ANNUAL REPORT
2007
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 2007.
Dan Browne
Chairman
Our Mission
To drive the success of a world class Irish food, drink
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 and Developing.
Informing
Bord Bia provides analysis and knowledge of consumer
and customer preferences and markets for the industry,
in Ireland and worldwide.
Marketing
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.
Promoting
Bord Bia invests in appropriate trade communications
to promote the market position of the Irish food, drink
and horticulture industry, nationally and internationally.
We also target specific audiences through branding,
advertising and public relations.
Developing
Bord Bia provides resources and develops strategies
to enhance the industry’s position in its target markets.
Further information: You’ll see this symbol used throughout
this report. These point you towards further information
within the report. We hope you find these useful.
Contents
02
Target Markets
06
Export Figures in Detail
08
Strategic Priorities
16
Chairman’s Statement
20
Chief Executive’s Review
25
Meat and Livestock
29
Consumer Foods, Dairy and Drinks
32
Small Business and Speciality Foods
35
Horticulture
38
Quality Assurance
39
Services
€1.3bn
40
Corporate Responsibility Statement
42
Statement on Internal Financial Control
2007
€8,681m
43
Bord Bia – Board
44
Bord Bia – Consumer Foods Board
45
Bord Bia – Meat and Livestock Board
46
Bord Bia – Quality Assurance Board
47
Bord Bia – Horticulture Board
48
Organisation Structure
49
Staff Structure
50
Report of the Comptroller
and Auditor General
+45
52
Statement of Accounting Policies
54
Income and Expenditure Account
2007
€400m
55
Statement of Total Recognised
Gains and Losses
56
Balance Sheet
57
Cash Flow Statement
58
Notes Forming Part of
the Financial Statements
68
Marketing Finance Grant
Payments 2007
Value of exports +5% higher to €8.7 billion
This performance took place
against the challenges of significant
strengthening of the euro against
both sterling and the US dollar,
rising input costs and continuing
pressure on operating costs.
+5
%
2007
€8,681m
2006
€8,299m
Our business
At a glance - how Irish
Food, Drink and Horticulture
performed in 2007
A rise in export value of €1.3 billion since 2005
2005
€7,352m
Combined value of dairy,
prepared foods and beverages +8%
Dairy, prepared foods and
beverages showed the greatest
level of growth, fuelled by a strong
performance in Asia and solid
diversification in Europe.
+8
%
2007
€5,560m
2006
€5,124m
Our governance
This growth illustrates the industry’s
capacity to add significant value to
export performance in a relatively
short period of time.
Exports to Asia +45% to reach 2009 target
%
2006
€275m
Edible horticulture and cereals
exports boost growth by +13%
This result reflects a good
performance on the UK market,
particularly for mushrooms
and cereals.
+13
%
2007
€249m
Our accounts
Rapid growth in exports to Asia
places the industry ahead of its
target sales for the region, under
the Asia strategy. Exports to Asia
are 80% above 2002 levels.
2006
€219m
See pages 6 and 7 for details of export performance
Bord Bia | Irish Food Board | Annual Report 2007
1
Target Markets
Overall, export growth performance of 5% for Irish food, drink and horticulture in 2007 is
an impressive performance for an industry that faced significant challenges during the year.
Established markets, including Ireland, Britain, the Eurozone and the US, have generally
reached maturity of sales and distribution, showing high levels of food penetration and
competition. Despite financial pressures, due to the combination of rising input costs
and currency fluctuations, the Irish industry has shown remarkable resilience in achieving
growth in these markets.
New challenges, such as sustainability,
began to take hold in several markets
during the year. However, opportunities
also emerged with rising health
consciousness and with new legislation
on the labelling and advertising of
convenience foods emerging to support
the health trend. Bord Bia believes
that innovation remains essential for
successful sales growth in established
markets, focused clearly on consumer
demands.
It is in emerging markets that the
industry performed best in terms
of the speed of sales growth. More
importantly, perhaps, is the indication
that these markets are showing even
greater potential in terms of profitability.
The markets concerned are showing good
demand for luxury brands, particularly
in alcohol, and also in dairy ingredients,
which have been in short global supply.
In the meat category, the high value that
some markets attach to cuts considered
of lesser value in more established
markets represents a significant
opportunity.
2
The main emerging markets during the
year were China and Russia. However,
preparatory work took place in India,
in light of its future potential.
Progress in diplomacy and trade
links helped to enhance our access to
overseas markets in 2007 – notably in
Russia and Algeria for meat. At the same
time, a host of countries and global
organisations are seeking changes to
international trade providing challenges
that will affect our ability to conduct
business around the globe.
It is against this backdrop that Bord Bia
assisted its client companies during
the year to navigate the complex
global environment effectively.
Bord Bia | Irish Food Board | Annual Report 2007
Our business
UK
The home market’s significance came to the fore
in 2007, in response to the combined pressures
of cost increases and consumer food inflation. Input
price rises were fuelled by increased commodity prices
and food inflation reached 6.6% with price increases
only delivered for some suppliers in the last quarter of
2007. The home market’s value for local horticulture is
particularly significant, with an estimated 75% of output
consumed in Ireland. In addition, small food, drink
and horticulture businesses are uniquely reliant on
the home market for about 70% of their revenue.
With 42% of our food, drink and horticulture
output consumed in the sterling area, the UK remains
a significant trading partner for the industry. Facilitating
sales consolidation and growth in the UK was a key
focus for Bord Bia in 2007.
Building on the quality of local food, drink and
horticulture was a strategic priority for Bord Bia in 2007.
It will continue with measures such as the development
and application of the Qmark.
Our governance
Ireland
However, the strength of the euro against sterling
in the latter months of 2007 placed added pressure
on the strategy, and the UK remains a key challenge
for the industry into 2008.
Sustainability was one trend which emerged more strongly
during the year driven by British multiples. This is seen by
Bord Bia as a key marketing opportunity for the future.
Innovation is growing in importance as a key success
factor for supplier growth on the UK food market.
Our accounts
See page 38 for details on Qmark – Quality Assurance
72
%
72% of Irish consumers agree that food produced locally
results in higher quality products; this is a significantly higher
level of agreement than in Northern Ireland at 59% and
Britain at 55%. This indicates a strong level of consumer
loyalty to locally produced food.
Bord Bia | Irish Food Board | Annual Report 2007
%
5.8
5.8% is the average rate of growth of the top 10 innovating
food businesses in the UK market compared to a growth
rate of just 1.4% for their peers. It is indicative of the level
of investment required in innovation to ensure continued
growth in this market. Innovation is a strategic priority
for Bord Bia in servicing clients in the UK.
3
Target Markets
Europe
US
Diversifying into a variety of markets in Continental
Europe, particularly Euro zone territories, continued
to be a priority for Bord Bia during 2007.
The US dollar continued to weaken against all major
currencies and by the end of 2007 declined to €0.70.
Growth in both jobs and incomes slowed in the last
two quarters of 2007. The rising cost of living and static
income looks likely to lead to a decline in disposable
income among US consumers. Any decline in consumer
spending is likely to be caused by a cut in discretionary
spending and so food may increase its share of
disposable income. Nevertheless, Bord Bia predicts
that food industry growth will be challenging in this
environment. It is reassuring to note, however, that
despite the currency pressures, Irish food exports to the
US, mainly in dairy and beverages, expanded in 2007.
The importance of building trade relationships in
both continental and northern European markets
was evidenced by rising demand for dairy, beef
and prepared food. This is a particularly welcome
development, following the weakening of sterling
and the US dollar in late 2007, and the likely
continued pressure on exchange rates into 2008.
The year also saw Bord Bia investing in the foundations
of a premium beef marketing strategy, in anticipation
of greater competition in the Eurozone for Irish beef.
See page 29 for details on dairy and see page 31 for details on beverages
See page 25 for details on Meat and Livestock
%
4
%
31
51
31% is the share of exports of Irish food, drink and
horticulture sold in continental Europe. An increased
growth contribution came from beef, dairy and the
prepared foods sectors. Building trade relationships
in Europe remains a key priority for Bord Bia in order
to facilitate further diversification.
51% of the US food and drinks market is consumed outside
of the home. Considered the most successful foodservice
market in the world, knowledge of new trends is critical,
as trends in food and drink in the US tend to take hold
in Europe. For Bord Bia, the strategic significance of the
US market is mainly for growth in dairy and beverages.
However, it is increasingly important as a source of
knowledge for activating success for the entire industry
in many other markets.
Bord Bia | Irish Food Board | Annual Report 2007
Our business
Asia
Sales of Irish food and drink to Russia expanded
and improved profitability during 2007, in particular
for pigmeat, dairy ingredients and alcohol. The Board’s
priority in Russia focused on distribution and product
development. Leaning on the traditionally warm
welcome for Irish drinks exports in this market,
our SME’s in the beverage sector successfully built
business in this market in 2007.
Exports to these territories grew in 2007, dominated
by growth in food and drink exports to China – a
country that experienced GDP growth of 11.4% during
this period. Success for Irish food and drink products
in this region focused on dairy ingredients, drinks and
meat (particularly pigmeat). Bord Bia believes that the
expansion of Carrefour, Walmart and Tesco, alongside
the building of local trade relationships in the region,
represents opportunities for the growth of Irish food
and drink in these markets.
See page 31 for details on the beverages sector
Our governance
Russia
See page 13 for details on Asia Strategy
In Moscow, high-end supermarkets are growing by 25%
annually, showing an increasing appetite for premium
products. Targeting and securing profitable markets
is a key priority for Bord Bia in Russia.
Bord Bia | Irish Food Board | Annual Report 2007
Our accounts
25
%
%
30
Modern retail is growing at over 30% a year in India and still
represents only a 3% share of food retailing. While the rate
of growth is expected to be slower than in eastern Asia and
in particular China, developing a foothold in this market is
key for the future of Irish Food and Drink.
5
Export Figures in Detail
Exports of Irish Food & Drink (€m)
0
500
1000
1500
2000
2500
2,032
2,303
Dairy
1,716
1,818
Prepared Foods
1,600
1,570
Beef
1,376
1,439
Beverages
345
352
Seafood
240
Poultry
236
378
368
Pigmeat
193
Sheepmeat
Edible Horticulture
and Cereals
176
219
249
2006
200
Live Animals
6
170
2007
Bord Bia | Irish Food Board | Annual Report 2007
Our business
Exports of Irish Food & Drink by Sector
2006
€m
2007/2006
% +/-
Dairy
2,303
2,032
+13
Prepared Foods
1,818
1,716
+6
Beef
1,570
1,600
-2
Beverages
1,439
1,376
+5
Seafood
352
345
+2
Poultry
236
240
-2
Pigmeat
368
378
-3
Sheepmeat
176
193
-9
Edible Horticulture and Cereals
249
219
+14
Live Animals
170
200
-15
8,681
8,299
+5
16.2
16.8
-4
Total Food & Drinks
Amenity Horticulture
Our governance
2007 (p)
€m
(p) = provisional
Our accounts
Bord Bia | Irish Food Board | Annual Report 2007
7
Strategic Priorities
Our activities are fine-tuned to assist
us reach our objectives during
2007, 2008 and beyond.
8
Bord Bia | Irish Food Board | Annual Report 2007
Our business
At the heart of building sales success
is the need to influence and inform
consumers regarding the quality produce
available. We are building strong
relationships with consumers through
creative and integrated communications.
While this process begins with understanding needs,
at the core of enhancing consumer knowledge is an
emphasis on how our high-quality food is produced.
Certifying this production process is an essential step
in building consumer trust.
CONSUMER RELATIONSHIPS
As a result, the creative design and execution of our Ireland
market campaign during the year focused on positioning lamb
as an everyday treat, driving the versatility of beef, reinforcing
pork as surprisingly convenient and tasty and emphasising eggs
as a tasty and healthy evening meal option.
Our governance
Our target consumer in Ireland loves the idea of home
cooking as a healthy and fulfilling option, but – because
of time pressure and, in some cases, a lack of knowledge –
they feel it’s too big a chore. So our overall key message is
that cooking good-quality meals is a lot easier than you think.
Continuing to “stress the message”, our campaign ensured
that 94% of adults in Ireland saw Bord Bia television ad
campaigns in 2007. These were aired 3,000 times around
eight of the top-rated programmes in the country. This was
supported by advertising on 23 radio stations and, outdoors,
through shopperlight, shopping trolley, bus shelter and bus
superside advertising. Our press presence focused on
supplements in high-circulation titles.
See page 25 for details on Meat and Livestock
Bord Bia’s Quality Assurance mark was integrated into our
Ireland market advertising campaigns in 2007. The Quality
Assurance mark is the common identity for our quality-assured
beef, lamb, poultry, pork, eggs and horticulture. That assurance
covers the production of quality products from farm-to-fork
for retail, and from farm gate to dining plate in the case
of foodservice.
Quality assurance is a critical dimension of Bord Bia’s work
and underpins our product credibility. The Quality Assurance
mark is our way of developing consumer knowledge and
understanding of the standards to which food is produced
consistently – for their benefit and, increasingly, for the benefit
of the environment.
See page 38 for details on Quality Assurance
Bord Bia | Irish Food Board | Annual Report 2007
9
Our accounts
THE QUALITY MARK
Strategic Priorities
10
Bord Bia | Irish Food Board | Annual Report 2007
Our governance
Investment in market research and analysis
is important, but of greater strategic
significance is its use in creating business
opportunities for growth. Research and
analysis is also crucial to new product
innovation. The cycle of innovation is
continuously shortening and innovation
becomes even more significant in a
world of rising costs.
Our business
Information, combined with strong market
relationships, is key to ensuring successful
marketing and sales growth. Nowhere is
this more important and fundamental to our
success than in established, mature markets.
CATEGORY-FOCUSED INNOVATION
Bord Bia’s assistance to clients in the UK market in 2007
centred clearly on category-focused innovation services
with the objective of assisting sustainable listings in both
foodservice and retail channels.
Detailed research was carried out by Bord Bia to identify
and to assist clients to realise new product opportunities
in the categories of ice-cream, fresh lamb, soft cheese, hot
beverages, premium chocolate, soft drinks and frozen desserts.
Our accounts
CONSUMER-FOCUSED INNOVATION
Bord Bia’s Consumer Lifestyle Trends programme continued
in 2007 to update the industry on lifestyle behaviours of
consumers in 40 countries. The programme underpinned
the Foresight4FOOD customised service of research and
development. In addition, the programme facilitated visits
to key markets to explore new product opportunities.
This programme was linked to the Bord Bia Food and Drink
Industry Awards, in association with Ulster Bank, to celebrate
the success of consumer-focused new product development.
David McWilliams speaking at Bord Bia’s Food and Drink Industry Awards
2007 in the Mansion House, Dublin.
See page 39 for details on Information Services
Bord Bia | Irish Food Board | Annual Report 2007
11
Strategic Priorities
12
Bord Bia | Irish Food Board | Annual Report 2007
Our business
Prioritising markets is key to our
development and to maximise our return
on investment. Market prioritisation by
sector is the way in which we successfully
facilitate increased sales.
To assess priorities for marketing and sales, Bord Bia
examines the context and environment in which sectors are
operating and the unique challenges that they face as well
as the possibilities and opportunities available. With this
in mind, Bord Bia regularly reviews its market priorities
through its planning process and in consultation with the
industry and the trade – in order to deliver on key targets
for growth, expansion or improved market position.
Our governance
NEW POSITIONING FOR IRISH MEAT
2007 was a crucial year for Bord Bia in building the
foundations of a premium meat strategy. This involved
extensive consumer and trade customer research in over
12 markets, including researching the business models of
similar premium brands abroad. Work was carried out to
achieve “buy-in” by trade customers and to help to identify
market opportunities for premium meat. The strategy has
been developed to meet the challenge of greater competition
in Europe. The new strategy was launched in October 2007
to the European meat-buying community and trade media
at ANUGA in Cologne.
See page 25 for details on Meat and Livestock
ASIA STRATEGY
Our accounts
In 2007, the industry exceeded its target for sales
in Asia, with a rise of 45% in export sales (to €400m).
Bord Bia concentrated on raising awareness, building
trade relationships and opening access in these markets.
This strategy led to a series of consumer promotions.
In addition, extensive media coverage in this market played
a pivotal role in conveying a positive image of “Ireland the
Food Island”.
