annual report & financial statements
Irish Food Board
To the Minister for Agriculture, Food and
Don Aire Talmhaíochta, Bia agus
Rural Development
Forbatha Tuaithe
In accordance with Section 22 of An Bord Bia
De réir Alt 22 den Acht um an mBord Bia
Act 1994, the Board is pleased to submit to the
1994, tá áthas ar an mBord a Thuarascáil
Minister its Annual Report and Accounts for the
Bhliantúil don bhliain dar críoch 31 Nollaig
12-month period ended 31 December 1999.
1999 a chur faoi bhráid an Aire.
Philip Lynch
Michael Duffy
Philib Ó Loingsigh
Micheál Ó Dufaigh
Chairman
Chief Executive
An Cathaoirleach
An Príomhfheidhmeannach
Contents
Chairman’s Statement
2
Aitheasc an Chathaoirligh
6
Chief Executive’s Review
10
Corporate Statement
20
Board Membership
23
Organisation Structure
26
European Union
28
Report of the Comptroller
& Auditor General
29
Statement of Accounting Policies
30
Income & Expenditure Account
32
Balance Sheet
33
Cash Flow Statement
34
Notes forming part of the
Financial Statements
35
Irish Food Board
1659
1660
1667
Dairy &
Ingredients
Irish Food & Drink Exports (IR£m)
1997
1998
1999
974
1012
1027
Beef
Prepared
Consumer
Foods
733
894
975
Exports by Sector 1999
550
Beverages
616
630
Poultry & Other Meats 2%
Pigmeat 4%
221
227
206
Mariculture
Edible
Horticulture
Lamb 3%
305
287
285
Pigmeat,
Poultry
Lamb
Dairy & Ingredients 33%
Beef 20%
Edible Horticulture 2%
148
143
136.5
Mariculture 4%
Beverages 12%
113
122
120
Prepared Consumer Foods 19%
1
■
The total value of the Irish food & drink industry in 1999 was
over £10 billion (e612.6 billion) or 6.5 per cent of national
output (10 per cent GDP).
■
Irish food and drink exports were £5.2 billion (e6.6 billion)
in 1999, which accounts for 9.4 per cent of total exports.
■
There are 700 Irish food & drink companies, over half employ
fewer than 50 people.
■
176,000 people are directly employed in the agriculture and
food industry.
■
Food & drink companies provide 25 per cent of manufacturing
employment.
Annual Report & Financial Statements 1999
2
Chairman’s Statement
To succeed everybody involved in the food
industry needs to respond to the changing
needs of consumers and retailers – from the
type of products developed to the livestock
produced on Irish farms. This applies to all
routes to market – retail, foodservice and
ingredients. Each route demands an innovative
approach and a concerted effort to understand
and meet the different challenges each
Philip Lynch Chairman
presents. But the basic prerequisite to exploit
opportunities fully is a better understanding
Bord Bia completed its fifth year of operation
of consumer and shopping behaviour.
in 1999. In that time, food exports have grown
to £5.2 billion pounds and output to over £10
Continuing consumer demand for convenience
billion. The sector is Ireland’s largest indigenous
will drive prepared consumer foods. Food safety
industry, accounting for half of all exports from
and quality will continue to be key issues and
Irish-owned companies and almost 30 per
all involved in the Irish food and drink industry
cent of net foreign trade earnings. Its unique
must take responsibility to ensure that we are
economic importance is emphasised through
never exposed to the disastrous consequences
its regional, largely rural base and that it has
of a food scare. The publication of the European
an exceptionally high level of expenditure
White Paper on food safety reflects the priority
within the Irish economy. Bord Bia has worked
ascribed to Commissioner David Byrne’s
in partnership with food and drink companies
portfolio of consumer affairs and food safety
to contribute to this growth.
and is an assurance that these important
matters will remain high on the European
There can be no question but that the Irish
agenda. A considered European approach to
food and drink industry is operating in one of
food standards and production will benefit
the most consumer driven and competitive
consumers, and assure buyers in all member
business environments. Every week in the UK,
states that imported food and drink meets
approximately 130 new products are launched
their national standards.
on supermarket shelves.
Bord Bia completed its fifth
year of operation in 1999.
In that time, food exports have
grown to £5.2 billion pounds
and output to over £10 billion.
3
The Euro has not had a major impact on
Irish food and drink companies will have to
consumers in its year of introduction and indeed
work closely with their customers to adapt
the trade impact has yet to be seen in coming
to this changed environment.
years, apart from providing stability in exchange
rates. The decline of the Euro against sterling
The Board is fully committed to ensuring
in particular has had a positive effect on Irish
that Bord Bia’s activities and programmes
export earnings, given the importance of the
satisfy current and future needs of the
UK market. Retailers in Europe are already
food industry. Many Irish companies have
preparing for changes in price points and as
developed their own sophisticated marketing
prices become more transparent to consumers
approaches. Bord Bia must continue to look
across markets, there will be greater pressure
to the future, to ways to add value and
to standardise them.
anticipate the challenges ahead.
The Euro is one element in the increasingly
globalised environment in which the Irish food
and drink industry must compete. Continuing
mergers among European retailers are also
accelerating the switch to a single market.
Information technology is making a difference.
The Internet, like the Euro, will make prices
more transparent to consumers. Retailers
are already demanding that suppliers
are equipped for on-line purchasing,
while e-business is emerging
as a new route to market,
whether through sales
direct to consumers or
through supplying retailers’
on-line operations.
Highlighting the convenience
of 10 minute lamb.
4
Because of this, and because 1999 was the
The challenges are there – but so too are
concluding year of the first Market Development
opportunities.
Strategy, the Board undertook a detailed review
of Bord Bia’s services to the food industry, and
looked at the likely operating environment of
both the Board and the industry in the next
seven years. Extensive consultation with client
companies was undertaken so that their feedback
could form part of the decision-making process.
The intention is to refine Bord Bia’s activities
even further, to ensure that the organisation
develops to meet the evolving needs of the
dynamic Irish food and drink industry while
delivering best value for money.
Evaluation showed that by targeting all routes to
market – retail, food ingredients and the rapidly
growing foodservice sector – Bord Bia is enabling
companies to explore opportunities outside their
current customers. The linkage it provides with
buyers and governments around the world is very
valuable. Its work in representing Ireland and
promoting Irish food and drink in international
marketplaces is highly regarded.
Bord Bia and its industry partners will approach
the next stage of development with the same
enthusiasm and focus as displayed over the
past five years. The objective is to increase
consumption of Irish food and drink worldwide.
Appreciation and
Acknowledgements
1999 was a year characterised by the hard work,
commitment and dedication of a great many
people without whose contributions our collective
achievements would not have been possible.
I thank the Government and Government
Departments for their assistance and support.
In particular I thank the Minister for Agriculture,
Food & Rural Development, Mr Joe Walsh, TD, and
Ministers of State, Mr Ned O’Keeffe and Mr Noel
Davern, and their officials for their unstinting
support and assistance without which we could
not have made such progress. Other members of
the public service to whom I would like to pay
tribute are the Irish Ambassadors and their staff
with whom we work closely in overseas markets.
We also value the support and financial assistance
of the European Union and I thank the Commission
and its officials for their assistance.
Bord Bia works closely with the members of the
food industry across all the sectors and I want
to thank all of them and their representative
organisations – producers, processors, retailers,
Chairman’s Statement
Bord Bia and its industry partners
will approach the next stage of
development with the same
enthusiasm and focus as displayed
over the past five years.
5
butchers, consumers, employers and exporters –
for their continued support and for their
contribution to the Irish food industry’s
success story.
I would like to thank Agnes Aylward and Jean
Cahill, who have left the Board since the last
Report, for their contributions to Bord Bia.
I would like to congratulate my colleagues
who were re-appointed to the Board (Michael
Dowling, Denis Lucey, Sara White, John
Duggan, Maura Nolan and Tom Parlon) and to
congratulate and welcome the new members
(Joseph O’Sullivan, Michael Kilcoyne and Margo
Monaghan) with whom I look forward to
embarking on our next period of development
2000 to 2006.
In conclusion, I am pleased once again to thank
Michael Duffy the Chief Executive, Management
and Staff and my fellow Board and Subsidiary
Board members whose generous dedication
and commitment I greatly value and without
which we could not continue to record such
significant progress.
