommendation regarding
certification.
- A Certification Committee,
appointed by the Quality
Assurance Board and
independent of the auditing
process, decides on certification.
Generally the Certification
Committee meets every week.
The revision and improvement of the
standards of the schemes is ongoing,
with work on a major revision of
the Egg QAS and the Horticultural
QAS taking place in 2008, to be
completed early in 2009. Similarly
work commenced in 2008 on the
merging of the beef and lamb
schemes into a livestock scheme at
farm level. It is expected to conclude
this process in 2009.
The number of members in the
schemes continues to grow, and now
the schemes represent an increasing
proportion of overall production. The
number of audits conducted in 2008
was in excess of 25,000 which was
more than double the level in 2006.
In 2008, a comprehensive policy
on the use of the Bord Bia Quality
Assurance Mark on product and
in promotion was developed
and approved. The objective in
developing the mark is to promote
Quality Assurance Schemes to the
consumer. This mark can only be
used on product where all links
in the supply chain are members
of the relevant Quality Assurance
Scheme i.e. growers, slaughter plant,
processing plant. The mark has been
central to Bord Bia’s promotional and
advertising campaigns in 2008 and
will continue to be in the future. In
2008 Bord Bia commenced quarterly
reviews of the main retailer chains to
ascertain the level of support for the
quality mark and to monitor correct
usage.
Research shows significant consumer
awareness and appreciation of the
Bord Bia Quality Assurance mark:
• 85% of consumers are aware of
the mark
• 79% are more likely to buy beef,
lamb, pork, bacon or chicken in
packs which carry the mark
• 44% of consumers are likely not
to buy meat products which do
not have the quality mark.
Bord Bia Irish Food Board Annual Report 2008
35
Chief executive’s review continued
SERVICES
Strategic Information
Services
In 2008, Bord Bia formalised its
programmes designed to stimulate
and support consumer focused
innovation in Irish food companies.
Three “Inspiration Expeditions”
were undertaken involving 34
participants from 27 companies
which took them to New York,
London and Paris to serve as stimuli
for new product concepts. “Ideation
Workshops” were carried out
assisting companies to generate and
evaluate new product concepts. The
Bord Bia foresight4food innovation
programme encouraged firms to test
their new product ideas amongst
consumers prior to launch.
The emergence of sustainability
as an issue for leading European
retailers and food manufacturers
was examined with a view to gaining
an insight into its likely direction
and the potential implications for
the Irish food sector. A research
project which could stimulate ideas
for new products was conducted
in Ireland which included a major
study looking at the needs states
that consumers bring to various
categories when they come to
purchase. The Bord Bia Consumer
Lifestyle Trends programme
36
looked at the phenomena of food
enthusiasts in its report on Foodies
and consumers responses in an
economic downturn in Feeling the
Pinch. Bord Bia also project managed
research amongst Irish consumers on
organic products which was funded
by the Department of Agriculture,
Fisheries and Food and presented at
the National Organic Conference.
Additional projects were undertaken
on Irish consumers’ purchases of
amenity horticulture products and
a comparative view of the attitudes
and behaviour of consumers in
selected Continental markets.
Bord Bia continued its weekly
electronic news service, the
FoodAlert, throughout 2009.
The FoodAlert brings perspectives
on emerging issues from Bord Bia
executives in our key markets around
the world. It has since been merged
with the previously printed Market
Monitor and is now published
on Bord Bia’s web site which was
revamped entirely during 2008.
Throughout the year, the inquiry
team responded to over a thousand
requests for information from Irish
companies, trade buyers and others
as well as servicing a similar number
for internal staff working with Irish
companies.
Marketing Services
Brand Forum
The Brand Forum programme,
established in 2001, continued to
work with companies to develop and
expand food, drink and horticulture
know-how to grow their business
through branding. During the year,
100 food, drink and horticulture
companies, ranging from large to small
companies, joined the programme.
The fora, which meets six times a
year, represent the major element
of the programme for all members.
During the year, insights on branding
from Starbucks, Red Bull, McKinsey
and Company, Unilever, Clonakilty
Black Pudding, Broadway Bagels and
Taravale Foods were delivered to the
industry through the Brand Forum.
The year culminated in an Annual
Dinner with Denis O’Brien as the
keynote speaker, to which over 180
people from the industry attended.
Networking opportunities have been
a key benefit from these Fora.
The Brand Forum also organised a
range of brand workshops, such as
Marketing Planning, Public Relations
and eMarketing. Additional key
initiatives included a bi-monthly
trends newsletter, brand guides
and brand development services,
encouraging companies to launch
Ou r b u sin ess
and grow their brands with
assistance in brand design and
website development.
Exhibitions and Events Services
Bord Bia Marketing Services
organised over 50 events in 2008,
including the flagship European Meat
Forum, CEO Leadership Summit,
Bord Bia’s Bloom and Food and Drink
Industry Day.
Bord Bia project-managed Ireland’s
participation at 19 trade exhibitions
worldwide. Key trade fairs for the
meat sector included SIAL and CIBUS
where the focus was on premium
Irish meat products. Ingredients
companies targeting the functional
and health food sectors participated
at HIE (Health Ingredients Europe)
in Paris, which attracted ingredient
buyers from worldwide specialist
firms and multinationals, Vitafoods in
Geneva, which showcased suppliers
of nutraceuticals, cosmeceuticals,
functional foods and functional drinks.
Product from the speciality and fine
food sector was showcased at Salone
del Gusto in Italy and 15 companies
including 2 from Northern Ireland
exhibited at Speciality and Fine Food
Show in the UK. Also in London
30 companies participated at the
St. Patricks Day Market in Covent
Garden London.
Companies from the alcoholic
beverage and luxury confectionery
sectors exhibited at TFWA World
Exhibition in Cannes where Ireland’s
most prestigious luxury brands
were unveiled before key buyers,
agents and distributors from airport
authorities around the globe.
Gulf Food Dubai, FHA/Food Asia in
Singapore, CIMIE in Beijing and Food
Hotel China in Shanghai supported
our Asian strategy.