Building on this image, Bord Bia attended, with various dairy,
drinks and meat companies, Sial China, one of the largest and
most important food and beverage events in the region. In
relation to the marketing of Irish meat in the region, access
remained a significant issue. A series of meat seminars for
key decision makers in the Philippines and Indonesia focused
on highlighting our stringent control procedures, in order to
reassure potential customers of the quality of our product.
Bord Bia | Irish Food Board | Annual Report 2007
13
Strategic Priorities
14
Bord Bia | Irish Food Board | Annual Report 2007
Our business
The continued success and development
of the industry is a key focus for Bord Bia.
Driving the industry’s marketing strengths
will secure its position and develop its
future in competitive markets. Bord Bia
will continue to identify new opportunities
for the food, drink and horticulture
industries to assist companies and sectors
achieve greater levels of success.
RESOURCE OUTREACH FOR SME’S
Our governance
In 2007, Bord Bia launched Bord Bia Vantage – Centre of
Excellence for SME’s. It was set up to provide the necessary
resources for food, drink and horticulture SME’s to grow their
businesses. It facilitates growth through web, workshop and
business development programmes. Since its launch, the
website – bordbiavantage.ie – attracted an average of 1,000
visitors a month. In addition, 130 firms participated in
workshops on distribution for sales growth and eight firms
began an 18-month business development programme. Bord
Bia Vantage was officially launched to the Irish small business
community in November 2007.
Pictured at the launch of Bord Bia Vantage – Centre of Excellence for Small
Business were (left to right) Angela Kennedy, outgoing Chairman, Bord Bia;
Aidan Cotter, Chief Executive, Bord Bia and An Tánaiste and former
Minister for Agriculture, Fisheries and Food, Mary Coughlan TD.
See page 32 for details on Small Business and Speciality Foods
Our accounts
IMPROVING BRAND PERFORMANCE
With over 100 corporate members, the Brand Forum in
2007 broadened its appeal to include marketing executives,
marketing managers and CEO’s. Ideas on best-practice
branding, brand marketing workshops and breaking brand
news were shared through this network, reaching over 450
individuals in Irish food, drink and horticulture businesses.
Furthermore, customised services were provided to brand
owners for brand design, packaging, communications
consultancy and e-marketing services.
Padraig O’Ceidigh, Chairman, Aer Arann, keynote speaker at Bord Bia’s
annual Brand Forum Gala Dinner.
See page 22 for details on Brand Forum
Bord Bia | Irish Food Board | Annual Report 2007
15
Chairman’s Statement
Fortune favours the brave, they say. The year was full
of uncertainty and challenge, but it was also a year when
the Irish food, drink and horticulture industry once more
demonstrated resilience, adaptability and the capability
to perform at the highest levels across diverse markets.
Having exceeded the €8 billion mark for
the first time the previous year, food and
drink exports grew by an impressive 5%
in 2007, to comfortably exceed the €8.6
billion mark. This performance is even
more impressive, given the appreciation
of the euro against the industry’s two
most critical trading currencies. By the
year’s end, the euro had strengthened
significantly against the US dollar and
sterling. Add to that rising costs of
ingredients and energy, along with
continuing pressure from retailers to
rein in prices, and it is clear that the
Irish food, drink and horticulture industry,
our largest indigenous industry, has once
again demonstrated the vision and ability
to ride out the turbulent times.
A particularly notable feature of 2007
was how food prices became such a
major talking point both in the media and
among the public. Underscoring this was
a significant increase in world commodity
prices. In the grain sectors, poor harvests
and the rapid diversion of land to biofuel
products had a huge effect. In other
sectors, notably dairy, the 2007 “price
spike” took many analysts by surprise.
The longer-term pattern is difficult to
predict, but we are clearly entering a
period of greater volatility. Speed of
response will be critical in the coming
years for our industry.
Of course, for producers who benefited
directly from the rise in international
prices, 2007 brought many positives after
years of real price deflation. These sectors
Agri-food is deeply embedded in
saw the most significant price rises in the
Ireland’s culture, history and economic
Eurozone: dairy, bread and cereals, saw
life. Providing employment for
hikes of 8% and 5% respectively. The
approximately 163,000 people, it
impact of higher ingredients costs were
has a positive impact on virtually every
community in the country, but particularly felt by several sectors such as bakery,
baby food manufacturing, confectionery
in rural communities where its
and the drinks industries. For other
contribution to the local economy can
be vital. Contributing 8% to national GDP, sectors, where the production cycle
total output from the sector in 2007 was is longer, the real impact on prices
will only become clear in 2008.
over €20 billion which, when matched
against a relatively low import content,
tells a compelling story of vibrancy,
sustainability and a rich contribution
to the economy.
16
Competitiveness has been a front-line
issue in Irish economic debate over the
last number of years and in 2007 the
story was no different. Higher costs,
rising inflation and the continuing
appreciation of the euro will challenge
every supplier, even those focused
mainly on the home market, in 2008.
The consumer has taken on board
global concerns regarding the
environment, particularly with regard
to issues such as sustainability, carbon
footprints, animal welfare and so-called
“food miles”. This is particularly so in the
UK, which is by far our most important
market. Ireland has taken a strong
position regarding these matters and
continues to reinforce the “Ireland, the
Food Island” brand. Bord Bia will continue
to work with Irish companies to monitor
and address these consumer concerns
and to assist Irish companies to
strengthen their environmental
and sustainability messages.
Bord Bia | Irish Food Board | Annual Report 2007
Our business
Dan Browne
Chairman
The year 2007 also saw more resources
than ever being spent on new product
development. Bord Bia’s Food and Drink
Awards 2007 provided the most tangible
evidence of this: no fewer than 220
new products were submitted for
consideration in the six key categories.
This commitment to new product
development is vital as our industry
seeks to capture extra value and open
up potentially lucrative revenue streams
in the future.
During 2007, the World Trade
Organisation negotiations continued
without any sign of an imminent deal.
However, the pressure to conclude talks
remains, as does the potential challenge
a deal may pose to our industry. In the
case of the beef industry, where the
challenge is set to be the most acute,
Bord Bia has worked to put a strategy
of premiumisation and differentiation
in place, in order to garner the best
returns from the marketplace.
Bord Bia | Irish Food Board | Annual Report 2007
Bord Bia continued to play its role
in championing the success of Irish
food, drink and horticulture companies
throughout 2007. As a source of critical
market information and an agent of
promotion and marketing, Bord Bia
continues to help to secure new business
for our clients and to promote the range
and capacity of Ireland, the Food Island.
The past year was marked by many
new initiatives for the organisation
and a number merit special mention.
One of the outstanding success stories
of the year was undoubtedly Bloom.
Despite the best efforts of the Irish
weather, this showcase of Ireland’s
horticulture talent came alive over the
June bank holiday, attracting more than
50,000 visitors to the Phoenix Park.
It showcased the skills of Ireland’s top
garden designers and also highlighted
the work of our artisan food producers.
17
Our accounts
EU policy and international trade accords
can never be removed from any debate
on our industry. The direction of reform
of the EU’s Common Agricultural Policy
has been towards market liberalisation
and the process is set to continue.
Decoupling and the introduction of the
Single Farm Payment were two of the
most significant developments in recent
years and the next CAP “Health Check”
will consider further proposals relating
to the Single Farm Payment system. This
will also involve debate on the potential
abolition of dairy quotas from 2015.
To date, however, it should be noted
that the EU Commission has responded
cautiously to the strengthening of the
global dairy market, recommending
a 2% increase in dairy quotas for
the year 2008/09.
Our governance
“Bord Bia continues
to help to secure
new business for
our clients and
to promote the
range and capacity
of Ireland, the
Food Island”
Chairman’s Statement
The roll-out of the Food Dudes
programme was another important
milestone, reflecting the national
concerns about health and nutrition
and rising child obesity levels. Funded
by the Department of Agriculture,
Fisheries and Food, Food Dudes,
which commenced in April, encourages
children to consume more fresh fruit and
vegetables. It aims to reach 3,500 schools
and 445,000 children over five years.
Bord Bia’s important role in promoting
and implementing quality assurance
programmes continued in 2007. Now
incorporating beef, lamb, pigmeat,
poultry and eggs, as well as food and
amenity horticulture, the programmes
put Bord Bia at the very heart of
underpinning the quality reputation of
these sectors. In 2007, the programme
was extended to include feed mills and
other areas of the food supply chain.
With the launch of Bord Bia Vantage,
our commitment to the small business
sector was also enhanced. Designed
in partnership with small business
stakeholders, Bord Bia Vantage aims
to deliver pragmatic, meaningful and
relevant assistance directly to small
business managers. Structured as a threetier service, it incorporates Vantage Point,
an online resource for small businesses;
Vantage Plus, a suite of practical services
to address production and distribution;
and Vantage Partner, a business
development programme for companies
interested in substantial growth.
A number of important initiatives
in 2007 built on the success and
experience of previous years. Marketplace
brought over 200 international buyers
face to face with Irish food and drinks
companies in a series of rewarding
meetings. It is now being followed by
Marketplace Roadshow, which takes
Irish suppliers directly to the buyers’ own
markets. The Brand Forum continued its
important role as a meeting place and
information resource for brand managers
and owner-managers while the Bord Bia
Food and Drink Industry Awards 2007
provided a platform for the work of
innovative food and drink companies.
Through Foresight4FOOD, Bord Bia
provided an environment in which Irish
companies can test and scrutinise new
product concepts.
Also designed to assist smaller businesses
and food entrepreneurs was Bord Bia’s
Guide to Selling Through Farmers’
Markets, Farm Shops and Box Schemes.
A publication full of useful advice, it is a
timely reminder of how important those
specialist routes to market have become
in a short space of time.
18
In 2008, we look forward to the return
of some previously successful events,
this time with exciting new formats such
as the European Meat Forum. This event
is designed to raise the profile of Ireland
as a source of quality assured meat
products and niche premium beef.
Beef Expo Ireland will bring an added
new dimension to this promotional
activity, marking the first major
international conference and show
of pedigree beef cattle in Ireland.
Without the continued support and
goodwill of stakeholders throughout the
industry, Bord Bia’s ongoing initiatives
and achievements would not be possible.
On behalf of the Board, I would like to
thank all those, both within and outside
the organisation, who strive for
excellence and who share the vision
of a vibrant food industry, who value
its success and who understand its
importance within our economy
and community.
I would like to sincerely thank An
Tánaiste, Minister for Enterprise, Trade
and Employment Mary Coughlan TD
who, in her previous role as Minister for
Agriculture, Fisheries and Food, invited
me to assume the Chairmanship and,
of course, her former colleagues within
the Department who supported her in
this decision. I am both humbled and
honoured by the prospects of serving
the Irish agri-food industry in this new
capacity and I look forward to working
with colleagues both new and old and
within Bord Bia and in the wider food
industry over the coming years.
In congratulating Minister Mary Coughlan
on her appointment as Tánaiste, let me
also warmly welcome Minister Brendan
Smith TD to his new position of Minister
for Agriculture, Fisheries and Food, and
“back to the fold”. He has already served
within the Department as a Minster of
State and I look forward to working with
him and Minister of State with special
responsibility for Food and Horticulture,
Trevor Sargent TD, who both share with
us a vision of a diverse and qualityfocused food and drink industry. Within
the Department of Agriculture, Fisheries
and Food, I would like to acknowledge
Secretary General Tom Moran and his
staff who work closely with Bord Bia
on a day-to-day basis and who are a
source of endless practical advice and
assistance to the development of our
marketing strategies.
Bord Bia | Irish Food Board | Annual Report 2007
I am not alone in holding the belief
that Bord Bia is one of the most dynamic
food boards in Europe and the range
and depth of its services is all the more
impressive when set against its relatively
small body of staff. As Chairman,
I have no doubt that the energy and
commitment of its Chief Executive,
Aidan Cotter, is pivotal to the culture
of achievement that drives this highperforming organisation and I would
like to commend him and his team for
another outstanding performance in a
challenging year. Indeed, I am confident
that the changes to the senior
management team, now in place
and necessitated by the retirements
signalled in last year’s report, will
continue to prepare and position
Bord Bia to effectively meet the
challenges and opportunities
confronting our organisation and the
industry it serves in the years ahead.
Our accounts
Bord Bia | Irish Food Board | Annual Report 2007
As an internationally-focused
organisation, Bord Bia is also grateful
for the unstinting support and assistance
of Ireland’s ambassadors and embassy
staff. As an organisation focused on Irish
industry, we also value the relationships
built up with fellow semi-state bodies
and with Government departments
committed to promoting Irish industry
at home and abroad.
Our governance
The contribution of the members
of the Board and the four Subsidiary
Boards does not always receive the
acknowledgement it richly deserves.
These are men and women who bring
a wealth of expertise to these roles
and whose contribution to debate on the
major issues facing the industry is always
infused with insight. There are, this year,
changes within the Boards and we thank
all those who have served and who are
now departing, and warmly welcome
those who are joining us for
the first time. Their commitment to
Bord Bia is most powerfully demonstrated
through their active participation
in the Committees of Audit, Strategy,
Remuneration and Pensions. These
are an essential part of the corporate
governance structure of Bord Bia and
the contribution of board members
allows the organisation to function
to the highest standards.
Our business
I am conscious, too, that I succeed
a Chairman whose insightfulness,
energy and commitment have left a
distinctive impression on Bord Bia over
the last three years. On behalf of the
entire organisation, I would like to thank,
most sincerely, outgoing Chairman Angela
Kennedy for her many services to Bord
Bia and the agri-food industry in this
time. There were many highlights over
her term of office but I would particularly
pinpoint her outstanding contribution
as champion of Bord Bia’s sponsorship
of the Ryder Cup in 2006. Bord Bia
Vantage – the Centre of Excellence
for Small Business, was of particular
importance to her and many emerging
businesses will benefit directly from her
advocacy and legacy. I wish Angela the
very best in all her future undertakings.
Dan Browne
Chairman
19
Chief Executive’s Review
Aidan Cotter
Chief Executive
Ireland’s food, drink and horticulture industry once again
delivered an impressive performance. It achieved export
growth of 5% in 2007 despite a challenging global economy.
Reaching €8.62 billion for the first time, export values rose most
strongly in dairy, in line with rising international prices. Other sectors,
notably prepared foods and beverages, also performed well. Meat
exports, following a strong performance in 2006, fell back somewhat
in 2007, with beef in particular affected by weakening demand
and a range of competitive pressures.
This strong overall performance by
Irish exporters was achieved against
the background of a strengthening
euro, which has had an impact on
competitiveness in the UK and US,
and a range of challenges such as sharply
rising ingredient and energy costs.
It was also a year when the Irish food,
drink and horticulture industry responded
positively to emerging opportunities.
Growth in the Asian markets to €400
million, for example, has put the industry
two years ahead of Government targets
for the region.
The year was marked by significant
change in the international marketplace.
Poor harvests, rising demand in
developing countries and diversion
of land to biofuel production had a
significant impact on commodity prices.
In such a rapidly changing environment,
ever-closer collaboration with our
partners in the food, drink and
horticulture industry becomes increasingly
vital. This enables us to face the
challenges, realise the opportunities
20
and support the growth of Irish suppliers
– while always strengthening the
message of “Ireland, the Food Island”
at home and abroad.
Our market development, promotional
and information initiatives have continued
to evolve based on marketplace
experience and the new challenges and
opportunities that confront our industry.
These are reflected in the key highlights
of 2007.
Bord Bia | Irish Food Board | Annual Report 2007
Our business
President of Ireland Mary McAleese, Patron of Bloom,
pictured at the opening of the inaugural Bloom event.
Hosted by Bord Bia, Bloom attracted over 50,000 visitors
to the Phoenix Park over the June Bank Holiday weekend.
The year 2007 marked the final phase
of the three-year European Beef
Promotion initiative, with campaigns
taking place in 12 export markets, among
38 retailers with approximately 10,000
outlets and with the potential to reach
more than 100 million consumers.
Point-of-sale activities included on-pack
promotions, posters, information/recipe
leaflets, shelf strips/dividers, sampling
and merchandising. Expansion of the
programme was facilitated by additional
funding from the Department of
Agriculture, Fisheries and Food.
A new element of the promotion
was the inclusion of endorsements
by some of Europe’s leading chefs.
Bord Bia | Irish Food Board | Annual Report 2007
Three pigmeat promotional campaigns
were undertaken with additional funding
from the Department of Agriculture,
Fisheries and Food in what was a very
difficult year for the sector. Quarterly
retail audits undertaken by Bord Bia
demonstrated increases in the usage
of the Quality Mark across all pigmeat
categories. In the final quarter of the
year, usage of the Bord Bia Quality Mark
increased from 74% to 83% on pork
packs, 38% to 55% on rashers and
from 42% to 45% on bacon.
