EXPORT PERFORMANCE IN 2016
In January Bord Bia launched its annual Export Performance and Prospects 2016-2017 Report which shows that overall exports are up +2% to reach €11.15bn. The strongest performing sectors last year were prepared foods (€1.92bn, +9%), beverages (€1.4bn, +4%) and dairy product and ingredients (€3.38bn, +2%). The value of exports to the UK market fell by 8%. However, this has been offset by strong growth in international markets (+13%), in particular, North America, China and the rest of Asia, and EU markets (+3%).
Stronger mushroom export volumes offset by challenging exchange rates resulted in lower edible horticulture exports during 2016. The UK is the only large-scale export market for Irish mushrooms, although there are some exports to France and the Netherlands. Despite stronger volumes to the UK in 2016, the value of mushroom exports declined, on the back of a weaker Sterling.
Exports of amenity horticulture crops were valued at around €16.3m in 2016 which is an increase of some 2% compared to 2015. This increase was largely due to stronger exports of daffodils and cut foliage used in floristry.
In 2016, the export sales value of nursery stock was relatively steady at €6.1m with the majority of exports to the UK. Despite challenging exchange rate fluctuations, exports benefited from the consolidation of the nursery sector and a recovery in the UK landscape market.
Export markets look set to remain challenging in 2017 amid ongoing market uncertainty. However, the pickup in global dairy demand is expected to continue while further opportunities for growth are likely in beverages. Increased beef export availability may put some pressure on returns while prepared consumer foods exports are likely to face ongoing competitive pressures, most notably the UK. ✽
“THE THINKING HOUSE” INSIGHT CENTRE The creative space includes a trends zone to highlight the latest innovations in the marketing of food, drink and horticulture from around the world and a packaging and branding gallery to promote best in class design and to showcase Bord Bia’s recent work with Irish food and drink brands. The living room and its adjacent viewing room will allow Bord Bia and the industry to conduct qualitative focus and discussion groups, equipped with audio, video recording and live streaming capacity, while the library presents invaluable access to a wide range of databases and reports that would previously have been financially prohibitive to source for many small to medium-sized companies working in the industry. New specific market research in the horticulture sphere which will be available in the first half of 2017 will include the measure of the gardening market in Ireland and behaviour and attitudinal consumer research in the gardening and fresh produce markets. ✽ |
FRESH PRODUCE RETAIL MARKET VALUE GROWTH IN 2016
The retail grocery market was valued at €10.2m in 2016 which was the growth of 3% on the previous year. The fresh produce category now makes up 16% of the total grocery spend. In 2016 the fresh produce market was valued at €1.496bn with fruit accounting for €709m, vegetables €585m and potatoes €201m. Increases in the average price and frequency of purchase in all three categories contributed to the increase in the value of the retail market in 2016. The value of the retail potato market showed the greatest increase growing at 24% while the value of the fruit and vegetable segments of the market grew by 10% and 3% respectively. Volume growth was also recorded across the three fresh produce categories. Potatoes were featured in 10% of all grocery shopping. These trips make up 22% of all grocery sales. When potatoes are included in the basket, these grocery trips are worth more than average, highlighting the importance of the potato category to retailers. For further detailed information on the fresh produce retail market (including on individual product lines) contact Bord Bia. ✽
POTATO PROMOTIONThe three year EU and industry-funded potato promotion campaign “Potatoes: more than a bit on the side” is now into its second year. There will be two key bursts of promotion activity in 2017 (summer and autumn). The main activity now centres on the ongoing monthly digital and social media activity online, which continues to drive consumers to the campaign website. Additional PR activity is augmenting the activity online using the campaign ambassadors (TV personality and dietician Aoife Hearne and young chef of the year Mark Moriarty) with a particular focus on activity in the buildup to and around St Patrick’s day. |
APPLE MARKET RESEARCH
In order to provide apple growers with insight on Irish consumers, Bord Bia recently carried out an in-depth consumer analysis on Irish attitudes to eating apples. The objectives were to understand the consumer awareness and perceptions of Irish grown eating apples and to explore how Irish grown eating apples could be positioned as a premium option within the category. The research process included desk research and an online quantitative survey with 1,000 nationally representative consumers, and an online community was engaged with to gain a deeper understanding of behaviour and perceptions of Irish eating apples. For further information on the research contact michal.slawski@bordbia.ie ✽
“JUST ADD MUSHROOMS” PROMOTION CAMPAIGN
The final phase of activity in the “Just add mushrooms” campaign was completed in 2016. Over its three years the campaign has seen an increase in the cumulative volume of sales in the combined markets of 30,200 tonnes since the campaign began (22,500 tonnes in the UK and 7,700 tonnes in Ireland compared to the baseline figures in 2013). SOCIAL MEDIA: WEBSITE: In April, Bord Bia and the industry are planning to submit a new application to the EU for funding to support further promotional activity and building on the achievements of the recent campaign. In the interim, Bord Bia and the industry are jointly funding mushroom promotional activities in the UK and Ireland markets during 2017. ✽ |
GROMÓR CAMPAIGN
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CONSUMER RESEARCH ON STRAWBERRY MARKET
Bord Bia recently carried out new consumer research with the objective of understanding consumer perceptions of Irish grown strawberries. The research included a desk, quantitative and qualitative stage.
KEY FINDINGS INCLUDED:
● One in four consumers aged 18-34 and almost four in 10 consumers aged 45-55+ are consuming strawberries less than once a month. These two consumer groups represent an opportunity target market to encourage increased consumption.
● To drive further volume by consumption, health messaging should be communicated to educate the consumer on all the nutritional benefits of strawberries.
● Taste, freshness, and health are key associations with Irish summer strawberries that are in season.
● Locally produced strawberries are perceived to be the best tasting as they are sweet, juicy and plump. They are also deemed to be much fresher because they haven’t travelled as far as imported strawberries.
● Strawberries evoke pleasant emotions focusing on the nostalgia of summertime and childhood and there is an opportunity to build in emotional messaging to promotional campaigns.
For further information on the research contact michal.slawski@bordbia.ie ✽