Other events organised and managed
by Bord Bia included International
New Products Forum, The National
Organic Conference, as well as a Taste
of Ireland showcase of Irish food and
drink at St. Patrick’s Day receptions at
46 Embassies world wide.
International
Communications
In 2008 extensive international public
relations were carried out securing
coverage in key trade and consumer
publications and online media, in
our target markets, continuing to
build the image of Irish Food and
Horticulture.
In 2008 International Communications
played a critical role in managing the
trade and consumer expectations
around the pork product recall.
Marketing Finance
Bord Bia continued to operate the
Marketing Assistance Programme
(MAP) in 2008, aimed at providing
small and medium-sized enterprises
with assistance towards improving
their marketing techniques and
capabilities.
The grant-aided companies were
engaged in producing goods ranging
from farmhouse cheese, bioyogurt, chilled dairy, confectionery,
charcuterie, as well as goods in the
horticulture sector. All companies
were required under the MAP to
have an annual turnover of between
€100,000 and €3.5 million.
In 2008, Bord Bia received 135
applications for grant assistance, a
substantial increase over the previous
year. Grants totalling €554,988 were
paid to 79 companies during the year.
Markets
Markets continued to play its
vital role of research, relationship
management and communications
in 2008 supporting through Quality
and Generic Advertising campaigns
the position of Irish Food and
Horticulture in key priority markets
worldwide.
Bord Bia Irish Food Board Annual Report 2008
37
CORPORATE STATEMENT
Governance
The Board has adopted the Code of
Practice for the Governance of State
Bodies 2001 and the provisions of
the Code are being implemented.
The Board is committed to
maintaining the highest standards
of Corporate Governance and Best
Practice and monitors compliance on
an ongoing basis. The Secretary is
responsible to the Board for ensuring
that procedures are implemented and
that 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 are being
implemented.
Freedom of Information
Bord Bia is a prescribed organisation
under the Freedom of Information
Act (FOI), 1997. The Act established
three statutory rights:
• A legal right for each person to
access information held by public
bodies;
• A legal right for each person to
have official information held
by a public body, relating to
him/herself, amended where
it is incomplete, incorrect, or
misleading;
38
• A legal right to obtain reasons for
decisions affecting oneself taken
by a public body
Equality
Bord Bia is committed to ensuring
equality of opportunity and its
personnel and staff development
programmes are structured accordingly.
Bord Bia endeavours to assist staff in
relation to career and personal needs
and operates appropriate policies
covering such areas as educational
programmes, study leave, jobsharing and career breaks. Bord Bia
is also committed to implementing
government policy in relation to the
employment of disabled people in
the public sector. Specific additional
provisions were made for disabled
visitors in the construction of Bord Bia’s
Food Centre. There is a policy on sexual
harassment in operation to support
and protect the dignity of each person.
Safety, Health and
Welfare at Work
Bord Bia is implementing the
provisions of Safety, Health & Welfare
at Work legislation, including the
preparation and operation of a Safety
Statement embracing all matters
affecting safety, health and welfare
of staff and visitors to Bord Bia’s
premises.
Clients’ Charter
Bord Bia has published a Clients
Charter setting 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 energyefficient and to operate appropriate
conservation and recycling measures.
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
Ou r g over n a n ce
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.
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 company and hence
for taking reasonable steps for the
prevention and detection of fraud or
other irregularities.
There is an Audit Committee of the
Board to which the internal auditor
and the external auditor have full and
unrestricted access.
Dan BrowneAidan Cotter
Chairman
Chief Executive
4. State whether applicable
accounting standards have been
followed, subject to any material
departures disclosed and explained
in the financial statements.
Bord Bia Irish Food Board Annual Report 2008
39
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;
40
• Working closely with Government
and various Agencies to ensure
that there is a clear understanding
of Bord Bia goals and support for
the Board’s strategies to achieve
those goals.
The system of internal financial
control is based on a framework of
regular management information,
administration procedures including
segregation of duties and a system
of delegation and accountability. In
particular it includes:
• A comprehensive budgeting
system with an annual budget
which is reviewed and agreed by
the Board;
• Regular reviews by the Board
of periodic and annual financial
reports which indicate financial
performance against forecasts;
• Setting targets to measure
financial and other performance.
Bord Bia has an outsourced internal
audit function, which operates in
accordance with the Framework
Code of Best Practice set out in the
Code of Practice for the Governance
of State Bodies. 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 approved by the
Board. At least annually, the Internal
Auditor provides the Board with
a report of internal audit activity.
The report includes the Internal
Auditor’s opinion on the adequacy
and effectiveness of the system of
internal financial control.
There is an Audit Committee of the
Board to which the internal auditor
and the external auditor have full and
unrestricted access.
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 comments
made by the Comptroller and Auditor
General in his management letter.
I confirm that in the year ended 31
December 2008 the Board conducted
a review of the effectiveness of the
system of internal financial control.
On behalf of the Board
Dan Browne
Chairman
Ou r g over n a n ce
ORGANISATION STRUCTURE
Main Board
Chairman
Meat & Livestock Board
Chairman
Horticulture Board
Chairman
Quality Board
Chairman
Consumer Foods Board
Chairman
Chief
Executive
Markets
European
International
Markets
Markets
Strategic
Corporate
Information
Commu-
Services
nications
Strategic
Inquiries
IT
Marketing
Research
Marketing
Human
Services
Resources
Marketing
Small Services
Business
Quality/
Sectors
Food Dudes
Corporate
Services
Consumer
Meat
Food &
Horticulture
Finance
Secretariat
Beverages
Bord Bia Irish Food Board Annual Report 2008
41
Staff STRUCTURE
Bord Bia is comprised of the Board, four
Subsidiary Boards, the Chief Executive
and the Executive, which provide a
range of services required to implement
Board policy and programmes.
Chief ExecutiveAidan Cotter
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.
Small Business
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.
