Ireland – Head Office
Clanwilliam Court,
Lower Mount Street,
Dublin 2, Ireland.
Tel: 00 353 1 668 5155 Fax: 00 353 1 668 7521
Email: info@bordbia.ie Web: www.bordbia.ie
A
N
N
Amsterdam
Strawinskylaan 861,
1077 XX Amsterdam,
The Netherlands .
Tel: 00 31 20 575 3484 Fax: 00 31 20 575 3485
Email: info@bordbia.ie Web: www.foodisland.com
Chicago
Consulate General of Ireland,
400 North Michigan Avenue,
Suite 911, Chicago, IL60611, USA.
Tel: 00 1 312 751 2246 Fax : 00 1 312 751 2480
Email : info@bordbia.ie Web : www.foodisland.com
London
2 Tavistock Place,
London, WC1H 9RA, UK.
Tel: 00 44 20 7833 1251 Fax: 00 44 20 7278 7193
Email: info@bordbia.ie Web: www.foodisland.com
Madrid
Casa de Irlanda,
Paseo de la Castellana,
46 – 3a planta,
28046 Madrid, Spain.
Tel: 00 34 91 435 65 72 Fax: 00 34 91 435 62 11
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Milan
Via S. Maria Segreta 6,
20123 Milano, Italy.
Tel: 00 39 02 72 00 20 65 Fax: 00 39 02 72 00 40 62
Email: info@bordbia.ie Web: www.foodisland.com
Moscow
Orlikov per 3B,
Moscow 107139, Russia.
Tel: 00 7 495 207 8150 Fax: 00 7 495 207 8460
Email: info@bordbia.ie Web: www.foodisland.com
Paris
Maison d’Irlande,
33 Rue de Miromesnil,
75008 Paris, France.
Tel : 00 33 1 42 66 22 93 Fax : 00 33 1 42 66 22 88
Email: info@bordbia.ie Web: www.foodisland.com
Shanghai (Asia Office)
Bord Bia, Irish Food Board,
Suite 728,
Shanghai Centre No. 1376,
Nan Jing Xi Road,
Shanghai 200040 China.
Tel: 00 86 21 627 98829 Fax: 00 86 21 627 98849
Email: info@bordbia.ie Web: www.foodisland.com
BORD BIA ANNUAL REPORT 2006
Frankfurt-am-Main
Wöhlerstraße 3-5,
D-60323 Frankfurt am Main,
Germany.
Tel: 00 49 (0)69 710 423-255 Fax: 00 49 (0)69 710 423-200
Email: info@bordbia.ie Web: www.foodisland.com
U
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006
2
T
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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
Our services to Ireland’s food, drink and horticulture
industries can be broken down into four key areas…
Marketing
Bord Bia works with Irish companies
to target routes to market – retail,
foodservice or manufacturing.
Promoting
Bord Bia delivers a comprehensive promotional
programme designed to communicate the
capability of the Irish food, drink and horticulture
industries to the trade and to customers.
Informing
Bord Bia is
significantly
expanding its
information
capability to
provide insight
and analysis on
the international
food and drink
markets to its
clients.
Developing
Bord Bia offers a range of market development services to companies in the meat,
dairy, consumer food, ingredients and drinks, horticulture and small business and
speciality food sectors.
Contents
Export Performance
3
Chairman’s Statement
4
Chief Executive’s Review
10
Corporate Responsibility Statement
38
Statement on Internal Financial Control
40
Bord Bia – Board
41
Organisation Structure
46
Report of the Comptroller
and Auditor General
48
Statement of Accounting Policies
49
Income and Expenditure Account
51
Statement of Total
Recognised Gains and Losses
52
Balance Sheet
53
Cash Flow Statement
54
Notes Forming part of the Financial Statements
55
Marketing Finance Grant Payments 2006
65
Presentation to the Minister for Agriculture 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-month period
ended 31 December 2006.
Angela Kennedy
Chairman
1
2
Export Performance
Exports of Irish Food and Drink by Sector (€m)
2005
2006 (p)
% Change
€m
€m
06/05
Dairy
1936
2076
7.2
Prepared Foods
1558
1713
9.9
Beef
1360
1550
14.0
Beverages
1083
1385
27.9
Seafood
354
356
0.6
Poultry
249
240
-3.6
Pigmeat
237
223
-5.9
Sheepmeat
197
186
-5.6
Edible Horticulture
228
219
-3.9
Live animals
150
200
33.3
7352
8148
10.8
Total Food and Drink
Exports of Irish Food and Drink (€m)
€0
€500
€1,000
€1,500
€2,000
€2,500
Dairy
Prepared Foods
Beef
Beverages
Seafood
Poultry
Pigmeat
Sheepmeat
Edible Horticulture
Live animals
2006 (p)
2005
3
Chairman’s Statement
We have developed a food, drink and horticulture industry with greater capability, greater
reach and greater ambition than ever before. In 200, Ireland exported over €8
billion
worth of food and drink to 10 countries. Given that exports to the UK account for about
45% of Irish agri-food production, it is interesting to note that the two fastest growing retail
brands in the UK last year were manufactured in, and marketed from, Ireland.
Angela Kennedy,
Chairman, Bord Bia
The Irish food, drink and horticulture industry
negotiations (currently in suspension) have the
represents the largest area of indigenous economic
potential to drive significant change and to impact
activity and accounts for over 50% of exports from
on the competitiveness of Irish food and drink
indigenous companies. Output from this sector
products in export markets. Whatever the outcome,
contributes almost 9% of GDP and provides over
the time frame for trade liberalisation is shortening
158,000 direct jobs, or 8% of total employment;
which means that Irish industry has less time to
so by any yardstick, we are major players, both
prepare itself for the increased level of competition
nationally and internationally. What we do and
following any new agreement. Given this context,
what we achieve impacts and resonates in every
the need to achieve greater efficiencies, to develop
corner of national life and of course contributes
strong innovation capabilities and to reach critical
hugely to regional development and sustainability;
mass is becoming increasingly urgent.
and furthermore, because we are an indigenous
industry with a low import component, the net
At a global level the international economy
value added is greater than for other sectors.
continues to grow strongly across the major
regions. 2006 was the fourth year of strong
Irish food and drink exports performed strongly in
global growth but there are signs of increasing
2006, exceeding the €8 billion mark for the first
inflationary pressure in many countries. Pressures
time. This growth took place against a backdrop
on costs in the Irish economy (labour costs, utility
of on-going competitive pressures on the sector, a
costs and the general cost of living) impact on the
strengthening euro against the US dollar and the
competitiveness of Irish food and drink exports,
increasing presence of new suppliers in key product
relative to other suppliers, which often operate in a
categories. In overall terms the value of exports in
lower cost environment. The UK food market tends
2006 recorded an estimated rise of 11%, or €786
to be particularly cost competitive with continuous
million, to reach this new benchmark. The strength
pressure on suppliers from retailers. Currently 45%
of this performance is further highlighted by the
of all Irish agri-food exports go to the UK, so this
fact that total Irish merchandise exports grew by just
market is of particular importance.
2% in 2006.
Bord Bia continues to re-position itself in this
4
Irish food, drink and horticulture together form a
challenging and rapidly changing environment. We
hugely important national industry, that presents
continue to adapt, develop and refine our services
great opportunities and major challenges. The
and programmes so that we will deliver what our
restructuring of the Common Agricultural Policy
stakeholders need to remain on a competitive
(CAP), Decoupling, World Trade Organisation (WTO)
growth trajectory. Over the past year we carried out
negotiations, and the increasing globalisation of
a further review of our strategy, as part of a rolling
the food industry, mean that change is the only
strategic plan which involves a continuous process
constant as we deal with these challenges and
of reconfiguring programmes and resources to
exploit the undeniable opportunities that will be
ensure they remain relevant and cost effective. This
presented to us, and to our competitors. The WTO
process will of course continue throughout 2007
Angela Kennedy, Chairman, Bord Bia
pictured with Ryder Cup Chef Frank
Coughlan. Bord Bia announced that
over 40 Irish food and drink suppliers
will benefit from orders in the region
of €2 million from the Ryder Cup’s
corporate hospitality and public
catering companies.
Bord Bia’s Meat Market Seminar – pictured
l-r were Jean Luc Mériaux, Secretary General of
UECBV; Aidan Cotter, Chief Executive, Bord Bia
and Tom Moran, Secretary General, Department
of Agriculture & Food. Guest speakers addressed
meat industry representatives on WTO implications,
meat and retail trend related topics as well as food
safety issues and the changing environment of meat
processing in Europe. Bord Bia speakers provided an
overview of market outlooks for the beef, pigmeat
and lamb sectors in 2006 as well as its programmes
for the coming year.
Bord Bia’s sponsorship of the Ryder Cup highlighted
the “Ireland the Food Island” brand to an audience of
1 billion worldwide.
5
Chairman’s Statement (continued)
and beyond. As an organisation we are committed
I am proud of my Board and Subsidiary Board
to delivering value for our stakeholders by always
colleagues and of our Staff who delivered so much
striving for ever higher benchmarks of excellence.
and without whom it could not have been such a
This is what Bord Bia must be about and this is
success. It was a major project, with a global reach,
what its stakeholders must expect of us – nothing
and I have no doubt that successful participation
less will do.
has enhanced the image and perception of Bord Bia
and of our food, drink and horticulture industry on
It was an eventful year in terms of major new Bord
the world stage.
Bia projects or the substantial enhancement of
existing ones, as part of a wide-ranging programme
They say there is nothing as persuasive as an idea
managed by our Head Office in Dublin and our
whose time has come. Six years ago the Brand
Overseas Office network. This covered Corporate
Forum was just such an idea. Since then it has
Marketing Services, Meat & Livestock, Consumer
blossomed and flourished and now in its sixth year,
Foods, Dairy and Drinks, Small Business & Speciality
it is recognised as the leading authority on Ireland’s
Foods, Horticulture, Events Services, Information
food and drink branding. The Forum is committed
Services and the Knowledge Hub. While I will leave
to building better brands and to helping Irish food
it to the Chief Executive, in his Report, to deal
and drink companies build stronger businesses
with this substantial programme, I would like to
through branding. Brands are important weapons in
comment on a number of projects here.
the competitive marketing armoury. They are both
tactical and strategic in their impact; they are major
It was the year the Ryder Cup came to Ireland, a
repositories of value and competitive capability; they
momentous event that will not be forgotten, and
are a strong currency in the marketplace, where
moreover an event that made a huge impact on
strength and differentiation are essential to success;
the world stage. It was one of our priority initiatives.
they can repay investment in them many times
We were honoured that the Taoiseach visited us at
over and give sustainable competitive advantage;
the K Club, as did Minister Coughlan accompanied
and they can help companies respond to new
by Mariann Fischer Boel, and other members of
competitive threats, including pressure on costs and
the Government. With a total investment of over
margins.
€2 million in 2006, it represented by far the most
ambitious sponsorship initiative the organisation
The establishment of the Small Business Centre
had ever undertaken. It centred on the concept
of Excellence emanated from our strategic review
that grass formed a common linkage between golf
and 2007 will be its first full year of operation.
and Ireland’s food, drink and horticulture industry.
It is a Bord Bia flagship project with which I am
To secure maximum leverage from the event, an
proud to be associated. It is a knowledge-based
intensive marketing and promotional strategy
innovation resource that will promote and support
was developed to deliver on the two principal
a dynamic and forward thinking culture amongst
sponsorship objectives:
our small food businesses, whose spirit of enterprise
and innovation must, I believe, be supported and
Building Business for the Irish Food,
Drink and Horticulture Industry
and
Building Global Awareness of the
Ireland The Food Island Brand
In accordance with our normal practice we carried
out an independent post-project evaluation that
clearly indicated Bord Bia had achieved its objectives.
Furthermore, in the intervening months there has
been a constant flow of congratulations and
goodwill from stakeholders and participants, such
was the impact of our sponsorship. I am proud to
have been Chairman of Bord Bia for this event and
developed. It will provide a range of services and
expertise to people who want to build and develop
their enterprises. The Centre of Excellence is Bord
Bia at its best, working in partnership with people
who are enriching our Food Island and in particular
our local communities.
A major activity in 2006 was our involvement
in world-wide research aimed at identifying the
main lifestyle trends shaping consumer thoughts,
aspirations and buying patterns in the global
marketplace. The research highlighted six key
trends and examined their impact on product
introductions, brands, communications and activities
– Life on the Go, Living Life to the Full, Making a
Difference, The Quest for Health & Wellness, Smart
Minister Mary Coughlan and her ministerial team,
Shoppers and The Real Thing. These are major
Ministers of State Brendan Smith and Mary Wallace,
drivers-of-change that are already influencing how
provide valuable support and encouragement.
business is done today and shaping the marketplace
I am pleased to record our appreciation for
of tomorrow. How we respond will determine how
this and for their extraordinary commitment of
successful we will be in that marketplace and will
time and energy assisting Bord Bia to deliver
have a major impact on the bottom line.
major projects in the marketplace. I also thank
the Minister’s departmental team, Tom Moran,
I am also very pleased to say that we have a
Secretary General, and his staff, without whose
flourishing and successful North/South Programme
assistance we could not make such confident
that confers considerable benefit on both parts
progress. As a market focused organisation,
of the Food Island. During 2006, a Memorandum
Bord Bia also derives important support from our
of Agreement was executed between Bord Bia
Ambassadors and their staffs who are always
and Invest Northern Ireland (INI) dealing with
ready to respond to our requests for assistance.
working arrangements, funding, planning,
We have built up effective relationships with
programme of activities and publicity. There was
stakeholder organisations and with other semi-
a joint North/South Speciality Food Event at the
state organisations and Government departments
International Speciality Food Forum in Kilmainham
and the flow of information between Bord Bia and
in May (a tremendously successful project) and the
these organisations adds another dimension to our
subsequent feedback was very positive indeed.
activities and effectiveness.
There is joint participation, North and South, on
the TASTE Council of Ireland. As part of our Market
I thank my Board colleagues for their dedication
Information Programme we are conducting joint
and support, which I appreciate and value greatly.
research with INI on changing shopper behaviour
We have a formidable Board team who bring
and Northern Ireland companies are participating in
tremendous experience and expertise to the
our UK Retail and Foodservice Programmes.
table. Bord Bia and the industry we serve are the
beneficiaries.
We have embarked on another demanding
year in 2007. The challenges will be no less.
The Board is assisted by four subsidiary boards. They
Implementation of effective programmes, in
collectively bring together a further pool of talent
partnership with our stakeholders, will deliver on
and expertise to complement the work of the Board
a range of targets and I am confident that it will
and to assist Bord Bia in the implementation of its
be another successful year for the food, drinks and
programmes across all sectors. I thank them also.
horticulture industry and for Bord Bia. Additional
funding from the Department of Agriculture &
There were three permanent Board Committees in
Food, including support for the Quality Assurance
2006 – Audit, Strategy, Remuneration and Pensions-
Farm Inspection Programmes and the expansion of
and a special Ryder Cup Committee covering the
the Food Dudes Programme from pilot to national
period 2005 and 2006. They are an essential part
basis, means that the organisation is well positioned
of the governance structure of Bord Bia. They also
to carry out its remit, with the following being some
involve a further commitment for which I thank
of the Bord Bia initiatives for 2007 – Marketplace
the Members. I want to pay particular tribute to
2007, Bloom, Centre of Excellence, The Brand
the Chairman and Members of the Board Audit
Forum, Market Knowledge Programme, Foresight
Committee, which has a vital and a particularly
4 Food, Food Dudes, Féile Bia, European Beef
demanding role in assisting the Board to carry out
Promotion, Bord Bia Garden Centre Quality Awards,
its governance obligations.
and the Food Trade Delegation to the Middle East.
The scope and content of the workload being
None of this would be possible without
carried out by a relatively small staff body in Bord
participation and support from a great many people
Bia is truly impressive as is their commitment to
and organisations and I value this opportunity to
quality and excellence. It is on them we rely to
convey to them my own appreciation and that of
deliver the strategic objectives and the range of
the Board and the Executive of Bord Bia.
stakeholder services. With such strength and depth
the organisation is in good hands. I want to pay
tribute to the Chief Executive, Aidan Cotter, for his
Chairman’s Statement (continued)
leadership in another demanding year and for his
I also want to pay a special tribute to Seamus Kenny,
contribution and that of his dedicated team, to the
the Secretary/Director of Bord Bia. This is a key role
success of Bord Bia.
in the functioning of the Board and the organisation
and he has discharged it with distinction over a long
In 2007 we will have the first retirements from
career, spanning thirty seven years, starting with his
Bord Bia, when six senior executives leave the
appointment as Secretary of CBF – Irish Livestock
organisation. These are Maeve Bracken, Owen
and Meat Board, and latterly as Secretary/Director of
Brooks, Michael Deely, Muiris Kennedy, Seamus
Bord Bia. On behalf of the Board I thank him for his
Kenny and Paddy Moore. Individually and
dedication and commitment, but in particular I want
collectively they have made huge contributions
to thank him for his support to me personally and
to Bord Bia and its predecessor organisations.
to the Board and for the other major contributions
They have played major parts in making Bord Bia
he has made in so many different areas.
the organisation it is today and positioning it to
make an even greater contribution to this strategic
national industry. They have delivered exceptional
Obituaries
service to Bord Bia and exceptional value for our
We were saddened by the deaths of two of our
stakeholders. I thank them most sincerely and I
colleagues, Patricia Murray in December 2006 and
extend best wishes to them and to their families
Brid O’Connor in April 2007. Patricia joined the
on behalf of the Board, Subsidiary Boards and all in
staff of Bord Bia’s predecessor organisation, CBF,
Bord Bia.
from the Department of Finance and served in a
At this poignant time I would like to extend
particular best wishes to Michael and Ann Deely
and to tell them that we continue to share their
sadness since Trevor went missing and that their
friends and colleagues in Bord Bia continue to hope
and pray with them. Michael has always been a
tower of strength and professional support to his
colleagues and in recent years his courage has been
a further source of inspiration to us all. He has
made a lasting contribution to this industry and
to Bord Bia.
