Meat & Livestock Strategy, Plans & Programmes 2013 Jim O’Toole 11th January 2013 Growing the success of Irish food & horticulture AIDAN COTTER BORD BIA Growing the success of Irish food & horticulture CHIEF EXECUTIVE 28 JANUARY 2009 Meat & Livestock Exports €M Total Meat & Livestock 2011 2012 (e) % Change 2,862 2,987 +4% 2012 performance driven by: % Change in exports, 2012 vs. 2011 Stronger pigmeat, sheepmeat, beef and live animals Tight EU meat supplies helping to offset weak demand for red meat Slower international trade as year progressed 20 15 10 16 Prospects for 2013: 5 7 6 Higher beef export volumes but little change in EU supplies Feed prices a major issue for pigs & poultry, although price prospects good Weak European consumer demand to remain 2 -1 0 -5 Pigmeat Sheepmeat Live Animals Growing the success of Irish food & horticulture Beef Poultry Pigmeat • • • Lower production, EU and main exporters Record high prices Strong demand in export markets Sheepmeat • • • Consumption holding steady – promotions key UK hogget supplies picking up in Q1 New Zealand – production up though prices easing Beef • • • Production declines to create import opportunities in Fr, It, UK & Nl Global beef exports have declined but are likely to increase again by 2020 Strongest international Import growth will be focussed on emerging and developing markets Growing the success of Irish food & horticulture Growing the success of Irish food & horticulture Growing the success of Irish food & horticulture Growing the success of Irish food & horticulture Over 50 Top Chefs in Belgium, France, Germany, Netherlands and Switzerland Growing the success of Irish food & horticulture Provenance & Transparency McDonald’s Angus Premium Deluxe, Argentina Victor Churchill offers theatrical meat displays and classes, Australia Four’N Twenty ‘Angus Beef’ pie, Australia Jamie Oliver’s Recipease stores in Britain offer lessons on how to cook meats (plus other skills) at its in-store kitchens. La Cabaña restaurant offers courses teaching consumers how to prepare proper asados (barbecues). Consumers learn about tradition, culture and the different techniques for cooking asados, Argentina 93% of Consumers Aware of Quality Mark Consumer Awareness of the Quality Mark 100 90 80 70 60 50 40 30 20 10 0 2004 2005 2006 2007 2008 Growing the success of Irish food & horticulture 2009 2011 2012 % of Retail Facings of Meat with Quality Mark Source: Bord Bia Retail Audit Growing the success of Irish food & horticulture Quality Mark Affinity Segments Base: All Adults N=1,001 Sept 2012 % Enthusiasts Waiverers April 2011 % Nov 2010 % (634,000) • Continue to(741,000) increase number of consumers only buying food with the Bord Bia Quality Mark • Sceptics April 2012 % Level of Loyalty to Quality Mark - Increase number of 'Waiverers„ - from 19% to 35% (1,225,000) - Increase number of 'Enthusiasts‟- from 19% to 28% (992,000) Rejectors QM Affinity profile very consistent in 2012. Percentage of QM Enthusiasts has tripled since November 2010, driven by QM Communications. © 2011 Bord Bia, The Futures Company Q.6 11 And which of these statements best describes your view of the Bord Bia Quality Mark? Britain • Irishbeef.co.uk – Grasstronomy • Fresh Clippings Newsletter • Social Media Networking • On Pack Promotion • Support premium accounts Growing the success of Irish food & horticulture Essen und Trinken Growing the success of Irish food & horticulture Power of animal welfare NGO‟s in Holland Consumers – Hot topic, but limited interest Media (NGOs) - Hyped & negative reporting Trade -Animal welfare credentials are a key concern Growing the success of Irish food & horticulture Italy • Consumer Research • Develop Promotional Strategy (Media, In-Store, PR) • Prioritising Customers identifying Irish Beef • Trade & Consumer Events Growing the success of Irish food & horticulture USA • Market Entry Strategy for Beef & Lamb • Prioritisation of Segments • Identify optimum Route to Market Growing the success of Irish food & horticulture | “The Culinary Olympics” 29-30 