MarketsMichael Murphy
Manager Emerging Markets
James O’Donnell
Quality/Food DudesMichael Maloney
Quality Assurance
Jim O’Toole
Marketing ServicesUna Fitzgibbon
Eileen Bentley
MeatGerard Brickley
Consumer Food & BeveragesTara McCarthy
HorticultureMike Neary
Strategic Information Services
Julian Smith
Corporate CommunicationsRosaleen O’Shaughnessy
Human ResourcesSusan Doyle
Corporate Services
Frank Lynch
Finance
Gerry Bailey
Market Contacts
Ireland Market Teresa Brophy
Moscow
Amsterdam
Declan Fennell
New York
Karen Coyle
Frankfurt
Liam MacHale
Paris
Noreen Lanigan
London
Beatrice Blake
Scandinavia
Frank Murray
Madrid
Cecilia Ruiz
Shanghai
Breiffini Kennedy
Milan
John Keane
Alla Barinova
Human Resources within Bord Bia aligns management and staff to meet the challenges of the market place through:
• leadership and management development
• enriched performance management systems
• regular communications and engagement initiatives
• management structures appropriate to the aims of the organisation.
Close proximity to the business and open dialogue seek to ensure that Bord Bia resources remain responsive to the fast changing environment in which we live today.
42
Ou r g over n a n ce
BOARD MEMBERS
bord bia board
Chairman
Dan Browne
Director, Dawn Meats
(Grannagh) Ltd.
Members
Ms Marian Byrne
Principal Officer, Department of Agriculture,
Fisheries and Food
Mr Jackie Cahill
President, Irish Creamery
Milk Suppliers’ Association
Mr Ray Carolan
Cattle Breeder
Mr Frank Hayes
Director of Corporate
Services, Kerry Group plc.
Mr Joseph Hyland
Managing Director, Irish
Country Meats
Ms Katherine O’Leary
Dairy Farmer and Part-time
Home Economics Teacher
Mr Mel O’Rourke
Managing Director, Sylvan
Ireland
Dr Noel Cawley
Chairman, International
Dairy Federation
Ms Bríd Rodgers
Former Minister for
Agriculture and Rural
Development, Northern
Ireland
Mr Vincent Cleary
Managing Director, Glenisk
Organic Ireland
Mr Padraig Walshe
President, Irish Farmers’
Association
Dr Paul Cusack
Principal, College of Amenity
Horticulture, National
Botanic Gardens
Chief Executive
Mr Kieran Dunne
L and K Dunne Nurseries
Mr Aidan Cotter
Secretary/Director
Mr Frank Lynch
Changes during 2008
Terms expired 1st
February
Ms. Angela Kennedy
(Chairman)
Managing Director,
Megazyme International
Ireland Ltd.
Mr Ray Carolan (re-appointed 11th April)
Mr Joe Hyland (re-appointed 10th April)
Mr John Malone
Former Secretary General,
Department of Agriculture,
Fisheries and Food
Appointments
Mr Dan Browne (appointed as Chairman
10th April)
Mr Vincent Cleary
(appointed 11th April)
Dr Paul Cusack (appointed 28th April)
Changes during 2009
Terms expire 31st January
Ms Marian Byrne
Mr Michael Kilcoyne, Vice Chairman Consumers’
Association of Ireland
Mr Mel O’Rourke
Mr Padraig Walshe
Re-appointed 25th March
Ms Marian Byrne
Mr Mel O’Rourke
Mr Padraig Walshe
Bord Bia Irish Food Board Annual Report 2008
43
bord bia consumer
foods board
Chairman
Dr Noel Cawley
Chairman, International
Dairy Federation
Members
Changes during 2008
Mr Michael Carey
Executive Chairman, Jacobs Fruitfield Food Group
Term expired 1st February
Mr John Malone (Chairman)
Mr Mike Doyle
General Manager, Kerry Foods
Mr Colin Gordon
Chief Executive, Glanbia Consumer Foods
Ms Eilis Gough
Managing Director,
Mileeven Fine Foods
Mr Tom Harrington
Public Representative
Ms Paula Mee
Food and Nutrition
Consultant
Mr Larry Murrin
Managing Director, Dawn Farm Foods
Mr Noel McPartland
Chairman, The Food Hub
Mr Joe O’Flynn
Marketing Development
Director, The Irish Dairy
Board
22
44
Ms Ann Woods
Honorary Secretary,
Consumers’ Association of Ireland
Term expired 14th June
Mr Michael Carey (re-appointed 2nd
December)
Mr Mike Doyle (re-appointed 8th October)
Mr Noel McPartland (re-appointed 25th June)
bord bia meat and
livestock board
Mr Ray Carolan
Cattle Breeder
Mr Michael O’Connor
Sales Manager, Cappoquin Chickens
Members
Changes during 2008
Mr Henry Burns
Chairman, National Sheep
Committee, IFA
Term expired 1st February
Mr Ray Carolan (re-appointed 27th June)
Mr Tim Cullinan
Chairman, National Pigs &
Pigmeat Committee, IFA
Resigned 13th February
Mr John Bryan
Chairman
Mr Michael Doran
Chairman, National
Livestock Committee, IFA
Mr Paul Clarke
National Executive of the
Livestock Trade
Term Expired
1st December
Ms Paula Mee (re-appointed 2nd
December)
Mr Tommy Fitzgibbon
President, Associated Craft
Butchers of Ireland
Mr Joe O’Flynn (re-appointed 2nd
December)
Mr John Horgan
Managing Director, Kepak Group
Changes during 2009
Mr Gerry Maguire
Managing Director, Slaney Foods Group
Resigned 21st May
Ms Anne Sawbridge,
Managing Director,
Cadburys Ireland
Term Expired 19th June
Mr Kieran Carolan, Jaguar
Capital
Mr Jim Hanley
CEO, Rosderra Irish Meats
Mr Martin McMahon
Irish Creamery Milk
Suppliers’ Association
(ICMSA)
Mr Ned Morrissey
Chairman, National Poultry
Committee, IFA
Appointments
Mr Michael Doran (25th February)
Term expired 27th February
Mr Gerry Maguire (re-appointed 7th May)
Term expired 2nd October
Mr Henry Burns (re-appointed 8th December)
Mr John Horgan (re-appointed 8th December)
Mr Michael Maguire (re-appointed 8th December)
Mr Ned Morrissey (re-appointed 8th December)
Term Expired 5th October
Mr Tommy Fitzgibbon (re-appointed 6th October)
Changes during 2009
Resigned 9th January
Mr Michael Maguire
Appointed 30th January
Mr Tim Cullinan
Chairman
Ms Bríd Rodgers
Former Minister for
Agriculture and Rural
Development, Northern
Ireland
Members
Mr John Bryan
Chairman, National
Livestock Committee IFA
Chairman
Changes during 2008
Mr Kieran Dunne
L and K Dunne Nurseries
Appointed Chairman
8th February
Mr Kieran Dunne
Mr Cornelius Traas
The Apple Farm
Members
Dr Declan Troy
Head of Centre, National
Food Centre, Teagasc
Changes during 2008
Appointed 25th February
