THE AGRI-FOOD industry has the potential to grow by one-third in the next 10 years, according to an ambitious plan for the sector announced yesterday.
The Food Harvest 2020 report, commissioned by Minister for Agriculture Brendan Smith, says output in the agriculture, fisheries and forestry sector could increase by €1.5 billion while the value of exports could rise by 42 per cent by 2020.
The report was drawn up by a committee of 30 senior figures from the agri-food sector and was chaired by Dr Seán Brady, former chief executive of Irish Sugar.
It says that milk output could grow by 50 per cent in the next decade while beef output could increase by 20 per cent. It proposes the creation of an umbrella brand for Irish food and drink, to capitalise on Ireland’s green and natural reputation.
The report said the international success of brands such as Kerrygold, Baileys and Jameson shows the huge market advantages that can be gained from clear product differentiation.
“For the food and drink industry, there is now a clear need to copper-fasten this reputation and take ownership of its potential,” it states.
The report makes 209 recommendations and says the targets are achievable if a specific series of recommendations are followed.
Chief among these, according to the report launched by Taoiseach Brian Cowen, will be the need to focus on greater productivity and an acceleration of land restructuring policy.
The report points out that the sector currently has an annual output of over €24 billion and directly employs more than 150,000 people.
While some farmers and fishermen have taken the brunt of difficult economic circumstances and many sectors in the industry continue to struggle, it says “the most compelling picture that emerges of the decade ahead is one of opportunity”.
The report says the smart approach involves investing in ideas, knowledge and skills, encouraging innovation and creativity and recognising new opportunities for collaboration across the food supply chain and with other competitors.
Capitalising on Ireland’s association with the colour green is pivotal to developing the marketing opportunity for Irish agri-food, the report states. “This will build on our historic association with the colour and highlight the environmental credentials associated with our extensive, low-input, grass-based production systems.”
The report predicts that the next decade will see an increase in demand for food, following a surge in global population growth.
“Irish companies must seek new markets, develop new product streams and meet challenging consumer demand as well as finding new ways to assert Ireland’s environmentally friendly credentials to target the premium end of the market with high value products,” it says.
It notes that the details of the reformed Common Agricultural Policy (Cap) will not be known until late 2012 and the authors concur with the aim of the Government to protect the Cap budget and Ireland’s share of EU funding.
“With respect to the specific measures within the Cap, the committee would emphasise the importance of using whatever national discretion is allowed to underpin the strategies outlined in this document,” it says.
In the short term, it says access to suitable credit lines is a key management issue for the food industry. It recommends that the provision of credit to the agri-food and fisheries industry be specifically monitored to ensure that the growth of viable businesses is not inhibited through lack of credit.
At farm level, the report recommends the Department of Agriculture should specifically target competitiveness and viability in any future measures and address increasing fragmentation of farms.
MAIN POINTS: FOOD HARVEST 2020
Increase milk production by 50 per cent
The value of beef output could be increased by 20 per cent
Keeping young cattle at home rather than exporting them live could generate €300 million
The use of genetics could increase the value of the suckler cow herd by €200 million by 2020
Potential for a 20 per cent increase in output in sheep sector
Horticulture, currently worth €370 million, could be enhanced in value by reducing imports
Organic production should continue to be supported by the Department of Agriculture
Pigmeat production could be increased by 50 per cent in value if pork consumption worldwide continues to grow and cost issues are addressed
Ireland is only 80 per cent self-sufficient in cereals, giving room for expansion
Bord Bia should continue to promote the poultry and eggs quality assurance schemes