As its Chief Executive, Paddy Moore prepared CBF
(the Irish Livestock & Meat Board) for its central
number of important roles in CBF and latterly in
the Information Department of Bord Bia, where
she was a key member of the team developing the
Bord Bia “Knowledge Hub” initiative. Brid was a
member of two of our Subsidiary Boards, the Meat
& Livestock Board and the Quality Assurance Board,
where she ably represented consumer interests on
behalf of the Office of the Director of Consumer
Affairs. Patricia and Brid served this organisation
with distinction and made major contributions to
our work. They are missed greatly and on my own
behalf and on behalf of all in Bord Bia, I would like
to renew our condolences to Patricia’s and Brid’s
family and colleagues.
role in the successful establishment of Bord Bia.
This enabled unbroken delivery of services and the
existence of an effective functioning organisation
from the Establishment Day, which was greatly
valued by our stakeholders. I thank him for this and
Angela Kennedy
for the many other major contributions he has made
Chairman
to this industry over a long and distinguished career,
both in CBF and Bord Bia, and internationally.
8
Minister for Agriculture and Food, Mary Coughlan, TD
and Angela Kennedy, Chairman, Bord Bia presenting
the first Bord Bia Lifetime Achievement Award to
Christy O’Connor Snr.
Paddy Moore, Chief Operations
Officer, Bord Bia and Marian
Byrne, Head of Food Division,
Department of Agriculture
and Food at the Bord Bia
Lifetime Achievement Award.
Seamus Kenny, Secretary/Director
Bord Bia with Christy O’Connor Snr.
and Christy O’Connor Jnr. at the Bord
Bia Lifetime Achievement Award.
Bord Bia Lifetime Achievement Award.
9
Chief Executive’s Review
Exports of Irish Food, Drink and Horticulture performed exceptionally well in 200,
billion for the first time. Export values rose in all
major categories by €8 million to over €8.1 billion, strongly outperforming
delivering 11% growth to exceed €8
growth in total merchandise exports.
This increase was achieved despite a strong
capability of Irish food and drink suppliers to
euro performance against the US dollar and
influential international visitors. Other special
strengthening competitive pressures in major
events and promotions included a special
export markets. The scale of this growth highlights
Ryder Cup Brand Forum event in the Guinness
the capacity of the sector to adapt to changing
Storehouse, Dublin, which included the launch
consumer demands and its impact on Irish
of The Book of Irish Food and Drink Brands.
economic growth. The agri-food industry is Ireland’s
largest indigenous sector, employing 158,000 and
n
The second year of Bord Bia’s pan-European
Beef Promotion highlighted Irish beef in nine
representing some 9% of Ireland’s economy.
export markets, to a consumer base of over
Aidan Cotter,
Chief Executive Officer,
Bord Bia
Bord Bia works in collaboration with all elements
40 million. It covered the UK and Continental
of the food, drink and horticulture sector to build
Europe with 30 leading European retailers in
strong positions in world markets for Irish suppliers.
7,500 participating supermarkets. Retailers
Our services cover market development, promotion
included in the campaign accounted for
and information and some of the highlights of
over 120,000 tonnes cwe, valued at €450
initiatives undertaken in 2006 are outlined below.
million last year. Activities in the markets ran
from September to December and included
in-store promotions and on-pack offers.
Highlights
n
Consumer research in some of the key markets
The Ryder Cup reached an international
demonstrated that the promotion was effective
audience estimated at 1 billion, making it one
in driving consumer awareness and preference
of the top three events in the world sporting
for Irish beef while positioning it as a premium
calendar and the highest profile sporting event
product. Beef exports to Continental EU and the
ever to come to Ireland. Bord Bia’s sponsorship
UK reached an all time high, growing by 6%
of the Ryder Cup was an ambitious undertaking
to 480,000 tonnes. As a result, some 93% of
and it proved to be a great success. The Ryder
all exports are now destined for high value EU
Cup was integrated across a range of Bord Bia
markets.
programmes in 2006. The intensive marketing
and promotional campaign around the event
10
n
The Food Dudes Healthy Eating Programme,
aimed to build business for Irish suppliers and
an EU co-funded pilot programme, was
increase global awareness of the ‘Ireland the
introduced to another 50 schools in 2006,
Food Island’ brand. It generated immediate
commencing the second of a three-year term.
business worth €15 million for Irish suppliers
It is designed to positively change children’s
and achieved a TV audience of more than
behaviour and attitude to eating fruit and
450 million homes in over 40 countries. The
vegetables. The World Health Organisation
advertising equivalent value of such favourable
recognised the importance of the programme
coverage for Irish food and drink companies
as a measure in counteracting obesity and
is estimated to be in excess of €2 million. The
presented it with the WHO Counteracting
very best in Irish food and drink was served at
Obesity Award 2006. The programme has been
the event itself, demonstrating the quality and
such a success that the Government, through
Minister for Agriculture and Food Mary Coughlan TD
pictured with Jim O’Toole, Bord Bia, Paris.
Aidan Cotter, Chief Executive,
Bord Bia.
Ryder Cup l-r Aidan Cotter, Chief
Executive, Bord Bia; An Taoiseach
Bertie Ahern; Angela Kennedy,
Chairman, Bord Bia; Brendan Smith
TD, Minister of State, Department
of Agriculture and Food.
The value of Irish food and drink exports exceeded
€8 billion for the first time in 200.
11
Chief Executive’s Review (continued)
the Department of Agriculture and Food, has
n
Bord Bia was involved in worldwide research
decided to make the programme available to all
aimed at identifying the main lifestyle trends
primary schools in Ireland. The national roll-out
shaping consumer thoughts, aspirations and
commences in April 2007.
buying patterns in the global marketplace. The
Bord Bia Consumer Lifestyle Trends Programme
n
n
n
As part of our strategy to build and develop
was been developed to provide client companies
Irish food and drink exports to China, Bord Bia
with an ongoing source of insight around
exhibited at the Fourth China International Meat
consumer trends. The research highlighted
Industry Exhibition and Conference in Beijing.
six key trends and examined the impact they
Organised by the China Meat Association, this
are having on product introductions, brands,
three day event is regarded as one of the most
communications and activities. The programme
important events of its kind in the Chinese
has been developed with the Henley Centre
calendar. Leading players in the Chinese meat
Headlight Vision, a leading futures organisation
industry, import companies and exhibitors from
that works with an array of companies in this
the major meat export countries were present.
field.
Bord Bia participated on the official Trade
n
drink promotions in overseas markets as part
Ahern, TD. This included Ireland’s participation
of its St Patrick’s Day activities this year.
in India’s International Food and Wine Show for
Special events around the world highlighted
the first time. Irish dairy, ingredients and drinks
the range and quality of Irish food and drink to
companies participated in the Bord Bia element
consumers, retailers and foodservice operators.
of the itinerary in order to exploit opportunities
Over 80,000 British consumers attended an
in this emerging market, meet with buyers and
‘All Ireland Speciality Food Market’ in Covent
trade representatives and increase exports of
Garden which was launched by Brendan Smith
Irish food and drink to the region.
TD, Minister of State, Department of Agriculture
and Food. Other promotions included an
The Bord Bia Brand Forum is now in its
Irish beef promotion in 150 Delhaize stores
seventh year and the membership exceeds 120
across Belgium; beef and lamb promotions
food and drink companies, ranging in size and
in Intermarche stores and a selection of Cora
profile from small enterprises to multi-nationals.
hypermarkets in France; Irish food tastings to
The Forum helps Irish food and drink companies
coincide with EuroDisney’s first St. Patrick’s Day
build stronger businesses through branding by
and a trade reception in Moscow.
accessing its network of knowledge, expertise
and advice. This year the Forum successfully
12
Bord Bia organised a number of food and
Mission to India, led by An Taoiseach Bertie
n
Leading food buyers from the UK, Ireland and
implemented a range of new brand workshops,
Europe with a combined purchasing power
such as Marketing Planning, Public Relations
of almost €8 billion attended Bord Bia’s third
and new customised client brands services
International Speciality Food Forum, in
such as eMarketing. These activities engaged
association with Invest Northern Ireland at
members in marketing best practice. The Forum
the Royal Hospital Kilmainham. Eighty five of
also widened its influence in dealings with the
the very best Irish speciality food producers
media and academia. Other work included
took part offering a variety of products,
the creation of a new corporate identity and
including farmhouse dairy, confectionery,
the production of a new eMarketing guide,
bakery, condiments, meat, fish, beverages
“The Book of Irish Food and Drink Brands”
and horticulture. Over 850 pre-arranged
and a new improved bi-monthly branding
meetings took place during the day in tightly
newsletter. Highlights from this year’s events
managed speed dating style. Also at the
included presentations from Barrys Tea, Diageo,
event, food visionary and life long contributor
Kerrygold, Dairycrest, Tesco and Professor
to the Irish food industry, Myrtle Allen, was
David Hughes and a keynote address from Dr
presented with the inaugural TASTE council
Michael Smurfit, in conjunction with Bord Bia’s
Lifetime Achievement Award in recognition of
Ryder Cup sponsorship. In addition, Pat Rigney,
her pioneering spirit and the impact she has
Managing Director of Fastnet Brands, was
made on the speciality and artisan sector. The
appointed Chairman of the Forum.
speciality food and drinks market is valued
at €475 million and is expanding rapidly
UK food buyers with a combined purchasing
with double-digit growth nationally and
power of over €200 million. It highlighted Bord
internationally.
Bia research that showed overall foodservice
sales in Ireland increased by an average of 7%
n
A Guide to the Speciality Food Retail
after Ireland’s smoking ban was introduced.
Market in Ireland was launched by Bord Bia
The Irish smoking ban is a vital case study for
and Brendan Smith TD, Minister of State,
the UK foodservice market, which is also set to
Department of Agriculture and Food, as part of
grow following a similar ban in that market. The
the South East Food Forum. The guide offers
research also found 50% of publicans in Ireland
the most up-to-date information available on
felt the smoking ban had a positive impact on
the speciality food market in Ireland with a
their catering business.
focus on retail trade, both multiple and highend independent specialists.
n
The amenity market has grown by over 70%
in value over the past four years, according
n
n
The first ever Irish Nursery to showcase at the
to Bord Bia’s commissioned research into the
internationally acclaimed Chelsea Flower Show
horticulture sector. The total value of the Irish
in London was awarded a gold medal and
amenity market stands at €979 million. The
viewed by over 157,000 visitors to the festival.
research also shows that consumer spend in
Bord Bia Horticulture Ireland sponsored the
independent garden centres doubled to €240
award winning display, created by Paul and Orla
million since 2001. With 6.5 million purchases
Woods of Kilmurry Nursery, Gorey, Co. Wexford.
made in the last year, outdoor plants and
flowers continue to be a favourite with Irish
Bord Bia carried out a national campaign
consumers. This represents an increase of
‘Lamb…deliciously simple’ to strengthen
27% over four years and amounts to 37%
consumer awareness of the availability of new
of all purchases in the amenity market. The
season lamb. It promoted lamb’s versatility as
garden products sector saw a sharp rise in
a convenient, healthy meal choice. It targeted
value, increasing by 122% since 2001, from
existing lamb purchasers who are over 45 and
€199 million to €441 million. DIY stores have
younger consumers looking for quick healthy
also enjoyed increased productivity, with sales
meals to fit busy lifestyles. The campaign was
reaching €147 million in the past year.
launched at a time when retail sales of lamb
were valued at €110 million. Irish households
n
n
meals and entertaining over the summer
lamb by 10% in 2006.
months, Bord Bia launched a barbecue
information campaign. The barbecue season
Bord Bia launched the Plants for a Purpose
is growing in importance with one in three
promotion, to encourage plant purchasing and
households owning a barbecue grill. The season
growing by novice gardeners. The initiative is
is also lasting longer, from April to October.
funded by the EU, Ireland and the Nursery Stock
industry. It provided information and guidelines
n
n
The Supreme Champion award at The 2006
on the type of conditions suitable for individual
Great Taste Awards held in London went to
plants to flourish. The campaign was part of the
an Irish candidate for the first time. Sally Barnes
‘Gardening – a better lifestyle’ campaign.
of Woodcock Smokery won for her Irish Wild
Smoked Salmon. Over 200 of Europe’s finest
Arboretum Garden Centre, Leighlinbridge,
food producers, UK delicatessens and food
Co Carlow became the first five-star garden
writers attended the event.
centre in the country this year after winning
the All-Ireland Garden Centre Quality Awards
n
In a bid to promote al fresco dining for family
increased the volume of their consumption of
n
From January 2007, Féile Bia restaurants are
2005/06. This is a joint initiative of Bord Bia
required to indicate country of origin of all meat
and the Department of Agriculture and Rural
and eggs on menus and/or display boards. This
Development Northern Ireland.
follows on from the legislation introduced in the
Bord Bia’s 12th Annual UK Foodservice
Seminar was attended by Irish suppliers and
food service sector in July 2006 which requires
all catering outlets to provide consumers with
information on the country of origin of the beef
13
Chief Executive’s Review (continued)
being served. National and regional marketing
n
Bord Bia continues to work in collaboration
campaigns are undertaken to drive consumer
with the organic sector towards its further
awareness of Féile Bia and encourage them
development in Ireland. Irish consumers
to choose approved outlets when eating out.
spent an estimated €76.4 million on certified
A nationwide campaign to increase Feile Bia
organic food products in 2006 and this figure
membership is also underway in conjunction
is set to grow significantly over the next five
with the hotel and restaurant associations.
years, according to the results of the Organic
Market Channel Study conducted by Bord Bia.
n
n
Brendan Smith TD, Minister of State,
In response to the research, in consultation
Department of Agriculture and Food, presented
with the Organic Marketing Development
the Bord Bia Quality Beef/Lamb Producer
Group (OMDG), Bord Bia drew up a three-year
Awards 2006. The two overall winners were:
Organic Marketing Plan for the development
James & Frances Delaney of Derrygarron,
of the organic food market in Ireland. The
Portlaoise, Co. Laois who won the overall Bord
plan aims to identify the key areas that need
Bia Quality Beef Producer Award and Andrew
to be promoted to develop the organic food
& Deirdre Moloney of Rathgreedon, Edenderry,
market in Ireland. The Minister approved €1.5
Co. Offaly who won the overall Bord Bia Quality
million funding towards 12 separate organic
Lamb Producer Award.
marketing initiatives to take place during
2006-2009. Bord Bia will work with the OMDG
Over the last 18 months the Beef Quality
to deliver the main action points of the plan:
Assurance Scheme (BQAS) has, in consultation
Develop a consistent organic message; conduct
with the industry’s large customer base across
PR to support the message in the market and
Britain and Continental Europe, been upgraded
industry; research other EU market potential;
to EN45011 status. The scheme is the subject
and other marketing initiatives.
of continuous improvement by Bord Bia and
industry.
n
This year’s Bord Bia-sponsored David Robinson
Memorial Lecture was given by Raymond M
Wheeler, PhD, Head of Plant and Crop Research
for NASA’s Advanced Life Support Program. It
focused on the possibility of producing fresh
vegetables and small fruits in space. The lecture
gathers horticultural students from north
and south to learn more about the important
contribution that horticulture makes to our
economy, environment and health.
14
n
Over 150 Irish companies attended the Food &
Drink Industry Day 2006, organised by Bord
Bia. Participants explored drivers of growth in
the sector and were addressed by key people
in the food and retail industries. The event also
provided the opportunity for some 230 one-toone meetings with Bord Bia’s overseas market
specialists.
Bord Bia’s programmes and
activities continue to drive the
market development of Irish
food and drink exports.
Teresa Brophy, Ireland
Market Manager,
Bord Bia, pictured
with John O’Reilly.
Bord Bia’s 12th Annual UK
Foodservice Programme
– pictured Paul Donegan,
Trade Marketing Specialist
UK Foodservice, Bord
Bia and Jason Danciger,
Catering Director, Laurel
Pub Co. Irish suppliers
and UK food buyers with
a combined purchasing
power of over €200 million
attended the seminar in
Dublin where Bord Bia
research showed overall
foodservice sales in Ireland
increased by an average of
7% after the smoking ban
was introduced.