Mr Vincent Carton, Carton Group
Mr Michael Cronin
Department of Agriculture,
Fisheries and Food
Mr Cornelius Trass, The Apple Farm
Mr John Cunningham
Ex- Dairygold Food Products
Term expired 7th July
Mr Michael Cronin (re-appointed 8th October)
Mr Eamonn Howell
Trading Manager,
Musgraves
Term expired 29th May
Mr Brendan Smyth (re-appointed 5th June)
Mr Dermott Jewell
Chief Executive, Consumers’
Association of Ireland
Term expired
11th September
Mr Declan Troy (re-appointed 1st October)
Mr John O’Leary
Deputy President, Irish
Creamery Milk Suppliers’
Association (ICMSA)
bord bia
horticulture board
Mr Brendan Smyth
Former Chief Adviser,
Glanbia
Mr Vincent Carton
Chief Executive, Carton Group
Mr Paul Nolan
Group Development
Manager, Dawn Group
Ou r g over n a n ce
bord bia quality
assurance board
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
Terms expired
27th September
Ms Rachel Doyle (re-appointed 15th October)
Ms Caroline Keeling (re-appointed 15th October)
Mr Michael Slattery,
Mushroom Grower
Mr Maurice Whelton (re-appointed 15th October)
Mr Gary McCarthy
Chairman, Fruit Growers
Association
Ms Grainne Murphy
Annaveigh Plant Ltd
Mr Ciaran O’Brien
Peter O’Brien Landscapes
Mr Maurice Whelton
Potato Grower
Ms Celestine Ward
Ballinasloe Garden Centre
Bord Bia Irish Food Board Annual Report 2008
45
1Beatrice Blake, Manager, Bord Bia
London pictured with Chris Welsh,
Serious Food Distribution at Bord
Bia’s UK Foodservice Seminar, Dublin.
2TÁnaiste Mary Coughlan pictured
with John Keane, Manager, Bord Bia
Italy during a tour of CIBUS, Italy.
3Helen King, Senior Business Analyst,
Bord Bia pictured with Rory
McDonnell, Consumer Planning
Manager, Diageo, at Food and
Drink Industry Day, IMI, Sandyford.
4Minister for Agriculture, Fisheries
and Food, Brendan Smith TD and
Bord Bia Chief Executive Aidan
Cotter pictured at the Silver Hill
Foods stand during the Anuga
trade fair, Germany.
1
2
3
4
46
Ou r a ccou n ts
Financial Statements 2008
Our accounts
48 Report of the Comptroller and Auditor General
50 Statement of Accounting Policies
52 Income and Expenditure Account
53 Statement of Total Recognised Gains and Losses
54 Balance Sheet
55 Cash Flow Statement
56 Notes Forming Part of the Financial Statements
67 Marketing Finance Grant Payments 2008
Bord Bia Irish Food Board Annual Report 2008
47
REPORT OF THE COMPTROLLER
AND AUDITOR GENERAL
for presentation to the Houses of the Oireachtas
I have audited the financial
statements of An Bord Bia for the
year ended 31 December 2008 under the An Bord Bia Act, 1994.
The financial statements, which have
been prepared under the accounting
policies set out therein, comprise the
Statement of Accounting Policies, the
Income and Expenditure Account,
the Statement of Total Recognised
Gains and Losses, the Balance Sheet,
the Cash Flow Statement and the
related notes.
Respective
Responsibilities of
the Board and the
Comptroller and
Auditor General
An Bord Bia is responsible for
preparing the financial statements in
accordance with the An Bord Bia Act,
1994 and for ensuring the regularity
of transactions. An Bord Bia
prepares the financial statements in
accordance with Generally Accepted
Accounting Practice in Ireland. The
accounting responsibilities of the
Members of the Board are set out in the Corporate Statement.
My responsibility is to audit the
financial statements in accordance
with relevant legal and regulatory
requirements and International
Standards on Auditing (UK and
Ireland).
I report my opinion as to whether
the financial statements give a true
and fair view, in accordance with
Generally Accepted Accounting
48
Practice in Ireland. I also report
whether in my opinion proper
books of account have been kept. In
addition, I state whether the financial
statements are in agreement with the
books of account.
I report any material instance where
moneys have not been applied for
the purposes intended or where the
transactions do not conform to the
authorities governing them.
I also report if I have not obtained
all the information and explanations
necessary for the purposes of my
audit.
I review whether the Statement on
Internal Financial Control reflects An
Bord Bia’s compliance with the Code
of Practice for the Governance of
State Bodies and report any material
instance where it does not do so,
or if the statement is misleading or
inconsistent with other information
of which I am aware from my audit
of the financial statements. I am
not required to consider whether
the Statement on Internal Financial
Control covers all financial risks and
controls, or to form an opinion on
the effectiveness of the risk and
control procedures.
I read other information contained
in the Annual Report, and consider
whether it is consistent with the
audited financial statements. I
consider the implications for my
report if I become aware of any
apparent misstatements or material
inconsistencies with the financial
statements.
Bord Bia Irish Food Board Annual Report 2008
Basis of Audit Opinion
In the exercise of my function as
Comptroller and Auditor General,
I conducted my audit of the
financial statements in accordance
with International Standards on
Auditing (UK and Ireland) issued
by the Auditing Practices Board
and by reference to the special
considerations which attach to the
State bodies in relation to their
management and operation. An
audit includes examination, on a
test basis, of evidence relevant to
the amounts and disclosures and
regularity of the financial transactions
included in the financial statements.
It also includes an assessment
of the significant estimates and
judgments made in the preparation
of the financial statements, and of
whether the accounting policies
are appropriate to An Bord Bia’s
circumstances, consistently applied
and adequately disclosed.