The Bord Bia’s seventh annual Food
and Drink Industry Day took place in
November at the Irish Management
Institute in Sandyford. More than 160
Irish food and drink delegates attended
the event, which has become an
established and popular fixture in
the Irish food industry’s calendar. The
keynote presentation was from Marks
& Spencer. The event featured four
seminars, which ran throughout the day
and provided insights into a range of
consumer and marketplace issues.
Bloom brought the excitement and flair
of Irish gardening design to more than
50,000 visitors during the June bank
holiday weekend. It was the largest public
event ever organised by Bord Bia and it
proved an immediate hit with both the
public and the horticulture sector. The
patronage of Her Excellency, President
Mary McAleese, who officially launched
the event, was particularly valued and
Bloom found an attractive “home turf”
in the beautiful surroundings of the
Phoenix Park.
While food and drink were well
represented, horticulture formed the
show’s centrepiece. Thirty professionally
designed gardens and 40 magnificent
floral and plant displays were adjudicated
by specialist international judging panels.
Some 27 medals were awarded, which
was a testimony to the design flair and
building skills of Irish horticulturalists.
The event also included a food market,
interactive features, cookery and
gardening demonstrations, a hangingbasket display, a sculpture exhibition,
a Bord Bia “Horticulture for Life”
feature and a children’s activity area.
21
Our accounts
New-season lamb promotions
were concentrated in May and June
on the Irish market, featuring a new TV
commercial as well as press, national
and local radio advertising and consumer
competitions on radio. A campaign in
Paris and the south-east regions of France
ran from June to August and featured
in-store promotions where shoppers
received a reusable eco-shopping bag
on the purchase of packs of Irish lamb.
The campaign also included a toll-booth
promotion and targeted radio advertising.
The first national chicken promotion,
jointly funded by Bord Bia and a voluntary
industry contribution, was undertaken
in early autumn. The objective of the
campaign was to encourage consumers
to choose fresh chicken with the Bord Bia
Quality Mark, focusing on the traceability
element of the scheme. TV, radio and
print ads were produced prior to the
launch of the promotion.
Our governance
Highlights
Pictured at the “Reassurance through Regulation” seminar in Indonesia were
(left to right) H.E. Ambassador Richard O’Brien; Martin Heraghty, Assistant
Secretary General, Department of Agriculture, Fisheries and Food; David Nolan,
Senior Superintending Veterinary Inspector, Department of Agriculture, Fisheries
and Food and Michael Murphy, Director of Markets Bord Bia.
Chief Executive’s Review
Pictured at Bord Bia’s Health and Wellness Conference
were (left to right) Professor Vincent Marks, Author of
‘Panic Nation’; Sue Bell, Technical Manager for Agriculture,
Protein, Cook and Frozen Categories, Marks & Spencer
and Aidan Cotter, Chief Executive, Bord Bia.
The national roll-out of the Food Dudes
Healthy Eating Programme began in
April 2007. At a time when childhood
obesity levels are rising, the programme
supports a positive attitude to eating
fruit and vegetables among children.
The long-term strategy is to support
choices that will have an impact on
health over a whole lifetime. More
than 40,000 children took part in the
programme in 2007 with 303 schools
participating around the country. The
response from children and parents was
very positive. Some 92% of parents
reported that their children were eating
at least one extra portion of fruit in their
lunchbox each day while 81% said their
children were eating at least one
vegetable in their lunchbox.
The Bord Bia Food and Drink Industry
Awards 2007, which attracted more
than 200 product entries, provided an
extraordinary window into the culture
of innovation that drives food and drink
manufacturing on this island. Linking the
awards with six lifestyle trends identified
by Bord Bia put consumers at the heart
of this event and maximised the publicity
and industry participation. The entries
were adjudicated by an independent
panel of judges from food-buying,
marketing and media communications
companies. A gala dinner in the Mansion
House celebrated 20 nominees and seven
award winners in the presence of 500
food and drink industry representatives.
22
Pictured (left to right) at an Irish beef seminar in Manila,
Philippines were Robert Trota, Vice Consul Ireland;
Michael Murphy, Director of Markets, Bord Bia;
David Nolan, Senior Superintending Veterinary Inspector,
Department of Agriculture, Fisheries and Food and Davinio
Catbagan, Officer in Charge, Bureau of Animal Industry,
Philippines. The visit set out to increase awareness
of Irish beef health controls in South East Asia.
Marketplace Ireland 2007 saw 225
international buyers from 27 countries,
with a purchasing power in excess of
€135 billion, attend the two-day event
at Croke Park. They met with 51 Irish
companies through 2,600 scheduled
appointments. The Innovation Zone, a
new departure for Marketplace, received
a very strong endorsement from both
buyers and exhibitors. Some 88 product
entries from more than 60 companies
were displayed in the zone.
The Bord Bia Brand Forum continues
to grow and evolve with a membership
of more than 100 food and drink
companies in Ireland. They demonstrate
best-practice food and drink marketing
through a programme of events and
workshops and other key initiatives such
as Brandscapes, a bi-monthly newsletter,
brand guides and case studies.
Forum events continued to feature
a high level of expertise, with the
sharing of knowledge from industry
and academic experts who are leaders
in their fields. In 2007 they included
Salman Amin from PepsiCo, Craig Sams
from Green & Blacks and Gary Hirshberg
from Stonyfield. Almost 100 companies
attended the national events and 31
companies attended the regional events
in 2007. The Gala Dinner had a turnout
of some 151 client company attendees.
The launch of Bord Bia Vantage
in 2007 further asserted our commitment
to small business, with a substantial
expansion of the range of services on
offer. Bord Bia Vantage is a pragmatic
and accessible suite of services that
recognises the time and budgetary
constraints of small-business
owner/managers. The three-tier range
of services features: Vantage Point,
a dedicated small-business website;
Vantage Plus, a programme of regionally
organised seminars and roadshows that
address practical marketing management
issues; and Vantage Partner, a mentoring
programme for high-performance
companies that are planning the next
step in their growth.
The publication of Bord Bia’s Guide to
Selling through Farmers’ Markets,
Farm Shops and Box Schemes
addressed this fast-growing route to
market from the supplier’s perspective.
This practical publication was designed
to fill an information gap in the area.
It is hoped that it will inspire and
encourage people who are excited
at the possibility of participation.
The Health Agenda Conference,
“Reality, Reason and the Other
Realm!”, the first of its kind organised
by Bord Bia, was attended by more than
100 delegates, who were from a broad
cross-section of the Irish food, drink,
ingredients and horticulture industry.
The conference included the findings
of Bord Bia’s qualitative and quantitative
Consumer Health and Wellness research,
which used innovative video-diary
research to gain insight into
consumer behaviour.
Bord Bia | Irish Food Board | Annual Report 2007
Our business
Bord Bia awarded He Bin, a Galway Mayo IT student
with the overall award at the Irish Pork Cookery Competition
2007. The competition concluded the fourth annual ‘Pork
Experience – from Farm to Fork’ event. Sponsored by Bord
Bia, the IFA, the IAPP and the Panel of Chefs, the event is
run to further educate catering students on the benefits
of using pork in a food service outlet.
Pictured at the launch of “An Egg a Day is OK” campaign
were consultant nutritionist Paula Mee and TV Chef Louise
Lennox.
The World Dairy Summit held in Dublin
in September was the keynote event in
the international dairy industry’s calendar.
Bord Bia supported the event through
platinum sponsorship and participated
in the conference exhibition and
presentations. The event provided
an excellent opportunity to showcase
Irish food at an international level.
In the Autumn, Bord Bia launched Food
Alert, a weekly digest that is designed
to capture and report on key trends in
the global food and drinks market. The
alert is emailed to some 340 food, drink
and horticulture companies and covers
up-to-the-minute developments in areas
ranging from innovation and nutrition to
consumer trends and supply chain issues.
23
Our accounts
Bord Bia | Irish Food Board | Annual Report 2007
The fourth wave of PERIscope
(Purchasing and Eating in the Republic
of Ireland) research, designed to track
changing consumer lifestyles and
undertaken biennially in Ireland, Northern
Ireland and Britain, showed that 56% of
Irish consumers are more conscious of
environmental issues when selecting food
products. However, emerging food terms
such as “sustainability”, “carbon
footprints” and “food miles” are yet
to be fully embraced and understood
by consumers. Only 30% of Irish
consumers were aware of the term
“carbon footprint”, while two-thirds
of consumers had never heard of the
term “food miles”.
Our governance
More than 150 representatives from
the Chinese dairy and ingredients sector
and related media attended the first Irish
Dairy and Food Ingredient Seminar
and Reception, which coincided
with the Food Ingredients China (FIC)
exhibition in Shanghai in March.
The objective was to promote Ireland
as a world-class source of innovative
and quality dairy and food ingredient
products, and to inform key Chinese
customers, officials and the media about
Ireland’s pre-eminent position in this
Anticipating Tomorrow, a new
sector as a leading, cutting-edge supplier
report from Bord Bia, explores the
of products that are R&D based and
future of the Irish domestic food and
drink market in 2020, and the subsequent solutions orientated.
implications and opportunities for
industry. The project generated four
Bord Bia hosted a national stand at the
contrasting yet plausible scenarios, as
China International Meat Industry
well as a preferred scenario that describes Exhibition (CIMIE) during the World
the lives of consumers in 2020. The
Pork Congress in Nanjing in September.
report is designed to inform the strategy
Meanwhile, as part of a renewed focus
and decision-making process among all
on market access for Irish beef, Bord Bia,
Irish food and drink companies, large or
in conjunction with the Department of
small, and to enable them to plan for
Agriculture, Fisheries and Food and the
future success.
Irish Embassy in Singapore, jointly hosted
two Irish beef seminars in Indonesia and
the Philippines.
In January 2007, Bord Bia participated
in the Trade Mission to the Middle
In November, Bord Bia, in conjunction
East, which was led by An Taoiseach
with the Department of Agriculture,
Bertie Ahern TD with the Minister
Fisheries and Food, organised a National
for Agriculture, Fisheries and Food,
Conference on Local Food in Mullingar,
Ms Mary Coughlan TD. The visit took
the first event of its kind in Ireland. It
in the Kingdom of Saudi Arabia and
incorporated the theme “Exploring the
the United Arab Emirates. Bord Bia
Opportunities”. The event attracted an
coordinated the participation of
audience of some 250 people, reflecting
companies from the meat and dairy
the increasing focus by consumers on
sectors and organised promotions
local food and the opportunities for
in Riyadh and Dubai.
Irish producers.
Other contributions addressed the
marketing possibilities in the emerging
“second life” world of virtual reality, EU
legislation on consumer understanding of
claims, the trade perspective from Marks
& Spencer, the future from Henley Centre
Headlight Vision and the world as seen
by the authors of Panic Nation. The
conference achieved wide media print
and radio coverage with an impressive
mix of speakers.
Chief Executive’s Review
Pictured at the launch of Bord Bia's New Season Lamb
Campaign 2007 were (left to right) John Molloy, Cribben's
Family Butchers; Sheila Kelly, Bord Bia Food Advisor;
Padraig Cribben and Henry Burns, former Chairman, IFA
Sheepmeat Committee. The campaign highlighted the
availability and versatility of lamb.
The Beef Quality Assurance Scheme
grew significantly, with certified producer
membership increasing to more than
24,000 by the end of the year. The Lamb
Quality Assurance Scheme was launched
and achieved EN45011 accreditation for
the producer standard. Certified producer
membership approached 2,000 during
2007. The Pigmeat Quality Assurance
Scheme has also achieved EN45011
accreditation for both the producer
and processor standards.
Bord Bia’s annual Irish Speciality Food Market took place
in Leicester Square, London over St. Patrick’s weekend.
Over 50 Irish artisan producers participated offering visitors
oysters; apple juice; handmade confectionery; soda breads;
sausages; delicatessen products; preserves and chutneys,
and a wide selection of Irish farmhouse cheeses.
Foresight4FOOD is designed to
help food companies to fine tune
R&D concepts, gain consumer validation
at product development stage and assess
their commercial potential in advance
of market launch. In 2007, more than
30 Irish food and drink companies
participated in various stages of
the programme.
The UK Foodservice Programme built
on its success with a range of initiatives,
including four inward-buyer presentations
with Sodexho, Compass Group, Delaware
The Horticulture Quality Assurance
Schemes for edible products now includes North and Funnybones Foodservice. The
380 producers, packers and preparers
UK Foodservice edition of Irish Food was
distributed to more than 750 catering
of produce. A total of 53 enterprises
buyers, including major contract caterers,
were certified under the Amenity Quality
Programme during 2007, which included pub groups, wholesalers and hotel chains.
Throughout the year, over 30 companies
five garden centres that had achieved
participated in the UK programme and
the coveted five-star rating.
there were 28 presentations to buyers
such as 3663, Brake Brothers, Sterling
The three-year organic marketing
Group and Welcome Break.
development plan – under the auspices
of the Organic Market Development
Group, the Department of Agriculture,
Fisheries and Food and Bord Bia –
identified the need for a formal
recognition of the achievements
of the organic food and drink sector.
The objective of the inaugural National
Organic Awards was to enhance overall
trade and consumer awareness of Irish
organic capabilities. More than 70
products were entered in the awards.
There were three category winners
with one overall winner: St. Tola Organic
Goat’s Log from Inagh Farmhouse
Cheese, Co Clare.
24
Looking Forward
The key challenge facing Irish food and
drink exporters in 2008 can be summed
up as competitiveness.
In the first months of 2008, there was
a noticeable acceleration of 2007 trends:
energy costs continue to rise, the euro
has continued on its path of appreciation
and the prospect of US recession grows
stronger.
Overall, economic growth in Ireland has
slowed substantially and recent inflation
figures were higher than expected.
Nevertheless, we should remember that
most of these issues are not exclusively
the concerns of Ireland and that “Ireland,
the Food Island” has a range of
marketing and capability strengths that
cannot be denied. Our commitment to
delivering food and drink of the highest
quality, our market knowledge base and
supplier credentials, and our capability
to deliver efficiently underwrite a unique
offering.
Bord Bia looks forward to working
with the Irish food and drink industry
throughout 2008 to maintain our
achievements and build on new
opportunities.
Bord Bia | Irish Food Board | Annual Report 2007
Our business
MEAT AND LIVESTOCK
The combined value of meat and livestock exports
is estimated at just over €2.5 billion in 2007.
This represents a decline of 3.5% on 2006.
In 2007, the value of Irish beef exports
decreased marginally by 2% to €1.57
billion. Export volumes were marginally
higher, at 523,000 tonnes, due to
increased carcass weights across all
categories. Overall, the EU beef market
was sluggish during 2007, which hit
cattle prices here. Average prices paid
for steers fell by 2%, while prices for
heifers and cows fell by 1% and 3%,
respectively.
Meanwhile, Irish beef exports to
continental EU markets recorded
their sixth consecutive year of growth,
up to 235,000 tonnes, representing an
increase of 9% on 2006. These shipments
were worth an estimated €780 million.
Performing best were shipments to the
Netherlands and France, up 5% and 4%,
respectively. There was also strong
growth in exports to eastern Europe,
albeit from a lower base.
Bord Bia | Irish Food Board | Annual Report 2007
Sales to international markets fell
sharply, mainly reflecting a reduced
demand in Russia. This was due to
high stock levels earlier in the year,
and increased competition from Brazil.
Volumes for the year are estimated to
have reached less than 10,000 tonnes,
which was a significant reduction from
the 38,000 tonnes seen in 2006.
The outlook for Irish beef exports in
2008 is positive. Irish cattle supplies
are expected to tighten, in line with the
higher-than-expected disposals during the
second half of 2007 and the significant
rise in live exports of young cattle in
2006. Reduced supplies have also been
predicted by other EU Member States,
and this will no doubt result in more of a
shortfall in beef production. Slightly lower
production in the UK combined with the
more limited presence of South American
beef will boost demand for Irish beef.
Similarly, tighter cattle supplies in
continental EU markets are also likely
to boost trade for Irish beef.
Overall, Irish export volumes in 2008 are
expected to fall by 30,000-35,000 tonnes
with fewer “finished” cattle available due
to lower calf registrations in recent years.
Lower supplies in Ireland will hit trade
levels within the continental EU markets.