Quality Producer Awards – The two overall winners were: James & Frances
Delaney of Derrygarron, Portlaoise, Co. Laois who won the overall Bord Bia
Quality Beef Producer Award and Andrew & Deirdre Moloney of Rathgreedon,
Edenderry, Co. Offaly who won the overall Bord Bia Quality Lamb Producer
Award. Pictured here l-r Andrew Moloney, Brendan Smith TD, Minister of State,
Department of Agriculture and Food, Aidan Cotter, Chief Executive, Bord Bia
and James Delaney.
15
Meat and Livestock
Beef
Ireland’s largest export market, accounting for 50%
Beef exports led the way in the overall growth
by the slower than anticipated build-up of cow
of meat and livestock exports in 2006, recording
a growth of 14% to €1.55 billion in 2006. This
growth was boosted by the general improvement in
the EU beef market. EU male cattle prices rose 8%,
supplies and restricted South American availability.
The position of Irish beef within the UK retail sector
was further consolidated throughout 2006.
despite the return of UK over-thirty-month-beef to
Exports of Irish beef to International markets
the food chain, which increased EU production by
performed well throughout much of 2006 and
around 120,000 tonnes.
finished the year marginally ahead of 2005 levels
The restricted access of Brazilian beef, due to
Foot-and-Mouth and a self-imposed reduction in
Argentinean exports, also helped encourage a more
positive market environment for Irish beef. Export
meat plant supplies rose by over 5% during the
at just under 40,000 tonnes. The strong import
demand in Russia helped export volumes, despite
the further reduction in export refund levels. Russia
remains the principal non-EU market for Irish beef,
followed by Algeria.
year. Beef exports are estimated to have increased
A particularly notable marketing campaign in 2006
by a similar percentage to reach 516,000 tonnes,
was a four week on-pack promotion to coincide
due to only a modest rise in reported average
with Bord Bia’s sponsorship of the Ryder Cup in
carcase weights.
Ireland. It was a major success in supermarkets
The strongest performance during the year was a
further rise of 20% in exports to Continental EU
markets at almost 230,000 tonnes. This represents
an all-time high level of exports – shipments have
doubled since 2002. This trade is valued at €695
million in 2006. Irish beef is now listed with more
multiple retail chains in more EU markets than beef
of any other national origin.
Italy, France and the Netherlands remained the key
destinations with all showing impressive growth
levels. These markets account for two-thirds of
exports to Continental EU markets. Exports to Italy
grew by over 15% during 2006 to reach 48,000
tonnes. This represents the fifth consecutive year
of growth in Irish beef exports to the market. Trade
and butcher shops nationwide. The aim was to
encourage increased purchasing of meat: in return
for buying a meat pack with a promotional label,
shoppers were offered a free golf lesson and had
the opportunity to win tickets to the Ryder Cup.
Promotional labels detailing the offer were placed
on pork, lamb, beef, bacon and chicken packs
in-store. This was supported with two weeks of
national and local radio advertising.
The prospects for Irish beef exports in 2007 remain
broadly positive. EU forecasts suggest a shortfall
between EU beef production and consumption of
over 350,000 tonnes in 2007. This, combined with
the tightening of Irish cattle supplies, should provide
a solid market environment for Irish beef.
to France continued to rise from its impressive
Irish export volumes in 2007 are anticipated to
performance in 2005, increasing by a further 18%
fall by around 25,000 tonnes as finished cattle
to 52,000 tonnes. Meanwhile, shipments to the
availability tightens. This follows strong live exports
Netherlands were 5% higher at 42,000 tonnes.
of young cattle over the last two years. Lower
Exports to Scandinavia, Spain and Portugal all
Irish supplies are expected to reduce trade levels
showed growth while shipments to CEEC markets
in Continental EU markets. However, given the
increased strongly, even if from a modest base.
prospects of tighter supplies across Europe, market
Despite the return of UK over-thirty-month-beef,
which led to a fall of almost 20% in UK beef
imports, Irish exports were largely maintained in
2006 at 260,000 tonnes. This maintains the UK as
16
of total exports. Trade during the year was helped
demand for Irish beef looks set to remain strong.
Trade to international markets will be largely
dictated by the level of demand for EU beef from
Russia and the strength of competition from South
American suppliers in particular.
Little change is anticipated in UK import
Germany continues to be the main Continental EU
requirements as cow supplies increase. However,
market with shipments of 12,000 tonnes in 2006.
much of this is likely to be offset by a drop of 4% in
Although German production increased strongly
UK prime cattle availability. Ireland is well positioned
during 2006, the hot summer and the World Cup
to increase its share of UK prime beef requirements.
boosted pigmeat sales, which helped maintain Irish
exports. Other important Continental markets for
Live Animals
Irish pigmeat in 2006 included France at 6,000
Exports of live cattle performed strongly in 2006
product, and Italy at 3,000 tonnes.
tonnes, helped by increased sales of manufacturing
ending the year 35% higher at €145 million which
is 250,000 head. This growth was accounted for
Exports to International Markets showed a modest
mainly by the increased exports of calves of 104,500
rise in 2006. Japan continued to be the key market
head, up 69%, and of weanlings 85,000 head, up
with exports for the year holding reasonably well at
33%. Strong demand for calves led to an increase
10,000 tonnes. Trade to Russia improved strongly,
in exports to Holland of 18% to 52,000 head and
reflecting reduced competition from Brazil, with
to France of 160% to 12,300 head. Exports to
exports reaching 7,000 tonnes for the year. Exports
Belgium increased twelve-fold to just under 17,000
to Hong Kong were maintained while shipments to
head. The exports of weanlings and store cattle
the US slowed.
also developed positively with exports to Spain
increasing 43% to 71,700 head and exports to Italy
growing by 51% to 66,700 head.
Little change is expected in Irish pig supplies in
2007, thanks to a stable breeding herd. Meat plant
supplies look set to be maintained at around 2.6
Live exports of pigs to Northern Ireland eased by an
million head. Only minor changes are expected in
estimated 8% to 480,000 head. This reflects lower
EU pigmeat production, such as increased trade
overall finished pig supplies and improved Irish pig
with Bulgaria and Romania following their accession
prices. Exports of live sheep increased slightly to
to the EU in 2007. However, poultry is likely to
100,000 head. Trade was helped by good ewe sales
place renewed pressure on pigmeat, as it regains
to Britain and lamb exports to Northern Ireland.
market share. In addition, any further strengthening
of the euro against the US dollar would reduce the
Pork and Bacon
competitiveness of EU pigmeat on world markets,
as would a return to full market access for Brazilian
In 2006, exports of Irish pigmeat eased by 6% to
pigmeat in Russia. However, consumer demand
an estimated €223 million. Due to relatively stable
within the EU looks set to remain stable.
meat plant supplies and a slow down in import
levels, export volumes eased to 103,000 tonnes.
A rise of over 7% was recorded in Irish pig prices
to €1.40/kg.
Given this background, the prospects for Irish
pigmeat exports are less positive. Profitability at
producer level is likely to come under pressure from
rising feed prices as the year progresses and the
Stable EU supplies helped Irish exports with
nitrates directive is likely to impact on costs from
shipments to all major EU markets showing little
the second half of 2007. The UK market looks set to
change. Some further growth was recorded in
remain competitive, given the rise in supplies likely
exports to international markets. Consumer fears
from suppliers such as France and Spain. Trade to
of Avian Influenza also helped general pigmeat
international markets is also likely to slow, reflecting
consumption, as consumers favoured it to poultry.
increased competition from the US, Canada and
Brazil.
The UK remains the principal destination for Irish
pigmeat with exports in 2006 maintained at
In 2007, Bord Bia will continue to focus on the
50,000 tonnes. Although the year had a slow start,
promotion of the Quality Assurance mark for
strengthening demand on the Continent tightened
pork and bacon at retail level. Bord Bia will also
supplies in the UK, boosting trade levels from late
coordinate the fourth Pork Catering Competition
spring into autumn.
amongst the Institutes of Technology nationwide.
Research will be centred on pigmeat opportunities
in the Italian market and rasher quality.
17
Meat and Livestock (continued)
Lamb
Exports continue to focus on value added products,
During 2006 the volume of Irish sheepmeat exports
two-thirds of trade in value terms. The UK remains
fell by almost 7% to just under 54,000 tonnes
due to lower sheep availability. The Irish market
continued to account for almost 30% of total
with exports of processed poultry accounting for
the key market for Irish poultry, accounting for
around 85% of total export value in 2006.
sheepmeat output, leaving it as the second most
From Autumn 2005, the market environment for
important market after France. Lamb consumption
poultry was adversely affected by the outbreaks of
performed well rising marginally to 20,500 tonnes.
Avian Influenza. However, the situation stabilised as
France continued to account for almost 60% of Irish
sheepmeat exports at over 32,000 tonnes. Demand
for sheepmeat within France however, remained
slow during the year with French consumption levels
continuing the gradual decline of recent years.
Exports to the UK fell in line with cull ewe supplies
to reach 12,000 tonnes. Irish suppliers continued to
diversify their exports to other markets during 2006,
with higher shipments recorded to markets such as
Sweden, the Netherlands and Belgium. Shipments
of light lamb to Mediterranean markets slowed
in 2006 reflecting strong domestic supplies in key
markets and the improved quality of local lambs.
In 2007 France is likely to maintain its import
requirements so it will continue to be the key
market for Irish exporters. Sales to Northern
European markets look set to continue strongly,
helped by a further rise in the proportion of exports
in cut form. However, Irish sheep availability is
expected to decline by up to 8% in 2007, resulting
in a proportional decline in exports.
the year progressed. Poultry consumption recovered
across the EU during the second half of the year
and increased promotional activity was evident in
key markets. Avian Influenza (AI) restrictions also
reduced shipments from Asian suppliers which
slowed EU imports by almost 10% in 2006. This
helped reduced price pressure on the EU market.
The prospects for the EU market in 2007 are very
much dependent on the AI status of the EU market.
At time of writing, the situation remains stable
with no new outbreaks reported in Europe since
August 2006. If this situation is maintained, poultry
is expected to regain market share lost in late 2005
and early 2006. The impact of any new outbreaks
will be very much dependent on consumer reaction,
which may be less pronounced than in 2006, and
on the impact on access by EU poultry to key world
markets.
EU forecasts for 2007 suggest that EU production
will show a modest rise with consumption
recovering further, helped by ongoing promotional
activity. However, strong competition from pigmeat
and rising feed prices are expected to put some
Poultry
The Irish poultry industry faced a challenging market
environment during 2006 as the outbreaks of Avian
Influenza across the EU affected consumer demand
for poultry, particularly during the early part of the
year. As a result, the value of Irish poultry exports
fell by an estimated 4% to €240 million.
The volume of Irish exports was affected by lower
Irish poultry production and a levelling off in imports
in 2006. After a difficult start to the year, poultry
prices recovered to end the year broadly similar to
2005 levels. However, a strong rise in feed, energy,
packaging and labour costs left it a difficult year in
terms of profitability for the Irish industry.
pressure on poultry prices. All things being equal,
2007 should provide a more stable yet competitive
market environment for Irish exports. Bord Bia’s
focus in 2007 for the poultry sector will be on
providing market information, assisting in market
development and media monitoring.
Eggs
In March and October, marketing activities
centred on building consumer awareness of the
recommended daily consumption allowance for
eggs and repositioning them as a healthy and
convenient meal option. The theme for both
campaigns was ‘An Egg a Day is Ok’ and included
large billboard posters, outdoor posters at
supermarkets and press advertising.
18
Consumer Food, Dairy and Drinks
In 2006, total exports for the consumer food, dairy, ingredients and drinks sectors totalled
almost €5.2
billion. The dairy industry which continued to demonstrate strong growth,
saw a focus on new export opportunities in Asia which should continue in 2007.
It is expected that 2007 will see consolidation and
Milk: As in previous years, global milk production
re-structuring in the dairy sector. The drinks sector
continued to grow, showing a rise of almost 2% for
also drove strong export volumes influenced by such
2006. With Australian milk production having fallen
dynamics as the noteworthy export success of Irish
slightly yet again in 2006 due to severe drought
cider; the decision by a multinational player to return
conditions, almost half of the recorded increase
production to Ireland which positively affected stout
came from China, followed by India and the US. It is
export sales; the continued demand of cream liqueurs
estimated that EU production fell by 1.5% in 2006
in many export markets worldwide and the growth
while Irish production increased marginally for the
in demand for premium whiskey in the US. Growth
year, with overall milk availability in Ireland boosted
in the chilled and frozen sectors was driven by new
by imports from Northern Ireland.
product offers which met such consumer needs as
convenience, health and individual portion sizes.
Butter: Following strong world prices in 2005,
2006 saw sales revenue in the domestic market
the global market for butter slowed during 2006.
coming under increased pressure driven by rising
This came as a result of lower prices and the
operational costs coupled with strong downward
strengthening of the Euro against both the US
price pressures, particularly in the retail sector.
and New Zealand dollars, leading to a competitive
However, the 2007 outlook for the Irish consumer
market environment for Irish butter exports.
foods, dairy, ingredients and drinks industry remains
positive primarily due to export sales opportunities.
Dairy Food and Ingredients
This sector covers primary dairy products such as
butter and cheese, dairy ingredients including milk
powders and casein, processed dairy products such
as infant formula, and a variety of value-added
ingredients used worldwide in the manufacture
of consumer food and drink products.
The Irish dairy sector put in a very positive export
performance in 2006, as increased volumes offset
lower unit values. Growth of 6% brought the total
value of dairy exports to almost €2.08 billion for the
year, reflecting the overall positive nature of both
EU and international markets for dairy products and
ingredients during most of 2006.
Cheese: From a positive base in previous years, the
world market price for cheese weakened in 2006.
However, though lower export refunds affected
competitiveness on global markets, much of this
was offset by strong demand in the UK where retail
sales indicate that consumers are still increasing
cheese consumption. An increasing proportion of
Irish milk processing went into cheese production
which led to reduced butter production.
Dairy ingredients: Due to a build-up of global
supplies following two successive years of record
output, the market for casein weakened in 2006.
The build-up of supplies was in response to high
prices in 2004 and 2005, as well as increasing
price resistance from buyers which led to product
substitution and recipe reformulation. In addition,
EU casein aid was set at zero in September, which
has put a long term question mark as to the future
Shipments of primary dairy products increased to EU
viability of high volume casein production. Milk
markets but fell slightly to more competitive international
powder production increased slightly during
markets. Exports of processed dairy products to
the year.
markets outside the EU were boosted in particular
by a strong rise in exports of infant formula.
19
Consumer Food, Dairy and Drinks (continued)
Production levels of skimmed milk powder declined
fresher and more convenient. The pizza market has
due to reduced milk availability and increased
not been affected to the same extent, thanks to
production of cheese. High EU prices, the reduction
new product launches.
and eventual setting to zero of export refunds, and
a weaker dollar combined to leave skimmed milk
A number of companies continue to grow their
powder exports uncompetitive in global markets.
business incrementally both in chilled and frozen
foods. They are launching new products to respond
Production of other value-added dairy ingredients
to changing consumer requirements such as
such as milk protein concentrates and infant
healthier products, more indulgent recipes and more
formula, all showed good growth during the year in
authentic flavours and experiences. In addition,
response to increasing market demand. Exports of
client companies are revamping their packaging in
infant formula showed particularly strong growth in
order to give their products a more contemporary
the Middle East and Asia.
appeal. There continues to be pressure on margins
from both retail and foodservice channels along
Health & Wellness: Health and wellness issues
with strong local and international competition,
continue to provide the Irish dairy industry with
especially from Continental Europe.
increasing opportunities to exploit the nutritional
values and health benefits of value-added dairy
The chilled/frozen sector looks set to remain
products and ingredients produced from grass-fed
competitive during 2007. Considerable efforts are
herds. Nutritional applications in market segments
being made by the industry to innovate and offer
have expanded, reaching from infant and elderly
products that satisfy emerging consumer demands
nutrition, right through to sports/fitness segments
in terms of premium products, health and variety. In
and international lifestyle food and drink. Bord Bia
addition, Irish companies are increasingly exploring
has continued to strengthen its activities in this
opportunities to diversify their business within the
arena in conjunction with the industry. We provided
competitive Continental EU markets. However,
real-time information and knowledge through
competitive pressure in terms of retail pricing and
our information and customised services. In 2006,
energy costs look set to remain significant issues for
Bord Bia organised the syndicated purchase of the
the industry. Also, any strengthening of the euro
rights for Ireland of a major international study
against sterling would significantly impact on the
on Dairy Ingredients in Nutritional Sectors up to
competitiveness of these exporters.
2010. This included an in-depth working session
for subscribing companies with the study research
team. New market segments were the centre of
Organics
our marketing and promotional support at two
The organic food market in Ireland was estimated
highly specialised Health & Wellness trade events:
by Bord Bia market research to be €76 million
Vitafoods International in Switzerland, and the
in 2006. The trade channel interviews revealed
Health ingredients Europe biennial trade fair in
significant optimism for its continued growth which
Germany.
was estimated to be 15-20% per year on average.