Philip Lynch
Chairman
Annual Report & Financial Statements 1999
6
Ráiteas an Chathaoirligh
Sa bhliain 1999 bhí an Bord Bia cúig bliana ar
Bíonn cur chuige nuálach agus comhiarracht
an saol. Le linn na mblianta sin tháinig fás ar
riachtanach do gach slí margaíochta chun
onnmhairí bia go dtí £5.2 billiún punt – agus ar
tuiscint a fháil ar na dúshláin atá i gceist agus
an soláthar go dtí níos mó ná £10 míle milliún.
chun aghaidh a thabhairt orthu. Ach is é an
Is í an earnáil seo an tionscal dúchasach is mó in
réamhriachtanas is tábhachtaí a bhaineann le
Éirinn Is ionann í agus leath na n-onnmhairithe
leas iomlán a bhaint as na deiseanna atá ar fáil
ó chuideachtaí atá in úinéireacht de chuid na
ná tuiscint níos fearr ar iompar tomhaltóirí agus
hÉireann agus beagnach 30% d’ioncam coigríoch
ar shiopadóireacht.
glan. Feictear tábhacht shainiúil an Bhoird sa
bhonn réigiúnach tuaithe a bhaineann leis
Is é éileamh na dtomhaltóirí ar an éascaíocht
agus sa leibhéal ard caiteachais a bhaineann
an ní a mbeidh tionchar aige ar bhianna
leis taobh istigh de chóras eacnamaíochta na
réamhullmhaithe tomhaltóirí. Beidh tábhacht
hÉireann. D'oibrigh an Bord Bia i bpáirtíocht
lárnach ag baint le sábháilteacht agus cáilíocht
le cuideachtaí bia agus dí chun an fás sin a
bia agus beidh freagracht ar dhaoine atá
bhaint amach.
páirteach sa tionscal bia agus dí in Éirinn,
féachaint chuige nach mbeimid ciontach as na
Níl amhras ar bith ach go bhfuil an tionscal bia
torthaí tubaisteacha a bhaineann le himní bia.
agus dí in Éirinn ag feidhmiú i dtimpeallacht gnó
Is léiriú é foilsiú Pháipéar Bán na hEorpa ar
atá á stiúradh go mór ag na tomhaltóirí agus
shábháilteacht bia an tosaíocht a bhaineann
atá fíor-iomaíoch. Gach aon seachtain sa Ríocht
le portfolio chúrsaí tomhaltóireachta agus
Aontaithe, cuirtear thart ar 130 táirge nua ar
sábháilteacht bia an Choimisinéara David Byrne
sheilfeanna ollmhargaí. Le dul chun cinn a
agus tugann siad le fios dúinn go mbeidh
dhéanamh caithfidh gach aon duine a bhfuil
tábhacht leo ó thaobh chlár oibre na hEorpa.
baint aige leis an tionscal bia freastal ar
Déanfaidh cur chuige tomhaiste na hEorpa
riachtanais tomhaltóirí agus mhiondíoltóirí –
maidir le caighdeáin agus táirgeadh bia
agus tá na riachtanais sin ag síorathrú – idir na
leas na dtomhaltóirí agus cinnteoidh sé sin
cineálacha táirgí a fhorbraítear agus an stoc a
do cheannaitheoirí sna ballstáit go léir go
tháirgtear ar fheirmeacha na hÉireann. Baineann
gcomhlíonfaidh bianna agus deochanna
sé seo leis na slite margaíochta ar fad–
allmhairithe a gcuid caighdeán náisiúnta.
miondíolachán, seirbhísí bia agus comhábhair.
Sa bhliain 1999 bhí an Bord Bia
cúig bliana ar an saol. Le linn
na mblianta sin tháinig fás ar
onnmhairí bia go dtí £5.2 billiún
punt – agus ar an soláthar go dtí
níos mó ná £10 míle milliún.
7
Ní raibh tionchar ró-mhór ag an Euro ar
dhíol díreach le tomhaltóirí nó trí sholáthar a
thomhaltóirí ina chéad bhliain ar an saol agus,
dhéanamh do mhiondíoltóirí ar an idirlíon. Beidh
ar ndóigh, ní fheicfear a thionchar trádála go
ar chuideachtaí bia agus dí in Éirinn comhoibriú
ceann roinnt blianta, ach amháin, go gcruthóidh
go dlúth lena gcustaiméirí le dul i dtaithí ar an
sé seasmhacht sna rátaí malartaíochta. Bhí
timpeallacht athraithe seo.
tionchar dearfach ag meath an Euro i gcoinne
an phuint sterling ach go háirithe ar ioncam na
Tá an Bord tiomanta go hiomlán ar fhéachaint
n-onnmhairithe Éireannacha ag glacadh tábhacht
chuige go gcomhlíonfaidh gníomhaíochtaí agus
mhór na Ríochta Aontaithe san áireamh. Tá
cláir an Bhord Bia riachtanais thionscal an bhia
miondíoltóirí san Eoraip ag ullmhú cheana féin
san am i láthair agus san am atá le teacht. Tá
d'athruithe i bpraghasphointí, agus, de réir mar a
dul chun cinn mór déanta ag go leor cuideachtaí
éiríonn praghsanna níos follasaí do thomhaltóirí
Éireannacha maidir le cur chuige sofaisticiúil
ar na margaí éagsúla, is mó brú a bheidh ann iad
margaíochta. Caithfidh an Bord leanúint de
a chaighdeánú.
bheith ag féachaint chun tosaigh – faoi mar atá
déanta aige go dtí seo – féachaint le bealaí a
Is eilimint amháin é an Euro i dtimpeallacht atá
aimsiú chun breis luacha a thairiscint agus le
á cruthú ar bhonn domhanda agus caithfidh
bheith réidh do na dúshláin atá fós le teacht.
tionscal bia agus dí na hÉireann dul in iomaíocht
sa timpeallacht sin. Tá cumaisc leanúnacha i
Dá bharr sin agus toisc gurbh í 1999 bliain
measc miondíoltóirí Eorpacha ag brostú an
dheireanach na Straitéise Forbartha Margaidh,
athraithe go margadh aonair chomh maith.
rinne an Bord athbhreithniú mion ar sheirbhisí
Tá tionchar mór ag teicneolaíocht an eolais air
an Bhord Bhia do thionscal an bhia agus
seo chomh maith. Fearacht an Euro, is follasaí
rinneadh iniúchadh ar an timpeallacht
a bheidh praghsanna do thomhaltóirí de bharr
feidhmiúcháin is dóigh a n-oibreoidh an Bord
thionchar an idirlín.
agus an tionscal inti go ceann seacht mbliana.
Glacadh comhairle leathan le cuideachtaí cliant
Tá miondíoltóirí ag éileamh cheana féin go
ionas go mbeadh a gcuid aiseolais ina chuid
mbeidh soláthróirí in ann ceannach ar an idirlíon
den phróiseas déanta cinní. Is é an aidhm atá
agus, ag an am céanna, tá e-ghnó ag dul chun
ag an mBord ná gníomhaíochtaí an Bhord Bia
cinn mar bhealach nua margaidh, cibé acu mar
a dhéanamh níos cruinne, lena chinntiú go
Annual Report & Financial Statements 1999
8
dtiocfaidh forbairt ar an eagraíocht chun freastal
ar riachtanais an tionscail bia agus dí in Éirinn,
riachtanais a bhíonn ag athrú seasta agus ag
an am céanna an luach is fearr ar airgead a
chur ar fáil.
Is léir ón measúnú a rinneadh go dtí seo, má
dhírítear ar na slite margaíochta go léir –
miondíolachán, comhábhair bhia agus an earnáil
seirbhísí bia atá ag fás to tapa – go bhfuil an
Bord Bia ag cur ar chumas cuideachtaí deiseanna
a thapú taobh amuigh de na custaiméirí atá
acu i láthair na huaire. Is fiú go mór an nasc a
chruthaíonn an Bord le ceannaitheoirí agus le
rialtais ar fud an domhain. Tá dea-cháil ar a
chuid oibre i dtaca le bheith ag feidhmniú ar
son na hÉireann agus bianna agus deochanna
na hÉireann a chur chun cinn ar na margaí
idirnáisiúnta.
Leanfaidh an Bord Bia agus a pháirtnéirí gnó leis
an gcéad chéim eile den fhorbairt seo leis an
díogras agus leis an bhfócas céanna a léirigh siad
le cúig bliana anuas. Is é an aidhm atá aige cur
le tomhailt bia agus deochanna na hÉireann ar
fud an domhain. Tá na dúshláin ann – ach tá na
deiseanna ann chomh maith.
Buíochas
Ní bheadh na héachtaí móra a rinneadh le
linn na bliana 1999 indéanta mura mbeadh
an iarracht mhór, an dúthracht agus an díogras
a léirigh cuid mhór daoine agus iad i mbun
na hoibre.
Gabhaim mo bhuíochas leis an Rialtas agus leis
na Ranna Rialtais as ucht a gcuid cabhrach agus
a gcuid tacaíochta. Gabhaim mo bhuíochas go
speisialta leis an Aire Talmhaíochta, Bia agus
Forbairt Tuaithe, an tUasal Joe Walsh, TD, agus
leis na hAirí Stáit, an tUasal Ned O'Keefe agus
an tUasal Noel Davern, agus lena gcuid oifigeach
as ucht a gcuid síorthacaíochta agus cúnaimh.