I planned and performed my audit
so as to obtain all the information
and explanations that I considered
necessary in order to provide me
with sufficient evidence to give
reasonable assurance that the
financial statements are free from
material misstatements, whether
caused by fraud or other irregularity
or error. In forming my opinion I also
evaluated the overall adequacy of the
presentation of information in the
financial statements.
Ou r a ccou n ts
Opinion
In my opinion, the financial
statements give a true and fair
view, in accordance with Generally
Accepted Accounting Practice in
Ireland, of the state of An Bord Bia’s
affairs at 31 December 2008 and of
its income and expenditure for the
year then ended.
In my opinion, proper books of
account have been kept by An Bord
Bia. The financial statements are
in agreement with the books of
account.
John Buckley
Comptroller and Auditor General
16 October 2009
Bord Bia Irish Food Board Annual Report 2008
49
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.
Subsidiary Company:
The Board operates a wholly-owned
subsidiary company which does
not trade. Due to the nature of
the company, it is not considered
appropriate to prepare consolidated
financial statements.
Income from the Quality Assurance
Schemes Special Funding, the
Food Dude National Roll-Out, the
EU “Food Dude” and Floriculture
programmes 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 recovery
of overseas VAT under the EU 8th
Directive represents the actual
receipts from this source in the
period.
(d) Fixed Assets and
Depreciation:
Fixed assets are stated at cost
less accumulated depreciation.
Depreciation is calculated to write off
the original cost less the estimated
residual value of tangible assets on
a straight line basis at the following
annual rates:
Leasehold improvements
10%, 6.67%
Furniture & fittings
12.5%
Office equipment
Computer equipment
(c) Income:
Income shown in the financial
statements under Oireachtas Grantin-Aid represents the actual receipts
from this source in the period.
50
Motor vehicles
20%
331⁄3%
20%
(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.
In respect of the Bord Bia main
scheme, superannuation costs
are at present funded over the
employee’s period of service by way
of contributions to a fund managed
by trustees. The Financial Measures
(Miscellaneous Provisions) Act, 2009,
provides for the transfer of the Bord
Bia Superannuation Schemes, and
liabilities relating thereto, from a
funded to a “Pay-as-you-Go” basis,
for the consequential winding up of
the Bord Bia Superannuation Fund
and for the transfer of the assets of
this Fund to the State.
With regard to employees of the
former Bord Glas, a non-contributory
defined benefit pension scheme
and a contributory spouses and
children’s scheme is operated on
an administrative basis pending
the authorisation of the schemes
by the Minister for Finance. Under
the provisions of An Bord Bia
(Amendment) Act, 2004, all staff
of the former Bord Glas were
transferred to Bord Bia with effect
from 1 July 2004. The Act also
provided that liability for pension
benefits awarded to all former staff
of Bord Glas should be transferred to
Bord Bia on terms and conditions no
less favourable than those applicable
before the transfer.
Ou r a ccou n ts
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.
Rentals in respect of operating leases
are charged to the Income and
Expenditure Account as incurred.
Actuarial gains or losses arising on
scheme liabilities are reflected in the
Statement of Total Recognised Gains
and Losses and a corresponding
adjustment is recognised in the
amount recoverable from the
Department of Agriculture, Fisheries and Food.
(i) Stocks:
Pension liabilities represent the present
value of future pension payments
earned by staff to date. Deferred
pension funding represents the
corresponding asset to be recovered
in future periods from the Department
of Agriculture , 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.
(h) Capital Account:
The Capital Account represents the
unamortised amount of income used
to purchase fixed assets.
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.
(l) Taxation:
Provision has been made in respect
of all VAT liabilities and the PRSI
contributions of Irish persons
attached to overseas offices.
Bord Bia Irish Food Board Annual Report 2008
51
Income and Expenditure Account
year ended 31 December 2008
2008
€’000
2007
€’000
1a
26,851
27,705
Food Dude National Roll Out
1c
3,700
3,320
Quality Assurance Schemes
1d
3,900
2,981
Other
1e
387
238
Statutory Levy
1b
4,957
5,306
Project and Other Income
1f
3,769
4,434
Notes
Income
Oireachtas Grant-in-Aid
Oireachtas - Other Funding:
Net deferred funding for pensions
Transfer from Capital Account
(57)
15b
43,507
43,888
126
249
43,633
44,137
2
Total Income
(96)
Expenditure
Marketing and Promotional Expenditure
3
21,966
22,957
Food Dude National Roll Out
1c
3,700
3,512
Quality Assurance Schemes
1d
3,900
3,061
Marketing Finance
4
555
385
Pay
5
9,187
9,164
Operating Expenses
6
4,508
4,862
43,816
43,941
Total Expenditure
(Deficit)/Surplus for Year:
Balance at 1 January
Balance at 31 December
The results for the year relate to continuing operations.
The Statement of Accounting Policies and Notes 1 to 18 form part of these financial statements.
Dan BrowneAidan Cotter
Chairman
Chief Executive
6 October 2009
52
Bord Bia Irish Food Board Annual Report 2008
(183)
196
250
54
67
250
Ou r a ccou n ts
Statement of Total Recognised Gains
and Losses
year ended 31 December 2008
Notes
2008
€’000
(183)
(Deficit)/Surplus for Year:
2007
€’000
196
Actuarial Loss/(Gain) on Pension Scheme Liabilities
15a
5,972
(1,007)
Adjustment to Deferred Pension Funding
15a
(5,972)
1,007
(183)
196
Total Recognised Gains and Losses for the Year
The Statement of Accounting Policies and Notes 1 to 18 form part of these financial statements.
Dan BrowneAidan Cotter
Chairman
Chief Executive
6 October 2009
Bord Bia Irish Food Board Annual Report 2008
53
Balance Sheet
as at 31 December 2008
Notes
2008
€’000
2007
€’000
Assets Employed
Fixed Assets
Tangible Assets
7
507
633
Financial Assets
8
8
8
515
641
11
11
1,567
1,597
8,151
7,184
9,729
8,792
8,978
7,607
751
1,185
692
943
59
242
574
883
Current Assets
Stocks
Debtors
9
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)
12
Net Current Assets
Total Assets less Current Liabilities before Pensions
Deferred Pension Funding
15b
8,925
3,013
Pension Liabilities
15b
(8,925)
(3,013)
Total Assets less Current Liabilities
574
883
507
633
67
250
574
883
Financed by
Capital and reserves
Capital account
2
Income and expenditure account
The Statement of Accounting Policies and Notes 1 to 18 form part of these financial statements.