However, given the prospect of a similar
situation throughout Europe, demand for
Irish beef looks set to remain strong.
Beef promotion
The promotion of beef in Europe was a
key focus for Bord Bia in 2007 seeking to
reposition beef on the European market.
The strategy built on the progress made
over the previous two years in enhancing
awareness of Irish beef among European
consumers. Bord Bia’s marketing
campaign in 2007 reached at least 100
million European consumers across 12
markets and 10,000 outlets. The added
endorsement of Europe’s top chefs for
Irish beef reinforced its positive image
with European consumers.
Live Animals
Live cattle exports for the year were 17%
lower than 2006 (at 207,000), with a
value of €110 million. This decline was
due to a slow veal trade, higher feed
costs and lower “finished” cattle prices.
Large decreases in exports to Italy (down
30% to 47,000), Netherlands (down 20%
to 42,000) and Spain (down 12% to
63,000) were evident, while exports to
the UK were up 28% to around 36,000.
Live pig exports to Northern Ireland
increased by 8% to 516,000, as a result
of better prices and increased demand.
25
Our accounts
Shipments to the UK increased by 4%
(over 275,000 tonnes), with an estimated
value of €775 million. This figure
represented 53% of all Irish beef exports.
Sales to the UK were helped by a fall-off
in domestic beef supplies there, and
lower availability from other sources,
most notably Brazil. The retail sector was
the most stable sector, but trade in
foodservice and manufacturing was
competitive, due to increased UK cow
slaughtering. However, the strengthening
of the euro against sterling made trade
with the UK more difficult as the year
progressed and, as a result, Irish imports
became less competitive.
However, prices for prime beef
on continental markets fell sharply
during the first half of 2007, due
to an abundance of French young bull
carcasses. Animal movement restrictions
in France prevented many of these young
bulls from being exported live to Italy.
Our governance
Beef
Chief Executive’s Review
Some nine Irish meat companies were represented at
Anuga 2007, the world’s largest international food and
drink fair which took place in Cologne, Germany. Pictured
during a store visit to Karstadt, the premium German
department store, were Mr Trevor Sargent TD, Minister
for Food and Horticulture at the Department of
Agriculture, Fisheries and Food and Angela Kennedy,
outgoing Chairman, Bord Bia.
Exports of live sheep are estimated
to have fallen 41% as numbers going
to Northern Ireland for slaughter were
lower due to currency pressures and
increased availability from August of
cheaper British lambs.
Lamb
Sheep supplies fell 7% to 67,000 tonnes.
The home market accounted for 21,000
tonnes of this, with household purchases
recording a 3% growth on 2006 levels.
France remains Ireland’s largest lamb
market and in 2007 it accounted for 55%
of exports (27,500 tonnes). Demand was
boosted in the second half of the year as
a result of export restrictions related to
the UK’s Foot and Mouth Disease (FMD)
outbreak. However, when restrictions
were lifted in October, the status quo
resumed. General consumption levels in
France continued their gradual decline,
although it is expected that the generic
lamb campaign of 2008 will help to
address this trend.
Average prices finished 2% up on the
year, at €3.54/kg. This rise was mainly
a result of the 11% increase during the
two months of the UK’s FMD outbreak.
Irish exports to the UK were performing
strongly until the FMD export restrictions
were introduced and, as a result, were
maintained at the 2006 level – 12,500
tonnes.
26
Pictured at the Ireland v France Rugby World Cup were (left to right)
Aidan Cotter, Chief Executive, Bord Bia; André Mauger, Intermarché;
Mr Trevor Sargent TD, Minister for Food and Horticulture at the
Department of Agriculture, Fisheries and Food and Denis Russell,
Kepak, France.
An estimated 30% of exports were
in boneless form, which compares
with 27% during the same period in
2006 and just 13% in 2000 – an example
of the continued diversification of Irish
sheepmeat exports, both in terms of
market distribution and product mix,
particularly to northern European
markets. Demand for Irish light lamb
on Mediterranean markets continues
to weaken, with volumes to the Iberian
markets down 50% on 2006 levels.
Looking forward
In 2008, Irish sheep supplies are set
to fall a further 6-8%, with export
availability set to fall to 46,000 tonnes.
Domestic growth is predicted to continue,
and France will remain the largest market
for Irish lamb with demand due to rise
as a result of the new generic lamb
promotion. On the negative side,
increased New Zealand chilled supplies
to EU markets will pose the strongest
competition to the Irish product during
2008. Furthermore, uncertainty exists
regarding the potential impact of
Lamb promotion
Bluetongue on the EU sheepmeat
Bord Bia’s promotion of lamb focused
market. If the disease continues to
on the core markets of Ireland and France
spread, it could significantly affect the
during 2007.
availability of sheepmeat. However, it is
hoped that the vaccination programme
Our marketing campaign in Ireland
being implemented in countries with
promoted the message of lamb as
outbreaks will help to stem the flow
an “everyday” treat. The campaign
of these as the year progresses.
emphasised the use of new-season May
and June lamb in easily prepared, healthy
Pork and Bacon
meals, using press, television and radio
advertising.
A difficult market environment
for pigmeat, combined with a fall in
In France, the natural credentials of
supplies, resulted in the value of Irish
Irish lamb were emphasised from June
exports falling by 3% to an estimated
to August in Paris and the southeast,
€368 million.
using in-store, on-pack, toll-booth
and radio advertising.
Meat plant supplies fell by almost 2%
in 2007, reflecting a decline in the
breeding herd and some pick-up in
live exports of finished pigs to Northern
Ireland. An increase in domestic demand
helped to offset higher imports. The rise
in imports also helped maintain export
availability at 142,000 tonnes.
Bord Bia | Irish Food Board | Annual Report 2007
Our business
Domestic consumption of
pigmeat rose by 3% in 2007,
helped by better prices and
increased promotion.
Pictured at the Irish Livestock Day, Italy were (left to right)
Kevin Quinn, Quinn International Livestock; John B Keane,
Manager Bord Bia, Italy; Monica and Mario Zara and
Damien Quinn, Quinn International Livestock. The event
showcased high quality Irish Beef store cattle on a feedlot
in Northern Italy. Italy is Europe’s largest market for live
cattle - importing over 1.4 million head annually.
Bord Bia | Irish Food Board | Annual Report 2007
Looking forward
A gradual tightening in EU supplies
and an anticipated recovery in prices
is expected to help the market for Irish
pigmeat sales in 2008. However, Irish pig
supplies look set to fall by around 3% as
the substantial rise in feed costs leads to
a reduction in the Irish breeding herd.
Recent EU forecasts suggest that it
is likely to be the second half of 2008
before a significant fall is evident in EU
pig supplies and a relatively strong rise
in prices is anticipated as the year
progresses. With feed prices around
50% higher than 2007, a significant
price increase is needed for pig
production to return to profitability.
Ongoing pressure from the poultry
sector is anticipated, while the strength
of the euro will also be a factor. But the
re-introduction of export refunds for
fresh and frozen pigmeat should help EU
suppliers compete on the world market.
The outlook for 2008 suggests that
competition is likely to remain strong for
pigmeat from Brazil, Canada and the US
on international markets, while demand
for pigmeat in the EU looks set to be
reasonably stable.
27
Our accounts
Exports to other international markets
were hit by the strength of the euro
against the US dollar and the strong stock
levels evident in Japan during the early
part of 2007. Total shipments were
around 24,000 tonnes – 9% below 2006
levels. In Japan, the availability of US
Domestic consumption of pigmeat rose
pigmeat, combined with problems with
by 3% in 2007, helped by better prices
the local import system in the first half of
and increased promotion. The Irish
2007, affected Irish exports. While there
market now accounts for around 50%
was an improvement in the second half
of Irish pigmeat output.
of the year, market returns were then
The UK remained the principal destination affected by the US dollar. Overall, 2007
exports to Japan are estimated to have
for Irish pigmeat exports in 2007, with a
reached 9,000 tonnes. However, exports
5% increase to 80,000 tonnes, or €270
to China continue to grow and reached
million in value. A higher UK import
requirement, combined with some easing 1,000 tonnes in 2007. Trade to Russia
was also higher at 6,000 tonnes.
in competition from other suppliers,
helped Irish trade. However, as the year
progressed the weakening of sterling
Pigmeat promotion
against the euro had a negative impact
Bord Bia’s promotion of pigmeat
on sales to the UK.
at home was increased in response
tothe severe income pressures on
producers. Additional advertising was
In continental EU markets, a fall-off in
carried out approaching the important
global demand boosted availability and
Christmas season.
resulted in greater competition for Irish
pigmeat. Total shipments are estimated
to have increased by 9% to 38,000
Pork, rasher and bacon products
tonnes (worth more than €58 million).
increasingly adopted the Qmark, in a
Despite an increase in German output,
concerted effort to build sales at home.
it remains the principal continental
market for Irish pigmeat, with exports
estimated at 9,000 tonnes in 2007.
Slower trade was also evident to France
while shipments to Italy and eastern
Europe showed a modest growth
during the year.
Our governance
A fall of over 5% was recorded in Irish
pig prices, at €1.33/kg, reflecting a lower
international demand for EU pigmeat,
given the strength of the euro and
recovering demand for poultry.
Chief Executive’s Review
Poultry prices across Europe
recovered strongly, with
wholesale broiler prices
up 18% during the year.
Pictured at the launch of the 2007 chicken promotional
campaign was Tom Murray, Dublin.
Poultry
The Irish poultry industry staged a
recovery in 2007 following a difficult
year in 2006 due to the Avian Flu crisis.
Poultry prices across Europe recovered
strongly, with wholesale broiler prices
up 18% during the year.
Exports were helped by a 3% rise in
production, with a 7% rise in broiler
output, and also higher prices. However,
exports, at €236 million, fell 2% on 2006
levels.
Irish prices benefited from the stronger
EU demand for poultry but a strong rise
in feed, energy, packaging and labour
costs kept competition keen.
The export focus continues to be on
value-added products and chilled cuts –
processed poultry accounts for over 60%
of total export values. The UK remains
the key market (80%) for Irish poultry.
Competition abroad continues to intensify
as increasing volumes of cheaper, cooked
poultry are being imported into the EU
from Thailand. Imports of cooked poultry
are estimated to have exceeded 200,000
tonnes in 2007.
28
Chicken promotion
The quality and traceability of Irish
chicken were emphasised in a print
and broadcast campaign in August and
September. It was funded by Bord Bia,
in partnership with voluntary funding
from industry.
Looking forward
The prospects for the EU poultry
market in 2008 point to a broadly stable
environment with production expected
to rise by less than 2%. Producers appear
reluctant to increase output due to
ongoing high feed prices. Consumption
levels are forecast to rise by a further 2%,
resulting in a modest increase in prices
across the EU.
While the outlook for the Irish industry
appears stable, any further rise in cooked
imports from non-EU markets is likely to
increase pressure on the sector. Producers
will be keeping a close eye on feed prices
as a result.
Bord Bia | Irish Food Board | Annual Report 2007
Our business
CONSUMER FOODS,
DAIRY AND DRINKS
The consumer foods, dairy and drinks sectors combined grew their
exports by €436 million in 2007, up by 8% on their 2006 level of
€5.1 billion. This performance was driven by strong demand in Asia
for both dairy and drinks sectors, whilst prepared consumer foods
showed strong growth in continental and northern Europe.
The combined value of dairy
product and ingredient exports
is estimated at almost €2.3 billion
in 2007 – an increase of 13% over
2006. Half of this growth came
from Asian markets.
Despite the loss of export refunds
in the second half of the year, all the
main sectors showed an increase in
export sales due to increasing demand,
strengthening prices and availability.
Much of the increase in demand came
from Asia and the oil producing regions,
though trade to the UK and other EU
markets also performed strongly.
The dairy products and ingredients
sector includes primary dairy products
such as butter and cheese; consumer
dairy products for export consumption;
dairy ingredients including milk powders,
casein and whey; processed dairy
products such as infant formula;
ingredients for the nutritional sectors;
and a wide variety of value-added dairy
ingredients with applications for use
worldwide in the manufacture of
consumer food and drink products.
was a virtual explosion of prices in mid2007, well in excess of world market
prices, with EU imports being covered by
high duties. Butter production increased
as butter/powder prices provided better
Bord Bia | Irish Food Board | Annual Report 2007
Cheese
Although the returns from cheese
production were lower than from other
dairy products in the early stages of
2007, the European market held firm.
The poor returns led to a fall-off in
cheese production in many countries.
In the UK, for example, cheddar cheese
production fell by 7%. However, the
global market remained strong, partly
due to stagnation in New Zealand and
Australia. An increasing proportion of
Irish milk is now going towards cheese
production, and this is likely to continue
as a direct result of the 2006/7 Dairy
Investment Fund.
Dairy ingredients
Over half of the growth in Irish dairy
exports came from exports to Asia in
2007. Ingredients accounted for more
than 70% of the total value of Irish food
and drink exports to Asia. China was
a significant market, while Indonesia,
Thailand, Vietnam and the Philippines
also provided significant increases, mainly
from infant formula and milk powders.
Due to the withdrawal of casein aid
refunds for chocolate crumb, and with
the weakness of the US dollar, trade
to the US was slower. The JanuarySeptember 2006 to January-September
2007 figures for chocolate crumb
production showed a reduction of 6%
in 2007 over the previous year, while
casein production for the same period
increased by 8%.
29
Our accounts
Milk
Global milk production has been growing
continuously over recent years and was
up 1.4 % in 2007. This growth came
mainly from India and China, and also
North America. During this time, output
levels fell in Oceania, with Australian
milk production down, due to repeated
drought conditions. Despite strong
market demand, it is estimated that
EU milk production increased slightly
in 2007. Irish production has increased
marginally ahead of quota for the year,
with availability here boosted by Northern
The Irish dairy sector produced yet
another very positive export performance Ireland imports. There is no indication
of any likely increase in production in
in 2007, against a background of
Europe. In fact, some regions are well
continued EU policy changes in terms
under quota, such as the UK and France,
of support mechanisms, all of which
had indicated potential losses in revenues. which are both 4% below quota.
Showing excellent growth of 13%, to
€2.3 billion, the sector represented 27%
Butter
of the total Irish food and drink exports in In December 2007 EU butter prices were
2007. This result reflected the continued
described as being in “free-fall”. This was
demand in both EU and international
due to falling production during the year
markets for dairy products and
and increased exports, which caused a
ingredients.
clearing out of intervention stores. There
returns than cheese. Exports to Russia
showed a strong performance with the
launch of Kerrygold in the second half
of the year.
Our governance
Dairy Products
and Ingredients
Chief Executive’s Review
Pictured at Marketplace were (left to right) Maria Burke,
Aran Candy; Angela Kennedy, outgoing Chairman, Bord Bia
and Luc Vandevelde, former Marks & Spencer and Carrefour
Chairman. Marketplace Ireland included 2,600 pre-arranged
business meetings (speed dating style) bringing Irish
companies face-to-face with 220 international buyers
with a purchasing power of €135billion.
By autumn 2007, some global milk
supplies were up, as producers chased
improved prices. This, in turn, resulted
in a weakening of prices, particularly
for whey. Although some powders were
reduced in price by between 20% and
50%, they were still at least 50% over
2006’s highest levels.
Nutrition and health and wellness:
The continued consumer interest in
healthier food was reflected in the dairy
industry. This theme was further explored
at the International Dairy Federation’s
World Dairy Summit held in Dublin
(sponsored by Bord Bia) in the last quarter
of 2007. Grass-fed herds – the basis
of Ireland’s dairy industry – continue
to provide opportunities to promote
the nutritional and health benefits of
dairy products and ingredients. Bord Bia
has continued to strengthen its activities
in this area, in co-operation with
the industry. In 2007, Bord Bia
commissioned a major European
dairy study. Three additional specific
market studies were commissioned in
2007 covering India, Asia and Russia.
30
Pictured at Bord Bia’s annual Food and Drinks Industry Day
were Aidan Cotter, Chief Executive, Bord Bia and keynote
speaker David Gregory, Technical Director, Marks & Spencer.
Prepared Foods / Chilled
and Frozen Foods
The value of prepared foods exports
increased by some 6% in 2007 to
reach almost €1.82 billion, helped
principally by the pizza, confectionary
and frozen bakery categories.
This sector includes products such as
frozen ready-meals, pizzas, snacks and
ice-cream. In the chilled sector, products
include ready-meals, salad products,
snacks and food on-the-go. The majority
of these exports are in frozen products
such as ready-meals and pizzas, with
over 80% of these to the UK.