Gan an cúnamh agus an tacaíocht sin ní éireodh
linn mórán dul chun cinn a dhéanamh. Tá
comhaltaí eile den tseirbhís phoiblí ar mhaith
liom iad a mholadh, ina measc Ambasadóirí na
hÉireann agus a gcuid foirne, a chomhoibríonn
go mór linn ar mhargaí thar lear. Is mór is fiú
dúinn chomh maith an tacaíocht agus an
chabhair airgid a chuireann an tAontas Eorpach
ar fáil dúinn agus gabhaim mo bhuíochas leis
an gCoimisinéir agus lena chuid oifigeach i ngeall
ar an gcúnamh sin.
Ráiteas an Chathaoirligh
Ní bheadh na héachtaí móra a
rinneadh le linn na bliana 1999
indéanta mura mbeadh an iarracht
mhór, an dúthracht agus an
díogras a léirigh cuid mhór daoine
agus iad i mbun na hoibre.
9
Bíonn comhoibriú maith idir an Bord agus baill
Mar fhocal scoir, is mór an chúis áthais dom
an tionscail bia sna hearnálacha go léir agus ba
arís mo bhuíochas a ghabháil le Michael Duffy,
mhaith liom mo bhuíochas a ghabháil le gach
an Príomhfheidhmeannach, leis an mBainistíocht
aon duine acu agus lena gcuid eagraíochtaí
agus lena bhFoireann Oibre agus le mo
uiríolla – táirgeoirí, próiseálaithe, miondíoltóirí,
Chomhbhaill Bhoird agus Fho-Bhoird as ucht a
búistéirí, tomhaltóirí, fostóirí agus lucht
gcuid díograise agus dúthrachta. Is mór an meas
onnmhairithe – as ucht a gcuid síorthacaíochta
atá agam ar an obair a dhéanann siad agus,
agus as ucht a gcuid cabhrach maidir le dul
murach iad, ní éireodh linn dul chun cinn chomh
chun cinn an tionscail bia in Éirinn.
héifeachtach sin a dhéanamh.
Ba mhaith liom mo bhuíochas a ghabháil le
hAgnes Aylward agus le Jean Cahill, a d'imigh
Philib Ó Loingsigh
ón mBord ó d'eisíomar an tuairisc dheireanach,
Cathaoirleach
as ucht na tacaíochta a thug siad don Bhord Bia.
Ba mhaith liom comhghairdeas a dhéanamh le
mo chomhghleacaithe a hathcheapadh ar an
mBord (Micheal Dowling, Denis Lucey, Sara
White, John Duggan, Maura Nolan agus
Tom Parlon). Tréaslaím agus fáiltím
roimh na baill nua (Joe O'Sullivan,
Micheal Kilcoyne agus Margo
Monaghan) agus beidh mé
ag súil go mór le bheith ag
obair in éineacht leo agus
an chéad tréimhse eile
forbartha idir lámha
againn ón mbliain 2000
go dtí an bhliain 2006.
10
Chief Executive’s Review
The past year was one of further progress for
the food industry, cementing our development
in some sectors and markets, while exploring
opportunities and trying new approaches in
others. The UK remains Ireland’s single largest
market for food and drink, and given strong
trading relationships and geographical proximity
this is likely to remain the case. It is a sign of
the capability of the Irish industry that it has
succeeded in this highly sophisticated retail
environment. The focus now must be on
developing and consolidating this bridgehead
while at the same time expanding this
knowledge to secure more business with
European retailers, especially in the major
markets of France, Germany and Italy.
The structural changes that have taken place
in the UK and Irish retail sector will see an
increase in the need for scale and adaptability.
Irish suppliers will have to meet the demands of
these customers in terms of increased demands
being made on the supply chain to achieve the
efficiency levels required to remain competitive
on the home and export markets.
Export performance varied across sectors in 1999,
with value added value products making greater
progress in another year of limited market
returns in the major meat and dairy sectors.
Prepared Consumer Foods
The PCF sector has continued the growth pattern
that had already seen strong performances in
1997 and 1998 with exports of almost £1 billion
in 1999. This is now firmly established as the
third largest sector of the food industry. Despite
the continuing consolidation of suppliers on the
part of the UK multiple retailers, this very varied
sector, which covers a wide range of convenience
foods in frozen, chilled and ambient form, has
achieved growth estimated at nine per cent
in 1999. Within the sector, ready meals and
convenience foods demonstrate the highest
percentage growth of any food category, while
confectionery also performed well.
Dairy and Food Ingredients
The overall slight rise in earnings to £1.67
billion by the dairy and food ingredients sector
is attributable to a substantial increase in nondairy food ingredient exports. The dairy and
dairy ingredients sector maintained its 1998
position in 1999, which can be considered an
achievement in difficult market conditions where
world prices for dairy products fell to their lowest
levels since the start of the decade. The poor
level of export demand was caused mainly by
the continued absence of Russia from the world
market. Irish milk prices declined by about
Ready meals and convenience
foods demonstrate the highest
percentage growth of any
food category.
11
three per cent and many products remained
Beef exports to International markets (non-EU)
at intervention price levels, particularly in the
at 300,000 tonnes were up marginally on 1998
first half of the year. There was an increase in
levels. They represent, however, just 55 per cent
production of Irish butter, casein, cheese and
of the total compared to 58 per cent in 1998.
whole milk powder but a decrease in skimmed
Egypt, Russia and the Gulf remain the most
milk powder.
significant destinations.
Beef
Live exports more than doubled in 1999, rising
1999 was a record year for beef production and
from 171,000 to 410,000 head. The greatest
live exports accounting for 2.46 million head
increase occurred in sales of weanlings to EU
– an all-time high. Beef exports amounted to
markets. Spain, Italy and the Netherlands took
545,000 tonnes, with a value of £1.03 billion.
over 80 per cent. The Lebanon continued as
This represents a strong export performance in
the only International market outlet with a total
commercial sales, up eight per cent on 1998
of 70,000 head this year compared to 29,000
levels although lower market returns resulted
head in 1998.
in an increase of 1.5 per cent in export earnings.
The UK remains the principal EU market for Irish
beef. Exports to both Northern Ireland and Britain
improved to a total of 95,000 tonnes, a 12 per
cent increase on 1998 levels. An extra 20,000
tonnes of beef were sold to continental EU
markets this year bringing the total to 150,000
tonnes, up 15 per cent in the year. The strongest
performances were to Holland, Italy and France,
with exports increasing by at least 5,000 tonnes
to each. These markets have been identified in
Michael Duffy Chief Executive
the Bord Bia Strategy as core target markets for
future growth.
Annual Report & Financial Statements 1999
Chief Executive’s Review
12
Pork and Bacon
It was an exceptionally difficult year for pig
producers due to supply pressures in world
markets and huge downward pressure on prices.
As a result of increased supplies, Irish pork and
bacon exports were four per cent higher at
130,000 tonnes product weight. Pork’s share of
total exports continues to increase, accounting for
over 80 per cent of the total. The price of pigmeat
however continued to be adversely affected by
world oversupply and export earnings were down
two per cent to £200 million.
Sales to International markets were boosted by
the strong import demand in Japan and South
Korea and the provision of financial assistance
by the IMF to Russia. Exports to international
markets increased two and a half fold to
20,000 tonnes. Japan was the best performer
and accounted for about two-thirds of the total
value and half of the volume at 10,000 tonnes up to £35 million.
Lamb
Lamb exports in 1999 at 53,450 tonnes were
four per cent ahead of last year. France remains
The UK continues to be the priority market for
the principal market at 41,000 tonnes, similar
Irish pigmeat, accounting for 72,000 tonnes or
to 1998. The growth in exports was to Spain,
55 per cent of total exports. It is the principal
Italy and Portugal which returned strongly this
outlet for Irish bacon which accounts for 40 per
year. Exports to the UK and Germany were
cent of this trade. Exports to Continental Europe
maintained at 1998 levels of 3,000 tonnes
fell by 20 per cent. Germany remained the
and 4,500 tonnes, respectively.
principal destination.
Export earnings fell by 4.5 per cent during 1999
to £137 million. Returns were adversely affected
by poor demand for imported lamb in France,
strong supplies of competing meats and no
recovery in lamb skin prices. Light lamb exports
to Mediterranean markets increased 65 per cent
as import demand approached 1995 levels.
Food Expo - Cairo April 1999
The continued change in multiple
retailing and the evolution of new
specialist retail and foodservice
formats in Ireland and Britain
augurs well for speciality food
and drink.