This was across all channels, though from a small
Chilled & Frozen Foods
base. Further growth was anticipated due to a
The chilled and frozen food sector includes products
organic being a core element of retail business
such as frozen ready meals, pizzas, snacks and ice-
strategies, and the determination of multiples to
cream. In the chilled sector products include ready
respond to growing consumer demand.
likely increase in consumer spend on organic food,
meals, salad products, snacks and food-on-the-go.
The major export market is frozen products such as
Bord Bia continues to work in collaboration with
ready meals and pizzas.
the organic sector towards its further development
in Ireland. In 2006, Bord Bia worked closely and
20
The frozen ready meal sector experienced value and
was guided by the Department of Agriculture and
volume decline in 2006. This is due to a greater
the Food National Organic Steering Group which
awareness of obesity issues and the consumer’s
is a fully representative group of organic sector
growing awareness of health and well being factors
stakeholders. Bord Bia continues to co-ordinate
in diets. In addition, there has been a shift to chilled
market development, through its chairing of the
ready meals which the consumer sees as healthier,
group’s organic sub-committee on marketing, the
SIAL Paris – pictured l-r Brendan
Smith TD, Minister of State,
Department of Agriculture and
Food; Board Members, Katherine
O’Leary and Padraig Walsh, President
IFA. SIAL 2006 was the biggest food
and drink industry showcase and
hosted an estimated 5,200 exhibitors
representing 99 countries, all market
sectors from SME’s to multinationals.
Michael Murphy, Project
Manager of Bord Bia’s
Ryder Cup sponsorship,
pictured at the Farmleigh
Food Market held at the
spectacular K Club, where
the Ryder Cup took place
in September. The market
held in August featured
50 stalls with various Irish
speciality and artisan
products.
Pictured at the launch of National Organic
Week in Dublin were Minister for Agriculture
and Food, Mary Coughlan, TD; Aidan Cotter,
Chief Executive, Bord Bia ; Ashley Kessie and
Tom Murray. National Organic Week took place
nationwide from 6-12 November featuring
promotions and events to heighten consumer
awareness of organic food which is fresh,
seasonal and environmentally friendly.
Organic week entered its second year promoting
organic food. The market for organic food in
Ireland continues to grow by 15%-20% annually.
21
Consumer Food, Dairy and Drinks (continued)
Organic Market Development Group (OMDG). It
the mainstream retailers. Nonetheless, the Organic
carries out its own initiatives in consultation with
Marketing Plan takes a dual strategy approach
the National Organic Steering Group (NOSG).
to market development, working to support
mainstream retailers and independent/direct
In 2005, the OMDG prioritised the Organic Market
channels, to develop organic food sales.
Channel Study as one of its two lead projects
(along with National Organic Week). Bord Bia
The objective of National Organic Week was to raise
was designated as the lead agency to deliver both
consumer awareness of organic food and where to
projects. This research gauged trade opinion on
buy it. It included advertising on national and local
a wide range of views over 2005 and 2006, such
radio, in the national press and on bus shelters. A
as market potential, supply issues, importation,
range of recipe leaflets, posters, window and car
category size/growth rates and promotional issues.
stickers were also distributed nationwide.
Findings were based on interviews with key organic
trade buyers and traders in the various market
Trade opinion would suggest that the single greatest
channels in Ireland. Results of the research were
challenge the Irish organic sector and market has
presented to both the NOSG and the OMDG for
at present is to produce larger volumes of organic
discussion. A summary of the findings was also
products and ranges that better meet the demands
presented at the Atlantic Organics/ WDC / DAF
of busy modern consumer lifestyles. A lack of scale
National Organic Conference.
on most Irish organic farms was seen to be holding
back further sector expansion. At present only a
In response to the research, in consultation with the
handful of Irish organic farmers and processors can
Organic Marketing Development Group (OMDG),
meet the volume, consistency requirements, and
Bord Bia drew up a three-year Organic Marketing
marketing disciplines of supermarkets and larger
Plan for the development of the organic food
processors. Importation and higher retail prices for
market in Ireland. The plan aims to identify the
organic food were seen as consequences of the lack
key areas that need to be promoted to develop
of scale, with the latter representing a major barrier
the organic food market in Ireland. The Minister
to increased consumption by consumers.
approved €1.5 million towards 12 separate organic
marketing initiatives during 2006-2009. Bord Bia
will work with the OMDG to deliver the main action
Confectionery
points of the plan:
The confectionary sector is made up of companies
supplying products based on chocolate, sugar
n
Develop a consistent organic message
n
Conduct PR to support the message in the
market and industry
n
Research other EU market potential
n
Other marketing initiatives
and flour.
Bakery
The bakery category continued to grow in 2006
despite being the subject of negative publicity in
the past 2 to 3 years. Growth in the category is
being driven by consumer interest in foreign and
Trade estimates from the Organic Market Channel
ethnic breads and willingness to trade up to more
Study suggest that mainstream retail channels
premium priced products. The industry has been
account for approximately 85% of all sales of
diversifying and responding to these changing
certified organic food in Ireland, which was
market demands demonstrated by an increased
worth €65 million last year. Retail multiples alone
offer in craft, ethnic and indulgent style varieties
accounted for 62% or €41 million, with symbol
such as Polish and Asian products. The move
groups accounting for 17% or €11 million. The
towards healthier eating is also evident within this
value of sales through independent and direct
category, featuring the addition of seeds and other
channels was estimated to be in the region of 15%
“good for you” ingredients. Innovation is key to the
or €10.3 million. The estimated breakdown of this
future development of this category, as consumers
trade was: Independent traders 5%; Health Food
demand more choice. Wheat shortages and rising
Stores 4%; Deli Specialists 3%; Box Schemes 2%.
flour costs are significant issues within the industry
which are placing increasing pressure on production
Clearly the volume opportunities for Irish food
companies with organic products lie in supplying
22
costs and efficiency.
In 2006 Bord Bia disseminated market information
‘no added ingredients’ options. The UK, France and
to the bakery industry identifying opportunities in
Northern Europe continue to be the most important
the UK retail and foodservice markets.
markets for Irish companies within this sector.
Some of the key issues facing companies within this
Chocolate/Sugar
sector are increased price pressure from customers,
Sales in the premium end of the chocolate
the cost of manufacturing, such as energy cost
confectionery sector have been performing strongly,
rises, corrugated cost increases and ingredient cost
driven by consumers trading up to more indulgent,
increases.
imports from low cost countries and increases in
luxury confectionery products. Irish suppliers within
this segment of the market are reporting double
digit sales growth. Special features such as organic
Ambient Foods
produce and more up-market packaging have
Ambient Foods covers a range of sectors including
consequently increased in importance.
cereals, home baking, jams/preserves, biscuits, soup
The UK continues to be the most important export
market for the chocolate confectionery sector,
with new listings being secured for both branded
and private label supply. Co-manufacturing is
another important route to market that is growing
in importance for Irish suppliers. Examples include
Lir chocolates for Bailey’s and Butlers for Orla
Kiely. While volumes sales in the UK market are
fairly static, the sector is showing value growth
demonstrating the UK consumer’s growing
attraction to premium and indulgent chocolates.
This is good news for Irish manufacturers who have
traditionally focused on supplying into the luxury
end of this market.
The main challenges facing Irish manufacturers in
supplying the UK market include the increase in
promotional requirements, low retail prices and
increasing competition from new entrants into the
super premium sector. In addition to the UK market,
exports are also growing to markets internationally
such as the US, Canada and to a lesser extent
Australia.
One of the challenges facing the sector in 2007 will
be to continue to innovate and bring new products
to the market that will satisfy the consumer demand
for indulgent, authentic, premium products. Single
origin and higher cocoa content chocolates are
likely to continue to grow in sales. There is also the
and sauces and condiments. Irish manufacturers
within this sector are predominantly focused on
supplying the domestic market, with many holding
leading brand positions within their respective
product categories. Exports from the sector are
growing, especially for suppliers within the cereals
sector. Notable listings have been achieved with
prominent retailers in the UK and the US as
consumers increasingly recognise the health benefits
associated with oats. Other companies have been
successful in developing sales into Continental
Europe, in particular France and Belgium. There
have also been some first time exporters from the
Ambient Foods sector during 2006, shipping mainly
to the UK.
Bord Bia has been working actively with the
sector to identify buyer contacts for companies
interested in growing their export sales. Through
Foresight4Food, Bord Bia has also been assisting
these companies with innovation and new product
development.
Beverages
This year saw exports of Irish beverages grow by
28% to €1.39 billion. This builds on the success
of the past two years, during which the beverages
sector was the best performing sector of all Irish
food and drink exports.
opportunity to capitalise on the growing demand
Products included in the sector are all alcoholic and
for more healthy chocolates – developing ‘guilt
non-alcoholic beverages, waters, carbonates and
free’ chocolates that can be marketed with a health
juices manufactured in Ireland by both multinational
message such as chocolate with lower sugar content.
and indigenous Irish manufacturing companies.
The consumer trend away from products perceived
to be high in sugar is creating more challenging
Cider, beer, spirits and waters all showed very good
growth again in 2006 over their 2005 performance.
market conditions for the sugar confectionery
As in previous years, the top export destination
sector. The most successful products during the
for beverage exports was the UK – accounting for
year were those offering low sugar, sugar free and
approximately 48% of total exports. This figure has
23
Consumer Food, Dairy and Drinks (continued)
increased by 37% over 2005, driven largely by the
We organise a specific programme of activities for
huge success and growth of cider exports into the
the industry. In 2006 this included participation
UK. Cream liqueurs declined in volume and value
at international drinks industry trade shows and
in the off-trade, although the industry continues
conferences such as WSWA Las Vegas; Tax Free
to heavily promote them using product sampling,
World Association, Cannes; and Middle East
sponsorship and television advertising as part of
Exclusive, Dubai. A market study visit was organised
their consumer campaigns. In general, the multiple
to Norway and Russia in February. This included a
grocery outlets continue to take share from the
visit to Prodexpo in Moscow and it gave delegate
on-trade as drink-driving and other lifestyle factors
companies access to buyers from the Norwegian
affect drinking occasions.
State Monopoly – Vinmonopolet. As part of Bord
Bia’s sponsorship of the Ryder Cup 2006, drinks
The second largest export market is the US,
buyers from the National Alcohol Beverage Control
accounting for just under 20% of exports. There
Association USA were invited to Ireland and met
has been a lot of excitement about Irish whiskey in
with a group of drinks companies during their visit.
this market, largely driven by extensive advertising
and promotional campaigns. Also, there has been
increased interest from many US importers and
Foodservice
distributors in this growing segment of the Irish
In 2006, the UK Foodservice Programme continued
drinks market. Another market that has received
its successful two-level approach: servicing
increased focus and attention is South Africa where
companies new to the market and companies who
beverage exports have doubled to €2.7 million over
already supply the market. The programme aims to
the 2005 level.
increase the capabilities of new market entrants so
As in previous years, the issues facing the beverage
industry focus on concerns about responsible
drinking, health and wellbeing and other lifestyle
concerns. Drinks manufacturers are increasingly
Britain. It also aims to help existing market suppliers
to build on their present sales levels by providing
introductions to potential new customers.
becoming involved in campaigns to remind
Throughout the year, four inward buyer
consumers about ‘sensible and responsible
presentations took place with Sodexho, Compass
drinking’. Also, the introduction of warnings about
Group, Avenance and Holryod Howe. In addition, a
the effects of alcohol and unit intake is becoming
supplier event involving a 2,000-strong pub group,
more common, with some retailers insisting that this
Wolverhampton & Dudley, took place in the brewery
type of information be a feature on all products. In
head office. There were over 30 buyer presentations
common with other manufacturing industries, the
made throughout the year to buyers such as 3663,
cost of doing business continues to be a concern
Brake Brothers, Greene King and JD Wetherspoons.
for many companies. Investment in innovation, new
On the promotional side, the UK Foodservice edition
product development and branding is also crucially
of Irish Food was distributed to over 750 catering
important if companies are to beat their global
buyers. It ran a special competition promotion for
competitors.
foodservice trade contacts to attend the Ryder Cup.
The UK continues to be the main export market for
suppliers of non-alcoholic beverages. Consumers are
switching volumes out of carbonates and into water
and juice, encouraged by the general market trend
towards healthy alternatives. In the water category,
At the event itself, a special itinerary was organised
for UK foodservice trade contacts to view first
hand the innovative application of Irish food in the
context of both public and corporate hospitality
catering.
margins are coming under increased pressure due to
Bord Bia continued to investigate and develop
price deflation. Similarly, margins for juice products
new foodservice opportunities for Irish companies
are tightening following substantial increases in the
in European markets. One example of this activity
cost of ingredients for juice products in 2006.
was a French foodservice market study visit. This
Bord Bia works in partnership with the Irish drinks
industry to assist companies to reach their goals
as they strive to identify and win new customers.
24
they can effectively target the foodservice market in
included a presentation on the French foodservice
market, a workshop on market specific new product
development and circulation of the Bord Bia French
Foodservice Operators and Distributors Directories.
Small Business and Speciality Foods
Bord Bia recognises the importance of Food SMEs (Small and Medium Enterprises).
This sector plays a key role as the seed bed of innovation and growth for the food, drink
and horticulture industry and as an economic contributor to the rural and national economy.
Bord Bia’s 2006 survey of client companies valued the output of small and speciality food
business at €475
million in 2005, up 10% on the previous year.
Throughout 2006 Bord Bia continued its support
Kilmainham was an integral part of a Bord Bia
for small and speciality food businesses through
competency development programme for small
its tailored programmes for SME owner/managers.
food business owner/managers. This programme
This work included strategic assistance to the sector
included commercial marketing competency
through the facilitation of the TASTE Council, an
development initiatives both before and after the
industry led representative group of the speciality
sales and marketing opportunity provided by the
and small business food chain. The TASTE Council
event.
made a number of submissions on behalf of the
sector in the areas of regulation, innovation,
In partnership with the Department of Agriculture
education, food tourism and rural development.
and Food, Bord Bia continued to implement a series
Its subcommittee advised Bord Bia’s collaborative
of Regional Food Fora in Ireland’s North West. The
work in farmers markets, food tourism and food
initiative was extended to new regions, building
education and informed our general marketing
regional food networks for the benefit of small food
services for the sector.
producers.
Bord Bia also supported award schemes that
Bord Bia’s pioneering work in developing alternative
recognise the milestone business development
routes to market continued in 2006. Bord Bia gave
of Food SMEs and show critical acclaim of food
collaborative, operational support to help set up,
product excellence. In 2006, Bord Bia sponsored
run and promote farmers’ markets with the Office
the Small Firms Association Food Business Award
of Public Works, Dublin City Council and Cahir
and officially hosted the Great Taste Awards as
Community. An in-depth study visit to the farm
an integrated component of the Kilmainham
shop system in Britain was carried out alongside the
International Speciality Food Forum.
continued successful running of the Covent Garden
Irish Farmers’ Market in London.
The Kilmainham International Speciality Food
Forum focused on the opportunity for regional
Bord Bia also invested in the sponsorship of
food. It brought together 85 producers and over
accredited university education including the Slow
150 buyers from the food retail and foodservice
Food University of Gastronomic Science’s Stage to
sectors in Ireland and Britain. The event facilitated
Ireland and the UCC Diploma in Speciality Food
an estimated €3 million of new business for
production.
participating SMEs, through an exhibition, a
conference and a business speed dating service. It
also led to key speciality food business development
initiatives with Superquinn, Dunnes Stores, Tesco
Ireland, Waitrose, Wholefoods, Selfridges and
Harvey Nichols.
25
Horticulture
Mushrooms
The mushroom sector continued to consolidate
success leaves cider manufacturers keen to ensure
continuity of supply of apples in the coming years.
in the face of a three year decline in prices in the
The market for soft fruit has been characterised by
vital UK export market, with just over 100 growers
strong demand for all berry crops. Strawberries are
remaining. Polish and Dutch mushroom producers
by far the most important crop, but significant niches
have been very competitive in the UK but the Irish
exist for raspberries, blueberries, gooseberries and
industry has proved to be remarkably resilient. This
red currants. This year was a good production season
intense competitive environment has also caused
for strawberries, with Irish product available for 80%
viability problems for Dutch producers, with one
of the summer season. The issue of prices continues
of the largest companies, Heveco, having recently
to dominate the agenda for producers, with long
gone into administration. There are optimistic signs
give-away promotions and price pressure from
for the future as the major UK supermarket groups
imports resulting in a net drop in prices of 6-7%.
are expected to raise their prices to restore the
viability of the sector and to ensure continuity
of supply.
Potato Sector
Overall, 2006 was an extremely difficult year for
Protected Crops
potato production. It was the warmest year on
Tomatoes and lettuce remain the most significant
12,000 ha with a production volume of over
crops in this sector. Tomato production continues
420,000 tonne (source: CSO). Although the
to suffer from viability problems in the face of low
beginning of the year saw some of the best
cost imports from Holland, Spain and Poland, with
conditions in recent years, by March heavy rain
growers diversifying into higher value niches such
delayed the start of the main crop planting season.
as tomato-on-the-vine products. The lettuce sector
Despite the adverse weather conditions yields
has been performing well, with warm weather in
remained steady, but quality suffered as there was
the summer causing some production problems but
a high incidence of secondary growth and scab due
driving strong demand for the produce.
to the dry weather.