The frozen ready-meal sector saw
declines in both value and volume during
2007. Exports of ready-meals in 2007
were worth in the region of €141 million
– a decline of 3.5% on 2006. The reasons
are manyfold, including a greater
awareness of obesity, more products
being sold under promotion and
consumers becoming more aware of
health and well-being issues. There has
also been a shift to chilled ready-meals
which the consumer sees as healthier,
fresher and more convenient. The pizza
market has not been affected to the
same extent. The launch of new products
has ensured the continued growth in the
volume of exports from this sector and
exports of pizza are worth €133.3
million. Chilled added-value meats such
as cooked burgers, chicken burgers and
hot dogs also grew in exports, to over
€10 million.
Confectionery
Chocolate and sugar confectionery
Export of chocolate confectionery
performed well in 2007, up over 5%
in sales value. This was partly due
to a stronger UK market, a cool summer
and strong sales to the Middle East.
Luxury chocolates also performed well,
broadening their customer base. Sales
of organic and fairtrade products led
the way in the UK. Exports to Australia
continued to grow and, despite the
weak dollar, exports to the US were
maintained.
Sugar confectionery also showed a rise,
led by an increase in sales to France,
Germany and the Benelux countries. Most
of the growth in sales was due to the
arrival of new products over the last few
years, which were devoid of colourings
and additives.
Bakery
The bakery market is showing
growth due mainly to strong prices,
as households cut back on frequency
of purchase. The UK bakery market is still
our most important export market, with
retail sales growing at 4% each year.
Here again, new consumer demands are
driving growth. Snacking “on-the-go”
and “grazing” has meant increased
demand for both healthier and more
indulgent fillers throughout the day.
Bord Bia | Irish Food Board | Annual Report 2007
Our business
The six Award winners pictured at Bord Bia’s Food and
Drink Industry Awards 2007, in partnership with Ulster
Bank were (left to right) Mark Sandys, Marketing Director,
R&A Bailey & Co./Diageo Ireland; Vincent Cleary, Managing
Director, Glenisk; Joe Hyland, Managing Director, Irish Country
Meats; Valerie Kingston, Owner/Manager, Glenilen Farm Ltd;
Colin Gordon, Managing Director, Glanbia Consumer Foods
and John Flahavan, Chairman, E Flahavan & Sons.
Products in the sector include
all alcoholic and non-alcoholic
beverages, waters, carbonates and
juices manufactured in Ireland by
both multinational and indigenous
drinks companies.
In 2007, the Irish drinks industry
experienced increased exports over
a range of product sectors, up 5%
on the 2006 figure.
Despite the currency challenges and
increased costs of raw materials, the
sector again proved that drinks products
from Ireland are still in big demand
globally.
Alcoholic drinks
Cream liqueurs, whiskey, beer and
waters all showed very good growth
again in 2007. Cider volumes were
down by approximately 9%, due to
poor performance in the key UK market
during the second half of the year.
Bord Bia | Irish Food Board | Annual Report 2007
The second-largest export market for
our beverages is the US, accounting
for just under 20% of these exports. Irish
whiskey was the big winner here in 2007
with a greater focus on advertising and
promotional campaigns. As a result,
consumers purchased more Irish whiskey
– exports were up approximately 18% on
the 2006 figure. Other markets showing
good growth in 2007 for whiskey were
South Africa, Russia and targeted eastern
European markets.
Non-alcoholic drinks
The soft drinks category continues
to grow as consumers adopt lifestyle
changes. For example, health is a key
driver in the category and manufacturers
are increasingly seeking to capitalise on
this trend. While the carbonates category
shows little growth, consumption remains
high, as consumers add healthier
beverages such as juices, waters and
functional drinks to their existing
purchases.
The tea and coffee market is growing
in value, fuelled by increased spend per
shopping trip and increasing demand for
premium products. The two main growth
areas in the category are roast and
ground coffee and standard tea.
Innovation in the category is focused on
provenance, lighter tastes, new
ingredients, brands, health/wellness and
convenience.
The drinks industry continues to face
issues and concerns about responsible
drinking, health and well-being and other
lifestyle concerns. Several industry-funded
organisations have been established to
remind consumers to drink responsibly
at all times and take a sensible and
responsible approach to alcohol.
Codes of practice regarding advertising,
promotion and sponsorship activities
continue to be introduced to ensure the
whole industry is compliant in this area.
31
Our accounts
This year saw exports of Irish beverages
at €1.44 billion, up by 5% from €1.376
billion in 2006. This strong performance
builds on the success of the previous two
years during which the beverage sector
was one of the best-performing food
and drink sectors.
The top export destination for
alcohol exports was the UK – accounting
for approximately 44% of total exports.
Cream liqueurs improved from the decline
of 2006 with less emphasis on the “multibuy” models. The increases in sales were
aided by marketing campaigns, including
product sampling, sponsorship campaigns
and advertising. Sales in the on-trade
route to market lost share to the off-trade
as consumers took on board the dangers
of drink-driving, and the importance
of responsible drinking and a
healthier lifestyle.
Our governance
Beverages
Bord Bia’s Food and Drink Industry Awards 2007
in the Mansion House, Dublin.
Chief Executive’s Review
SMALL BUSINESS AND SPECIALITY FOODS
2007 was a critical year for the 360 SME’s serviced by Bord Bia.
Their growth centred on the opportunities presented by premium food
and particularly in the artisan, speciality and organic sectors. The sector
was assisted by an increasing interest in farmers’ markets, farm shops,
independent retailers, multiple retailers and foodservice operators in
the core markets of Ireland and Britain. The premium food markets
of Ireland and Britain are estimated to be worth €6.1 billion per year.
Research and Development
In 2007 Bord Bia invested in research
to support the development of the small
business sector.
This included a strategic review of
development opportunities and any
likely obstacles to progress. It also
included an examination of the
experience of SME’s in other countries.
In addition, extensive research was
carried out into the development and
growth needs of Irish food SME’s through
individual and group interviews with
current and past owner/managers.
This research was used to design and
build Bord Bia Vantage – Centre of
Excellence for Small Business in 2007.
Bord Bia also invested in extensive
consumer research on local food to
help boost growth and development
opportunities for smaller suppliers.
32
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 360 SME’s
with a turnover of less than €3.5 million.
The Vantage initiative provides
owner/managers with the means
of accessing 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 –
www.bordbiavantage.ie – is a
comprehensive website which is a onestop shop signposting the best on-line
resources available to assist SME’s to
develop and grow. The site also provides
unique content developed by Bord Bia
covering better-practice marketing. Topics
covered range from starting a business,
to managing products and developing
potential markets. The site is designed
to be user-friendly – with downloadable
simple marketing tools to assist
owner/managers to manage their
marketing round-the-clock.
Bord Bia Vantage Plus offers a range
of services delivered through workshops,
guides and seminars on a nationwide
basis, so that companies can benefit
from expert advice. A series of
distribution workshops were run
nationwide throughout 2007, enabling
150 owner managers to effectively
incorporate better-practice distribution
into their business model.
Bord Bia Vantage Partner is a
development programme for small
businesses ready to significantly upscale
revenue. A total of eight companies
signed up for the 18-month pilot
programme in 2007 – each with
clear goals for expansion.
Showcasing Innovation
In 2007, innovative food products
reflecting changes in consumer lifestyles
were incorporated into the Innovation
Zone at Marketplace, in Croke Park,
and showcased to over 225 buyers.
Regional and Local
Food Awareness
In March 2007, Bord Bia, in conjunction
with the Department of Agriculture,
Fisheries and Food, completed its series
of regional food seminars, with a
Regional Food Forum in Cork highlighting
the opportunity for regional food
development in the south and
south-west.
Bord Bia | Irish Food Board | Annual Report 2007
Our business
Pictured at the launch of Bord Bia’s sponsorship of the
inaugural Fresh From the Farmers’ Market television series
were (left to right) Angela Kennedy, outgoing Chairman,
Bord Bia; An Tánaiste and former Minister for Agriculture,
Fisheries and Food, Mary Coughlan TD and Clodagh
McKenna, presenter of the show.
The four participant schools were Good
Things Cookery School from Durrus in
west Cork, Ballyknocken Cookery School
from Co. Wicklow, Belle Isle School
of Cookery from Co. Fermanagh,
and Fairyhouse Food and Wine
School from Co. Meath.
Farmleigh provided the perfect setting
for the weekend and the Farmleigh
farmers’ market on Sunday tied in
seamlessly with the theme of the
overall event.
Bord Bia sponsored the eight-part RTE
series Fresh From the Farmers’ Market
presented by Clodagh McKenna, to
further promote local food and markets.
Speciality Food Promotion
Bord Bia continued to promote the
Irish artisan, speciality and premium food
sector through participation in trade fairs,
consumer events, sponsorship, marketing
communications and awards.
In 2007, this consisted of attending the
Speciality and Fine Food Fair in London
and targeting UK and Irish food trade
buyers at the show.
In March, Bord Bia continued its
successful Covent Garden Food Market
as part of the Lord Mayor of London’s
St. Patrick’s Festival for the city. Over 40
speciality food businesses participated,
using it as an opportunity to build a
profile in the UK.
In September, Bord Bia had a presence
at Slow Food’s Cheese Festival in Italy
organised by Slow Food and the City of
Bra. This consumer event, which is held
every two years, attracted over 150,000
visitors in 2007. This is an important
venue for developing trade growth and
consumer profile for the cheese sector.
Bord Bia was sponsor of the Slow
Food University of Gastronomic Sciences
Stage in 2007, for students to study
premium Irish food and beverages
covering cheese, beer, whiskies,
charcuterie, beef and bakery.
Also in 2007, Bord Bia sponsored the
Small Firms Association’s Food and Drink
Awards and supported the Irish entries
into the Great Taste Awards.
Continuing its investment in marketing
communications, Bord Bia continued to
tell the story of Ireland’s unique artisan
and speciality foods to media at home
and abroad.
Our accounts
Bord Bia, in September 2007, in
association with the Office of Public
Works, hosted “Cookery Schools at
Farmleigh”, an event comprising four
cookery schools from different regions
in Ireland. The main theme of the
weekend was “learn to cook with local
food”. With this in mind, each school
demonstrated basic recipes using local,
in-season, fresh ingredients from their
own areas.
Bord Bia also launched a Guide to Selling
through Farmers’ Markets, Farm Shops
and Box Schemes in 2007. The guide
aims to assist growers, producers and
other food entrepreneurs who wish to
set up in business through farmers’
markets, farm shops and box schemes.
Opportunities in both the Republic and
Northern Ireland are covered in this
guide, allowing the user to explore
alternative routes to market on an
all-island basis.
TASTE Council
The TASTE1 Council is an independent
body representing the artisan and
speciality sector. Its secretariat is Bord Bia.
In 2007 the TASTE Council made a
number of key submissions on behalf
of the sector in the areas of regulation,
innovation and rural development. Its
subcommittees advised Bord Bia on the
development areas of farmers’ markets,
food tourism, culinary education and
other areas relevant to local and rural
food economies.
1 Traditional, Artisan, Speciality Trade Expertise.
Bord Bia | Irish Food Board | Annual Report 2007
Our governance
In November 2007, Bord Bia and the
Department of Agriculture, Fisheries and
Food hosted a national conference on
local food. This event highlighted the
importance of the local food market
in the initial stages of a small food
company’s development. It also
addressed issues facing local food
producers, and illustrated relevant
international examples of local initiatives.
The event also provided a much-needed
networking platform for all local food
stakeholders.
Bord Bia, in conjunction with the Department of Agriculture, Fisheries
and Food, announced Ireland’s first National Organic Award winners
at SHOP, the annual food and drink retail trade event in the RDS,
Dublin. The Best Overall Organic Product for 2007 was awarded to
St. Tola Organic Goat’s Log from Inagh Farmhouse Cheese, Co Clare.
Pictured at the awards were Aidan Cotter, Chief Executive, Bord Bia
and Siobhan Ni Ghairbhaith, Inagh Farmhouse Cheese.
33
Chief Executive’s Review
Pictured at Bord Bia's Cookery Schools at Farmleigh were
Carmel Sommers, The Good Things Café and Cookery
School and Una Fitzgibbon, Director of Marketing Services,
Bord Bia.
Pictured at the National Conference for Local Food were
Mr Trevor Sargent TD, Minister for Food and Horticulture
at the Department of Agriculture, Fisheries and Food with
Gerry and Mary Kelly, Kelly’s Organics, Mullingar.
The National Organic Week presented
an excellent opportunity to build on this
Bord Bia continued to work in partnership strategy. This initiative, together with the
with key government departments,
Summer Awareness Campaign, aimed
agencies and associations in the
to raise consumer awareness of organic
development and implementation of
food and its availability in Ireland. The
support for the small business sector.
campaign included radio, print and
These included the Small Firms
outdoor advertising. A range of recipe
Association, the Irish Exporters
leaflets, posters and window/car stickers
Association, the County Enterprise Boards were also distributed nationwide.
and Leader networks, Invest Northern
Ireland, the Department of Community,
Also under the organic banner, Bord Bia
Rural and Gaeltacht Affairs, the
carried out an initial screening for suitable
Department of Agriculture, Fisheries
schools to participate in the upcoming
and Food, and Enterprise Ireland.
“Schools Organic Vegetable Garden
A Collaborative Approach
Organic Food
In 2006, the organic food market in
Ireland was estimated to be worth
€66 million. In Britain, it is valued
at £1 billion at retail selling prices.
Bearing the increasing significance
of this market, Bord Bia continued to
co-ordinate the development of the
sector, through its implementation
of the 2006-2009 National Organic
Development Plan.
34
Initiative” – to encourage primary schools
to develop an organic school garden.
In order to formally recognise the
progress and achievements of the sector,
Bord Bia launched the inaugural National
Organic Awards in 2007. Award winners
were announced at SHOP, Ireland’s
largest annual trade retail event held in
the RDS, Dublin. The awards attracted
over 70 entries, with three category
winners and one overall winner: Inagh
Farmhouse Cheese’s St. Tola Organic
Goat’s Log.
During the year, Bord Bia carried out
market research to understand how the
UK consumer may view “Irish organic”
products. The project included desk
research, store audits, 10 consumer focus
groups, and trade interviews with all the
main UK multiples. It is worth noting that
the UK’s organic food and drink market
is the second largest in Europe (after
Germany). Bord Bia also undertook
research into the UK’s organic beef
and lamb market to assess trends
and opportunities.
Preliminary research was also undertaken
into the organic market in Italy during
the year to investigate how the sector
is organised and what opportunities
exist for Irish organic produce within
the Italian market.
Back home, Bord Bia continued to chair
the Department of Agriculture, Fisheries
and Food’s Organic Market Development
Group.
Bord Bia | Irish Food Board | Annual Report 2007
Our business
HORTICULTURE
A strategic review of the horticultural industry, completed
in 2007, identified a number of areas deemed critical to
the development of the sector. It recommended specific
actions by Bord Bia to aid growth. The implementation of
these recommendations began during the year and will
be a key priority in the future.
Bloom
The inaugural Bloom national gardening
show organised by Bord Bia was a
key focus in 2007, aimed at driving
awareness and sales. More than 50,000
consumers attended Bloom 2007,
ensuring its success.
Food Dudes
Bord Bia | Irish Food Board | Annual Report 2007
Waste and Environmental
Management
Innovation is seen as a useful tool in
helping producers to adapt and survive
in increasingly tough market conditions.
An innovation programme starts
by identifying new ideas, and then
evaluating them, to ensure that
investment is only channelled into ideas
with good market potential. In 2007,
Bord Bia introduced an innovation
programme for horticultural producers.
A total of five businesses participated in
the programme in 2007 and development
of the potential products will continue
in 2008.
Work continued through 2007 on
environmental and waste management
issues. This involved contact with
the Department of the Environment,
the Environmental Protection Agency
and Teagasc to discuss and find solutions
for various issues, including issues
relevant to the effects of the Nitrate
Directive, managing odours from
composting facilitates and waste disposal.
Plant Protection
Products Programme
Irish growers of horticultural products
have been at a competitive disadvantage
in relation to the number of plant
protection products available to
them, compared to their European
counterparts. Consequently, growing
horticultural crops in Ireland has been
more difficult and more costly. Bord Bia
has established a programme to assist
the sector in this area. To date, the
programme has facilitated the approval
by the Department of Agriculture,
Fisheries and Food of approximately
100 additional crop uses, which have
been critically important for the industry
in terms of producing quality crops in
a more competitive way.