13
Beverages
Speciality Foods
Building on the successes of previous years,
Sales from Ireland’s small and speciality food
in 1999 the Irish beverages sector continued
businesses continued to show growth during
its steady development. In value terms,
1999, both in Ireland and in export markets.
beverage exports grew by two per cent in
This niche is performing well in line with the
1999 to £630 million. Irish companies are
continued upward trend in consumer spend
now developing new and innovative products
on speciality food and drink, boosted also by
and packaging concepts and successfully
growth in the gift food market in preparation
introducing these to key international markets.
for the Millennium.
The categories showing increased growth were
beer, cream liqueurs, spirits, mineral water
The continued change in multiple retailing and
and soft drinks.
the evolution of new specialist retail and
foodservice formats in Ireland and Britain augurs
The effects of the abolition of duty-free sales
well for speciality food and drink from Ireland
has been felt by all manufacturers resulting in
as many retail and foodservice formats include
reduced sales and companies are dealing with
speciality items in selected outlets and menus.
this by developing different pricing strategies
in this segment of the market.
Horticulture
Irish mushroom companies continued to
supply the UK fresh mushroom industry with
approximately 50 per cent of their retail sales.
Fresh mushrooms maintained volume in a
shrinking market although the price pressure
felt by suppliers to the UK, due to price
competition among retailers, has reduced
export earnings by almost two per cent. With the
move to more ready prepared and convenience
products, customers are purchasing prepared
mushrooms as an ingredient. The total value of
horticulture exports in 1999 was £120 million.
Féile Bia - promoting through
foodservice sector
Chief Executive’s Review
14
Bord Bia Core Products
Over the past five years, Bord Bia has structured
its services to buyers and Irish companies along
five core products or services. By 1999, these
had become well-established, while continuing
to adapt to demands from industry and the
marketing environment.
Food Promotion
The main thrust of Bord Bia’s promotional work
is to continue to build and strengthen the
“Ireland the Food Island” brand, which is used
in all marketing activities for all sectors and
products. In 1999 a new corporate identity was
developed for marketing materials, and began
to be implemented. This reinforces the Ireland
the Food Island brand values by representing
landscape, people and food.
Bord Bia’s promotional objectives are to secure
maximum exposure at trade level in priority
markets for Ireland as a consistent supplier
of high quality food and drink products, and
secondly to raise the profile of Irish food among
consumers. In 1999, Bord Bia’s public relations
activities were accelerated in markets including
UK, France, Italy, Germany, Spain, Sweden,
Netherlands, North Africa, Middle East, USA,
Russia and CEEC. More than 80 journalists visited
Ireland on 63 separately organised itineraries
while 125 attended Bord Bia press conferences
in the markets during the year.
The European Commission held an Irish Week
in its 11 restaurants in Brussels, serving 6,000
staff and visitors each day. Bord Bia used this
opportunity to showcase Irish food to European
decision-takers and policy-makers. Carrefour,
France’s largest retailer, carried out a nationwide
campaign for identified Irish lamb. A consumer
advertising campaign was organised under the
EQB programme in six Italian cities in March.
Outdoor poster sites, a tram, and regional and
national press were used together with in-store
promotions. Sales increased 25 per cent during
the campaign and were sustained at 15 per
cent in following weeks. Research shows that
consumers have an increasingly positive attitude
towards Irish beef, with 44 per cent of Milanese
respondents buying Irish beef regularly, an
increase of six per cent on 1998. More than
200 in-store tastings were organised for Irish
food in Italy in 1999.
The first ever consumer advertising campaign for
Irish beef took place in the UK. This followed an
extensive consumer public relations programme
and is preparing the way towards the launch of
identified Irish beef in the British market. Ireland
has been supplying the market for hundreds
of years, and had a significant presence on
There can be no question but that
the Irish food and drink industry
is operating in one of the most
consumer driven and competitive
business environments.
15
supermarket shelves until 1997 when
was a significant increase in the number of
nationalisation of the market followed British
households buying bacon – up from 72 to 79.7
farming’s economic difficulties after BSE.
per cent. Spring and summer beef campaigns
However, a consumer franchise was not built
were targeted at younger consumers. Three
up as the beef was sold under the retailer’s
lamb promotions highlighted the product’s eating
own label. In 1999 retail penetration of Irish
quality. In the iron nutrition programme, 150,000
beef had recovered to eight per cent while
leaflets were distributed to health professionals,
exports grew 12 per cent.
consumers and new mothers.
Promotional campaigns in Ireland focused on
Irish specialities are performing well in Britain
demonstrating convenience and meal appeal
supported by Bord Bia’s promotional backing
for meat and eggs through an integrated trade
in conjunction with London’s Fortnum and
and media programme. Time efficient meal
Mason and Harvey Nichols Food Halls. The
solutions were developed and communicated
quality of Ireland’s food and drink received
to consumers through media, consumer events
further endorsement during 1999, when more
and point of sale material. These campaigns
than 50 Irish food products were awarded Great
included two major campaigns for bacon with
Taste Awards by the UK’s premier food writers
400 multiple retail outlets involved. A quarter
and gourmet food buyers.
of a million recipe leaflets was distributed.
Independent evaluation of the campaign showed
that 40 per cent of all respondents were aware
of bacon advertising over the past two months.
An additional four processing plants joined the
Quality Assurance Scheme and a number of
multiple retailers switched to sourcing Quality
Assured Bacon due to the emphasis of the
campaign on the Quality Assurance Schemes.
During the period of the promotion the volume
of bacon/ham/rasher purchased increased by
nine per cent on the month earlier and there
Annual Report & Financial Statements 1999
Chief Executive’s Review
16
Trade Development
In 1999, Bord Bia organised 741 buyer meetings in
overseas markets, 81 buyer events and 137 buyer
presentations. Buyer events included the annual
June launch of the Irish lamb season in France, the
Dutch/Irish evening in Amsterdam and a major
reception in the Irish Embassy in London, building
on the work of the Export Council. Over 160 trade
visitors came to Ireland on Bord Bia-organised and
initiated itineraries.
The 12th World Meat Congress was hosted by
Bord Bia in May. This was the first time this major
international event was held in Ireland. Over 600
delegates from the meat industry attended to hear
the views of 25 experts, including Commissioner
Franz Fischler, Minister Joe Walsh and US Secretary
for Agriculture, Dan Glickman. A main objective
for Bord Bia in securing the event for Ireland was
to communicate positive messages about our
meat industry through the international trade
press. This was successful, with 70 journalists
attending the three days of the Congress.
Seventy Irish food and drink companies
participated in the Retail and Food Service
Development Programmes. In the UK buyer
contact events were held with Booker, the NHS
and Compass. The UK Guild of Fine Food Retailers
attended a Bord Bia seminar on Irish speciality
foods in Adare, with 50 Irish companies.
In 1999, a programme of evaluating opportunities
for Irish food and drink in Central and Eastern
European markets included six market visits.
A seminar was organised to inform Irish
companies about the long-term approach
needed to these markets.
Bord Bia’s trade show programme continued
to grow, with 19 events in total. Ninety Irish
companies participated on the Bord Bia Ireland
stands, 36 of them for the first time. This is
particularly welcome as it indicates the growing
involvement of the food and drink industry in
building the “Ireland the Food Island” brand.
Involvement at shows has both a trade contact
dimension for companies and a broader
promotional aspect for the Ireland brand. In a
new development, three specialist drinks fairs
were attended, and special marketing materials
were produced to introduce buyers to Ireland’s
smaller drinks companies.
World Meat Congress
In 1999, Bord Bia organised
741 buyer meetings in
overseas markets, 81 buyer
events and 137 buyer
presentations.
17
Market Information
In 1999, the Information Services Department
received and responded to 3,764 enquiries,
excluding those handled by overseas offices.
Publications during the year were related to
programmes such as Food Service and Private
Label. Bord Bia continued to subscribe to and
analyse on behalf of industry material on the
retail sales of mushrooms in the UK and of
meat in Ireland. Work was carried out on the
Irish beef being relaunched on the Belgian market
development of web shopping in Britain.
Research was also carried out among British
Industry study tours were organised to the US
consumers to determine the propensity of
for consumer food companies to examine the
those with Irish associations to purchase Irish
private label sector in America and a pork and
products. Bord Bia has been working with
bacon tour to Canada and the US.
eight chocolate companies on opportunities
to promote Irish chocolates in the UK.
In 1999 a programme was developed to
communicate information about European
Extensive consumer research was carried out
market requirements to beef producers. This
in the UK, France, Germany, Italy and Belgium.
included a special farmer newsletter, a series
It included taste tests of Irish beef. The results
of farmer meetings, articles in the agriculture
were very positive in consumer acceptance of
media, the Eurosuckler competition and a
Irish product and wholesome associations with
special exhibit of cattle suitable for Britain,
naturalness and a clean environment. This
France, Netherlands and Italy at the National
research was the basis for on-going dialogue
Ploughing Championships. Many of these
with retailers, and the positive results led to Irish
activities were organised in cooperation
beef being relaunched on the Belgian market.
with Teagasc and meat plants.