Fruit Crops
Bord Bia, in conjunction with the retailers and key
stakeholders, has launched a project to review the
Fruit is the largest fresh produce category for
potato category and implement a growth strategy.
consumers. The strongest sales are in apples, citrus,
The strategy is far-reaching and addresses concerns
bananas, grapes, tropical fruits, strawberries and
of both growers and retailers. It offers an alternative
pears. Apples and strawberries are the two main
approach to merchandising, pricing and promotions
fruit crops produced in Ireland.
of the potato category in store.
Apple growers had another successful year
2
record. The number of hectares grown were
marketing their seasonal premium red eating
Field Vegetable Sector
apples under the Celtic Orchard marketing brand.
The 2006 season was also difficult for the vegetable
The original introduction of this brand was
grower. The cold wet spring, the extreme heat in
facilitated by market research conducted by Bord
the summer and the rain in the autumn culminated
Bia. During 2006, further market research was
in exaggerated cultural and pest/disease problems.
carried out, looking at extending the brand into
Increasing costs have led to decreasing margins and
Bramley cooking apples. Significant opportunities
have forced several growers to the edge, and some
for growing cider apples have been created by the
actually out of production altogether. Field vegetables
success of the Bulmers brand in the local market
grown are in the region of 4,000 ha, with a farm-
and the Magners brand in the export market. This
gate value of approximately €57 million. The move
The International Speciality Food Forum facilitated an estimated
€3 million of new business for participating companies.
Bord Bia Chairman Angela Kennedy addressing the
audience at the 3rd International Speciality Food
Forum, Royal Hospital Kilmainham, Dublin, May 2006.
The forum provided a platform for 150 Irish and UK
buyers to meet with 80 speciality food and drink
companies from the North and South of Ireland.
Pictured l-r, Georgina Campbell,
Author and Teresa Brophy, Ireland
Market Manager, Bord Bia with Paul
and Claire Deevy, Proprietors of the
Richmond House and winners of the
Feile Bia Award 2006.
A special Bord Bia Best in Show Award in conjunction
with the Guild of Fine Food Retailers was awarded
to Mr Ralph Haslam of Mossfield Organic Farm
for his organic Mature Gouda. The award was
presented at a gala dinner at the Royal Hospital
Kilmainham hosted by Bord Bia.
2
Horticulture (continued)
towards economies of scale by larger growers
& Food made two key decisions that will impact
is gathering momentum, with smaller growers
positively on 2007: The Department decided to
often finding it too difficult to compete. There
allow foliage production on specified land and it
is a growing trend towards Farmers’ Markets
allowed single payments to be stacked up on 50%
throughout the country with the number totalling
of holdings.
approximately 120 nationwide.
In 2007, 61 hectares will be planted. Additional
Amenity Horticulture
supply will come on stream with the maturation of
49 hectares which were planted in 2003 and 2004,
Despite intense competitive pressure in the UK,
adding 49 hectares to supply. It is hoped to expand
the main export market for amenity products,
the production base by 300 hectares over the next
Irish growers maintained export levels and small
three years.
increases are anticipated in 2007. A sample survey
of the main exporters suggests a value of €6.7
million. Further gains were made in the NI market
which is showing increased potential. This partially
compensated for difficulties in sales to the UK. Small
advances were also made in US and Asian markets
with laboratory-bred new plants introductions.
A combination of factors including increased
transport costs, rationalisation within the supply
chain and a flat consumer market has resulted in
the demise of a number of the UK’s main trading
nurseries. They traditionally augmented their homegrown stock with Irish stock. This has added to the
difficulty in meeting buyer service needs from afar.
In addition, there has been continued pressure in
Over the past few years many chemicals previously
used by Irish farmers for the production of fruit and
vegetables were withdrawn at EU level as a result of
the introduction of 91/414 EU Legislation. The focus
of the legislation is to increase the safety of plant
protection products.
Bord Bia continues to work with the industry to
increase the availability of plant protection products
for fruit and vegetable production in order to create
competitive equality with growers in the rest of
Europe. Bord Bia’s programme identifies chemicals
that are being used on specific crops in Europe and
works with grower groups, chemical companies and
the Department of Agriculture and Food to ensure
their registration in Ireland.
the home market from foreign plant producers,
increasing the need for higher productivity levels
of increased domestic production or new entries to
Waste and Environmental
Management
the sector we do not anticipate any major growth in
Work continued through 2006 on environmental
Irish production or exports.
and waste management issues. This involved regular
to maintain market share in Ireland. In the absence
The domestic market for Christmas trees was
particularly buoyant in 2006 due to a severe
shortage of trees in Europe. There has also been
unprecedented interest from UK, French and Dutch
buyers who are now looking to the Irish suppliers
for trees. While Irish growers do not currently have
the capacity to meet all of the additional demand,
this bodes well for 2007 when buyers will be
placing orders much earlier in the year improving
the Environmental Protection Agency and Teagasc
to discuss and find solutions for various issues
including: the effects of the nitrates directive on
the disposal of spent mushroom compost; odour
issues with the compost production industry; and
questions relating to the disposal of used chemical
containers.
price stability. Sales in 2006 were estimated to be
Horticultural Labour Issues
€5.7 million.
Bord Bia continues to monitor the labour market to
Sales of cut foliage did not increase as anticipated
and overall export sales values remained close to
those achieved in 2005, at approximately €4.8
million. The severe lack of raw material continues to
be a major factor resulting in our inability to supply
customers’ needs. The Department of Agriculture
28
contact with the Department of the Environment,
ensure that the development of the industry is not
hampered by labour shortages, and to recommend
changes in the system where necessary. The opening
up of the labour market to the EU accession states
has produced a steady supply of workers for the
labour intensive horticultural industries.
Bord Bia maintains up-to-date information on its
From Teachers:
website to ensure that employers and employees
are aware of their rights and obligations with regard
n
enjoyed participating in FDP
to the payment of wages.
Bord Bia continues to support the Seasonal
99.1% of teachers reported that the children
n
93% of teachers reported that parents were
Horticultural Workers Scheme. This brings
putting more fruit in their children’s lunchboxes,
horticultural students from non-EU European
while 77% reported putting more vegetables in
countries and EU accession states to Ireland,
the lunchboxes.
providing the industry with a source of semiskilled labour and the students with valuable work
n
and vegetables themselves as a result of the
experience. Although numbers were down for 2006
programme.
to 161 students, a big increase in uptake is forecast
for 2007. Bord Bia will survey the entire horticultural
n
labour market in Ireland in 2007.
Horticultural Promotions
88% of teachers reported eating more fruit
91% of teachers reported being able to
integrate the FDP into the school curriculum.
n
99% of teachers thought that the health of
the children in Ireland would benefit from the
EU regulations dictate that industry must co-fund
introduction of the FDP in all primary schools.
advertising and promotional campaigns which are
undertaken by Bord Bia. In the livestock area this is
achieved by a statutory levy. No such levy exists in
horticulture so Bord Bia commissioned Goodbody
From Parents:
n
Economic Consultants to examine options for its
introduction.
n
if an equitable means of collecting it could be
n
85% of parents reported that their children had
asked them to buy more fruit and vegetables as
found. First round discussions have been made
a result of the programme.
with the different sectors within horticulture to
explain the concept of the levy and to facilitate a
94% reported that children were eating more
fruit and vegetables at home due to the FDP.
The Goodbody report was produced in early 2006.
It recommended that a statutory levy be introduced
90% of parents reported putting more fruit in
their children’s lunchboxes.
n
88% of parents reported consuming more fruit
consultation process to agree on an acceptable
and vegetables themselves on a daily basis as a
format for the collection of a levy. This process is
result of the programme.
set to continue into 2007, with the ultimate aim of
reaching agreement on a levy system by the end of
n
99% of parents thought that the health of
the year. Promotions will bring a timely boost to all
the children in Ireland would benefit from the
sectors of horticulture.
introduction of the FDP in all primary schools.
Promotional Activity
The World Health Organisation recognised the
importance of the programme as a measure in
Food Dudes Healthy Eating Programme: This EU
counteracting obesity and presented it with the
co-funded pilot programme was introduced to
WHO Counteracting Obesity Award 2006. This
another 50 schools in 2006, commencing its second
programme was one of only nine, out of a total
year of a three-year term in September 2006. It is
of 202 entries from 35 countries to receive this
designed to positively change children’s behaviour
recognition. At the end of 2006 the Government,
and attitude to eating fruit and vegetables. The
through the Department of Agriculture and Food,
evaluation of year one of the programme was
announced that the FDP would be made available
concluded in August. It showed:
to all primary schools in Ireland. The national rollout will commence in April 2007.
29
Horticulture (continued)
David Robinson Memorial Lecture: The annual
college lecture, known as the David Robinson
Memorial Lecture, took place at Kildalton College
and was delivered by Dr Raymond Wheeler from
the Biological Sciences Division of NASA. The topic,
Horticulture on Mars, attracted an audience of 80
students from other horticulture colleges who were
treated to an interesting and authoritative lecture
from a gifted speaker who is a world leader in his
Business Support Programme
This programme provided financial support for
companies with projects involving: new market
entry, new product development, packaging
design and development and marketing activities.
Four applicants from the amenity sector were
granted financial assistance through the Business
Support Programme, with the majority seeking
field.
grants towards marketing their product through
EU Floriculture Promotion: The EU Floriculture
development.
brand identity strategies, packaging and website
Promotion, ‘Gardening – a Better Lifestyle’ for
the promotion of plants and flowers on the home
market concluded in spring 2006. This included
production of gardening leaflets and distribution
This programme assists businesses to increase
to garden centres throughout the country with the
their competitiveness in relation to domestic and
support of the garden centre sector. It also involved
foreign markets. It involves various training courses,
collaboration with the nursery stock industry to
seminars and workshops specifically developed
promote plants for specific outdoor sites such as
to address the needs of the nursery grower,
sun, shade and damp areas. A promotional package
the landscape contractor and the Golf Course
of information boards, leaflets and plant-pot
Superintendents Association.
stickers were distributed to nursery growers, who
distributed them to their garden centre and plant
sales customers.
Sponsorship
Bord Bia, under the Horticulture Ireland banner,
participated as a major sponsor of the Kildare
Growers Show at Punchestown. The indoor stand
consisted of four individual modules arranged to
facilitate a ‘meet and greet’ area and a seminar
area which was used to deliver the results of the
Bord Bia commissioned TNS/MRBI Amenity Survey
and Christmas Tree Survey. In addition a seminar on
merchandising was held on both days of the show.
30
Business Development Programme
Pictured at the launch of Bord Bia’s
New Season Potatoes Promotion in
Dublin were Minister for Agriculture
and Food, Mary Coughlan, TD, Alice
McGlynn, Development Marketing
Executive, Bord Bia and chef Brian
Fallon. Bord Bia research shows
that with the increase in potato
consumption this year, the potato is
still Ireland’s favourite vegetable.
Paul and Orla Woods, Kilmurry Nurseries, Wexford pictured
with Gary Graham, Development Marketing Executive, Amenity
Horticulture, Bord Bia. Kilmurry Nurseries were the first Irish Nursery
to showcase at the internationally acclaimed Chelsea Flower Show
in London and were awarded a gold medal. Bord Bia Horticulture
Ireland sponsored the award winning display.
Bord Bia launch New season Irish
strawberries for summer. Pictured at
Bord Bia’s launch of new season Irish
strawberries at Merrion Square Park in
Dublin were Minister for Agriculture
and Food, Mary Coughlan TD; Michael
Maloney, Director Horticulture, Bord Bia
and four year old Maisie-Jane Lunson.
The Food Dudes Healthy Eating Programme
was presented with the WHO Counteracting
Obesity Award in 200.
31
Quality Assurance
Bord Bia has a comprehensive Quality Assurance Programme for the Irish food and
horticulture sectors. This programme plays an essential role in the development and promotion
of Irish food and horticultural products in worldwide markets. Its objectives include the setting
and the promotion of the highest standards at producer and processor level. The programme
also provides reassurance to the consumer on product quality, origin and safety.
The Quality Assurance Programme consists
The Bord Bia Quality Assurance Scheme for
of quality schemes in key sectors of food and
horticultural food products is accredited to the
horticulture production including beef, lamb,
EN45011 standard. The independent inspection
pigmeat, poultry, eggs and both food and non-food
and certification of producers is carried out by the
products in the horticultural sector. The schemes
National Standards Authority of Ireland (NSAI). A
are continually revised and updated to take account
quality scheme is also in operation for the prepared
of changing requirements and market demand
vegetable sector, with the number of participants
for schemes operating under the provisions of the
increasing annually. Through the NSAI, Bord Bia
international standard EN45011. The schemes are
continued to facilitate the mushroom export sector
developed and revised in conjunction with the
to achieve certification to specific standards required
industry and the key state agencies.
by its customers.
In 2006 Bord Bia continued the roll out of the
Landscape Quality Programme: The Bord Bia
EN45011 accredited Beef Quality Assurance
Landscape Quality Programme was developed
Scheme (BQAS), resulting in a significant number
in close consultation with the Association of
of producers being approved under the scheme
Landscape Contractors of Ireland and launched in
by year-end. All producers were independently
2004. It is a voluntary programme designed to serve
inspected and certified to the BQAS standard. A
both small and large companies and is similar to
major promotion of the scheme was carried out
other Bord Bia Amenity Quality Programmes with
with assistance and support from industry, farming
its format of twice yearly audits carried out by an
bodies and relevant state agencies. The Department
experienced consultant. Participation has grown
of Agriculture & Food provided a special fund in
since the first pilot audits with 16 participants in
2006 to support farm inspections.
2006. The first seven Quality Awards and three
Certificates of Merit for the Landscape Quality
The Pigmeat Quality Assurance Standards at
Programme participants were achieved in 2006.
producer and processor level were revised and
updated to satisfy the requirements of EN45011.
Garden Centre Quality Awards: The Bord Bia
As in the beef sector, the inspection of producers
Garden Centre Quality Awards have been
has now moved to independent inspections. The
instrumental in raising standards in garden centres
Chicken Quality Assurance Scheme saw increased
throughout Ireland for the past 15 years. The
participation in 2006. Both it and the Egg Quality
awards set achievable standards for the industry
Assurance Scheme played a significant role in the
and reward centres that consistently strive for
marketing and promotion of these products on the
excellence. Two garden centres achieved the
home market. One of the recommendations of the
ultimate accolade of a five-star rating. One of these,
Sheep Industry Development Strategy Group was
the Arboretum Lifestyle & Garden Centre, became
that a quality scheme for lamb be implemented to
the national winner of the Garden Centre of the
the EN45011 standard. A standard for the sheep
Year (small category).
sector was compiled and initiated during 2006. It
will be operational in 2007.
32
Brand Forum l-r pictured at the Guinness
Storehouse in Dublin were Aidan Cotter, Chief
Executive, Bord Bia; Greg Butler, Barry’s Tea
and Joe O’Flynn from the Irish Dairy Board –
Kerrygold. The theme of the session was “Built
to Last” – The Value of Conviction, Consistency
and Long Term Strategy in Brand Building.
Beef Quality Assurance Scheme
– pictured l-r in Kildalton were Padraig
Walshe, President IFA; Minister of Food
and Agriculture Mary Coughlan TD;
Aidan Cotter, Chief Executive, Bord Bia
and Dan Brown, Managing Director,
Dawn Meats.
Bord Bia’s Brand Forum
membership now exceeds
120 members.
Brand Forum – Tara McCarthy, Senior Manager,
Consumer Food and Drinks, Bord Bia.
33
Quality Assurance (continued)
Nursery Quality Programme: The Bord Bia Nursery
n
An annual membership fee was introduced
Quality Programme is a voluntary quality assurance
to defray some of the auditing and marketing
scheme designed to assist Irish nurseries reach best
costs.
practise in commercial nursery crop production and
management systems. It sets out a Code of Practice
Marketing activities continued to increase consumer
for the efficient running of a nursery business
awareness of Féile Bia and encourage them to eat
and provides a standard against which nursery
in approved establishments. A national advertising
businesses are evaluated. This year, 26 nurseries
and PR campaign took place to coincide with
participated in the programme with 14 achieving
the Ploughing Championships in September. A
the Quality Award and 10 achieving the Certificate
‘Celebrate Christmas in a Féile Bia Restaurant’
of Merit. This is an increase of six from the 18
outdoor advertising campaign followed in
awards presented in 2005 and is an indication of
November and was supported by national and local
the dedication of the nursery growers to move
press and radio advertising.
toward best practice.
Ireland the Food Island
Féile Bia – Certified Farm to Fork
The Ryder Cup afforded Bord Bia a unique
Féile Bia is a voluntary programme for food service
opportunity to increase international awareness
outlets which assists them in providing information
of ‘Ireland the Food Island’. The communication
to their customers on how the food they are serving
message evoked images of a natural, clean, unspoilt
is produced and where it comes from. Members
environment for food production and stressed the
source their meat and eggs from suppliers approved
capability of the industry that processes these prime
under recognised Quality Assurance schemes or
ingredients. Bord Bia heightened the profile of its
from small scale suppliers, including butchers, with
sponsorship through creative visual impact branding
regulatory approval. The Bord Bia Quality Assurance
initiatives. The core aim was to link Ireland with a
Programme is also being extended to include
strong, naturally based food culture.
butchers.
