BORD BIA / 03 EXPORT PERFORMANCE IN 2016 In January Bord Bia launched its annual Export Performance and Prospects 20162017 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 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 Ireland’s food, drink and horticulture industry will for the first time enjoy unrestricted access to the latest global trends, research, consumer insights and industry innovations thanks to a new integrated, state of the art consumer research and market insight centre titled “The Thinking House” at Bord Bia’s headquarters in Dublin. The Thinking House with its facilities and services was recently launched to amenity sector clients. The creative space includes a trends zone to highlight the latest innovations in 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 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. ✽
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POTATO PROMOTION The 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. Recent consumer tracking research on the campaign indicated increased potato consumption, positive attitudes to potatoes around key campaign messages of health, versatility and convenience, with 19% recalling seeing fresh potato advertising in the last year. In 2016 Kantar Worldpanel retail market data for the year showed both volume growth in the market and an increase in the frequency of purchase. ✽
HORTICULTURECONNECTED / www.horticulture.ie / Spring 2017