Further research is planned for the UK and France.
Annual Report & Financial Statements 1999
Chief Executive’s Review
18
Marketing Finance
Bord Bia concluded its Marketing Improvement
Assistance and Strategic Market Development
programmes under the 1994-99 EU Operational
Programme for Industrial Development. Bord
Bia’s assistance helped companies develop
their marketing capability, introduce enhanced
quality controls, develop e-commerce, participate
at trade fairs, conduct market research and
develop designs for new products. In 1999 214
companies benefited from Bord Bia’s assistance
and £4.2m in grants were approved under these
programmes. To assist client companies through
the grants process, marketing finance clinics
were held around the country.
Quality Assurance
Bord Bia has been operating Quality Assurance
programmes in the beef and pigmeat sectors
for a number of years and a scheme in the egg
sector was introduced in 1999. These schemes
enable industry to demonstrate best practice to
customers and ultimately to consumers across
a broad range of criteria.
In 1999 membership of the Beef Quality
requirements of retail and foodservice customers
and was instrumental in assisting the beef
industry gain new retail business in 1999.
The Pigmeat Quality Assurance Scheme which
was substantially revised and updated in 1998
was operated in 1999 by 25 plants approved
under the scheme. The scheme was the basis
of the two major bacon promotional campaigns
carried out in 1999.
In 1999 Bord Bia and an expert group
representing the egg sector and the regulatory
authorities developed an Egg Quality Assurance
Scheme. This was developed in response to
safety concerns in the egg sector and describes
the essential quality assurance requirements
from egg production through packing to final
despatch, which are necessary to meet customer
needs. The scheme has been widely adopted
by the egg industry, and 18 packing centres,
representing over 80 per cent of Irish production,
are now participating in the scheme.
Organisational
Development
Assurance Scheme was maintained at 42 plants
Recognising the importance of our staff, Bord
with 20,000 farmers involved. The scheme is
Bia continued to invest in upgrading skills in
recognised as meeting the quality assurance
application of technology and in how Bord Bia
The food and drink industry
continues to demonstrate its
ability to succeed in highly
competitive and demanding
market environments.
20
does its business in specific marketing and
project management courses. Almost 95 per
cent of staff participated in training courses
during 1999, proof of the commitment
to further development throughout the
organisation. This comprehensive training
programme is complemented by an effective
Performance Management Programme.
The food and drink industry continues to
demonstrate its ability to succeed in highly
competitive and demanding market
environments. The coming years will make
even greater demands. As the Chairman
has said earlier in this report, the challenges
are great – but so too are the opportunities.
Success will depend on the ability to formulate
appropriate strategies and to respond to
emerging trends. Our aim is to position ourselves
to anticipate these trends and maximise our
support to the Irish industry to assist it to reach
its full potential. This is the reason for our
existence and our energies will continue to
be geared and focused accordingly. The food
industry has demonstrated its capability in
succeeding in all sectors, across the world.
Michael Duffy
Chief Executive
Annual Report & Financial Statements 1999
20
Corporate Statement
Statement of Board
Responsibilities
Section 21 of An Bord Bia Act 1994 requires the
Board to “keep in such form and in respect of
such accounting periods as may be approved by
the Minister, with the consent of the Minister for
Finance, all proper and usual accounts of monies
received or expended by it, including an Income
and Expenditure Account, a Cash Flow Statement
and a Balance Sheet, and, in particular, shall
keep in such form as aforesaid all such special
accounts as the Minister may, or at the request
of the Minister for Finance shall, from time to
time direct and the Board shall ensure that
separate accounts shall be kept and presented
to the Board by any Subsidiary Board that may
be established by the Board under this Act and
these accounts shall be incorporated in the
general statement of account of the Board.”
In preparing these financial statements the Board
is required to:
1
2
3
4
Prepare the financial statements on the
going concern basis unless it is inappropriate
to presume that the Board will continue
in operation.
The Board has overall responsibility for the
organisation’s system of internal controls and
has delegated responsibility for implementation
of this to Executive Management. This system
includes financial controls which enable the
Board to meet its responsibilities for the integrity
and accuracy of the organisation’s accounting
records, which disclose, with reasonable accuracy
at any time, the financial position of Bord Bia.
The Board’s system of internal controls is
designed to provide reasonable assurance that
transactions are executed in accordance with
Board policy and management authorisation
and within statutory parameters and guidelines.
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.
Select suitable accounting policies and then
apply them consistently
There is an Audit Committee of the Board to
Make judgements and estimates that are
which the internal auditor and the external
reasonable and prudent
auditor have full and unrestricted access.
State whether applicable accounting
standards have been followed, subject to any
material departures disclosed and explained
in the financial statements
21
Corporate Governance
The Board is committed to maintaining the
Safety, Health and
Welfare at Work
highest standards of corporate governance
Bord Bia is committed to implementing the
and best practice, including in relation to the
provisions of the Safety, Health and Welfare at
Government Guidelines for State Bodies and
Work Act 1989. The company’s Safety Statement
the Ethics in Public Office Act 1995. The Act’s
and Policy Document was reviewed and updated
provisions are being implemented in Bord Bia,
during the year as part of the Board’s on-going
and the Board monitors this implementation.
policy in this area.
The Secretary is responsible to the Board for
ensuring that procedures are implemented
and that relevant legislation, regulations and
guidelines are complied with.
Extending Bilingualism
in the Public Sector
Bord Bia is committed to making every effort
Equal Opportunities
Bord Bia is an equal opportunities employer.
It is committed to ensuring equality of
opportunity and its personnel and staff
development programmes are geared towards
this objective. Bord Bia is also committed to
possible to implement the Guidelines for Action
Programmes in the State Sector in relation to
the use of Irish.
Philip Lynch
Joseph O’Sullivan
Chairman
Board Member
the implementation of Government policy in
relation to the employment of disabled people
in the public service.
Annual Report & Financial Statements 1999
Prompt Payment of Accounts
Bord Bia has systems and procedures to ensure full
implementation of the provisions of the Prompt Payment
of Accounts Act 1997. Specific procedures are in place to
enable the tracking of all transactions and payments in
accordance with the terms of the Act and the relevant
outputs from the accounting system are kept under
continuous review. The Board’s procedures which conform
to accepted best practice provide reasonable, but not
absolute, assurance against non-compliance; it is also
Bord Bia’s practice to review and to take appropriate
action in relation to any instances of non-compliance that
22
subject to a Tax Clearance Certificate (if appropriate)
being furnished in advance of the invoice and subject
to stated conditions in relation to the invoicing process
being met; during the period under review all payment
transactions were governed by these conditions. The
total number of late payments in the year ended 31
December 1999 was 312. The value of these payments
was £128,797. The average number of days by which
payments were late was 11 days. The overall proportion
which late payments constituted of total payments made
by Bord Bia was 0.9 per cent. The amount of interest
payable in respect of the year ended 31 December 1999
was £337.
might arise. Under Bord Bia’s terms, payment is made
within 45 days of receipt of invoice, or of date of supply,
Report of Comptroller and
Auditor General pursuant
to Section 13 of the Prompt
Payment of Accounts Act, 1997
Responsibilities of the Board and of the
Comptroller and Auditor General
The Board is obliged to comply with the Act and,
Philip Lynch
Joseph O’Sullivan
Chairman
Board Member
Basis of Opinion
My examination included a review of the payment
systems and procedures in place and checking, on a test
basis, evidence relating to the operation of the Act by
the board during the year.
I obtained all the information and explanations which
I considered necessary for the exercise of my function
under Section 13 of the Act.
in particular, is required to
As a result of my examination it was established that
pay its suppliers by the appropriate payment date
An Bord Bia did not pay interest on late payments during
if payment to a supplier is late, include the
the year ended 31 December 1999. After the year end,
appropriate penalty interest with the payment
however, the Board undertook an exercise to identify
together with the information required by Section 6
and calculate the interest due on any late payments.
As a result of this exercise interest of £337 was paid
disclose its payment practices in the period in the
in 2000 in respect of late payments in 1999.
appropriate way
Under section 13 of the Act, it is my responsibility,
Opinion
as Auditor of An Bord Bia, to report on whether, in
Apart from the above, it is my opinion that the Board
all material respects, the Board has complied with
complied in all material respects with the provisions of
the provisions of the Act.
the Act during the year ended 31 December 1999.