The ‘Food Island’, a floating island designed in the
Following an independent review, the Programme
shape of Ireland, was situated on the lake between
has been strengthened in a number of ways:
the thirteenth and fifteenth fairways. It was
decorated with plants, foliage, grasses and moss
n
Members are obliged to show the country of
sourced locally and landscaped to provide a visual
origin for all eligible meat products and eggs on
representation of Ireland’s natural beauty.
the menu, or an equivalent means from January
2007. Legislation was introduced in the food
The Food Island Garden served as a visual
service sector in 2006 which requires all catering
centrepiece for photo opportunities and interviews.
outlets to provide consumers with information
The focus of the garden was a display table and
on the country of origin of the beef being served.
water feature representing Ireland the Food Island,
designed to communicate Bord Bia’s sponsorship
n
There is an increased focus on encouraging Féile
and the organisation’s support for the ornamental
Bia members to source and highlight artisan
horticulture sector.
products on their menus.
The Ireland the Food Island branding achieved
n
New auditing procedures have been put in
a TV reach of more than 450 million homes in
place. Before becoming members, all applicants
over 40 countries. The advertising equivalent
receive an initial assessment to determine
value of such favourable coverage for Irish food
their compliance with the Féile Bia standard.
and drink companies is estimated to be in excess
One in three members receives an announced
of €2 million.
assessment each year and an additional 20%
of members receive unannounced spot checks.
South West Services Group (SWS) has been
awarded the contract for carrying out this
work. In addition, all members are required to
undertake annual self-assessments.
34
The Brand Forum
international events included SIAL China, CIMIE
Bord Bia’s Brand Forum is seen as the industry’s
in Shanghai.
leading authority on Irish food and drink branding.
Exhibition and the International Dairy Conference
It is now in its seventh year and the membership
Sectoral exhibitions are a key element in the
exceeds 150 food and drink companies, ranging
marketing mix, particularly for the consumer food
in size and profile from small enterprises to multi
industry. Among those participated in by Bord
nationals. The Forum is committed to building
Bia were Health Ingredients Europe, Vitafoods
better brands and to helping Irish food and drink
International and TFWA. The meat and dairy sectors
companies build stronger businesses through
participated at flagship shows such as Cibus in
branding, by accessing its network of knowledge,
Parma, Italy, Sial in Paris and World Food Moscow.
expertise and advice
A total of 65 Irish companies participated at Bord
2006 has been the most productive year yet and the
Bia-organised stands worldwide.
Brand Forum has reached new levels of excellence
Bord Bia’s sponsorship of the Ryder Cup in Ireland
and activity. Bord Bia created a new corporate
was built on two principal objectives: building
identity for the Forum and published “The Book
business for the Irish food, drink and horticultural
of Irish Food and Drink Brands” to showcase
industry and building global awareness of the
member companies.
‘Ireland the Food Island’ brand. Both of these
The cornerstone of the Forum is the quarterly
national events and bi-annual regional events which
attract high calibre industry speakers from Irish
objectives have been met with immediate business
of €15 million and over €2 million in advertising
equivalent coverage.
and international brand-led companies. Highlights
Bord Bia and the Irish food and drink industry
from 2006 included presentations from Barrys Tea,
entertained over 400 overseas buyers at the K-Club,
Diageo, Kerrygold, Dairycrest, Tesco and Professor
with a number participating in dedicated itineraries.
David Hughes and a keynote address from Dr
Bord Bia’s overseas executives are now working to
Michael Smurfit in conjunction with Bord Bia’s Ryder
translate this goodwill and increased knowledge of
Cup sponsorship.
the Irish industry into tangible business.
In 2006, the Brand Forum began to widen its
The food and drink at all main events during the
influence to encompass the media and academia.
week were outstanding. The feedback from guests
The aim is to ensure that the best of talent among
and those attending has been very positive. Both of
graduates view the food industry as a viable career
the main contract caterers were so impressed they
option and to strengthen the sector’s public image.
plan to use Irish meats at other high profile events
The Brand Forum also successfully implemented a
range of new brand workshops, such as Marketing
overseas. This showcase will do much to build the
reputation of Irish food and drink internationally.
Planning, Public Relations and new customised
Bord Bia implemented a comprehensive public
client brands services such as eMarketing. These
relations programme at the K-Club to capitalise on
activities engaged members in marketing best
the unparalleled international media attention on
practice. Other work of the Forum included a new
the event. This focused effort hugely paid off, with
eMarketing Guide and a new improved bi-monthly
a large volume of international coverage achieved
branding newsletter.
particularly on the quality of Irish food and drink
and the on-course branding initiatives. The Food
Event services
Island feature alone at the 13th green achieved
7,603 seconds of coverage worldwide.
Bord Bia’s Corporate Marketing Services Department
organised 44 events in 2006, including the project
The logistics of Bord Bia’s participation at the Ryder
management of Ireland’s participation at 19
Cup was managed by the Corporate Marketing
exhibitions worldwide. Participation at exhibitions
Services Department as was the Speciality Food
in international markets continues to increase with
Forum in Kilmainham, where a total of 84
three new shows in 2006. These included IFOWS
companies (74 ROI and 10 NI) exhibited.
in India, FHC in Shanghai and MEE in Dubai. Other
35
Quality Assurance (continued)
In 2006, 21 conferences/seminars and corporate events
n
In addition to this programme of pro-active
were organised. These included the National Poultry
reports and other publications such as our
Conference, the Meat Markets Seminar, the Midlands
weekly Market Monitor, our inquiry team
and Eastern Food Fora, and the Dairy Ingredients
serviced in excess of 1,700 inquiries from both
Seminar. Award ceremonies managed by the department
food and drink manufacturers and a wide array
were National Producers Awards, Horticulture Food
of other parties interested in the development
Awards and Garden Centre & Nursery Awards. The
of the industry.
department’s services continue to enjoy high satisfaction
ratings in independent surveys commissioned by Bord Bia.
Marketing Finance
Information Services
During the course of 2006, Bord Bia continued to
A number of major projects were delivered during
each applicable to small and medium sized
2006 as part of Bord Bia’s strategic objective to be
enterprises only. The Marketing Improvement
a link between market opportunities and the Irish
Assistance Programme supported small businesses
food, drink and amenity horticulture industries.
engaged in producing specific foods, which
operate its three marketing grants programmes,
included farmhouse cheeses, bio-yogurts, chilled
n
Consumer Lifestyle Trends is an important project
dairy products, jams, edible horticulture and
in establishing a framework in which Bord Bia can
charcuterie. The Market Participation Programme
monitor emerging trends and track them over
grant-assisted companies that manufacture other
time. The project identified six major categories
food items, mainly confectionery, chocolate, sauces
of trends that will impact the consumption of food
and alcoholic drinks. Under the Business Support
and drink products around the world. The project
Programme, small companies engaged in amenity
enables companies to become familiar with these
horticulture were assisted in improving their
categories and trends as they’re monitored. The
marketing activities. In 2006, Bord Bia received a
information can also be used to complement other
total of 80 applications for grant assistance, 63 of
projects concerned with innovation and new
which were paid grants totalling €275,240.
product development. The full detail of this project
is carried on the Bord Bia Client Portal which is
our extranet for food and drink manufacturers.
n
A project was undertaken in four continental
European markets using a web-based survey
instrument among consumers in those markets,
using questions similar to those asked in our
PERIscope (Purchasing and Eating in the Republic
of Ireland) studies. It highlighted some marked
differences in attitudes to food in the different
markets. The results of this project were
presented at the SIAL trade fair in October.
n
Two studies were presented at the Food Industry
Day in November. One was a look at continental
retailers in an attempt to identify those that could
be serviced from an Irish base directly, without
North South Programmes
Arising from the recommendation of the Food
Strategy Implementation Partnership in Northern
Ireland, Invest Northern Ireland (INI) and Bord Bia
have established an inter-agency agreement to
work jointly in a number of programme areas. INI
has become the lead agency responsible for market
development of food and drink in Northern Ireland.
The proposed agreement with INI will be focused
on sectors which are complementary and noncompeting, particularly consumer and speciality
foods. Bord Bia also runs joint programmes with
a number of other agencies in Northern Ireland
including the Northern Ireland Food & Drink
Association and IntertradeIreland.
requiring a local distributor or sales subsidiary.
The other looked at shopping habits in Britain,
Northern Ireland and the Republic of Ireland
in terms of store choice and label checking.
Aidan Cotter
n
The Irish market for horticultural produce was
explored at trade and consumer levels. The
latter was the biennial look at consumer usage
and attitudes with respect to edible horticulture.
3
Chief Executive
Aidan Cotter, Chief Executive Bord Bia,
with Gerard Brickley, Manager Meat
Division, Bord Bia, at Bord Bia’s Quality
Assurance Stand at Kildalton.
Pictured at Bord Bia’s third International Speciality Food Forum was
Myrtle Allen who was last night presented with the TASTE Council
Lifetime Achievement Award. Myrtle Allen has been a widely
influential campaigner for Irish artisan food and cooking in
Ireland and internationally for over 30 years.
Muiris Kennedy, Director of Marketing
Services, Bord Bia, speaking at the Third
International Speciality Food Forum.
Bord Bia promoting
quality across all
sectors.
3
Corporate Responsibility Statement
Governance
Equality
Bord Bia has adopted the Code of Practice for the
Bord Bia is committed to ensuring equality
Governance of State bodies 2001 and the provisions
of opportunity and its personnel and staff
of the Code are being implemented. The Board is
development programmes are structured
committed to maintaining the highest standards of
accordingly. Bord Bia endeavours to assist staff
Corporate Governance best practice and monitors
in relation to career and personal needs and
compliance on an ongoing basis. The Secretary/
operates appropriate policies covering such areas as
Director is responsible to the Board for ensuring
educational programmes, study leave, job-sharing
that procedures are implemented and that relevant
and career breaks.
legislation, regulations and guidelines are complied
Seamus Kenny,
Secretary/Director,
Bord Bia
with.
There is a policy on sexual harassment in operation
to support and protect the dignity of each person.
Ethics & 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 which established
three new statutory rights:
n
Bord Bia is committed to implementing Government
policy in relation to the employment of disabled
people in the Public Sector. Specific additional
provisions were made for disabled visitors in the
construction of Bord Bia’s Food Centre.
Safety, Health and Welfare at Work
Bord Bia is implementing the provisions of Safety,
Health & Welfare at Work legislation, including the
preparation and operation of a Safety Statement
A legal right for each person to access
(and Statement of Intent and Policy Document)
information held by public bodies;
embracing all matters affecting safety, health and
welfare of staff and visitors to Bord Bia’s premises.
n
A legal right for each person to have official
information held by a public body, relating to
him/herself, amended where it is incomplete,
Client Charter
incorrect, or misleading;
Bord Bia has a Client Charter setting out its
commitment to the Principles of Quality Customer
n
A legal right to obtain reasons for decisions,
Service for Customers and Clients of the Public
affecting oneself, taken by a public body
Sector. The Charter is supported by an Action Plan
and appropriate internal procedures to give practical
effect to this commitment.
38
Energy Efficiency and Conservation
Bord Bia is committed to making every effort
possible to be energy-efficient and to operating
appropriate conservation and recycling measures.
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
Board Responsibilities
Section 21 of An Bord Bia Act 1994 requires the
operation.
4. State whether applicable accounting standards
Board to “keep in such form and in respect of
have been followed, subject to any material
such accounting periods as may be approved by
departures disclosed and explained in the
the Minister, with the consent of the Minister for
financial statements.
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.”
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.
In preparing these financial statements the Board is
required to:
1. Select suitable accounting policies and then
apply them consistently.
Angela Kennedy
Chairman
Aidan Cotter
Chief Executive
39
Statement on Internal
Financial Control
On behalf of the Board of Bord Bia, I acknowledge
n
Regular reviews by the Board of periodic and
our responsibility for ensuring that an effective
annual financial reports which indicate financial
system of internal financial control is maintained
performance against forecasts;
and operated.
n
The system can provide reasonable, but not
Setting targets to measure financial and other
performance.
absolute, assurance that assets are safeguarded,
transactions authorised and properly recorded
Bord Bia has an outsourced internal audit function,
and that material errors or irregularities are either
which operates in accordance with the Framework
prevented or would be detected in a timely period.
Code of Best Practice set out in the Code of Practice
for the Governance of State Bodies. The work of
The Board has taken steps to ensure an appropriate
internal audit is informed by analysis of the risk to
control environment is in place by:
which the body is exposed and annual internal audit
plans are based on this analysis. The analysis of risk
n
n
Clearly defining management responsibilities
and the Internal Audit plan are endorsed by the
and powers;
Board Audit Committee and approved by the Board.
Establishing formal procedures for monitoring
the activities and safeguarding the assets of the
organisation;
n
Developing a culture of accountability across all
levels of the organisation.
The Board has established processes to identify and
evaluate business risks by
n
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.
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
Identifying the nature, extent and financial
the work of the internal auditor, the executive
implication of risks facing the body including
managers within Bord Bia who have responsibility
the extent and categories which it regards as
for the development and maintenance of the
acceptable;
financial control framework and comments made
by the Comptroller and Auditor General in his
n
Assessing the likelihood of identified risks
management letter.
occurring;
I confirm that in the year ended 31 December 2006
n
Working closely with Government and various
the Board conducted a review of the effectiveness
Agencies to ensure that there is a clear
of the system of internal financial control.
understanding of Bord Bia goals and support for
the Board’s strategies to achieve those goals.
On behalf of the Board
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:
n
A comprehensive budgeting system with an
annual budget which is reviewed and agreed by
the Board;
40
Angela Kennedy
Chairman
Bord Bia – Board
1
16
2
4
3
31 December 2006
Changes during 2006
1
Angela Kennedy
Chairman
Co-Founder
Megazyme
International
Appointed 1 February 2006
Ms Marian Byrne (re-appointed)
Ms Marian Byrne
Principal Officer, Department
of Agriculture & Food
Mr Michael Kilcoyne (re-appointed)
5
3
5
6
8
7
9
6
Mr Ray Carolan
Pig Producer
& Cattle Breeder
Dr Noel Cawley
Chairman, International
Dairy Federation
7
Mr Kieran Dunne
L & K Dunne Nurseries
9
Mr Joseph Hyland
Managing Director,
Irish Country Meats
10 Mr Michael Kilcoyne
Chairman, Consumers’
Association of Ireland
10
11
11 Mr John Malone
Former Secretary General,
Department of Agriculture
& Food
12 Ms Katherine O’Leary
Dairy Farmer and Part-Time
Home Economics Teacher
13 Mr Mel O’Rourke
Sylvan Ireland
12
13
15 Mr Padraig Walshe
President,
Irish Farmers’ Association
16 Aidan Cotter
Chief Executive
14
17
15
17 Seamus Kenny
Secretary/Director
Mr Jackie Cahill
President, Irish Creamery
Milk Suppliers’ Association
Mr Mel O’Rourke
Mr Padraig Walshe
Term Expired 8 July 2006
Dr Noel Cawley (re-appointed
5 September 2006)
Term of Office expired
30 December 2006:
Mr Dan Browne
Managing Director
Dawn Meats (Grannagh) Ltd.
Mr Jackie Cahill
Ms Gina Quin
Chief Executive
Dublin Chamber of Commerce
Ms Bríd Rodgers
Former Minister for
Agriculture & Rural Development,
Northern Ireland
Changes during 2007
Appointed 15 February 2007:
2 Mr Dan Browne
(re-appointed)
4 Mr Jackie Cahill
(re-appointed)
8 Mr Frank Hayes
Director of Corporate Affairs,
Kerry Group plc.