Dan BrowneAidan Cotter
Chairman
Chief Executive
6 October 2009
54
Bord Bia Irish Food Board Annual Report 2008
Ou r a ccou n ts
Cash Flow Statement
year ended 31 December 2008
2008
€’000
2007
€’000
Reconciliation of (Deficit)/Surplus to Net Cash Inflow from Operating Activities:
(Deficit)/Surplus for year
(183)
196
Net Interest receivable
(300)
(181)
191
185
(126)
(249)
Depreciation
Capital account transfer
8
158
30
425
0
(1)
Increase in trade creditors
161
1,020
Increase/(Decrease) in taxation and PRSI
169
(22)
Increase in Accruals & Deferred Income
790
1,104
Net cash inflow/(outflow) from operating activities
740
2,635
740
2,635
300
181
1,040
2,816
Loss on Disposal of tangible fixed assets
Decrease in Debtors
Increase in stocks
CASHFLOW STATEMENT
Net cash inflow from operating activities
Returns on investment and servicing of finances:
Bank interest received
Net current inflow/(outflow) of funds
Capital expenditure
Payment to acquire tangible assets
(73)
Increase in Cash
967
2,723
967
2,723
Net funds at 1 January
7,184
4,461
Net funds at 31 December
8,151
7,184
(93)
Reconciliation of net cash flow to movement of funds
Increase in Cash
The Statement of Accounting Policies and Notes 1 to 18 form part of these financial statements.
Dan BrowneAidan Cotter
Chairman
Chief Executive
6 October 2009
Bord Bia Irish Food Board Annual Report 2008
55
Notes forming part of the Financial
Statements
year ended 31 December 2008
1.Income
(a) Included in Oireachtas Grant-in-Aid is €5,205,000 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) 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.
(c) Amounts included under the heading of Food Dudes - National Roll Out totalling €3,700,332 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 Dudes programme on a national basis.
(d) Amounts included under the heading of the Beef Quality Assurance Scheme Special Fund totalling
€3,900,000 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 Beef Quality Assurance Scheme.
(e) 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
2008
€’000
2007
€’000
387
114
EU "Food Dude" Programme
76
Local Food Conference - Speciality Foods
31
Organic Promotion
17
387
238
(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 €298,298 (2007: €180,958).
2.
Capital account
2008
€’000
2007
€’000
633
883
Amount capitalised in respect of purchased tangible assets
73
93
Net amount realised on disposal of assets
(8)
(158)
Amortisation in line with asset depreciation
(191)
(185)
Net transfer to Income and Expenditure Account
(126)
(250)
507
633
Balance at 1 January
Balance at 31 December
56
Bord Bia Irish Food Board Annual Report 2008
Ou r a ccou n ts
3.Marketing and Promotional Expenditure
2008
€’000
2007
€’000
Promotions
4,661
5,282
Market Development
5,342
5,879
Trade Fairs and Exhibitions
3,101
3,021
Research
2,037
2,157
Other information services
1,320
1,279
Quality Assurance
1,075
901
Trade Development
3,406
3,472
Other client services
1,024
966
21,966
22,957
2008
€’000
2007
€’000
479
101
Marketing Improvement Assistance Programme
26
176
Market Participation Programme
41
91
9
17
555
385
Information Services:
Client liaison
4.Marketing Finance
Marketing Assistance Programme
Business Support Programme
Bord Bia Irish Food Board Annual Report 2008
57
Notes forming part of the Financial
Statements
year ended 31 December 2008
5.Pay
2008
€’000
2007
€’000
Marketing and Promotion
7,668
7,755
Administration
1,455
1,349
64
60
9,187
9,164
Wages and salaries
7,694
7,592
Social welfare costs
589
581
Pension costs (Note 15c)
904
991
9,187
9,164
Pensions
Pay costs are comprised of:
The total number of employees (including part-time persons) at 31 December 2008 was 95 (2007: 91).
The cost of certain part-time employees amounting to €229,882 (2007: €183,056) is included in Marketing and Promotional Expenditure.
6.
Operating expenses
2008
€’000
2007
€’000
559
629
Rent, rates and insurance
1,324
1,316
Telecommunications costs
227
180
General business expenses
2,174
2,370
25
24
191
185
8
158
4,508
4,862
Board and Sub-Board Members' fees and expenses
Audit fee
Depreciation (Note 7)
Loss on disposal of tangible assets
58
Bord Bia Irish Food Board Annual Report 2008
Ou r a ccou n ts
7.Tangible Fixed Assets
Furniture Computer
Office
Improvements
to Leasehold and Fittings Equipment Equipment
Property
Motor
Vehicles
Total
€’000
€’000
€’000
€’000
€’000
€’000
1,667
661
541
480
53
3,402
Additions in year
7
60
6
73
Disposals
(1)
(142)
(13)
(156)
1,667
667
459
473
53
3,319
1,274
572
457
436
30
2,769
94
22
56
9
10
191
(1)
(135)
(12)
1,368
593
378
433
40
2,812
At 31 December 2008
299
74
81
40
13
507
At 31 December 2007
393
89
84
44
23
633
Cost
At 1 January 2008
At 31 December 2008
Depreciation
At 1 January 2008
Charged in year
Disposals
At 31 December 2008
(148)
Net Book Amounts
8.
Financial Fixed Assets
The Irish Food Board (An Bord Bia) France SARL is wholly-owned by An Bord Bia. The company does not trade.
It rents property on behalf of Bord Bia and these costs are fully reflected in these financial statements.
Bord Bia Irish Food Board Annual Report 2008
59
Notes forming part of the Financial
Statements
year ended 31 December 2008
9.
Debtors
2008
€’000
2007
€’000
1,432
1,439
Amounts falling due within one year:
Trade debtors
(488)
(505)
944
934
623
663
1,567
1,597
2008
€’000
2007
€’000
3,174
3,013
Taxation and social welfare (Note 11)
274
264
Withholding tax
556
397
4,488
3,928
486
5
8,978
7,607
2008
€’000
2007
€’000
201
195
73
69
274
264
Less: Provision for Bad Debts
Prepayments and accrued income
10. Creditors
(amounts falling due within one year)
Trade creditors
Accruals
Deferred income
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 non-commercial State-sponsored body.
