Transforming the Irish Agri-Food Sector
We can certainly imagine that in 20
years time Ireland will be the most
efficient, most highly innovative food
and drink country in the world
Pathways Progress
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A unified vision
Brand Ireland
“Permission” to cooperate
Changing language and tone
Resource allocation and commitment
A good start, a long way to go…
More strategic thinking
More strategic thinking
Incremental thinking is not enough if
you want to be great.
Sam Su and “Future-Back” Thinking
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Chairman and CEO of Yum Brands China
Develop a vision and then create the plan to get there
“Rooted in China, be part of China”
Developed national logistics system covering all of China except
Tibet
2011: 4,000 restaurants in 700 cities
Sam Su and “Future-Back” Thinking
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Distribution system second only to Chinese army…
– …allowing Yum to serve cities that McDonald’s may not reach for
10 years
China sales surpassed US in Q3 2010
– Profit margin 21% +
Groundwork in place for 20,000 restaurants
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Vision is more than a number
Investment in enablers
Bring farmers on board to the vision
Bring farmers on board to the vision
You can’t build sustainability into a
product after it leaves the farm
Zespri
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Feedback loop from customers to growers
Understand market opportunity and the pay-off from superior
quality
Rapid adoption industry-leading standards
Pay for key attributes drives creativity
Growers share information
Zespri
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Feedback loop from customers to growers
Understand market opportunity and the pay-off from superior
quality
Rapid adoption industry-leading standards
Pay for key attributes drives creativity
Growers share information
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Communication
Transparency
Price
– “Farmers do what you pay, not what you say”
Joined-up thinking
Agri-food as a strategic industry
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New Zealand
Brazil
China
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Harness all resources
Remove roadblocks
Sell the sector
Avoid silos
Complete the virtuous circle
Zespri
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A turn-around story with a happy ending
- Cooperation instead of competition
- Innovation leading to differentiation
- Brands built around customer feedback
The “Zespri Model”
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Aligned industry
– Scale, Quality, Discipline
Yellow kiwifruit
– A game changer
Brand “Zespri”
– Higher margins, Sustainable position
Results:
– 30% of volume , 70% of value
The Virtuous Circle
Price
premium
Innovation
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What would a totally aligned supply chain look like?
What must change in order to get there?
What would happen if this could be achieved?
Can we use this time of unprecedented crisis
to build a new business model for the Irish
agri-food sector?