January 2013 – Lyon, France Irish Beef the choice of Meat 3 New Chapters Spain/Italy/Nordic 80+ Member Chefs Growing the success of Irish food & horticulture | Growing lamb consumption in France Opinion Leaders Trade Promotions Growing the success of Irish food & horticulture Consumer Promotions Internet Lamb Campaign 2013 Growing the success of Irish food & horticulture Developing High Value Markets Growing the success of Irish food & horticulture Pigmeat – home market promotions Growing the success of Irish food & horticulture International markets Growing the success of Irish food & horticulture Trade Shows Fair Date Location Sirha 26 – 30 January Lyon, France Prodexpo 11 - 15 February Moscow, Russia Biofach 13 – 16 February 25 – 28 February Nurnberg, Germany 9 - 10 April 19 - 22 May Paris, France 7 - 9 May Shanghai, China CIMIE tbc Beijing, China Anuga 8 – 12 October Cologne, Germany Gulfood MDD Tuttofood Sial China Growing the success of Irish food & horticulture Dubai, UAE Milan, Italy Growing the success of Irish food & horticulture Premiumisation & Differentiation Higher returns & improved position Premium Retail & Foodservice Standard Retail Customisation for Manufacture New Opportunities Defend Home Market Build consumer awareness of Ireland as a source of premium beef Production to each exact specification, matching supplies to market demand Irish R3 Steer as % of EU Average IR as % of EU 100% 80% 60% 40% 20% 0% Growing the success of Irish food & horticulture Irish R3 Steer as % of UK R3 Steer IR as % of UK 100% 80% 60% 40% 20% 0% Growing the success of Irish food & horticulture EU R3 Male Cattle Prices c/kg excl VAT 400 380 360 340 320 300 280 260 240 220 200 Jan '07 Jul '07 Jan '08 Jul '08 Jan '09 Jul '09 Jan '10 Growing the success of Irish food & horticulture Jul '10 Jan '11 Jul '11 Jan '12 Jul '12 Future Production ‘000 head Irish Cow Numbers & Calf Births 2,400 2,350 2,200 Calf Births 2,000 1,800 Dairy Cows 1,600 1,350 1,400 1,200 1,000 800 Source: Beef Activation Group / Bord Bia Growing the success of Irish food & horticulture Suckler Cows 1,150 Total Cattle Throughput - Export Plants (‘000 head) 1,800 1,700 1,600 1,750 1,630 1,520 1,400 1,200 1,730 1,380 1,000 800 600 400 200 0 DAFM / *Estimates & Forecasts: Bord Bia Growing the success of Irish food & horticulture Irish Beef Sector Strengths Weaknesses Sustainability Fundamentals Quality Assurance Exports Portfolio Supply Capability Efficient production & processing Eating Quality Opportunities Poor Profitability (esp. Suckler Beef) Increasing Dairy Herd Farm Structure Seasonality Threats Decreasing EU Supply Increasing Global D for Protein Proximity of EU Market Growing the success of Irish food & horticulture South American Expansion Price Volatility (products & inputs) National Preference Image of Beef (v other protein) Policy (CAP; WTO; GHG) Targets being set by companies Energy Emissions 20% reduction in energy by 2015 Anaerobic digester by 2016 12% reduction over next three years 30% reduction by 2020 Waste Zero waste to landfill by 2015 70% reduction in waste to landfill due to increased recycling Water 20% reduction by 2015 Implementation of rainwater harvesting by 2014 Biodiversity Welfare Social Implement biodiversity register and species enhancement programme by 2015 Advice and feedback programme to farmer suppliers on welfare initiatives Reduce salt content of products by 15% by end of 2013 Removal of artificial colourings Develop and implement Health & Nutrition Policy from 2013. Growing the success of Irish food & horticulture Growing the success of Irish food & horticulture Growing the success of Irish food & horticulture Meat & Livestock Strategy, Plans & Programmes 2013 All speaker presentations from the Meat Market Prospects Seminar 2013 will be available at: www.bordbia.ie/MeatMarketSeminar2013 From 5pm Friday 11th of January. Jim O’Toole 11th January 2013 Growing the success of Irish food & horticulture AIDAN COTTER BORD BIA Growing the success of Irish food & horticulture CHIEF EXECUTIVE 28 JANUARY 2009