Is an Export Food Marketing Body for Northern Ireland finally on the Menu ?

 

The argument for a single focus export food and drink marketing body for Northern Ireland has never been stronger. The recent endorsement by the DETI Minister for its creation is hopefully an important step in the right direction. As always however the proof of the pudding will be in the eating.

We just have to look over the fence at our near neighbours in the Republic of Ireland and Scotland if we are in any doubt about its importance. Under the banner of Scotland Food & Drink, their single minded focus has paid dividends. In 2012 the industry’s turnover hit £13.9 billion – representing the largest increase in turnover of all growth sectors in Scotland, even out-performing oil and gas. And they keep growing; initial growth targets were smashed a full six years early and, not surprisingly, they have now set their ambitions even higher.  

Our other Celtic cousins have also reaped the benefits of a focused and well-resourced marketing strategy, led by Bord Bia. Their latest figures show a 4% increase in exports for 2014 to reach a record high of almost €10.5 billion - the fifth consecutive year of export growth representing an expansion of 45% or €3.2 billion since 2009. And remember this was against the backdrop of some of the most challenging economic times for a generation.

Northern Ireland clearly enjoys many of the same ingredients which have led to that success. Just like Scotland and the Republic of Ireland we are blessed with some of the world’s most amazing natural resources. Our land, our water, our seas – all provide the foundation for the raw materials that underpin our strong tradition of quality food production.  Supply chain integrity is a key credential, as is a newfound hunger to exploit our potential. We also have a wealth of quality food and drink producers at all levels. Consider the amazing success of our artisan food companies at the recent Great Taste Awards in London, where 99 NI companies took 264 awards, far beyond any other region of the UK - a clear demonstration that we are able to compete with the best.

But we are missing one vital ingredient that both our neighbours enjoy: a focused and well-resourced export food marketing strategy, delivered by a single body which can take these inherent strengths, package them and present the ‘Northern Ireland Food and Drink’ stall to global markets.

The opportunity is now truly global. The world’s population is expected to increase from 7 billion today to 9 billion by 2050. It is estimated that 12% of the world’s population - 842 million people - don’t eat enough to be healthy. And by 2030, the world is expected to need 40% more water and 30% more energy. There is also pressure on our resources like never before. Globally, food is, and will remain, a critical issue.

The Northern Ireland Food & Drink Association (NIFDA) has long argued that an export food and drink marketing body should follow the Scottish and Irish model and be a new NDPB funded by both government and industry to fulfil a range of tasks. These would include encouraging closer working and collaboration between the industry and government, and within the industry itself, as well as developing a more strategic approach to identifying and exploiting key markets and opportunities. To do that we need a body which can help develop critical mass in key markets and provide a range of services to accelerate external sales growth with specific market expertise, knowledge and access support.  That all makes perfect sense and should be the final destination, even if we have to bite off a bit at a time.

Our unique geographic and political position represents a distinct advantage, but only if we play our cards right. GB is a large market and a net importer of food. Our very close proximity and same food standards, legislation and currency is a major plus. The presence of major UK retailers in NI and our ability to label our products as British gives us a distinct advantage compared to other EU competitors including the Republic of Ireland.

Meanwhile, the developing economies – BRIC, Africa, Middle East – have a much higher rate of growth with a growing population and increasing wealth, and they are also net importers of food. Here we need to establish our supply credentials  of quality and product integrity, and ensure we have the necessary market knowledge as well as meet the necessary import qualifications/quotas.

In the EU & USA markets, while there is likely to be relatively low growth there are still huge opportunities for Northern Ireland producers due to these consumers’ affluence, cultural awareness and affinity with the island of Ireland, and the reputation we enjoy for quality food production. Just as the Republic of Ireland has done, we need to develop a distinct USP and build on that reputation.  

Many will now watch with interest to see how Ireland takes advantage of its position as the first European country to be granted full access for its beef in the US market after the ban on European beef imports was lifted in January this year. The ban had been in place for almost 16 years, since the BSE crisis in the 1990s and should now provide a multi-million euro boost for the Irish beef industry. No doubt we will see a significant marketing push on the benefits and USPs of premium grass-fed Irish beef into the lucrative US beef market. It may start niche, but a slice of the US beef market is still big business.

While the export potential for NI is very clear, we now also better understand the importance of a vibrant food and drink sector to the local tourism offering. Just as Scotland and the Republic of Ireland have discovered, it is increasingly a key consideration for visitors.  A recent survey for Scotland revealed that 49% of visitors cited ‘trying local food’ as one of the top activities, whilst 66% thought that the quality of food is important when choosing Scotland as a destination.

There is no doubt that the Agri-Food Strategy Board has brought a renewed focus to the importance of our food and drink industry and has spelt out the scale of the opportunity both home and abroad. We now need a step change in activity if we are to achieve the targets set out in the ‘Going for Growth’ report, specifically if we are to raise exports by 75% and create the 15,000 new jobs projected.

EU-backed programmes such as Access 6 are a credible start: bringing together NIFDA, IEA and Scotland Food & Drink, it aims to increase export sales by £19million across 90 regional food and drink manufacturers over a three year period.  But sales need support and we must now prioritise the promotion of Northern Ireland food and drink in export markets to realise our full potential. The risk of doing nothing will leave us at a distinct disadvantage compared to our closest neighbours and competitors.  Let’s hope that the powers that be have firmly put the creation of a ‘Northern Ireland Food and Drink’ export marketing body on the menu and are prepared to pick up the tab.