John Purcell
Comptroller and Auditor General
31 July 2000
Board Membership
as at 31/12/99
Chairman
Chief Executive
Secretary
Mr Philip Lynch
Mr Michael Duffy
Mr Seamus Kenny
Chief Executive, IAWS Group
Changes during 1999
Members
Dr Noel Cawley
Managing Director,
Irish Dairy Board
Mr Michael Dowling
Company Director &
Visiting Professor UCC
Ms Maura Nolan
Head of Food Division,
Department of Agriculture,
Food & Rural Development
Appointed 26/1/99:
Mr Michael Dowling (re-appointed)
Mr Denis Lucey (re-appointed)
Mr Joseph O’Sullivan
Mr Tom O’Dwyer
Ms Sara White (re-appointed)
Irish Creamery Milk Suppliers’
Association (ICMSA)
Resigned 7/4/99:
Ms Jean Cahill,
Mr John Duggan
Chairman, Glanbia
Mr William O’Kane
Managing Director
O’Kane Poultry Ltd
Appointed 2/6/99:
Mr Joseph O’Sullivan
Term Expired 15/11/99:
Chief Executive, Drinagh
Co-Operative Society Ltd
Mr Tom Parlon
Mr Michael Hanrahan
Chairman, Kerry Group
Mr Michael Kilcoyne
Chairman, Consumers’
Association of Ireland
Mr Denis Lucey
Chief Executive, Dairygold
Co-Operative Society Ltd
Ms Margo Monaghan
Principal Officer
Department of Enterprise
Trade & Employment
Consumers’ Association of Ireland
Mr Michael Kilcoyne
Term Expired 28/11/99:
Mr Tom Parlon
Mr Michael Kilcoyne
President, Irish Farmers’
Association (IFA)
Term Expired 30/11/99:
Ms Agnes Aylward
Ms Mary White
Joint Managing Director
Lir Chocolates Ltd
Principal Officer, Deparrtment
of Tourism, Sport & Recreation
Mr John Duggan
Ms Maura Nolan
Ms Sara White
Appointed 1/12/99:
Assistant Secretary
Department of the Marine
& Natural Resources
Mr John Duggan (re-appointment)
Mr Michael Kilcoyne (re-appointment)
Ms Margo Monaghan
Ms Maura Nolan (re-appointment)
Mr Tom Parlon (re-appointment)
23
Meat & Livestock
Subsidiary Board
as at 31/12/99
24
Chairman
Changes during 1999
Mr Denis Lucey
Appointed 17/2/99:
Chief Executive, Dairygold Co-Operative Society Ltd.
Mr Denis Lucey
Term Expired 25/4/99:
Members
Mr Sean Buckley
President, Associated Craft
Butchers of Ireland
Mr Michael Holmes, IFA
Mr Liam McGreal
Managing Director, Kepak
Mr Eugene Kierans
Dr Pat Mulvehill
Mr Paul Clarke
National Executive of the
Livestock Trade
Director General, Irish Poultry
Processors Association
Ms Brid O’Connor
Chairman, National Sheep
Committee, IFA
Assistant Director,
Office of the Director
of Consumer Affairs
Mr Eddie Keane
Mr Raymond O’Malley
Mr Frank Corcoran
Mr Eddie Keane
Mr Liam McGreal
Resigned 29/4/99:
Mr Edward Power
Irish Pigmeat Processors
Association
Appointed 2/6/99:
National Poultry
Committee, IFA
Chairman, National
Livestock Committee, IFA
Mr Michael Kenny
Mr Liam Ryan
Chief Executive, Glanbia
Chilled Foods
Chairman, National Pigs
Committee, IFA
Mr Tom McAndrew
Mr Nicholas Ryan
Chairman IMA and Managing
Director Eurowest Foods Ltd.
National Council,
Irish Creamery Milk Suppliers’
Association (ICMSA)
Mr Sean Buckley
Appointed 27/9/99:
Mr Frank Corcoran
Mr Eddie Keane (re-appointment)
Mr Michael Kenny
Mr Liam McGreal (re-appointment)
Mr Liam Ryan (re-appointment)
Consumer Foods
Subsidiary Board
as at 31/12/99
Chairman
Changes during 1999
Mr Michael Dowling
Re-appointed 17/2/99:
Company Director & Visiting Professor, UCC
Mr Michael Dowling
Resigned 7/4/99:
Ms Jean Cahill
Consumers’ Association of Ireland
Members
Ms Darina Allen
Ms Maura O’Donovan
Term Expired 1/6/99:
Ballymaloe Cookery School
Poultry Instructress
Mr Peter Cullen
Aran Candy
Ms Carol Buckley
Mr Joe O’Flynn
Mr Pat Walsh
Lecturer in Home Economics
Marketing Development Director,
Irish Dairy Board
Walsh Mushrooms
Mr Joe O’Flynn
Mr Pat Doyle
Managing Director,
Rye Valley Foods Ltd.
Ms Gina Quin
Chief Executive,
Gandon Enterprises
Resigned 1/7/99:
Mr Tommy Murray
UDV Ireland Ltd
Mr Pat Given
Managing Director,
UDV Operations,
UDV Ireland Ltd.
Mr Brendan Smyth
Appointed 28/10/99:
Milk Advisory Manager,
Glanbia
Mr Pat Given
Mr Con Lucey
Mr Paddy Walsh
Marketing Director,
Cheese & Spreads,
Golden Vale plc.
Managing Director,
Walsh Family Foods
Mr Larry Murrin
Managing Director,
Dawn Farm Foods
Mr Joe O’Flynn (re-appointment)
Ms Gina Quin
Mr Paddy Walsh
25
Organisation Structure
as at 30/06/00
Russia, CEEC
P. McSweeney
Director
International Markets
O. Brooks
Middle East,
North Africa
J. O’Donnell
Manager Meat
G. Brickley
26
Dusseldorf Office
D. O’Keeffe
Manager Quality
J. Keane
Director Operations
A. Cotter
European/Home
Market
Madrid Office
C. Ruiz
Manager
Information Services
J. Smith
London Office
M. Murphy
Manager
Marketing Finance
D. Walsh
Milan Office
J. O’Toole
Director Client Services
M. Kennedy
Manager Promotions &
Exhibitions
L. Williams
Paris Office
T. McCarthy
Secretary/Director
S. Kenny
Small Business
Chief Executive
Michael Duffy
Financial Controller
G. Bailey
Director Consumer
Foods & Marketing
J. McGrath
Manager Consumer Foods Ingredients
J. McGough
Manager International Media
M. Bracken
Home Market
G. O’Sullivan
The Organisation
The organisation structure of Bord Bia is comprised
appointed by the Board with the consent of the
of the Board, two Subsidiary Boards, the Chief
Minister. The Chairman of each Subsidiary Board
Executive and the Executive, which provide the
is a member of the Board.
27
range of operational and corporate services required
The following Board Committees are in place:
to implement Board policy and programmes.
Audit Committee, Evaluation Committee, Quality
The Board is comprised of a Chairman and 14
Assurance Committee, Remuneration and Pension
ordinary members appointed by the Minister for
Committee and Strategy Committee. The Executive
Agriculture & Food. There are two Subsidiary Boards
is comprised of staff based in the Board’s head
(Meat & Livestock and Consumer Foods) comprised
office and overseas.
of a Chairman and 12 ordinary members, who are
Board
Meat & Livestock
Board
Consumer Foods &
Ingredients Board
Chief Executive
Administration
Operations
Directorate
Client Services
Directorate
Marketing &
Communications
Annual Report & Financial Statements 1999
28
European
Union
An tAontas
Eorpach
Bord Bia’s marketing finance programmes are
Faigheann cláracha margaíochta, tionscnaimh
supported to a considerable extent by funding
agus dreasachtaí airgeadais an Bhoird Bia cuid
from the European Union. Most of this comes
mhór tacaíochta maoinithe ón Aontas Eorpach.
from the European Agricultural Guidance and
Tagann a bhunáite seo ó Chiste Treorach agus
Guarantee Fund under the Food Sub-Programme
Ráthaíochta na hEorpa faoi Fhochlár an Chláir
of the Operation for Industrial Development.
Feidhme le haghaidh Forbairt Thionslaíoch.
Funding is also received under the European
Faightear maoiniú freisin ón Scéim Togha
Quality Beef Scheme for the promotion of
Mairteola faoi choinne chur chun cinn an
beef consumption.
tomhaltais mhairteola.
The support and financial assistance of the
Mar gheall ar thachaíocht agus cúnamh airgid
European Union enables Bord Bia to make
an Aontais Eorpaigh is féidir leis an mBord Bia
available a range and level of support to the
réimse agus leibhéil tacaíochta a chur ar fáil do
Irish food and drink industry which would
thionscal bia agus dí na héireann nach mbeadh
not otherwise be possible.
ar fáil dá n-uireasa.