Horticultural Labour Issues
A major survey was carried out on the
horticultural labour market in Ireland,
(the first since 2002), covering all aspects
– from the enlargement of the EU to
changes in labour legislation. It involved
conducting interviews with producers,
labour procurers and relevant government
officials. New estimates show that total
employment in horticulture is 6,119
(including part-time equivalent staff).
Bord Bia maintains up-to-date
information on its website to ensure
that employers and employees are aware
of their rights and obligations under
current law.
Bord Bia continues to support the
Seasonal Horticultural Workers’ Scheme.
This brings horticultural students from
non-EU European countries and EU
accession states to Ireland, providing
the industry with a source of semi-skilled
labour and the students with valuable
work experience.
35
Our accounts
The Food Dudes healthy eating
programme, promoting fruit and
vegetables to parents and their
primary-school children, began its
national roll-out in 2007. The programme
was expanded from 98 schools in 2006
to 303 schools in 2007, reaching 40,000
children. The programme will be
expanded further in 2008.
Innovation Programme
for Horticulture
Our governance
Maintaining competitiveness in this
important sector is high on our agenda
and Bord Bia is committed to working
with the sector to develop the full range
of business skills necessary to build on
its success. The promotion of the health
benefits of fresh produce is ongoing.
In particular, the promotion of these
benefits to school-going children
is seen as critical to tackling obesity.
Chief Executive’s Review
Pictured at the national roll out of Food Dudes, Bord Bia’s
Healthy Eating Campaign for primary school children
nationwide, were An Tánaiste and former Minister for
Agriculture, Fisheries and Food, Mary Coughlan TD
and four food dudes!
Chef, Julianne Growney
pictured at the launch of Bord
Bia’s New Season Potatoes
promotion to highlight the
health benefits and seasonality
of new season potatoes.
Business Development
Training
Kildare Growers
Trade Show
This programme assists businesses to
improve their competitiveness across a
number of areas. In 2007, 38 companies
attended health and safety training in
three locations. A programme on national
account management was also developed
to assist businesses improve their
marketing and negotiating skills.
Bord Bia, under the Horticulture
Ireland banner, was a major sponsor
of the Kildare Growers Trade Show at
Punchestown in Co. Kildare during the
year. Bord Bia used the opportunity
to promote its range of services to the
industry, as well as to present the results
of market research into the landscape
sector in Ireland.
‘Reinventing the Potato’
Project
Consumption of potatoes has fallen in
recent years and Bord Bia has designed
a programme entitled “Reinvent the
Potato”, to help the sector to address this
trend. The project involves the provision
of a tool kit and training to packers and
retailers which identifies how the potato
category can be changed and managed
to match today’s consumer expectations
and demands. It aims to make the potato
a more attractive product on the retail
shelf. Innovation, presentation and
convenience are key elements of
this programme.
Amenity Export Programme
The maintenance and development
of the non-food horticultural sector that
is the amenity sector for export growth
continues to be a key priority for Bord
Bia. Training and advice is provided to
companies interested and involved in
exporting, to assist in maintaining existing
markets and developing new ones.
36
National Plant Fair
Bord Bia sponsors the annual National
Plant Fair, 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 forms
an important part of Bord Bia’s strategy
to support Irish horticultural enterprises.
The show has one main objective: to
encourage Irish plant buyers, both
retailers and landscapers, to purchase
Irish-grown plants and to trade with
Irish-based nurseries.
Pictured at the launch of
New Season Strawberries
was Gracie Murphy, Dublin.
Sector overview
Edible crops
Mushrooms
The mushroom sector saw further
consolidation in 2007, with just under 80
growers now remaining. In 2007, there
was a 10% fall in production, although
the retail market made something of a
recovery. Nevertheless, the UK market,
which is the main destination for Irish
mushrooms, grew by 5.3% in value,
driven by a 1.8% increase in volume and
a 3% increase in price. There was good
news on the domestic retail front as well,
with strong growth in value of 11.4%.
The increase in demand for mushrooms
is attributed to the poor summer season,
which encouraged the consumption
of meals with mushroom ingredients.
Protected crops
Tomatoes and lettuce remain the most
significant crops in this sector. Tomato
production has consolidated in recent
years. There has been a good demand
for Irish tomatoes from the retail
multiples with premium lines such as
“tomatoes on the vine”. The lettuce
sector came under pressure in 2007 with
the poor summer weather causing some
production problems and dampening
demand for salads.
Bord Bia | Irish Food Board | Annual Report 2007
Our business
Paul Martin’s garden entitled ‘Dragonflies and
Flutterbies’ won the overall large garden category
award at Bloom 2007.
The demand for Irish eating apples
is increasing, with the premium Celtic
Orchard brand (a concept which Bord
Bia helped the Irish Apple Growers
Association to develop) contributing
to this trend. There is strong demand for
cider apples, leading to the expansion of
some orchards. High rainfall and the lack
of summer sunshine caused a slight drop
in production, compared to 2006.
Field vegetables
2007 saw further consolidation in this
sector. The majority of vegetables are
now produced by a smaller group of
specialised producers. There are
approximately 250 key producers
contributing 15% of the value of the
total farm-gate output of the horticultural
industry. The wet weather in the summer
made it difficult for producers in terms
of planting and harvesting operations,
particularly for brassica crops. Cost
increases and a more competitive market
continued to present a very challenging
environment for growers.
Non-food crops or amenity crops
In terms of exports in this sector, 2007
proved to be a difficult year with only
Christmas tree growers seeing increases
in sales, which was largely due to
Denmark’s reduced output. The cut
foliage sector is holding steady and
until such time as production capacity
is increased a boost in export revenues is
not expected. Nursery stock (plants, trees,
shrubs etc) is under increasing pressure
from both mainland Europe and the UK,
who have shown a renewed interest in
the Irish market. A fall-off in demand
here at home, linked to the construction
slowdown may prompt a renewed
emphasis on export sales in 2008.
Following a period of rationalisation,
the daffodil bulb and cut flower sector
has now stabilised.
The demand for garden products
remained strong in 2007. Research into
this sector, carried out by TNS/MRBI on
behalf of Bord Bia (for July-September)
indicated a small increase, despite the
poor summer, to €453 million.
Our accounts
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 sector with the result
that the Irish season has been extended
considerably, with Irish strawberries
now available to the end of October.
A significant area of covered production,
both glasshouses and tunnels, has been
developed in 2007, which will boost the
availability of strawberries in 2008.
Potatoes
The Irish potato industry produced
approximately 400,000 tonnes of
potatoes from 12,000 hectares. The key
varieties produced continue to be British
Queens in the early season, with Kerrs
Pinks and Rooster for the main crop.
2007 was a very challenging year, with
increases in costs and a very competitive
market. The retail sales value of potatoes
fell 7% to €200 million in 2007 with a
14% decrease in volume. This presents
a major challenge for the potato sector.
2008 is the UN International Year of
the Potato and a committee has been
established representing industry and
State agencies to promote the potato.
Further research carried out during the
year revealed that the landscaping sector
had experienced strong growth in recent
years and is now valued at €826 million.
Vegetable sales continued to grow,
showing a retail value of €284 million
in 2007 – up 12.7% on the previous
year. The trend for packaged, rather
than loose, products continued. Prepared
products had a retail value of €55 million
in 2007.
Bord Bia | Irish Food Board | Annual Report 2007
Our governance
Fruit crops
Apples and strawberries are the two
main fruits produced in Ireland.
Launch of Bloom 2007.
37
Chief Executive’s Review
QUALITY ASSURANCE
Bord Bia’s quality assurance programmes provide an objective
assessment of the production standards for Irish food and horticulture.
Both customers and final consumers can have confidence that
products carrying the Bord Bia Quality Mark have been measured
against rigorous standards that are strictly enforced. These initiatives
play an important role in driving the success of the industry.
Bord Bia provides quality assurance
schemes for the following product
sectors: beef, lamb, pigmeat, poultry,
eggs and horticulture, with the aim
of having all schemes accredited to
international norms, specifically EN45011.
Quality assurance plays a fundamental
role in promoting Irish food and
horticulture and provides the platform
for consumer promotion of product
quality and origin.
Bord Bia’s primary work in the
quality assurance area is to develop
new standards, improve existing ones,
and ensure timely and efficient auditing
and certification of members to each of
the schemes. Safeguarding the integrity
of these schemes requires continuous
monitoring and updating of systems,
particularly given the increased
recognition of the quality
assurance logo.
In 2007, the rapid growth in take-up
of the Beef Quality Assurance Scheme
(BQAS) saw 14,000 audits being
conducted. The certified membership
of the scheme reached over 24,000 by
the end of the year. All producers were
independently inspected and certified
to the BQAS standard.
The Lamb Quality Assurance Scheme
was launched and achieved EN45011.
Certified producer membership
approached 2,000 during 2007.
Introducing the auditing programme
for the Lamb Quality Assurance Scheme
required new systems and recruitment.
Existing standards for chicken, duck and
turkey were revised and amalgamated
into a single Poultry Products Quality
Assurance Scheme. This new standard
has been submitted to the Irish National
Accreditation Board for accreditation
to EN45011. Once approved, the new
standard will be implemented at both
producer and processor level.
The Bord Bia Quality Assurance Scheme
for the horticultural food products is
accredited to the EN45011 standard.
The Horticulture Quality Assurance
Schemes for edible products now
includes producers, packers and
preparers of produce. There are currently
380 participants in the schemes and
standards were revised and updated
during the year. Independent certification
under the Bord Bia Horticulture Scheme
is a prerequisite to supplying many
key markets.
The quality assurance schemes
for the different sectors of the amenity
horticulture industry (landscape, nursery
stock and garden centres) continue to
assist these businesses to improve
performance and meet regulatory
standards. The garden centre sector is
recognised through the annual Garden
Centre Quality Awards. In 2007, a total
of 53 enterprises were certified under
the Amenity Quality Programme
(including five garden centres who
achieved the coveted five-star rating).
The Pigmeat Quality Assurance Scheme
achieved EN45011 accreditation for both
the producer and processor standards.
Auditing has commenced under the new
standard and will continue to be rolled
out in 2008.
38
Bord Bia | Irish Food Board | Annual Report 2007
Bord Bia continued its investment in comprehensive and varied
consumer and trade customer information and research projects
and their dissemination to industry in 2007. In addition, an extensive
programme of national and international events, conferences, trade
fairs and consumer shows were managed as well as integrated national
and international marketing communications to support these events.
The Marketing Finance programme was further developed in 2007
to support the market growth of SME’s.
Health and wellness research showing
consumer behaviours via “video diaries”
was unveiled at the Health Agenda
Conference.
The visionary “Anticipating Tomorrow”
programme revealed what the Irish
market for food and drink will look like
in 2020, including how consumers will
live. Food companies are using this
research to help with formulating
longer-term business strategies.
Marketing Services
Bord Bia organised over 50 events in
2007, including the flagship inaugural
Bloom, Marketplace, the Bord Bia Food
and Drink Industry Awards, and Food
and Drink Industry Day.
Bord Bia | Irish Food Board | Annual Report 2007
World Food Moscow, Gulf Food Dubai,
SIAL China, Shanghai and CIMIE in
Nanjung supported our Asia strategy
while the flagship Anuga in Cologne
was a key trade fair for Bord Bia in 2007,
where Bord Bia’s premium meat
marketing strategy was launched.
Closer to home, 43 companies, including
nine from Northern Ireland, participated
in the St. Patrick’s Day Food Market in
Covent Garden, London, while another
15 exhibited at the Speciality and Fine
Food Fair in the same city.
Other events organised and managed
by Bord Bia included beef conferences
in Jakarta and Manila, Marketing to the
Health Agenda in Dublin, YEMCO in Cork,
as well as Bord Bia participation at
Brand Forum
The Bord Bia Brand Forum continued
in 2007 to provide 100 food and drink
businesses with access to best-practice
branding expertise, through forums,
the Brandscapes newsletter, guides,
case studies, workshops and customised
services such as design, packaging,
marketing communications and
e-marketing.
Marketing Finance
In 2007, Bord Bia operated the Marketing
Assistance Programme, aimed at helping
small and medium-sized enterprises (with
an annual turnover of between €100,000
and €3.5 million). This programme, was
designed to help them to improve
marketing techniques and capabilities.
The companies included producers of
farmhouse cheese, bio-yogurt, chilled
dairy, confectionery, charcuterie and
horticulture products.
In 2007, Bord Bia received 103 applications
for grant assistance and grants totalling
€385,165 were paid to 72 companies.
Aidan Cotter
Chief Executive
39
Our accounts
30 firms from product development
through to product launch.
sponsored events, which included
for example the International Dairy
Federation’s World Dairy Summit
and EAAP 2007.
Our governance
Overall, Bord Bia project-managed
Ireland’s participation at 16 trade
Bord Bia developed weekly news alerts on exhibitions worldwide.
global trends in 2007 and disseminated
these to 340 food, drink and horticulture Among the sector-specific exhibitions
organised by Bord Bia in 2007 for the
businesses via the newly launched Bord
ingredients sector was Food Ingredients
Bia Food Alert. The Alert captures
content generated by Bord Bia executives Europe in London, which attracted
ingredient buyers from specialist firms
in user-friendly formats covering trends,
and multinationals all over the world
supply chain, innovation, nutrition and
and Vitafoods in Geneva, which
policy issues from around the world.
showcased suppliers of nutraceuticals,
Consumer lifestyles research covering
cosmeceuticals, functional foods and
Ireland, Northern Ireland and Britain
functional drinks. For the drinks sector,
via the biennial and fourth Bord Bia
Bord Bia organised participation at
PERIscope (Purchasing and Eating
Vinexpo in Bordeaux, which attracted
in the Republic of Ireland) continued
50,000 wine and spirits buyers, and
in 2007. This revealed a high level of
TFWA World Exhibition in Cannes where
consciousness among Irish consumers
the industry’s most prestigious luxury
of emerging environmental issues.
brands were unveiled before key buyers,
agents and distributors from airport
The Bord Bia Foresight4FOOD
authorities around the globe.
innovation programme assisted
Information Services
Our business
SERVICES
Corporate Responsibility Statement
Governance
Equality
Clients’ Charter
Bord Bia 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 best
practice and monitors compliance on an
ongoing basis. The Secretary/Director is
responsible to the Board for ensuring that
procedures are implemented and that
relevant legislation, regulations and
guidelines are complied with.
Bord Bia is committed to ensuring
equality of opportunity and its personnel
and staff development programmes are
structured accordingly. Bord Bia
endeavours to assist staff in relation to
career and personal needs and operates
appropriate policies covering such areas
as educational programmes, study leave,
job-sharing and career breaks.
Bord Bia has a Client 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 the appropriate internal procedures.
Furthermore, there is a policy on sexual
harassment in operation to support
and protect the dignity of each person.
Bord Bia is committed to making every
effort possible to be energy efficient and
to operating appropriate conservation
and recycling measures.
Ethics and standards
The provisions of the Ethics in Public
Office Act 1995 and the Standards in
Public Office Act 2001 are being
implemented.
Freedom of Information (FOI)
Bord Bia is a prescribed organisation
under the Freedom of Information Acts
that established three new 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
Energy Efficiency
and Conservation
In relation to the employment of disabled
people in the public sector, Bord Bia is
committed to implementing Government
policy in this area. Specific provisions
were made for disabled visitors in the
construction of Bord Bia’s Food Centre.
Safety, Health
and Welfare at Work
Bord Bia is implementing the provisions
of Safety, Health and Welfare at Work
legislation, including the preparation
and operation of a Safety Statement
(and Statement of Intent and Policy
Document) embracing all matters
affecting safety, health and welfare of
staff and visitors to Bord Bia’s premises.
• A legal right to obtain reasons for
decisions affecting oneself taken
by a public body.
40
Bord Bia | Irish Food Board | Annual Report 2007
In preparing these financial statements
the Board is required to:
1. Select suitable accounting policies
and then apply them consistently.
2. Make judgements and estimates
that are reasonable and prudent.
3. Prepare the financial statements on
the going-concern basis unless it is
inappropriate to presume that the
Board will continue in operation.
4. State whether applicable accounting
standards have been followed,
subject to any material departures
disclosed and explained in the
financial statements.