It is liable to employer taxes in Ireland and complies with related withholding, reporting and payment
obligations in all countries in which it operates.
60
Bord Bia Irish Food Board Annual Report 2008
Ou r a ccou n ts
12. Creditors
(amounts falling due after more than one year)
Provisions for Liabilities and Charges
At 1 January
2008
€’000
Provided/(Released)
during year
€’000
At 31 December
2008
€’000
Value Added Tax
493
(341)
152
Provision for Dilapidations
450
90
540
Total
943
(251)
692
The provisions for liabilities and charges are management’s best estimate of the potential liability that exists at
31 December 2008. The Board expect that these provisions will be settled in a period of more than one year.
These provisions have not been discounted as the estimates are not considered material.
13. Commitments
(a) Capital Commitments
An Bord Bia had no capital commitments at the year end.
(b) Financial Incentives
There were no commitments in respect of Marketing Finance Programmes at the year end.
(c) Operating Leases
Operating leases comprise leases on premises. Leasing commitments payable during the next twelve months
amount to €387,388 made up as follows:
€’000
Payable on leases on which the commitment expires:
Within one year
91
Within two to five years
148
Six years and over
148
387
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:
2008
€’000
2007
€’000
879
559
Marketing Improvement Assistance Programme
51
77
Market Participation Programme
62
103
Business Support Programme
12
21
1,004
760
Marketing Assistance Programme
Management estimate that the contingent liabilities under this heading will be settled within one year.
Bord Bia Irish Food Board Annual Report 2008
61
Notes forming part of the Financial
Statements
year ended 31 December 2008
15.Superannuation
2008
2007
Total
€’000
Funded
€’000
Unfunded
€’000
Total
€’000
Funded
€’000
Unfunded
€’000
860
811
49
1,056
1,003
53
1,166
1,075
91
1,028
943
85
(1,122)
(1,122)
–
(1,094)
(1,094)
–
140
990
852
138
a) (i) Pension costs
Current service cost
Interest cost
Expected return on
scheme assets
Total
904
764
a) (ii) Analysis of amount recognised in Statement of Total Recognised Gains and Losses
Experience gains and (losses)
(7,605)
(7,526)
(79)
(1,715)
(1,743)
28
1,633
1,465
168
2,722
2,506
216
(5,972)
(6,061)
89
1,007
763
244
Present value of scheme
obligations
21,732
20,120
1,612
20,380
18,756
1,624
Fair value of scheme
assets
12,807
12,807
–
17,367
17,367
–
Net liability
(8,925)
(7,313)
(1,612)
(3,013)
(1,389)
(1,624)
8,925
7,313
1,612
3,013
1,389
1,624
Changes in assumptions
b) (i) Net Pension Liability
Deferred Funding Asset
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.
The Department of Finance has given written sanction for the transfer of the Bord Bia Superannuation Schemes,
and liabilities relating thereto, from a funded to a “Pay-as-you-Go” basis, for the consequential winding up of
the Bord Bia Superannuation Fund and for the transfer of the assets of this Fund to the State.
The deferred funding asset for pensions as at 31 December 2008 was €8,925,200 (2007: €3,013,100).
62
Bord Bia Irish Food Board Annual Report 2008
Ou r a ccou n ts
15.Superannuation (continued)
2008
Total
€’000
Funded
€’000
2007
Unfunded
€’000
Total
€’000
Funded
€’000
Unfunded
€’000
b) (ii) Present value of scheme obligations
Present value of scheme
obligations at beginning
of year
Current Service Cost
Interest Costs
20,380
18,756
1,624
21,464
19,673
1,791
860
811
49
1,056
1,003
53
1,166
1,075
91
1,028
943
85
(713)
(625)
(88)
(2,496)
(2,252)
(244)
39
103
(64)
(672)
(611)
(61)
21,732
20,120
1,612
20,380
18,756
1,624
17,367
17,367
–
17,349
17,349
–
Expected return on
scheme assets
1,122
1,122
–
1,094
1,094
–
Actuarial gain/(loss)
(6,685)
(6,685)
–
(1,489)
(1,489)
–
Actuarial (gain)/loss
Pension contributions and benefits paid
Present value of scheme
obligations at end of year
b) (iii) Change in scheme assets
Fair value of scheme
assets at beginning of year
Employer contributions
900
900
–
1,026
1,026
–
Member contributions
363
363
–
327
327
–
(260)
(260)
–
(940)
(940)
–
–
17,367
17,367
–
990
852
138
(1,086)
(1,025)
(61)
(96)
(173)
77
Benefits paid
Fair value of scheme
assets at end of year
12,807
12,807
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
904
764
140
(961)
(897)
(64)
(57)
(133)
76
Bord Bia Irish Food Board Annual Report 2008
63
Notes forming part of the Financial
Statements
year ended 31 December 2008
15.Superannuation (continued)
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. The contributions of employees and Bord Bia are at present paid
into a fund managed by the trustees. It is intended that this scheme will be amended to a “Pay-as-you-Go”
basis in the near future.
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 actuarial valuation of the Bord Bia Superannuation Schemes was carried out as at 31 December 2008 for the
purpose of preparing this FRS17 disclosure. The Fund assets are stated at their current bid price at each balance
sheet date. The liabilities and costs have ben 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:
31/12/2008
31/12/2007
Discount Rate
5.75%
5.60%
Inflation Rate
2.00%
2.50%
Salary increases
4.25%
4.75%
Pension increases
3.75%
4.25%
Return on assets
5.77%
6.28%
The market value of the assets of the Fund and the expected rates of return were:
Long-term rate of
return expected
at 31-Dec-08
Long-term rate of
return expected at
31-Dec-07
Value at
31-Dec
2007
€’000
Equities
7.50%
5,756
7.00%
11,365
Bonds
4.25%
5,725
4.75%
4,431
Property
6.50%
689
6.00%
1,077
Cash
3.00%
637
4.00%
494
Total market value of superannuation fund assets
64
Value at
31-Dec
2008
€’000
Bord Bia Irish Food Board Annual Report 2008
12,807
17,367
Ou r a ccou n ts
15.Superannuation (continued)
The following amounts were measured in accordance with the requirements of FRS17.