Report of the Comptroller
and Auditor General
I have audited the financial statements on
My audit was conducted in accordance with
pages 30 to 42.
auditing standards which embrace the standards
issued by the Auditing Practices Board and in
Responsibilities of the Board
and of the Comptroller and
Auditor General
order to provide sufficient evidence to give
The accounting responsibilities of the Board are
or error. I obtained all the information and
set out in the Board’s Corporate Statement on
explanations that I required to enable me to fulfil
pages 20 and 21. It is my responsibility, under
my function as Comptroller and Auditor General
section 21 of An Bord Bia Act 1994 to audit the
and in forming my opinion, I also evaluated the
financial statements presented to me by the
overall adequacy of the presentation of
Board and to report on them. As the result of
information in the financial statements.
reasonable assurance that the financial
statements are free from material misstatement
whether caused by fraud or other irregularity
my audit I form an independent opinion on the
financial statements.
Basis of Audit
Opinion
In my opinion, proper books of account have
been kept by the Board and the financial
In the exercise of my function as Comptroller
statements, which are in agreement with
and Auditor General, I plan and perform my
them, give a true and fair view of the state
audit in a way which takes account of the special
of the affairs of An Bord Bia at 31 December
considerations which attach to State bodies in
1999 and of its income and expenditure and
relation to their management and operation.
cash flow for the year then ended.
An audit includes examination, on a test
basis, of evidence relevant to the amounts
and disclosures in the financial statements.
John Purcell
It also includes an assessment of the significant
Comptroller and Auditor General
estimates and judgments made in the
31 July 2000
preparation of the financial statements, and of
whether the accounting policies are appropriate,
consistently applied and adequately disclosed.
Annual Report & Financial Statements 1999
29
Statement of
Accounting Policies
(a) Basis of Accounting
30
(d) Fixed Assets and Depreciation
These financial statements are prepared on
Fixed assets are stated at cost less accumulated
an historical cost basis.
depreciation. Depreciation is calculated to write
(b) Keeping of Accounts
Subsidiary Boards
Under the terms of the An Bord Bia Act,
1994, the Board is assisted by two Subsidiary
Boards in respect of Meat & Livestock and
Consumer Foods & Ingredients. All income and
expenditure relating to these Subsidiary Boards
is reflected in these financial statements.
off the original cost less the estimated residual
value of tangible assets on a straight line basis
at the following annual rates:
Leasehold improvements
10%
Furniture and fittings
12.5%
Office equipment
20%
Motor vehicles
20%
(e) Marketing Finance
Expenditure was incurred on the Targeted
Subsidiary Company
Marketing Consultancy (TMC) Programme
The Board operates a wholly-owned subsidiary
in previous years. Under the terms of the
company which does not trade. Due to the
programme, a proportion of the expenditure
nature of the company, it is not considered
is recoverable over a 24 to 60 month period
appropriate to prepare consolidated financial
by way of a royalty based on sales achieved
statements.
by this expenditure. Income arising under the
(c) Income
Income shown in the financial statements
under Oireachtas Grant-in-Aid represents the
actual receipts from this source in the period.
Income from EU Structural Funds and the EU
Quality Beef Promotion Fund is released to
revenue in line with related expenditure and
any unexpended balance is included in
Creditors.
Income from the Statutory Levy is accounted
for on a cash receivable basis.
TMC Programme from amounts reimbursed is
accounted for on the basis of cash receipts.
(f) Superannuation
Superannuation costs are funded over the
employee’s period of service by way of
contributions to a fund managed by trustees.
The Board’s annual contributions are based
(i) Stocks
Stocks of stationery are stated at cost.
(j) Provision for Bad and
Doubtful Debts
on actuarial advice and are charged to the
Known bad debts are written off and specific
income and expenditure account in the period
provision is made for any amounts the
to which they relate.
collection of which is considered doubtful.
(g) Leasing
(k) Foreign Currencies
The rentals under operating leases are dealt
Foreign currency balances are translated at
with in the financial statements as they fall
the rates ruling at the balance sheet date.
due. Tangible assets acquired under finance
leases are capitalised and depreciated as set
out in note (d) above.
(h) Tangible Assets
(l) Taxation
Provision has been made in respect of all
VAT liabilities and the PRSI contributions of
Irish persons attached to overseas offices.
Tangible assets are financed out of revenue.
Provision is made in the income and
expenditure account for a transfer to the
capital account of amounts allocated for such
capital purposes less credits to revenue over
the life of the related assets.
Annual Report & Financial Statements 1999
31
Income and
Expenditure Account
year ended 31 December 1999
Notes
32
1999
1998
IR£
IR£
7,911,000
6,530,000
200,000
377,560
Income
Oireachtas Grant-in-Aid
EU Quality Beef Promotion Fund
EU Structural Funds
1a
6,342,000
5,027,000
Statutory Levy
1b
5,363,420
4,379,649
Project and Other Income
1c
2,185,690
2,067,176
22,002,110
18,381,385
54,885
96,986
22,056,995
18,478,371
Transfer from Capital Account
2
Total Income
Expenditure
Marketing and Promotional Expenditure
3
11,791,010
9,551,992
Marketing Finance
4
3,993,264
4,096,845
Operating Expenditure
5
6,268,176
4,818,574
22,052,450
18,467,411
4,545
10,960
Balance at 1 January
14,337
3,377
Balance at 31 December
18,882
14,337
Total Expenditure
Surplus for Year
The Board has no gains or losses in the financial year or the preceding financial year other than those
dealt with in the Income and Expenditure Account.
The results for the year relate to continuing operations.
The Statement of Accounting Policies and Notes 1 to 19 form part of these financial statements.
Philip Lynch
Michael Duffy
Chairman
Chief Executive
Balance Sheet
as at 31 December 1999
Notes
1999
1998
IR£
IR£
Assets Employed
33
Fixed Assets
Tangible Assets
6
830,747
885,632
Financial Assets
7
6,003
6,003
836,750
891,635
6,226
5,000
1,846,468
1,625,004
39,552
66,897
1,892,246
1,696,901
1,879,367
1,688,567
12,879
8,334
849,629
899,969
830,747
885,632
18,882
14,337
849,629
899,969
Current Assets
Stocks
Debtors
8
Cash at bank and in hand
Creditors
(amounts falling due within one year)
9
Net Current Assets
Total Assets less Current Liabilities
Financed by
Capital and Reserves
Capital account
2
Income and expenditure account
The Statement of Accounting Policies and Notes 1 to 19 form part of these financial statements.
Philip Lynch
Michael Duffy
Chairman
Chief Executive
Annual Report & Financial Statements 1999
Cash Flow Statement
year ended 31 December 1999
1998
1999
Notes
34
Net cash inflow from operating activities
IR£
16
IR£
IR£
IR£
37,822
110,752
Returns on investment and servicing
of finance:
Bank interest received
82,343
52,112
Interest on finance leases
-
Net current inflow of funds
52,112
(859)
81,484
119,306
162,864
Capital expenditure:
Payments to acquire tangible assets
(123,420)
190,209
Capital element of finance lease payments
18
Decrease in cash
17
-
(190,209)
(946)
(27,345)
The Statement of Accounting Policies and Notes 1 to 19 form part of these financial statements.
Philip Lynch
Michael Duffy
Chairman
Chief Executive
(124,366)
(5,060)
Notes forming part of the
Financial Statements
year ended 31 December 1999
1
Income
(a)
EU Structural Funds have been made available to Bord Bia under Measure 4 of the Food
Sub-Programme of the Operational Programme for Industrial Development 1994-99 which
35
is jointly funded by the EU and the State.
(b)
The 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 IR£1.50 per head for cattle,
20p per head for sheep and 20p per head for pigs.
(C)
Project and other income includes industry contributions to joint promotions, steak bar sales at
trade fairs, and seminar and conference fees. Also included is income arising under the Targeted
Marketing Consultancy (TMC) Programme.