Our governance
Section 21 of An Bord Bia Act 1994
requires the Board to “keep in such form
and in respect of such accounting periods
as may be approved by the Minister, with
the consent of the Minister for Finance,
all proper and usual accounts of monies
received or expended by it, including an
Income and Expenditure Account, a Cash
Flow Statement and a Balance Sheet and,
in particular, shall keep in such form as
aforesaid all such special accounts as the
Minister may, or at the request of the
Minister for Finance shall, from time to
time direct and the Board shall ensure
that separate accounts shall be kept and
presented to the Board by any Subsidiary
Board that may be established by the
Board under this Act and these accounts
shall be incorporated in the general
statement of account of the Board.”
Our business
Board Responsibilities
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 Browne
Chairman
Our accounts
Bord Bia | Irish Food Board | Annual Report 2007
41
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
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.
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 2007 the Board conducted
a review of the effectiveness of the
system of internal financial control.
On behalf of the Board
Bord Bia has an outsourced internal audit
Dan Browne
function, which operates in accordance
with the Framework Code of Best Practice Chairman
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.
• Assessing the likelihood of identified
risks occurring
• Working closely with Government
and various agencies to ensure that
there is a clear understanding of Bord
Bia goals and support for the Board’s
strategies to achieve those goals.
42
Bord Bia | Irish Food Board | Annual Report 2007
Bord Bia – Board
Members
Chief Executive
Mr Dan Browne
Director, Dawn Meats (Grannagh) Ltd.
Ms Marian Byrne
Principal Officer, Department of
Agriculture, Fisheries and Food
Aidan Cotter
Mr Jackie Cahill
President, Irish Creamery Milk Suppliers’
Association
Frank Lynch
Secretary/Director
Changes during 2007
Mr Ray Carolan
Pig Producer and Cattle Breeder
Appointed 15 February
Mr Jackie Cahill
(re-appointment)
Dr Noel Cawley
Chairman, International Dairy Federation
Mr Frank Hayes
Dr Paul Cusack
Principal, College of Amenity
Horticulture, National Botanic Gardens
Mr Kieran Dunne
L & K Dunne Nurseries
Mr Frank Hayes
Director of Corporate Services,
Kerry Group
Mr Joseph Hyland
Managing Director, Irish Country Meats
Mr Michael Kilcoyne
Vice Chairman, Consumers’
Association of Ireland
Mr Mel O’Rourke
Managing Director, Sylvan Ireland
Ms Bríd Rodgers
Former Minister for Agriculture and
Rural Development, Northern Ireland
Mr Padraig Walshe
President, Irish Farmers’ Association
Ms Bríd Rodgers
(re-appointment)
Term Expired 13 September
Mr Kieran Dunne
(re-appointed 26 November)
Term Expired 14 September
Ms Katherine O’Leary
(re-appointed 18 September)
Changes during 2008
Mr Dan Browne
(appointed Chairman 10 April)
Terms Expired 1 February
Ms Angela Kennedy (Chairman),
Managing Director Megazyme
International Ireland Ltd.
Our accounts
Ms Katherine O’Leary
Dairy Farmer and Part-time Home
Economics Teacher
Mr Michael Kilcoyne
(re-appointment)
Our governance
Mr Vincent Cleary
Managing Director,
Glenisk Organic Ireland
Our business
Chairman
Mr Ray Carolan
(re-appointed 11 April)
Mr John Malone
Former Secretary General, Department
of Agriculture, Fisheries and Food
Mr Joe Hyland
(re-appointed 10 April)
Appointments
Mr Vincent Cleary
(appointed 11 April)
Dr Paul Cusack
(appointed 28 April)
Bord Bia | Irish Food Board | Annual Report 2007
43
Bord Bia – Consumer Foods Board
Chairman
Members
Changes during 2007
Vacant
Mr Michael Carey
Executive Chairman,
Jacobs Fruitfield Food Group
Ms Eilis Gough
(re-appointed 4 April)
Mr Kieran Carolan
Jaguar Capital
Term Expired 22 June
Mr Tom Harrington
(re-appointed 23 June)
Mr Mike Doyle
General Manager, Kerry Foods
Terms Expired 27 September
Mr John Barry, Company Director
Mr Colin Gordon
Chief Executive, Glanbia Consumer Foods
Mr Tom Corcoran, Chairman Glanbia Plc
Ms Eilis Gough
Managing Director, Mileeven Fine Foods
Mr Tom Harrington
Public Representative
Mr Noel McPartland
Chairman, The Food Hub
Ms Paula Mee
Food and Nutrition Consultant
Mr Larry Murrin
Managing Director, Dawn Farm Foods
Appointed 11 October
Mr Colin Gordon
Ms Anne Sawbridge
Resigned 12 October
Mr Donogh Lane, Former Marketing
Director, Irish Distillers
Appointed 26 October
Mr Noel McPartland
Changes during 2008
Term Expired 1 February
Mr John Malone (Chairman)
Mr Joseph O’Flynn
Marketing Development Director,
The Irish Dairy Board
Ms Anne Sawbridge
Managing Director, Cadburys Ireland
Ms Ann Woods
Honorary Secretary,
Consumers’ Association of Ireland
44
Bord Bia | Irish Food Board | Annual Report 2007
Bord Bia – Meat and Livestock Board
Members
Changes during 2007
Vacant
Mr Henry Burns
Chairman, National Sheep Committee,
IFA
Resigned 15 March
Mr Pat O’Keeffe, IFA
Mr Paul Clarke
National Executive of the Livestock Trade
Mr Michael Doran
Chairman, National Livestock Committee,
IFA
Mr Tommy Fitzgibbon
President, Associated Craft Butchers
of Ireland
Mr John Horgan
Managing Director, Kepak Group
Mr Gerry Maguire
Managing Director, Slaney Foods Group
Resigned 28 March
Ms Brid O’Connor,
National Consumer Agency
Appointed 4 April
Mr Michael Maguire
Resigned 12 April
Mr John Madden, Glanbia Meats
Appointed 10 May
Mr Jim Hanley
Our governance
Mr Jim Hanley
Managing Director, Glanbia Meats
Our business
Chairman
Terms Expired 25 October
Mr Paul Clarke
(re-appointed 4 December)
Mr Michael O’Connor
(re-appointed 29 November)
Changes during 2008
Mr Michael Maguire
Chairman, National Pigs Committee, IFA
Mr Martin McMahon
Irish Creamery Milk Suppliers’ Association
(ICMSA)
Mr Ned Morrissey
Chairman, National Poultry Committee,
IFA
Bord Bia | Irish Food Board | Annual Report 2007
Resigned 13 February
Mr John Bryan, IFA
Appointed 25 February
Mr Michael Doran
Term Expired 27 February
Mr Gerry Maguire
(re-appointed 7 May)
Our accounts
Mr Michael O’Connor
Sales Director, Cappoquin Chickens
Term Expired 1 February
Mr Ray Carolan (Chairman)
45
Bord Bia – Quality Assurance Board
Chairman
Members
Changes during 2007
Ms Bríd Rodgers
Mr John Bryan
IFA
Appointed 9 March
Ms Bríd Rodgers,
Chairman
(re-appointment)
Mr Vincent Carton
Chief Executive, Carton Group
Mr Michael Cronin
Department of Agriculture,
Fisheries and Food
Mr John Cunningham
Ex-Dairygold Food Products
Mr Eamonn Howell
Trading Manager, Musgraves
Mr Dermott Jewell
Chief Executive, Consumers’ Association
of Ireland
Mr Paul Nolan
Group Development Manager,
Dawn Group
Mr John O’Leary
Deputy President, Irish Creamery
Milk Suppliers’ Association (ICMSA)
Mr Brendan Smyth
Chief Adviser, Glanbia
46
Resigned 28 March
Ms Brid O’Connor
Resigned 7 July
Mr Luke Mulligan, Department
of Agriculture, Fisheries and Food
Terms Expired 7 July
Mr Dermott Jewell
(re-appointed 23 July)
Mr Paul Nolan
(re-appointed 23 July)
Appointed 23 July
Mr Michael Cronin
Appointed 28 September
Mr John Bryan
Mr John Cunningham
Term Expired 24 November
Mr Aidan Ryan, Mushroom Grower
Changes during 2008
Mr Cornelius Traas
The Apple Farm
Appointed 25 February
Mr Vincent Carton
Dr Declan Troy
Head of Centre, National Food Centre,
Teagasc
Mr Cornelius Traas
Bord Bia | Irish Food Board | Annual Report 2007
Bord Bia – Horticulture Board
Our business
Chairman
Members
Changes during 2007
Mr Kieran Dunne
Mr Paddy Callaghan
Nature’s Best
Term of Office Expired 13 August
Mr Kieran Dunne
Ms Rachel Doyle
Arboretum Garden Centre
Term of Office Expired 27 September
Ms Angela Binchy, Landscape Design
Mr John Hogan
Dublin/Meath Growers
Ms Olive Harrington,
Assistant Parks Superintendent,
Belvedere House, Mullingar
Mr Martin Jones
Islandview Nureries
Ms Caroline Keeling
Keeling Fruit Growers/Importers
Mr Jerry Sweetnam, Fyffes
Appointed 11 October
Mr Paddy Callaghan
Our governance
Mr Gary McCarthy
Chairman, Fruit Growers Association
Mr Martin Jones
(re-appointed 11 November)
Mr Ciaran O’Brien
Ms Grainne Murphy
SAP Nurseries
Changes during 2008
Mr Ciaran O’Brien
Peter O’Brien Landscapes
Re-appointed 8 February
Mr Kieran Dunne (Chairman)
Mr Michael Slattery
Mushroom Grower
Ms Celestine Ward
Ballinasloe Garden Centre
Mr Maurice Whelton
Potato Grower
Our accounts
Bord Bia | Irish Food Board | Annual Report 2007
47
Organisation Structure
Bord Bia comprises the Board, four
Subsidiary Boards, the Chief Executive
and the Executive, which provide a range
of services required to implement Board
policy and programmes.
The Board comprises 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)
comprising a Chairman and 12 ordinary
members, who are appointed by the
Board with the consent of the Minister.
The Chairman of each Subsidiary Board
is a member of the Board.
The following Board Committees are in
place: Audit Committee, Remuneration
and Pensions Committee and Strategy
Committee. The Executive comprises
staff based in Bord Bia’s head office
and overseas.
Main Board
Chairman
Meat and Livestock Board
Chairman
Horticulture Board
Chairman
Quality Board
Chairman
Consumer Foods Board
Chairman
Chief Executive
Markets
Established
48
Emerging
Quality/
Food Dudes
Information
Services
Strategic
Information
IT
Marketing
Marketing
Services
Small
Business
Sectors
Meat
Human
Resources
Consumer
Food and
Drink
Horticulture
Corporate
Finance
Secretariat
Bord Bia | Irish Food Board | Annual Report 2007
Staff Structure
Markets
Quality / Food Dudes
Quality Assurance
Strategic Information Services
Aidan Cotter
Michael Murphy
Michael Maloney
Jim O'Toole
Julian Smith
Marketing
Una Fitzgibbon
Meat
Gerard Brickley
Tara McCarthy
Horticulture
Mike Neary
Human Resources
Susan Doyle
Corporate Services
Frank Lynch
Finance
Our governance
Consumer Food and Drink
Our business
Chief Executive
Gerry Bailey
Overseas Office Contacts
Amsterdam
Declan Fennell
Frankfurt
Liam MacHale
London
Beatrice Blake
Madrid
Cecilia Ruiz
Milan
John Keane
New York
Paris
Scandinavia
Shanghai
Bord Bia | Irish Food Board | Annual Report 2007
Our accounts
Moscow
Alla Barinova
Karen Coyle
Noreen Lanigan
Frank Murray
Breffni Kennedy
49
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 2007 under the
An Bord Bia Act, 1994.
Respective Responsibilities
of the Board and the
Comptroller and Auditor General
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.
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 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.
50
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 2007
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 attached
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.
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 2007 and of
its income and expenditure for the year
then ended.
Our business
Basis of Audit Opinion
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.
Our governance
John Buckley
Comptroller and Auditor General
30 June 2008
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.
Our accounts
Bord Bia | Irish Food Board | Annual Report 2007
51
Statement of Accounting Policies
(a) Basis of accounting
(c) Income
(e) Marketing Finance
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.
Income shown in the financial statements
under Oireachtas Grant-in-Aid represents
the actual receipts from this source in
the period.
Expenditure under this heading is
accounted for on the basis of actual
payments made.
(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, 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.
(f) Pensions
Income from the Quality Assurance
Schemes Special Funding, the Food Dudes
National Roll-Out, the EU “Food Dudes”
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%
52
Furniture and fittings
12.5%
Office equipment
20%
Computer equipment
331⁄3%
Motor vehicles
20%
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 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.
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.
Bord Bia | Irish Food Board | Annual Report 2007
Actuarial gains or losses arising on
scheme liabilities are reflected in the
Statement of Recognised Gains and
Losses and a corresponding adjustment
is recognised in the amount recoverable
from the Department of Agriculture,
Fisheries and Food.
(h) Tangible assets
Tangible assets are financed out of
revenue. Provision is made in the Income
and Expenditure Account for a transfer to
the Capital Account of amounts allocated
for such capital purposes less credits to
revenue over the life of the related assets.
(i) Stocks
Stocks of stationery are stated at cost.
(j) Provision for bad
and doubtful debts
Known bad debts are written off
and specific provision is made for
any amounts the collection of which
is considered doubtful.
Our governance
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.
Our business
Pension costs reflect pension benefits
earned by employees in the year. An
amount corresponding to the pension
charge is recognised as income to the
extent that it is recoverable, and offset
by Grant-in-Aid received in the year
to discharge pension payments.
(k) Foreign currencies
Foreign currency balances are translated
at the rates ruling at the balance
sheet date.
(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.
Bord Bia | Irish Food Board | Annual Report 2007
Provision has been made in respect
of all VAT liabilities and the PRSI
contributions of Irish persons attached
to overseas offices.
(m) Capital Account
The capital grant element of Oireachtas
Grant-in-Aid received by Bord Bia is
credited to the Capital Account as set
out in Note 2, and is transferred to the
Income and Expenditure Account over
the expected useful lives of the assets
to which they relate, in line with asset
depreciation.
Our accounts
Rentals in respect of operating leases are
charged to the Income and Expenditure
Account as incurred.
(l) Taxation
53
Income and Expenditure Account
year ended 31 December 2007
Notes
2007
€‘000
2006
€‘000
Income
Oireachtas Grant-in-Aid
Net Deferred Funding for Pensions
1a
27,705
22,403
14b
(96)
251
1,587
Quality Assurance Schemes: Special Funding
1b
2,981
Food Dudes National Roll Out
1c
3,320
76
EU “Food Dudes” Programme
1d
EU Floriculture Programme
1d
Food Promotions Special Funding
1e
162
Statutory Levy
1f
5,306
5,393
Project and Other Income
1g
4,434
1,960
43,888
32,008
249
232
44,137
32,240
Transfer from Capital Account
405
9
2
Total Income
Expenditure
Marketing and Promotional Expenditure
3
29,530
19,142
Marketing Finance
4
385
275
Operating Expenditure
5
14,026
13,080
43,941
32,497
196
(257)
54
311
250
54
Total Expenditure
Surplus/(Deficit) 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 17 form part of these financial statements.
Dan Browne
Chairman
54
Aidan Cotter
Chief Executive
Bord Bia | Irish Food Board | Annual Report 2007
Statement of Total Recognised Gains and Losses
year ended 31 December 2007
2007
€‘000
196
(257)
Actuarial Gain on Pension Scheme Liabilities
14c
1,007
3,307
Adjustment to Deferred Pension Funding
14c
(1,007)
(3,307)
196
(257)
Surplus/(Deficit) for Year
Total Recognised Gains and Losses for the Year
Our business
Notes
2006
€‘000
The Statement of Accounting Policies and Notes 1 to 17 form part of these financial statements.
Dan Browne
Chairman
Aidan Cotter
Chief Executive
Our governance
Our accounts
Bord Bia | Irish Food Board | Annual Report 2007
55
Balance Sheet
as at 31 December 2007
Notes
2007
€‘000
2006
€‘000
Tangible Assets
6
633
883
Financial Assets
7
8
7
641
890
Assets Employed
Fixed Assets
Current Assets
Stocks
Debtors
8
Cash at Bank and in Hand
11
10
1,597
2,023
7,184
4,461
8,792
6,494
8,550
6,447
242
47
Creditors
(amounts falling due within one year)
9
Net Current Assets
883
937
Deferred Pension Funding
Total Assets less Current Liabilities before Pensions
14d
3,013
4,115
Pension Liabilities
14e
(3,013)
(4,115)
883
937
633
883
250
54
883
937
Total Assets less Current Liabilities
Financed by
Capital and Reserves
Capital Account
2
Income and Expenditure Account
The Statement of Accounting Policies and Notes 1 to 17 form part of these financial statements.