14 Ms Bríd Rodgers
(re-appointed)
41
Consumer Foods Board
Membership at 31 December 2006
Chairman
Mr John Malone
Ex-Secretary General,
Department of Agriculture & Food
Members
Mr John Barry
Company Director
Mr Michael Carey
Mr John Malone
Managing Director, Jacobs Fruitfield Group
Mr Kieran Carolan
Managing Director, Green Isle Foods
Mr Tom Corcoran
Chairman, Glanbia Plc
Mr Michael Doyle
Changes during 2006
Term of Office Expired 29 May 2006:
Ms Dorothy Gallagher, Vice-Chairman,
Consumers’ Association of Ireland
Appointed 19 June 2006:
Mr Kieran Carolan
Mr Donogh Lane
Term of Office Expired 19 October 2006:
Ms Eilis Gough, Managing Director,
Mileeven Fine Foods
Mr Larry Murrin (re-appointed 20 November 2006)
Appointed 15 December 2006:
Ms Ann Woods
General Manager, Kerry Foods
Mr Tom Harrington
Public Representative
Mr Donogh Lane
Marketing Director, Irish Distillers
Ms Paula Mee
Food & Nutrition Consultant
Mr Larry Murrin
Managing Director, Dawn Farm Foods
Mr Joe O’Flynn
Marketing Development Director,
The Irish Dairy Board
Ms Ann Woods
Honorary Secretary,
Consumers’ Association of Ireland
42
Changes during 2007
Re-appointed 4 April 2007:
Eilis Gough
Meat & Livestock Board
Membership as at 31 December 2006
Chairman
Mr Ray Carolan
Pig Producer and Cattle Breeder
Members
Mr John Bryan
Chairman, National Livestock Committee, IFA
Mr Henry Burns
Mr Ray Carolan
Chariman, National Sheep Committee, IFA
Mr Paul Clarke
National Executive of the Livestock Trade
Mr Tommy Fitzgibbon
President, Associated Craft Butchers of Ireland
Mr John Horgan
Managing Director, Kepak Group
Mr Gerry Maguire
Managing Director, Slaney Foods Group
Mr Martin McMahon
Irish Creamery Milk Suppliers Association (ICMSA)
Changes during 2006
Resigned 31 January 2006:
Mr Laurance Fallon, IFA
Appointed 13 March 2006:
Mr Henry Burns
Resigned 2 June 2006:
Mr Alan Graham, IFA
Appointed Chairman 14 June 2006:
Mr Ray Carolan
Appointed 19 June 2006:
Mr Ned Morrissey
Term of Office Expired 19 October 2006:
Mr John Bryan (re-appointed 20 November)
Mr John Madden (re-appointed 15 December)
Mr John O’Leary, ICMSA
Appointed 20 November 2006:
Mr Martin McMahon
Mr Ned Morrissey
Chairman, IFA National Poultry Committee
Ms Brid O’Connor
Assistant Director, Office of the Director
of Consumer Affairs
Mr Michael O’Connor
Sales Manager, Cappoquin Chickens
Mr Pat O’Keeffe
Chairman, National Pigs Committee IFA
Mr John O’Leary
Irish Creamery Milk Suppliers’ Association (ICMSA)
Changes during 2007
Resigned 15 March 2007:
Mr Pat O’Keefe
Resigned 28 March 2007:
Ms Brid O’Connor
Appointed 4 April 2007:
Mr Michael Maguire, IFA National Pigs Committee
Resigned 12 April 2007:
Mr John Madden
Appointed 10 May 2007:
Mr Jim Hanley, Chief Executive, Glanbia Meats
43
Quality Assurance Board
Membership as at 31 December 2006
Chairman*
Vacant
Members
Dr Joe Buckley
Foodtech Consultants Ltd.
Mr Eamon Howell
Trading Manager, Musgraves
Ms Bríd Rodgers*
Mr Dermott Jewell
Chief Executive, Consumers’ Association of Ireland
Mr Luke Mulligan
Department of Agriculture & Food
Mr Paul Nolan
Group Development Manager, Dawn Group
Changes during 2006
Term of office expired 28 January 2006:
Mr Pat O’Rourke, ex-President,
Irish Creamery Milk Suppliers’ Association
Term of office expired 19 October 2006:
Mr John Cunningham, Ex-Dairygold Food Products
Mr Derek Deane, Irish Farmers’ Association
Appointed 20 November 2006:
Mr Eamon Howell
Mr John O’Leary
Term of office expired 30 December 2006;
Ms Bríd Rodgers (Chairman)
Ms Brid O’Connor
Assistant Director, Office of the Director
of Consumer Affairs
Mr John O’Leary
Ms Bríd Rodgers (re-appointed as Chairman)*
Deputy President, Irish Creamery Milk Suppliers’
Resigned 28 March 2007:
Association (ICMSA)
Ms Brid O’Connor
Mr Aidan Ryan
Mushroom Grower
Mr Brendan Smyth
Chief Adviser, Glanbia
Dr Declan Troy
Head of Centre, National Food Centre, Teagasc
44
Changes during 2007
Horticulture Board
Membership as at 31 December 2006
Chairman
Mr Kieran Dunne
L & K Dunne Nurseries
Members
Ms Angela Binchy
Landscape Design
Ms Rachel Doyle
Mr Kieran Dunne
Arboretum Garden Centre, Carlow
Ms Olive Harrington
Assistant Parks Superintendent,
Belvedere House, Mullingar
Mr John Hogan
Dublin/Meath Growers
Ms Caroline Keeling
Keeling Fruit Growers/Importers
Mr Gary McCarthy
Chairman, Fruit Growers Association
Ms Grainne Murphy
SAP Nurseries, Co Tipperary
Mr Michael Slattery
Mushroom Grower
Mr Jerry Sweetnam
Fyffes
Mr Maurice Whelton
Potato Grower
Ms Celestine Ward
Ballinasloe Garden Centre
45
Organisation Structure
Bord Bia is comprised of the Board, four Subsidiary
a Chairman and 12 ordinary members, who are
Boards, the Chief Executive and the Executive,
appointed by the Board with the consent of the
which provide a range of services required to
Minister. The Chairman of each Subsidiary Board is a
implement Board policy and programmes.
member of the Board.
The Board is comprised of a Chairman and 14
The following Board Committees are in place: Audit
ordinary members appointed by the Minister for
Committee, Remuneration & Pensions Committee
Agriculture & Food. There are four Subsidiary
and Strategy Committee. The Executive is comprised
Boards (Meat & Livestock, Consumer Foods,
of staff based in the Board’s head office and
Quality Assurance and Horticulture) comprised of
overseas.
Bord Bia Organisation Structure
Main Board
Chairman
Angela Kennedy
Meat & Livestock Board
Chairman
R. Carolan
Horticulture Board
Chairman
K. Dunne
Quality Board
Chairman
B. Rogers
Consumer Foods Board
Chairman
J. Malone
Chief Executive
Aidan Cotter
Markets
Ireland
4
Europe
Information
International
Meat
Sectors
CFD
Horticulture
Corporate
Small
Business
Bord Bia Staff Structure
Manager Meat
G. Brickley
Chief
Operations Officer
P. Moore
Director
Information Services
J. Smith
Russia
A. Barinova
Director
International Markets
O. Brooks
Manager
Home Market
T. Brophy
Chief Executive
Aidan Cotter
Director
Marketing Services
M. Kennedy
Secretary/Director
S. Kenny
North America
J. O’Donnell
Manager
International Media
M. Bracken
Amsterdam Office
D. Fennell
Director
European Markets
M. Murphy
Madrid Office
C. Ruiz
Manager
Consumer Foods
& Ingredients
T. McCarthy
Manager Corporate
Communications
M. Dorgan
Middle East,
Africa & Asia
Vacant
Frankfurt Office
Vacant
London Office
B. Blake
Manager
Marketing Finance
J. Bracken
Manager Promotions
& Exhibitions
L. Williams
Milan Office
J. Keane
Paris Office
J. O’Toole
Small Business
M. Kennedy
Financial Controller
G. Bailey
Director
Horticulture &
Quality Assurance
M. Maloney
Manager
Quality Assurance
M. Neary
4
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
I read other information contained in the Annual Report,
year ended 31 December 2006 under the An Bord Bia Act, 1994.
and consider whether it is consistent with the audited
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.
financial statements. I consider the implications for my
report if I become aware of any apparent misstatements
or material inconsistencies with the financial statements.
Basis of Audit Opinion
In the exercise of my function as Comptroller and Auditor General,
Respective Responsibilities of the Board
and the Comptroller and Auditor General
I conducted my audit of the financial statements in accordance
An Bord Bia is responsible for preparing the financial statements
the special considerations which attach to State bodies in
in accordance with the Bord Bia Act, 1994 and for ensuring
relation to their management and operation. An audit includes
the regularity of transactions. An Bord Bia prepares the financial
examination, on a test basis, of evidence relevant to the amounts
statements in accordance with Generally Accepted Accounting
and disclosures and regularity of the financial transactions
Practice in Ireland. The accounting responsibilities of the
included in the financial statements. It also includes an assessment
Members of the Board are set out in the Corporate Statement.
of the significant estimates and judgments made in the
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.
with International Standards on Auditing (UK and Ireland)
issued by the Auditing Practices Board and by reference to
preparation of the financial statements, and of whether the
accounting policies are appropriate to An Bord Bia’s circumstances,
consistently applied and adequately disclosed.
I planned and performed my audit so as to obtain all the
information and explanations that I considered necessary in
order to provide me with sufficient evidence to give reasonable
assurance that the financial statements are free from material
misstatement, 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.
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.
Opinion
In my opinion, the financial statements give a true and fair view,
I also report if I have not obtained all the information and
in accordance with Generally Accepted Accounting Practice
explanations necessary for the purposes of my audit.
in Ireland, of the state of An Bord Bia’s affairs at 31 December
I review whether the Statement on Internal Financial Control
2006 and of its income and expenditure for the year then ended.
reflects An Bord Bia’s compliance with the Code of Practice
In my opinion, proper books of account have been kept by
for the Governance of State Bodies and report any material
An Bord Bia. The financial statements are in agreement with
instance where it does not do so, or if the statement is misleading
the books of account.
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.
John Purcell
Comptroller and Auditor General
48
28 June 2007
Statement of Accounting Policies
(a) Basis of accounting:
(d) Fixed Assets and Depreciation:
These financial statements are prepared under
Fixed assets are stated at cost less accumulated
the accruals method of accounting, except as
depreciation. Depreciation is calculated to write off
indicated below, and in accordance with generally
the original cost less the estimated residual value
accepted accounting principles under the historical
of tangible assets on a straight line basis at the
cost convention. Financial Reporting Standards
following annual rates:
recommended by the accountancy bodies are
adopted as they become operative. The unit of
Leasehold improvements
currency is the Euro.
Furniture & fittings
10%, 6.67%
12.5%
Office equipment
(b) Keeping of accounts:
Computer equipment
20%
33 1/3%
Subsidiary Boards:
Motor vehicles
20%
Under the terms of An Bord Bia Act, 1994, the
Board is assisted by four Subsidiary Boards in
(e) Marketing Finance:
respect of Meat and Livestock, Consumer Foods
Expenditure under this heading is accounted for on
and Ingredients and Horticulture. All income and
the basis of actual payments made.
expenditure relating to these Subsidiary Boards is
reflected in these financial statements.
Expenditure was incurred on the Targeted Marketing
Consultancy (TMC) Programme in previous years.
Subsidiary Company:
Under the terms of the programme, a proportion
of the expenditure is recoverable over a 24 to 60
The Board operates a wholly-owned subsidiary
month period by way of a royalty based on sales
company which does not trade. Due to the nature
achieved by this expenditure. Income arising under
of the company, it is not considered appropriate to
the TMC Programme from amounts reimbursed is
prepare consolidated financial statements.
accounted for on the basis of cash receipts.
(c) Income:
(f) Pensions:
Income shown in the financial statements under
There are two Superannuation Schemes in operation
Oireachtas Grant-in-Aid represents the actual
within Bord Bia.
receipts from this source in the period.
In respect of the Bord Bia main scheme,
Income from the Beef Quality Assurance Scheme
superannuation costs are at present funded over the
Special Fund is released to revenue in line with
employee’s period of service by way of contributions
related expenditure and any balances due to or
to a fund managed by trustees. The Department of
from Bord Bia are included in Debtors or Creditors
Finance has given written sanction for the transfer
as appropriate.
of the Bord Bia Superannuation Schemes, and
liabilities relating thereto, from a funded to a “Pay-
Income from the EU Mushroom, “Food Dude” and
as-you-Go” basis, for the consequential winding up
Floriculture Programmes is released to revenue in
of the Bord Bia Superannuation Fund and for the
line with related expenditure and any unexpended
transfer of the assets of this Fund to the State.
balance is included in Creditors.
Income arising from the recovery of overseas VAT
under the EU 8th Directive represents the actual
receipts from this source in the period.
49
Statement of Accounting Policies (continued)
With regard to employees of the former Bord Glas,
Rentals in respect of operating leases are charged to
a non-contributory defined benefit pension scheme
the Income and Expenditure Account as incurred.
and a contributory spouses and children’s scheme
is operated on an administrative basis pending
the authorisation of the schemes by the Minister
(h) Tangible assets:
for Finance. Under the provisions of An Bord Bia
Tangible assets are financed out of revenue.
(Amendment) Act, 2004, all staff of the former Bord
Provision is made in the Income and Expenditure
Glas were transferred to Bord Bia with effect from
Account for a transfer to the Capital Account of
1 July 2004. The Act also provided that liability for
amounts allocated for such capital purposes less
pension benefits awarded to all former staff of Bord
credits to revenue over the life of the related assets.
Glas should be transferred to Bord Bia on terms and
conditions no less favourable than those applicable
before the transfer.
(i) Stocks:
Stocks of stationery are stated at cost.
Pension costs reflect pension benefits earned by
employees in the year. An amount corresponding to
the pension charge is recognised as income to the
(j) Provision for bad and doubtful debts:
extent that it is recoverable, and offset by Grant-in-
Known bad debts are written off and specific
Aid received in the year to discharge pension payments.
provision is made for any amounts the collection of
which is considered doubtful.
Actuarial gains or losses arising on scheme liabilities
are reflected in the Statement of Recognised Gains
and Losses and a corresponding adjustment is
(k) Foreign currencies:
recognised in the amount recoverable from the
Foreign currency balances are translated at the rates
Department of Agriculture and Food.
ruling at the balance sheet date.
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 and Food.
(g) Leased Assets:
Assets held under leasing arrangements that
transfer substantially all the risks and rewards of
ownership (finance leases) to Bord Bia are included
in the balance sheet as tangible fixed assets at
cost less accumulated depreciation and the capital
element of future rentals is treated as a liability.
The interest element is charged to the Income and
Expenditure Account over the period of the lease in
proportion to the balance of the capital repayments.
50
(l) Taxation:
Provision has been made in respect of all VAT
liabilities and the PRSI contributions of Irish persons
attached to overseas offices.
(m) Capital Account:
The capital grant element of Oireachtas Grant-inAid 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.
Income and Expenditure Account
year ended 31 December 2006
Notes
2006
€’000
2005
€’000
1a
22,403
20,991
341
Income
Oireachtas Grant-in-Aid
15b
251
Beef Quality Assurance Scheme: Special Fund
1b
1,587
EU Mushroom Programme
1c
EU “Food Dude” Programme
1c
405
266
EU Floriculture Programme
1c
9
56
Statutory Levy
1d
5,393
5,480
Project and Other Income
1e
Net deferred funding for pensions
Transfer from Capital Account
2
Total Income
120
1,960
2,407
32,008
29,661
232
223
32,240
29,884
Expenditure
Marketing and Promotional Expenditure
3
19,142
17,157
Marketing Finance
4
275
300
Operating Expenditure
5
13,080
12,213
32,497
29,670
Total Expenditure
(Deficit)/Surplus for Year:
(257)
Balance at 1 January
Balance at 31 December
214
311
97
54
311
The results for the year relate to continuing operations.
The Statement of Accounting Policies and Notes 1 to 18 form part of these financial statements.
Angela Kennedy
Aidan Cotter
Chairman
Chief Executive
51
Statement of Total
Recognised Gains and Losses
year ended 31 December 2006
Notes
2006
€’000
Actuarial Gain on Pension Scheme Liabilities
15c
3,307
273
Adjustment to Deferred Pension Funding
15c
(3,307)
(273)
(257)
214
(257)
(Deficit)/Surplus for Year
Total Recognised Gains and Losses for the Year
The Statement of Accounting Policies and Notes 1 to 18 form part of these financial statements.
52
Angela Kennedy
Aidan Cotter
Chairman
Chief Executive
2005
€’000
214
Balance Sheet
as at 31 December 2006
Notes
2006
€’000
2005
€’000
Tangible Assets
6
883
1,115
Financial Assets
7
7
7
890
1,122
10
9
2,023
3,168
4,461
1,220
6,494
4,397
6,447
4,093
Assets Employed
Fixed Assets
Current Assets
Stocks
Debtors
8
Cash at bank and in hand
Creditors
(amounts falling due within one year)
9
Net Current Assets
47
304
937
1,426
Total Assets less Current Liabilities before Pensions
Deferred Pension Funding
15d
4,115
7,171
Pension Liabilities
15e
(4,115)
(7,171)
Total Assets less Current Liabilities
937
1,426
883
1,115
Financed by
Capital and reserves
Capital account
2
Income and expenditure account
54
311
937
1,426
The Statement of Accounting Policies and Notes 1 to 18 form part of these financial statements.
Angela Kennedy
Aidan Cotter
Chairman
Chief Executive
53
Cash Flow Statement
year ended 31 December 2006
2006
€’000
2005
€’000
Reconciliation of (Deficit)/Surplus to Net Cash Inflow/
(Outflow) from Operating Activities:
(Deficit)/Surplus for year
Net Interest receivable
Depreciation
Capital account transfer
Loss on Disposal of tangible fixed assets
(257)
214
(87)
(67)
237
327
(232)
(223)
49
24
Decrease in financial assets
1
1,145
Decrease/(Increase) in Debtors
(390)
(1)
Increase in stocks
1,427
Increase in trade creditors
283
Increase in taxation and PRSI
295
Increase/(Decrease) in Accruals & Deferred Income
632
(716)
3,208
(547)
3,208
(547)
87
67
3,295
(480)
Net cash inflow/(outflow) from operating activities
Cashflow Statement
Net cash inflow/(outflow) from operating activities
Returns on investment and servicing of finances:
Bank interest received
Net current inflow/(outflow) of funds
Capital expenditure
(54)
Payment to acquire tangible assets
3,241
Increase/(Decrease) in Cash
(128)
(608)
Reconciliation of net cash flow to movement of funds
Increase/(Decrease) in Cash
3,241
(608)
Net funds at 1 January
1,220
1,828
Net funds at 31 December
4,461
1,220
The Statement of Accounting Policies and Notes 1 to 18 form part of these financial statements.