2
Capital Account
1999
IR£
Balance at 1 January 1999
Amount capitalised in respect of purchased tangible assets
190,209
Net amount realised on disposal of assets
(24,796)
Amortisation in line with asset depreciation
3
885,632
(220,298)
Net transfer to income and expenditure account
(54,885)
Balance at 31 December 1999
830,747
Marketing and Promotional Expenditure
1999
1998
IR£
IR£
Marketing Development Programmes
7,048,980
5,329,059
Trade Fairs and Exhibitions
2,067,535
2,086,762
Information Services
711,574
590,205
Quality Assurance
318,256
290,981
Trade Services
772,832
590,187
35,957
33,348
Strategic Marketing Programme
Marketing Services
218,246
134,803
Communications
285,617
249,411
Nutritional Advisory Services
332,013
247,236
11,791,010
9,551,992
Annual Report & Financial Statements 1999
Notes forming part of the
Financial Statements
year ended 31 December 1999
4
Marketing Finance
Marketing Improvement Assistance Programme
36
Strategic Marketing Development Programme
5
1999
1998
IR£
IR£
3,804,885
3,453,287
188,379
643,558
3,993,264
4,096,845
148,124
141,179
3,745,489
2,953,210
528,961
527,313
Operating Expenditure
Board and Sub-Board Members' fees and expenses
Staff costs
Rent, rates and insurance
Telecommunications costs
General business expenses
Audit fee
Depreciation (Note 6)
Loss on disposal of tangible assets
151,665
213,556
1,440,923
754,044
7,920
7,920
220,298
206,012
24,796
15,340
6,268,176
4,818,574
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:
Wages and salaries
2,470,499
2,508,987
Social welfare costs
154,685
143,860
1,120,305
300,363
3,745,489
2,953,210
Pension costs
The total number of employees (including part-time persons) at 31 December 1999 was 68
(1998:68). The cost of certain part-time employees is included in Marketing and Promotional
Expenditure.
Notes forming part of the
Financial Statements
year ended 31 December 1999
6
Tangible Fixed Assets
Leasehold Furniture and
Improvements
Fittings
IR£
IR£
Office
Equipment
Motor
Vehicles
Total
IR£
IR£
IR£
Cost
At 1 January 1999
582,034
474,797
734,531
50,518
1,841,880
Additions in year
-
5,284
144,550
40,375
190,209
Disposals
-
(104,029)
(26,518)
(131,001)
775,052
64,375
At 31 December 1999
(454)
582,034
479,627
1,901,088
166,381
242,896
508,579
38,392
956,248
58,203
46,431
103,432
12,232
220,298
(85,837)
(20,152)
(106,205)
Depreciation
At 1 January 1999
Charged in year
Disposals
At 31 December 1999
-
(216)
224,584
289,111
526,174
30,472
1,070,341
At 31 December 1999
357,450
190,516
248,878
33,903
830,747
At 31 December 1998
415,653
231,901
225,952
12,126
885,632
Net book Amounts
7
Financial Fixed Assets
The Irish Food Board (An Bord Bia) France SARL is wholly-owned by An Bord Bia and its transactions
are fully reflected in these financial statements.
8
Debtors
1999
1998
IR£
IR£
1,139,801
904,362
706,667
720,642
1,846,468
1,625,004
Amounts falling due within one year:
Debtors
Prepayments and accrued income
Annual Report & Financial Statements 1999
37
Notes forming part of the
Financial Statements
year ended 31 December 1999
9
Creditors
1999
1998
IR£
IR£
1,005,264
589,054
81,367
79,230
(amounts falling due within one year)
38
Trade creditors
Taxation and social welfare (Note 10)
EU Structural Funds
-
390,000
792,736
630,283
1,879,367
1,688,567
Accruals and deferred income
10 Taxation and Social Welfare
Taxation and social welfare creditors comprise the following:
Income Tax
60,802
61,440
P.R.S.I.
20,565
17,790
81,367
79,230
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 and reporting
and payment obligations. In some other countries in which it operates, an exemption from local
taxation has been availed of under the governmental services article of the double taxation
agreement. No tax liability matured during the year and no provision has been made in these
financial statements. However, the possibility of a liability arising in some countries cannot be
discounted.
11 Provisions for Liabilities and Charges
EU Quality Beef Promotion Fund
Value Added Tax
At
Provided
At
1 January 1999
during year
31 December 1999
50,000
55,000
105,000
-
50,000
50,000
50,000
105,000
155,000
These provisions are included within Debtors and Creditors respectively.
Notes forming part of the
Financial Statements
year ended 31 December 1999
12 Commitments
(a)
Capital Commitments
An Bord Bia had no capital commitments at the year end.
(b)
39
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 amounted to IR£373,270 made up as follows:
Payable on leases on which the commitment expires:
Within one year
20,640
Within two to five years
41,277
Within six to ten years
311,353
373,270
13 Contingent Liabilities
(a)
Contingent liabilities amounting to IR£491,336 exist in respect of amounts approved but unclaimed
at the year end under the terms of the following Marketing Finance Programmes operated by
An Bord Bia:
1998
1999
Marketing Improvement Assistance Programme
Strategic Marketing Development Programme
Targeted Marketing Consultancy Programme
(b)
IR£
IR£
406,848
5,515,346
-
349,381
84,488
84,488
491,336
5,949,215
Litigation is in process against the organisation arising from a dispute in which it is alleged that
the former CBF infringed employment rights and in which the plaintiff is seeking IR£150,000.
The Board are of the opinion that the claim can be successfully resisted. The information usually
required by FRS12 is not disclosed on the grounds that it can be expected to prejudice seriously
the outcome of the litigation.
Annual Report & Financial Statements 1999
Notes forming part of the
Financial Statements
year ended 31 December 1999
14 Recoverable Incentives
Under the terms of the Targeted Marketing Consultancy (TMC) Programme, a total of IR£104,239
40
was due to be recovered in 2000 and subsequent years from participating companies:
Estimated amount recoverable at start of year
1999
1998
IR£
IR£
539,914
1,206,871
Repayments during year
(195,257)
(533,729)
Unrecoverable amounts
(240,418)
(133,228)
104,239
539,914
Estimated amount recoverable at end of year
Recoverable incentives are accounted for on a cash receipts basis and accordingly are not included
in debtors. Unrecoverable amounts represent amounts due from companies which are either in
liquiation or in receivership.
15 Superannuation
The Board operates a defined benefits superannuation scheme for certain eligible employees,
for which the approval of the Minister for Agriculture, Food and Rural Development and the
Minister for Finance has been received. The contributions of employees and An Bord Bia are paid
into a fund managed by the trustees and the total funding rate is in accordance with actuarial
recommendations. The last actuarial review took place as at 1 January 1998, and the funding
was deemed adequate, on a discontinuance basis, to meet liabilities arising under the scheme.
In 1995, a number of personnel transferred from An Bord Tráchtála and contributions are being
paid into the fund in respect of these individuals. During the year, an amount of IR£850,000 by
way of a specific allocation of Grant-in-Aid was paid to An Bord Bia and transferred to the fund
in respect of the estimated underfunding relating to the past service of the personnel who
transferred from An Bord Tráchtála.
Notes forming part of the
Financial Statements
year ended 31 December 1999
16 Reconciliation of Surplus to Net Cash Inflow from Operating Activities
1999
Surplus for year
Increase in Investment
1998
IR£
IR£
4,545
10,960
-
(435)
Net interest receivable
(52,112)
(81,484)
Depreciation
220,298
206,012
Capital account transfer
(54,885)
(96,986)
24,796
15,340
(221,464)
(284,855)
Loss on disposal of tangible fixed assets
Increase in debtors
(Increase)/decrease in stock
Increase in trade creditors
Increase in taxation and social welfare
(Decrease)/increase in accruals and deferred income
Net cash inflow from operating activities
(1,226)
2,389
414,130
60,308
2,137
887
(225,467)
205,686
110,752
37,822
17 Reconciliation of Net Cash Flow to Movement in Net Funds
1999
1998
IR£
IR£
66,897
71,957
Net cash outflow
(27,345)
(5,060)
At 31 December
39,552
66,897
In creditors due within one year
-
946
In creditors due after more than one year
-
-
Total obligations
-
946
Lease payments
-
(946)
At 31 December
-
Cash at bank and in hand
At 1 January
18 Finance Leases
Obligations under finance leases
At 1 January
-
Annual Report & Financial Statements 1999
41
Notes forming part of the
Financial Statements
year ended 31 December 1999
19 Board Members - Disclosure of Transactions
In the normal course of business the Board may approve grants and may also enter into other
42
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. Grants totalling IR£18,000 were
approved and grants totalling IR£381,309 were paid during the year to companies with which
Board Members are associated. The Members and the Board complied with Department of
Finance guidelines covering situations of personal interest. The Members did not receive Board
documentation on the proposed grant assistance nor did the Members participate in or attend
any Board discussion relating to the matter.
43
Annual Report & Financial Statements 1999
Website http://www.bordbia.ie
44
Office Network
Dublin
Düsseldorf
London
Madrid
Clanwilliam Court
Lower Mount Street
Dublin 2, Ireland
Rolandstrasse 44
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Germany
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London WC1H 9RA
United Kingdom
Tel: +353 1 668 5155
Fax: +353 1 668 7521
Tel: +49 211 452 090
Fax: +49 211 453 353
Tel: +44 207 833 1251
Fax: +44 207 278 7193
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Tel: +34 91 435 6572
Fax: +34 91 435 6211
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Moscow
Paris
Via S. Maria Segreta 6
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Annual Report & Financial Statements 1999