Dan Browne
Chairman
56
Aidan Cotter
Chief Executive
Bord Bia | Irish Food Board | Annual Report 2007
Cash Flow Statement
year ended 31 December 2007
2006
€‘000
Surplus/(Deficit) for year
196
(257)
Our business
2007
€‘000
Reconciliation of Surplus/(Deficit) to
Net Cash Inflow from Operating Activities:
Net Interest Receivable
(181)
(87)
Depreciation
185
237
Capital Account Transfer
(249)
(232)
Loss on Disposal of Tangible Fixed Assets
158
49
Decrease in Debtors
425
1,145
Increase in Stocks
Increase in Trade Creditors
(1)
(1)
1,020
1,427
295
1,104
632
Net Cash Inflow from Operating Activities
2,635
3,208
2,635
3,208
181
87
2,816
3,295
(93)
(54)
2,723
3,241
Increase in Cash
2,723
3,241
Net Funds at 1 January
4,461
1,220
Net Funds at 31 December
7,184
4,461
Our governance
(22)
Increase in Accruals and Deferred Income
(Decrease)/Increase in Taxation and PRSI
Cashflow Statement
Net Cash Inflow From Operating Activities
Returns on Investment and Servicing of Finances:
Bank Interest Received
Net Current Inflow of Funds
Capital Expenditure
Payment to Acquire Tangible Assets
Increase in Cash
Reconciliation of Net Cash Flow to Movement of Funds
Our accounts
The Statement of Accounting Policies and Notes 1 to 17 form part of these financial statements.
Dan Browne
Chairman
Bord Bia | Irish Food Board | Annual Report 2007
Aidan Cotter
Chief Executive
57
Notes forming part of the Financial Statements
year ended 31 December 2007
1. Income
(a)
Included in Oireachtas Grant-in-Aid is €5,118,000 which has been made available to An Bord Bia under the Marketing
Sub-Programme of the Productive Sector Operational Programme of the National Development Plan 2007-2013.
(b)
Amounts included under the heading of the Beef Quality Assurance Scheme Special Fund totalling €2,980,863 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.
(c)
Amounts included under the heading of Food Dudes – National Roll Out totalling €3,320,545 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 income from EU-funded programmes arise in respect of contributions by the EU, the Department
of Agriculture and Food and industry bodies to the following programmes:
EU “Food Dudes” Programme
2007
€‘000
2006
€‘000
76
405
EU Floriculture Programme
9
414
76
(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:
2007
€‘000
Beef Expo Ireland
2006
€‘000
114
Local Food Conference – Speciality Foods
31
Organic Promotion
17
162
(f)
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.
(g)
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 €180,958 (2006: €87,077).
58
–
Bord Bia | Irish Food Board | Annual Report 2007
Notes forming part of the Financial Statements
year ended 31 December 2007
Our business
2. Capital Account
2006
€‘000
883
1,115
93
54
Net Amount Realised on Disposal of Assets
(158)
(49)
Amortisation in line with Asset Depreciation
(185)
(237)
Net Transfer to Income and Expenditure Account
(250)
(232)
Balance at 31 December
633
883
14,924
7,581
Trade Fairs and Exhibitions
1,235
1,248
Information Services
3,436
1,791
Balance at 1 January
Amount Capitalised in respect of Purchased Tangible Assets
Our governance
2007
€‘000
3. Marketing and Promotional Expenditure
Marketing Development Programmes
901
962
Beef and Lamb Quality Assurance: Special Fund
3,061
1,587
Trade Services
Quality Assurance
4,767
2,870
Marketing Services
590
2,492
Communications
382
396
Nutritional Advisory Services
234
215
29,530
19,142
4. Marketing Finance
101
Marketing Improvement Assistance Programme
176
165
Market Participation Programme
91
91
Business Support Programme
17
19
385
275
Bord Bia | Irish Food Board | Annual Report 2007
Our accounts
Marketing Assistance Programme
59
Notes forming part of the Financial Statements
year ended 31 December 2007
5. Operating expenditure
2007
€‘000
2006
€‘000
629
562
Staff Costs (see below)
9,164
8,463
Rent, Rates and Insurance
1,316
1,384
Board and Sub-Board Members’ Fees and Expenses
Telecommunications Costs
180
213
General Business Expenses
2,370
2,150
24
22
Depreciation (Note 6)
185
237
Loss on Disposal of Tangible Assets
158
49
14,026
13,080
Wages and salaries
7,592
6,934
Social welfare costs
581
508
Pension costs (Note 14c)
991
1,021
9,164
8,463
Audit Fee
Operating expenditure includes the full cost of staff and office expenses in head
office departments and in the overseas offices. Staff costs are comprised of:
The total number of employees (including part-time persons) at 31 December 2007 was 91 (2006: 91). The cost of certain
part-time employees amounting to €183,056 (2006: €148,597) is included in Marketing and Promotional Expenditure.
6. Tangible Fixed Assets
Improvements
to Leasehold
Property
Furniture and
Fittings
Computer
Equipment
Office
Equipment
Motor
Vehicles
Total
€‘000
€‘000
€‘000
€‘000
€‘000
€‘000
1,807
834
653
567
100
3,961
4
6
63
20
(144)
(179)
(175)
(107)
(47)
(652)
1,667
661
541
480
53
3,402
Cost
At 1 January 2007
Additions in Year
Disposals
At 31 December 2007
93
Depreciation
At 1 January 2007
1,234
678
573
529
64
3,078
Charged in Year
94
22
50
9
10
185
Disposals
(54)
(128)
(166)
(102)
(44)
(494)
1,274
572
457
436
30
2,769
At 31 December 2007
393
89
84
44
23
633
At 31 December 2006
573
156
80
38
36
883
At 31 December 2007
Net Book Amounts
60
Bord Bia | Irish Food Board | Annual Report 2007
Notes forming part of the Financial Statements
year ended 31 December 2007
Our business
7. 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.
8. Debtors
2007
€‘000
2006
€‘000
1,439
1,562
(505)
(446)
934
1,116
663
907
1,597
2,023
3,013
1,992
264
295
Amounts falling due within one year:
Trade Debtors
Less: Provision for Bad Debts
Our governance
Prepayments and Accrued Income
9. Creditors
(amounts falling due within one year)
Trade Creditors
Taxation and Social Welfare (Note 10)
Withholding Tax
Accruals and Deferred Income
397
388
4,876
3,772
8,550
6,447
Our accounts
Bord Bia | Irish Food Board | Annual Report 2007
61
Notes forming part of the Financial Statements
year ended 31 December 2007
10. Taxation and Social Welfare
2007
€‘000
2006
€‘000
195
230
69
65
264
295
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.
11. Provisions for Liabilities and Charges
Value Added Tax
Provision for Dilapidations
At 1 January
2007
Provided/
(Released)
during year
At 31 December
2007
€‘000
€‘000
€‘000
1,099
(606)
493
400
50
450
The provisions for liabilities and charges are management’s best estimate of the potential liability that exists at 31 December
2007. 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.
62
Bord Bia | Irish Food Board | Annual Report 2007
Notes forming part of the Financial Statements
year ended 31 December 2007
Our business
12. 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 12 months amount to
€827,059 made up as follows:
€‘000
Payable on leases on which the commitment expires:
Within One Year
101
Within Two to Five Years
525
Six Years and Over
201
Our governance
827
13. Contingent liabilities
Contingent liabilities exist in respect of amounts approved but unclaimed at the year end under the terms of the following
Marketing Finance Programmes operated by Bord Bia as follows:
2007
€‘000
Marketing Assistance Programme
Marketing Improvement Assistance Programme
Market Participation Programme
Business Support Programme
2006
€‘000
559
77
812
103
612
21
64
760
1,488
Management estimate that the contingent liabilities under this heading will be settled within one year.
Our accounts
Bord Bia | Irish Food Board | Annual Report 2007
63
Notes forming part of the Financial Statements
year ended 31 December 2007
14. Superannuation
a)
Superannuation Schemes
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. The latest
full actuarial valuation was made with effect from 1 July 2007.
2) the former Bord Glas scheme. This consists of 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.
An actuarial valuation of the Bord Bia Superannuation Schemes was carried out as at 31 December 2007 for the purpose
of preparing this FRS17 disclosure. The Fund assets are stated at their mid-market value at each balance sheet date.
The financial assumptions used to calculate the retirement benefit liabilities under FRS17 were as follows:
Projected Unit
31/12/2007
31/12/2006
Projected Unit
Discount Rate
5.60%
4.75%
Inflation Rate
2.50%
2.25%
Salary Increases
4.75%
4.50%
Pension Increases
4.25%
4.00%
Return on Assets
6.28%
6.23%
Long-Term
rate of return
expected at
Value at
31-Dec
Valuation Method
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-07
2007
€‘000
Equities
7.00%
Bonds
Property
Cash
31-Dec-06
2006
€‘000
11,365
7.00%
12,215
4.75%
4,431
4.20%
3,325
6.00%
1,077
6.00%
825
4.00%
494
3.75%
984
Total market value of
superannuation fund assets
17,367
17,349
Present value of pension liabilities
(20,380)
(21,464)
(3,013)
(4,115)
Net deficit in superannuation schemes
64
Value at
31-Dec
Bord Bia | Irish Food Board | Annual Report 2007
Notes forming part of the Financial Statements
year ended 31 December 2007
Our business
14. Superannuation (continued)
b)
Net Deferred Funding for Pensions in Year
Funding recoverable in respect of current year pension costs
2006
€‘000
990
1,021
(1,086)
(770)
(96)
251
1,057
1,016
(66)
5
991
1,021
Interest on Scheme Liabilities
1,028
953
Expected Return on Scheme Assets
(1,094)
(948)
(66)
5
Experience Gains and (Losses)
(1,715)
972
Changes in Assumptions
2,722
2,335
1,007
3,307
Oireachtas Grant-in-Aid applied to pay pension contributions and pension benefits
C)
2007
€‘000
Analysis of Total Pension Costs charged to Expenditure
Current Service Cost
Interest on Pension Scheme Liabilities (see below)
Our governance
Analysis of Interest on Pension Scheme Liabilities
Analysis of amount recognised in Statement
of Total Recognised Gains and Losses
d)
Deferred Funding Asset for Pensions
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 above 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.
Our accounts
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 2007 was €3,013,100 (2006: €4,115,200).
Bord Bia | Irish Food Board | Annual Report 2007
65
Notes forming part of the Financial Statements
year ended 31 December 2007
14. Superannuation (continued)
e)
Movement in Net Pension Liability during the financial year
2007
€‘000
2006
€‘000
Net Pension Liability at 1 January
4,115
7,171
Current Service Cost
1,057
1,016
Interest Costs
f)
66
(66)
5
Actuarial (gain)/loss
(1,007)
(3,307)
Pension contributions and benefits paid in the year
(1,086)
(770)
Net Pension Liability at 31 December
3,013
4,115
History of Experience Gains and Losses
2007
2006
2005
2004
(Gain)/loss on Scheme Assets
Amount €‘000
% of scheme assets at end of period
1,489
8.57%
(736)
(4.24%)
(1,642)
(11.24%)
(402)
(3.54%)
(Gain)/loss on Scheme Liabilities
Amount €‘000
% of scheme liabilities at end of period
226
1.11%
(236)
(1.10%)
(378)
(1.74%)
(135)
(0.73%)
Total Actuarial (gain)/loss recognised in STRGL
Amount €‘000
% of scheme liabilities at end of period
(1,007)
(4.94%)
(3,307)
(15.41%)
(273)
(1.26%)
2,104
11.39%
Bord Bia | Irish Food Board | Annual Report 2007
Notes forming part of the Financial Statements
year ended 31 December 2007
Our business
15. Board Members – Disclosure of Transactions
In the normal course of business the Board may approve grants and may also enter into other contractual arrangements
with undertakings in which Bord Bia Board Members are employed or otherwise interested. The Board adopted procedures
in accordance with the guidelines issued by the Department of Finance in relation to the disclosure of interests by Board
Members and these procedures have been adhered to by the Board during the year.
No grants were approved or paid during the year to companies with which Board Members are associated.
16. Comparatives
Certain amounts have been re-grouped in these financial statements and the comparative figures have been restated
to ensure consistency with the new presentation.
17. Approval of Financial Statements
The financial statements were approved by the Board on 18 June 2008.
Our governance
Our accounts
Bord Bia | Irish Food Board | Annual Report 2007
67
Marketing Finance Grant Payments 2007
Company Name
All in All Ingredients
Total Paid
€
948
Total Paid
€
Company Name
Healy Fine Foods Ltd
7,971
Alternative Pizza Company
4,692
Heatherfield Ltd
14,917
Ardrahan Dairy Products Ltd
6,000
Hot Irishman Ltd
3,500
B&A Catering Ltd
1,410
Inagh Farmhouse Cheese Ltd
6,450
Babylon Foods
118
Ina’s Kitchen Desserts Ltd
15,000
Belrik Ltd t/a Chill Baby
5,100
Irish Cone and Wafer Co Ltd
3,893
Bia Kid Ltd
9,624
Itsa Bagel Ltd
4,250
Boozeberries Ltd
9,000
JM Food Services Ltd
8,891
Broadway Bagels Ltd
19,000
K&M Nurseries Ltd
561
Bunratty Mead & Liqueur Co Ltd
3,500
Kavanagh’s Christmas Trees
1,942
Carrigaline Farmhouse Cheese
2,445
Kelly’s Nursery Ltd
2,340
Celtic Chocolates Ltd
Celtic Pure Ltd
Cisti Gugan Barra Teo
Cocoa Bean Handmade Chocolates
Cooleeney Farmhouse Cheese
Corleggy Cheese
15,215
6,000
603
1,154
11,911
Kilbeg Dairy Delights
780
Kilfera Food Manufacturers
3,840
Krawczyks West Cork Salami
3,309
Laurence Whelan Potatoes
Limerick Sauce Company Ltd
10,656
1,230
Long Life Plants Ltd
14,994
10,193
M&S Browne Ltd
10,000
Crossogue Preserves
3,633
Magnetti Foods
3,961
Crozier Dairy Products Ltd
3,192
Mileeven Ltd
4,750
Cully & Sully
2,250
Milleens Cheese
1,307
Cybercolors Ltd
4,641
Mount Callan Farmhouse
Doolittles Ltd
7,973
Murphy’s Ice Cream Ltd
5,508
Dunhill Cuisine Ltd
3,473
Silverpail Dairy
7,828
Durrus Cheese
5,998
Stuart & McLean Ltd t/a Laragh Stuart Foods
5,990
Edible Icon
5,000
Sunshine Juice Ltd
Country Cooking Company Ltd
Fermoy Natural Cheese Ltd
Fitzgerald Nurseries Ltd
Flair Confectionery
Follain Teoranta
1,426
757
13,867
3,034
10,000
498
625
Swift Fine Foods Ltd
3,000
Tara’s Handmade Quality Foods Ltd
3,116
The Irish Chocolate Company Ltd
2,465
The Organic Herb Company
5,000
Gallaghers Irish Chocolates Ltd
4,834
The Scullery Fine Foods
3,710
Galmere Fresh Foods Ltd
1,500
The Tipperary Cheese Co Ltd
3,596
Garryvoe Ltd
5,920
Tipperary Organic Ice Cream
8,462
Glenilen Dairy
3,805
Virginia Health Food Company
5,000
Wild Orchard Natural Beverages Ltd
9,944
Zed Candy
6,143
G’s Gourmet Jam
Harringtons Bakery
225
1,300
Total
68
385,165
Bord Bia | Irish Food Board | Annual Report 2007
In accordance with the Official Languages Act 2003 this publication is available in Irish.
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Paseo de la Castellana, nº 46 - 3ª planta,
28046 Madrid, Spain.
SHANGHAI (ASIA OFFICE)
Bord Bia, Irish Food Board,
Suite 728, Shanghai Centre,
No. 1376 Nan Jing Xi Road,
Shanghai, 200040 China.
Tel: +34 91 435 6572 Fax: +34 91 435 6211
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Funded by the Irish Government under the
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50%
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