54
Angela Kennedy
Aidan Cotter
Chairman
Chief Executive
Notes forming part of
the Financial Statements
year ended 31 December 2006
1. Income
(a) Included in Oireachtas Grant-in-Aid is €4,945,000 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 2000-2006.
(b) Amounts included under the heading of the Beef Quality Assurance Scheme Special Fund totalling
€1,586,864 arise in respect of funding made available by the Department of Agriculture & 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 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 Mushroom Programme
EU “Food Dude” Programme
EU Floriculture Programme
2006
€’000
2005
€’000
-
120
405
266
9
56
414
442
(d) 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.
(e) 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
€87,077 (2005: €66,451).
2. Capital account
Balance at 1 January
Amount capitalised in respect of purchased tangible assets
2006
€’000
2005
€’000
1,115
1,338
54
128
(49)
(24)
Amortisation in line with asset depreciation
(237)
(327)
Net transfer to Income and Expenditure Account
(232)
(223)
Net amount realised on disposal of assets
Balance at 31 December
883
1,115
55
Notes forming part of
the Financial Statements
year ended 31 December 2006
3. Marketing and Promotional Expenditure
2006
€’000
2005
€’000
Marketing Development Programmes
7,581
7,116
Trade Fairs and Exhibitions
1,248
1,211
Information Services
1,791
2,060
962
1,242
Quality Assurance
Beef Quality Assurance: Special Fund
1,587
Trade Services
2,870
4,163
Marketing Services
2,492
719
396
261
Communications
215
385
19,142
17,157
2006
€’000
2005
€’000
165
164
Market Participation Programme
91
134
Business Support Programme
19
2
275
300
2006
€’000
2005
€’000
562
399
Staff costs (see below)
8,463
7,443
Rent, rates and insurance
1,384
1,484
Telecommunications costs
213
216
General business expenses
2,150
2,298
22
22
237
327
Nutritional Advisory Services
4. Marketing Finance
Marketing Improvement Assistance Programme
5. Operating expenditure
Board and Sub-Board Members’ fees and expenses
Audit fee
Depreciation (Note 6)
Loss on disposal of tangible assets
56
49
24
13,080
12,213
Notes forming part of
the Financial Statements
year ended 31 December 2006
5. Operating expenditure (continued)
2006
€’000
2005
€’000
Wages and salaries
6,934
6,002
Social welfare costs
508
438
1,021
1,003
8,463
7,443
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:
Pension costs (Note 15c)
The total number of employees (including part-time persons) at 31 December 2006 was 91 (2005:
88). The cost of certain part-time employees amounting to €148,597 (2005: €98,586) is included in
Marketing and Promotional Expenditure.
6. Tangible Fixed Assets
Leasehold
Property &
improvements
€’000
Furniture
and
fittings
€’000
Computer
Equipment
€’000
Office
equipment
€’000
Motor
vehicles
€’000
Total
€’000
1,873
917
783
687
100
4,360
Cost
At 1 January 2006
Additions in year
Disposals
At 31 December 2006
54
54
(66)
(83)
(184)
(120)
1,807
834
653
567
100
3,961
(453)
1,156
715
700
620
54
3,245
115
41
48
23
10
237
Depreciation
At 1 January 2006
Charged in year
Disposals
(37)
(78)
(175)
(114)
1,234
678
573
529
64
3,078
At 31 December 2006
573
156
80
38
36
883
At 31 December 2005
717
202
83
67
46
1,115
At 31 December 2006
(404)
Net Book Amounts
57
Notes forming part of
the Financial Statements
year ended 31 December 2006
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
2006
€’000
2005
€’000
1,562
2,079
Amounts falling due within one year:
Trade debtors
Less: Provision for Bad Debts
Prepayments and accrued income
(446)
(505)
1,116
1,574
907
1,594
2,023
3,168
2006
€’000
2005
€’000
1,992
565
9. Creditors
(amounts falling due within one year)
Trade creditors
Taxation and social welfare (Note 10)
295
-
Withholding tax
388
140
3,772
3,388
6,447
4,093
Accruals and deferred income
58
Notes forming part of
the Financial Statements
year ended 31 December 2006
10.Taxation and Social Welfare
2006
€’000
2005
€’000
230
-
65
-
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
At
1 January
2006
€’000
Value Added Tax
Provision for Dilapidations
Provided/
At
(Released) 31 December
during year
2006
€’000
€’000
1,123
(24)
1,099
350
50
400
These provisions are included within Creditors.
59
Notes forming part of
the Financial Statements
year ended 31 December 2006
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 twelve
months amount to €893,964 made up as follows:
€’000
Payable on leases on which the commitment expires:
Within one year
215
Within two to five years
590
Six years and over
89
894
The full assignment of the lease on a premises in Blanchardstown, Co. Dublin, which is no longer
occupied by Bord Bia, took place with effect from 28 April 2007 and savings in 2007 will amount
to €58,000, after taking into account the cost of the rent holiday, in the amount of €57,138, and
the overall commitment which existed up to the date of assignment.
Accordingly, a provision under FRS12 in respect of future lease payments has not been made in these
financial statements.
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:
2006
€’000
2005
€’000
Marketing Improvement Assistance Programme
812
718
Market Participation Programme
612
546
Business Support Programme
60
64
60
1,488
1,324
Notes forming part of
the Financial Statements
year ended 31 December 2006
14.Recoverable Incentives
Under the terms of the Targeted Marketing Consultancy (TMC) Programme, a total of €2,911 was due to
be recovered in 2007 and subsequent years from participating companies:
2006
€’000
2005
€’000
3
3
Estimated amount recoverable at end of year
Recoverable incentives are accounted for on a cash receipts basis and accordingly are not included
in debtors. 15.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 and Food
and the Minister for Finance has been received. The contributions of employees and Bord Bia
are at present paid into a fund managed by the trustees. It is intended that this scheme will be
amended to a “Pay-as-you-Go” basis in the near future.
2) the former Bord Glas scheme. This consists of a non-contributory defined benefit pension scheme
and a contributory spouses and children’s scheme 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
2006 for the purpose of preparing this FRS17 disclosure. The Fund assets are stated at their midmarket value at each balance sheet date.
The financial assumptions used to calculate the retirement benefit liabilities under FRS 17 were
as follows:
31/12/2006
Projected Unit
31/12/2005
Projected Unit
Discount Rate
4.75%
4.25%
Inflation Rate
2.25%
2.25%
Salary increases
4.50%
4.50%
Pension increases
4.00%
4.00%
Return on assets
6.23%
6.26%
Valuation Method
61
Notes forming part of
the Financial Statements
year ended 31 December 2006
15.Superannuation (continued)
a) Superannuation Schemes (continued)
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-06
Long-term
Value at
31-Dec
2006
€’000
Long-term
rate of
return
expected
at 31-Dec-05
Value at
31-Dec
2005
€’000
Equities
7.00%
12,215
7.00%
10,920
Bonds
4.20%
3,325
4.00%
2,361
Property
6.00%
825
6.00%
702
Cash
3.75%
984
2.25%
633
Total market value of
superannuation fund assets
Present value of pension liabilities
Net deficit in superannuation schemes
17,349
14,616
(21,464)
(21,787)
(4,115)
(7,171)
b) Net Deferred Funding for Pensions in Year
Funding recoverable in respect of current year pension costs
Oireachtas Grant-in-Aid applied to pay pension contributions
and pension benefits
2006
€’000
2005
€’000
1,021
1,003
(770)
(662)
251
341
1,016
833
c) Analysis of total pension costs charged to Expenditure
Current service cost
Interest on Pension Scheme liabilities (see below)
5
170
1,021
1,003
953
902
(948)
(732)
Analysis of Interest on Pension Scheme Liabilities
Interest on scheme liabilities
Expected return on scheme assets
5
170
Analysis of amount recognised in Statement of Total
Recognised Gains and Losses
Experience gains and (losses)
Changes in assumptions
62
972
(2,020)
2,335
1,747
3,307
(273)
Notes forming part of
the Financial Statements
year ended 31 December 2006
15.Superannuation (continued)
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.
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 2006 was €4,115,200 (2005: €7,170,600).
e) Movement in Net Pension Liability during the financial year
2006
€’000
2005
€’000
Net Pension Liability at 1 January
7,171
7,103
Current Service Cost
1,016
833
5
Interest Costs
Actuarial (gain)/loss
Pension contributions and benefits paid in the year
Net Pension Liability at 31 December
170
(3,307)
(273)
(770)
(662)
4,115
7,171
f) History of experience gains and losses
2006
2005
2004
2003
(736)
(1,642)
(402)
(632)
(4.24%)
(11.24%)
(3.54%)
(6.67%)
(236)
(378)
(135)
(717)
(1.10%)
(1.74%)
(0.73%)
(5.42%)
(3,307)
(273)
2,104
(1,349)
(15.41%)
(1.26%)
11.39%
(10.19%)
(Gain)/loss on scheme assets
Amount
% of scheme assets
at end of period
(Gain)/loss on scheme liabilities
Amount
% of scheme liabilities
at end of period
Total actuarial (gain)/loss
recognised in STRGL
Amount
% of scheme liabilities
at end of period
63
Notes forming part of
the Financial Statements
year ended 31 December 2006
16.Board Members – Disclosure of Transactions
In the normal course of business the Board may approve grants and may also enter into other contractual
arrangements with undertakings in which Bord Bia Board Members are employed or otherwise interested.
The Board adopted procedures in accordance with the guidelines issued by the Department of Finance in
relation to the disclosure of interests by Board Members and these procedures have been adhered to by
the Board during the year. No grants were approved or paid during the year to companies with which Board Members are
associated.
17.Comparatives
Certain amounts have been re-grouped in these financial statements and the comparative figures have
been restated to ensure consistency with the new presentation.
18.Approval of Financial Statements
64
The financial statements were approved by the Board on 13 June 2007.
Marketing Finance Grant Payments 2006
Company
Prog
Paid €
Aine’s Chocolates Ltd
MPP
3,898
Ballineen Fine Foods Ltd
MIAP
10,000
Belrik Ltd t/a Chill Baby
MPP
2,500
Benson Food Products Ltd
MPP
2,000
Bia Kid Ltd MIAP
4,567
Broadway Bagels
MPP
3,971
Bunratty Mead and Liqueur Company Ltd MPP
3,500
Cahill Farm Cheese Ltd MIAP
6,585
Carlow Craft Brewery Ltd MPP
5,652
Carrigaline Farmhouse Cheese MIAP
6,000
Carrigbyrne Farmhouse Cheese Co Ltd
MIAP
1,205
Celtic Chocolates Ltd MPP
4,346
Cisti Gugan Barra Teo MPP
5,000
Corleggy Cheese
MIAP
1,295
Country Cooking Company Ltd MIAP
10,000
Crossogue Preserves MIAP
909
Crozier Dairy Products MIAP
971
Cybercolors Ltd MIAP
3,500
Deliciously Different Cake Company Ltd
MPP
Derryvilla Farm MIAP
6,000
Doolittles Ltd
MIAP
3,389
Doran Nurseries Ltd BSP
2,306
Druid Properties Ltd t/a JM Food Services MIAP
Flair Confectionery MPP
4,000
Follain Teo
MIAP
8,000
Fresh2Cook MIAP
6,061
Gallweys of Waterford Ltd MPP
3,000
Garryvoe Foods Ltd MPP
6,522
George Mogerley Ltd MIAP
4,000
Glenilen Farm
MIAP
1,984
Glyde Farm Produce MIAP
892
Gubbeen Farmhouse Products Ltd MIAP
4,496
Heatherfield Ltd MPP
12,151
Hot Irishman Ltd MPP
3,500
675
350
65
Marketing Finance Grant Payments 2006
(continued)
Company
Prog
Paid €
Hyde Ltd MPP
11,302
Inagh Farmhouse Cheese
MIAP
6,000
Irish Organic Herbs Ltd
BSP
2,336
J&L Grubb Ltd MIAP
5,566
Kavanagh Christmas Trees
BSP
4,478
Kilbeg Dairy Delights MPP
1,857
Kilfera Food Manufacturers Ltd MIAP
2,089
Laurence Whelan Potatoes MIAP
10,000
M&S Browne Ltd MIAP
6,730
Marchminder Ltd t/a Cooleeney Farmhouse Cheese
MIAP
11,568
Martin & Pritchard Ltd t/a Organic Herb Co MPP
4,000
McGeough Butchers MIAP
3,000
Mileeven Ltd MIAP
2,444
Milleens Cheese Ltd MIAP
3,997
Mount Callan Farmhouse Cheese MIAP
1,112
Mr Middleton Garden Shop BSP
9,787
Natural Ireland Ltd
MIAP
5,968
Olvi Oils Ltd MPP
Port Yarrock Smokery MIAP
1,356
Stable Diet Ltd
MPP
4,197
Stuart and McLean Ltd MIAP
6,015
Sunnyside Fruit Farm Ltd
MIAP
3,000
Swift Fine Foods Ltd
MIAP
3,000
Tara’s Handmade Quality Foods Ltd MPP
3,373
The Butlers Pantry Mfg Ltd MIAP
5,081
The Scullery Fine Foods MPP
5,307
Tiernan Family Farm t/a Glebe Farmhouse Cheese MIAP
483
Tipperary Cheese Co. Ltd MIAP
2,749
Wild Orchard Natural Beverages Ltd MIAP
4,318
Total
MPP: Market Participation Programme
MIAP: Marketing Improvement Assistance Programme
BSP: Business Support Programme
66
902
275,240
67
68
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
Our services to Ireland’s food, drink and horticulture
industries can be broken down into four key areas…
Marketing
Bord Bia works with Irish companies
to target routes to market – retail,
foodservice or manufacturing.
Promoting
Bord Bia delivers a comprehensive promotional
programme designed to communicate the
capability of the Irish food, drink and horticulture
industries to the trade and to customers.
Informing
Bord Bia is
significantly
expanding its
information
capability to
provide insight
and analysis on
the international
food and drink
markets to its
clients.
Developing
Bord Bia offers a range of market development services to companies in the meat,
dairy, consumer food, ingredients and drinks, horticulture and small business and
speciality food sectors.
Ireland – Head Office
Clanwilliam Court,
Lower Mount Street,
Dublin 2, Ireland.
Tel: 00 353 1 668 5155 Fax: 00 353 1 668 7521
Email: info@bordbia.ie Web: www.bordbia.ie
A
N
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Amsterdam
Strawinskylaan 861,
1077 XX Amsterdam,
The Netherlands .
Tel: 00 31 20 575 3484 Fax: 00 31 20 575 3485
Email: info@bordbia.ie Web: www.foodisland.com
Chicago
Consulate General of Ireland,
400 North Michigan Avenue,
Suite 911, Chicago, IL60611, USA.
Tel: 00 1 312 751 2246 Fax : 00 1 312 751 2480
Email : info@bordbia.ie Web : www.foodisland.com
London
2 Tavistock Place,
London, WC1H 9RA, UK.
Tel: 00 44 20 7833 1251 Fax: 00 44 20 7278 7193
Email: info@bordbia.ie Web: www.foodisland.com
Madrid
Casa de Irlanda,
Paseo de la Castellana,
46 – 3a planta,
28046 Madrid, Spain.
Tel: 00 34 91 435 65 72 Fax: 00 34 91 435 62 11
Email: info@bordbia.ie Web: www.foodisland.com
Milan
Via S. Maria Segreta 6,
20123 Milano, Italy.
Tel: 00 39 02 72 00 20 65 Fax: 00 39 02 72 00 40 62
Email: info@bordbia.ie Web: www.foodisland.com
Moscow
Orlikov per 3B,
Moscow 107139, Russia.
Tel: 00 7 495 207 8150 Fax: 00 7 495 207 8460
Email: info@bordbia.ie Web: www.foodisland.com
Paris
Maison d’Irlande,
33 Rue de Miromesnil,
75008 Paris, France.
Tel : 00 33 1 42 66 22 93 Fax : 00 33 1 42 66 22 88
Email: info@bordbia.ie Web: www.foodisland.com
Shanghai (Asia Office)
Bord Bia, Irish Food Board,
Suite 728,
Shanghai Centre No. 1376,
Nan Jing Xi Road,
Shanghai 200040 China.
Tel: 00 86 21 627 98829 Fax: 00 86 21 627 98849
Email: info@bordbia.ie Web: www.foodisland.com
BORD BIA ANNUAL REPORT 2006
Frankfurt-am-Main
Wöhlerstraße 3-5,
D-60323 Frankfurt am Main,
Germany.
Tel: 00 49 (0)69 710 423-255 Fax: 00 49 (0)69 710 423-200
Email: info@bordbia.ie Web: www.foodisland.com
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