Demographic assumptions
The mortality table is 107.5% PN(M/F)A 00 base tables with 1.25% per annum future improvements from
2000. The expected lifetime of a participant who is aged 65 and the expected lifetime (from age 65) of a
participant who will be aged 65 in 25 years are shown in years below based on the above mortality tables.
Age
Males
Females
65
20.3
23
65 in 25 years
23.3
26
The scheme assets at the year end comprised:
2008
2007
Equities
44.9%
65.5%
Property
5.4%
6.2%
Bonds
44.7%
25.5%
Other
5.0%
2.8%
100.0%
100.0%
€’000
€’000
Actual return
(5,563)
(395)
Less: expected return
(1,122)
(1,094)
(6,685)
(1,489)
Actual return less expected return on scheme assets
In developing the expected long-term rate of return on assets assumption, regard is 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 is then weighted based on the actual asset
allocation to develop the expected long-term rate of return on assets assumption for the portfolio.
Bord Bia Irish Food Board Annual Report 2008
65
Notes forming part of the Financial
Statements
year ended 31 December 2008
15.Superannuation (continued)
d) History of defined benefit obligations, assets and experience gains and losses
2008
2007
2006
2005
2004
€’000
€’000
€’000
€’000
€’000
Defined benefit obligations
21,732
20,380
21,464
21,787
18,481
Fair value of scheme assets
12,807
17,367
17,349
14,616
11,378
Deficit on Superannuation Schemes
(8,925)
(3,013)
(4,115)
(7,171)
(7,103)
Experience adjustments on scheme obligations
(920)
(226)
236
378
135
Experience adjustments on scheme assets
(6,685)
(1,489)
736
1,642
402
e) Contributions
Bord Bia expects to contribute €893,300 to the Superannuation schemes in 2009.
f) FRS 17
The information on pensions has been presented in line with new disclosure requirements required from 2008
under an amendment to FRS 17.
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.Approval of Financial Statements
The Board approved the financial statements on 6 October 2009.
66
Bord Bia Irish Food Board Annual Report 2008
Ou r a ccou n ts
MARKETING FINANCE GRANT PAYMENTS 2008
Company
Amount €
Company
Amount €
ABC Nutrition Ltd
7,500
Kelly’s Organic Dairy Products Ltd
Aine’s Chocolates Ltd
5,000
Kiely White Management Ltd
Ardrahan Dairy Products Ltd
26,000
Kildare Growers Ltd
6,358
120
4,235
Babylon Foods Ltd
5,948
Kilfera Foods Ltd
Bia Kid Ltd
7,154
Kohinoor Ltd
Boozeberries Ltd
3,015
Laurence Whelan Potatoes
8,000
Broadway Bagels Ltd
8,902
Limerick Sauce Company
1,125
Bunratty Mead and Liqueur Co Ltd
5,367
16,441
10,000
Long Life Plants Ltd
10,000
Cahills Farm Cheese
6,871
M & S Browne Ltd
15,000
Carrigaline Farmhouse Cheese
4,034
Magnetti Foods Ltd
8,470
Celtic Chocolates Ltd
9,533
Mannings Bakery Ltd
24,158
2,000
Marchminder Ltd t/a Cooleeney Farmhouse Cheese
17,604
Martin and Pritchard Ltd t/a Organic Herb Company
3,098
McGeoughs Butchers
8,405
Mileeven Fine Foods Ltd
4,771
Milleens Cheese Ltd
3,569
Mr Middleton Ltd
9,200
Corleggy Cheese
Country Cooking Company Ltd
Crossogue Preserves
Cully and Sully Ltd
10,000
4,485
12,500
Cybercolors Ltd
8,478
Danucci Ltd
6,796
Dorans Nursery Ltd
6,966
Douglas Hide Food Company
9,093
Dunhill Cuisine Ltd
6,690
Durrus Farmhouse Cheese
4,408
Emerald Cheese Company
1,011
Fergal Molloy Fruit and Veg Ltd
2,490
Fitzgerald Nurseries Ltd
5,448
Flair Confectionery
5,000
Flannery’s Nurseries Ltd
2,061
Follain Teo
Garryvoe Foods Ltd
Glenilen Farm Ltd
Gubbeen Farmhouse Products Ltd
10,203
5,554
17,246
2,000
Heatherfield Ltd t/a Seerys
15,000
Hot Irishman
18,000
Hyde Ltd
25,000
Inagh Farmhouse Cheese Ltd
12,001
Irish Cone and Wafer Company Ltd
3,179
Irish Country Cuisine
3,800
Irish Flapjack and Muffin Company Ltd
J Hick and Sons Gourmet Foods Ltd
J & L Grubb Ltd
Jinny’s Bakery
JM Food Services Ltd
Kellys of Newport
566
1,753
10,927
5,487
11,797
4,544
Newmarket Foods Ltd t/a Gourmet Foods
Noirins Bakery
627
637
O’Donovans (Cork) Manufacturing Ltd
2,435
Panelto Ltd
3,500
Pie Kitchen
2,255
Prue and Simons Ltd
1,716
Sillis Green Veg Ltd
12,100
Skelligs Choc Co and the Cocoa Bean
Chocolate Co
6,215
Solaris Botanicals
5,000
Sowans Organic Bread Mix
1,864
Springfield Nurseries Ltd
5,400
Stable Diet Ltd
4,882
Tara’s Handmade Quality Foods Ltd
8,321
The Alternative Pizza Company Ltd
2,088
The Burren Smokehouse
1,572
The Little Drinks Company Ltd
3,500
The Real Food Company Ltd
6,000
Trudies Catering Kitchen Ltd
6,000
Wicklow Fine Foods
6,369
Wildes Irish Handmade Chocolates
Total
148
554,988
Bord Bia Irish Food Board Annual Report 2008
67
68
Bord Bia Irish Food Board Annual Report 2008
In accordance with the Official Languages Act 2003 this publication is available in Irish
Growing the success of Irish food & horticulture
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