Elaine Crosse, Communications Department, Bord Bia – Irish Food Board
As representatives from Ireland’s food industry, led by the Minister for Agriculture, Food and the Marine, Michael Creed, head to Japan and Korea to boost exports there, participation in trade missions looks set to become an increasingly routine part of doing business for Ireland’s food exporters.
No other indigenous sector can claim the longstanding international reach of Ireland’s multi-billion food industry, and given the impending challenge of our nearest neighbour’s departure from the EU, a whole new spotlight is now being shone on this global opportunity. The question as to whether a meaningful stream of growth can counter potential Brexit-related losses has gone from speculation to an increasingly urgent item on the business agenda.
Some perspective is needed, of course, before bemoaning the fact that c. 40% of our €11 billion exports of food and drink head to the UK. You don’t have to be that old to remember a time when virtually all our food exports (indeed all our exports) ended their travels on the other side of the Irish sea. Given Irish supply and British demand fit each other hand in glove, it was largely to their credit that the country’s exporters achieved what appeared, in sepia-toned pre-Brexit times, a broadly healthy three-way split between the UK, continental Europe and the rest of the world.
There is also the stubborn fact that the rest of the world is a large and complex place, and for food suppliers more than most. The Department of Agriculture, Food, and the Marine has a long track record of working with its counterparts around the world to untangle the complexities of market access, a skill-set likely to enjoy renewed demand in the coming years. ‘For a company deciding to export to a new market, it is not as simple as finding a buyer and figuring out the logistics around supply chain and payments,’ the Minister for Agriculture, Food and the Marine, Michael Creed explains. ‘Quite often, and especially in relation to meat, a specific agreement between respective governments around acceptable production and quality standards must be in place. This is before we even get to the point where an official veterinary health certificate can be drafted. Dialogue to complete this can take many years.’
Turning the key
Trade missions, usually led by senior government ministers or on occasion Taoisigh, have traditionally been seen as the final push on the door to market access when all the major legal obstacles have been addressed. Bord Bia works with industry to prioritise high potential markets and, while there has always been a steady stream of such missions over the years, and a healthy interest in their participation, a marked uptick has been pronounced over the last year. ‘Since the start of 2016, there have been 6 joint Bord Bia / Department of Agriculture trade missions,’ Tara McCarthy, CEO, Bord Bia, comments. ‘These have resulted in market access being discussed at the highest levels for Irish beef and pigmeat in Mexico and for sheepmeat to the US. Expanded access for beef was a highlight output of our visit to Saudi Arabia earlier this year and was also top of the agenda in Vietnam, China, and Korea in our visit there last September.’
Next week, a contingent of 40 senior industry representatives from Irish agri-food exporters will join Bord Bia and the Department of Agriculture, Food and the Marine on a 5-day journey to Japan and South Korea, with both countries identified as having the potential to increase imports from Irish suppliers significantly in coming years. Japan and South Korea currently account for nearly €100 million worth of Irish food exports. This represents growth of 50% in just 5 years and was driven by seafood, pigmeat, dairy, and beef.
The Minister sets out that, “Trade missions play a crucial role in terms of the promotion of Irish food and drink abroad, developing trading relationships, improving commercial opportunities and furthering market access. This is all the more important against the background of Brexit. The EU has concluded Free Trade Agreements with Japan and South Korea in recent times, and therefore it is opportune to bring a delegation of Ireland’s food leaders to these countries. I want to develop Ireland’s profile as a producer of safe, high quality, food. To do this effectively, you need to be in the marketplace, developing positive relationships with Japanese and South Korean buyers, regulators and political counterparts. The combined population of Japan and South Korea is over 177 million. Both are modern and dynamic economies, and significant net importers of food products. I very much look forward to showcasing the best that Ireland has to offer in these markets, with a view to helping Irish companies build long-term trading relationships in these high-value markets.”
If trade missions are all about timing, they are also a unique chance for the country to put its best foot forward, McCarthy notes ‘When you are travelling beyond Europe and the English-speaking world, you have to accept that, in many cases, you are introducing Ireland as a country as much as highlighting its potential as a source of sustainable, high-quality food,’ she says. ‘The presence of a government minister lends the necessary gravitas that will attract prospective buyers to attend events and engage with Irish companies, as well as secure valuable media coverage.’ Bord Bia’s Origin Green messaging is also hugely important, she adds. ‘Sustainability is top of the agenda across the global food industry right now. The fact that we can tell buyers that the world’s first nationally-based food industry sustainability programme underpins our offering is a major plus.’
Face time
Sharing the view of trade missions as an increasingly central to a food exporter’s growth strategy is Allan Morris, Managing Director of John Stone Beef, a joint venture with Kepak that supplies premium Irish beef to top-tier restaurants worldwide. ‘One of the great lessons I have learned in business is that there are no customers in the office. Ireland has a great reputation globally for its beef, but we have lots of international competitors too. If you want to compete in a market like Japan you have to go to it and tell potential customers the story behind your product.’ Morris takes a very structured approach to trade missions and sees face time with customers and potential customers as one of the greatest opportunities they present. He also stresses the value of preparation. ‘My first visit to Japan was in 2007 as part of a Bord Bia mission to understand the market. What I got to understand very quickly was the concern and thoughtfulness Japanese people have for the food they consume and how it is packaged. If you don’t understand that before you go to sell, if you’re not educated in how to do business in a market, you are setting yourself up for failure.’ Morris’ experience also points to something that should be self-evident to any food producer, but which can be easy to lose focus on when the market is on the other side of the world: ‘No one knows your product better than you. The value of you going and telling customers about your product directly is priceless. You need to add travel to your marketing budget if you are planning to extend your market opportunity in the years ahead.’
While opening up new markets is never easy, Irish suppliers are already achieving results that would have been unthinkable just a decade ago. There may be no better example than the Middle East where Irish food and drink exports reached €385 million in 2016, and are on target to hit €500 million by 2020. While leading one of her first trade missions as CEO of Bord Bia earlier this year, McCarthy saw first-hand just how tangible the opportunity has become. ‘We visited supermarket chains in the UAE which stock more Irish food brands on their shelves than you are likely to see anywhere in the world outside the UK and Ireland. That gives you a sense of what’s happening right now and what is possible for the future. This couldn’t happen without face-to-face relationship building and trade missions are going to be absolutely central to that in the years ahead.’
She concludes that “Without a doubt, Ministerial-led trade missions are an important element in our efforts to broaden the base of our overseas markets and set a foundation for sustainable long-term export growth. In order to drive business opportunities for Irish companies, it is vital to develop relationships and establish contacts at government and business levels and educate them on Ireland’s offering, learn the market dynamics and to be guided by the best consumer and market insight. These two countries have been targeted because of favourable market requirements and industry demand. Japan and South Korea are major importers of agri-food worth over €60 billion annually combined while health, food safety, and quality are all important drivers for consumers when buying food there. Bord Bia, in conjunction with the Department of Agriculture and the local embassies, have been working to devise multifaceted itineraries and events allowing the delegation, comprising of over 20 exporting companies, to immerse themselves in the market and deliver for the industry.”
