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Agri Business Foreword AGRI Summer 2021 BUSINESS aN irish farmers journal report in association with KPMG SURVIVE thr ve How the Irish agri-food sector has adapted to survive the dual threat of Brexit and pandemic uncertainty IRISH farmersjournal.ie FARMERS JOURNAL 001 agribusiness.indd 1 06/05/2021 16:07:32 IRISH GLOBAL BEGINNINGS OPPORTUNITIES Our success begins with what is truly special about Ireland Looking for an international career? With our culture, our creativity and our world-renowned grass-fed dairy products, we bring something special to the table. Be part of the team bringing the best of Irish dairy to every corner of the world. Visit ornua.com/careers today. 002Untitled-9 agribusiness.indd 1 2 07/05/202105/05/2021 10:52:1411:59:21 IRISH farmersjournal.ie FARMERS JOURNAL AGRI BUSINESS FOREWORD hen last year’s Irish ew imagined that one year Farmers Journal/KPMG after the 2020 Irish Farmers Agribusiness report was Journal/KPMG Agribusiness launched, we had just report was published, we started adapting to do- would be still be in the grips ing business during a of the COVID-19 crisis. Hope- pandemic,W and Zoom calls and webinars fully,F as the vaccination programme were still a relative novelty. continues and certain lockdown restric- PHELIM The past year has been like no other TOM tions are relaxed, we can look forward to O’NEILL with disruption levels not experienced MCEVOY a return to some degree of normal life. Irish Farmers Journal since the end of World War II. Not only Partner and head of food So how has the agribusiness sector markets specialist have farmers and the agri-food industry and agribusiness, KPMG fared in the last year? had to function like the rest of society It has undoubtedly been a very dif- through a global pandemic, they also oFXOW\HDUIRUDJULEXVLQHVVGXHWRWKH had to deal with Brexit. pandemic and even those businesses In itself, it is a once-in-a-lifetime that have survived and prospered, have event even if Irish exporters to Britain KDGWRPDNHVLJQLoFDQWFKDQJHVWRWKHLU haven’t yet experienced the worst of it, strategy and operations. as border controls have not been intro- The industry has come through the duced. initial impacts on supply chains result- While farming, processing and ing from Brexit, but there may be further retailing have all functioned throughout changes ahead that impact on the ability the pandemic, sadly the restaurant and to seamlessly trade between the Repub- hospitality sector has been decimated. lic of Ireland and NI and between the UK In this year’s Irish Farmers Journal/ and Europe. KPMG Agribusiness report, we talk to Nearly every day, the media alerts people in all of these sectors, and we us to the impact of climate change. look at how companies are adapting to Sustainability (and the resultant impact Brexit. on business models), is very high on the While COVID-19 and Brexit have agenda of every management meeting of dominated the operational side of the agribusinesses at present. industry, a new strategy that will guide In this report, you will read articles the industry for the remainder of this from the leaders of new and established decade and beyond is currently out for businesses, describing how they navi- consultation. gated through the worst effects of the It is clear that from now on agricul- pandemic; how their businesses have ture will have to operate within excep- been affected by the disruption caused tionally stringent environmental and by Brexit; and how they are facing up emissions standards, and we explore to the probable imposition of tighter how Bord na Móna is reimagining its environmental regulations. business to adapt to the new reality. KPMG is delighted to partner with This will be the ninth annual busi- the Irish Farmers Journal for this, our ness report, again produced with the ninth annual Irish Farmers Journal/ support of our partners KPMG. It has KPMG Agribusiness report. This is the also had huge input from our former oUVWAgribusiness report that I have been colleague Lorcan Allen for which I am directly associated with, having taken extremely grateful. over from my colleague, David Meagher – no doubt well-known to many of you – who has recently retired from KPMG. 3 003 agribusiness.indd 3 06/05/2021 16:06:14 CONTENTS WINDS OF CUT 18 COVID CHANGING FACE OF 8 CHANGE C LLAPSE Kerry Group’s RETAIL Fiona Sweeney How sales fell on key by 91% for consumer family-owned Responding, recovering trends from food business, and rebuilding after the last year 14 Coolhull Farm 20 Brexit and the pandemic 24 B UNCE 26 FOoD F RESIGHT VALUEreturns BACK Bord Bia’s Maureen Gahan Ibec chief economist Ger Brady Lidl CEO JP on long-term prospects for on how the rural economy could Scally on the bounce back as vaccines roll out return of value food service operators REALITY 31 BITES 34 37 CHALLENGES FANE VALLEY CEO FACED BY IRISH DAWN OF A RESTAURANT Trevor Lockhart OWNERS on Making NEW WAY Brexit W RK TRADE IN A POST-BREXIT WORLD 42 chain track Solving the ammonia SHORT FOOD SUPPLY c nundrum CHAINS AND DIRECT-TO- 39 CONSUMER SELLING 48 Easyfix turns its COVID-19 ELIMINATION attention to the IN NEW ZEALAND A business evolution NATURALLY HOLLOW VICTORY IN 45 DRIVEN sustainability A posthumous interview with Denis HOW BORD NA MÓNA 52 THE WRONG GAME Lynn, founder of Finnebrogue SEES ITS FUTURE agenda Editor: Phelim O’Neill | Contributors: Lorcan Allen, former Irish Farmers Journal agribusiness editor, Andy Doyle | Production: Garrett Allen, Regina Horan | Imaging: Philip Doyle, Jerome Dunne | Advertising: Mary Delaney, head of sales, Barbara Kilkenny, Deborah Stewart, Sandra Bothwell, Marie Riordan | Ad production: Barbara Kilkenny, Peter Mullen, Laura Tilson, Brian Morton | Circulation & marketing: Jamie Leonard, David O’Connor, Margaret O’Connor, Bríd Walsh, Caoimhe Doyle | Printer: Boylan Print Group, Drogheda, Co Louth | AgriBusiness 2021 is published by the Irish Farmers Journal, Irish Farm Centre, Bluebell, Dublin 12. Tel: 01-419 9500 4 004 agribusiness.indd 4 06/05/2021 16:00:59 For what’s next in sustainability. Together, we’ll help your business succeed in a low carbon world. Your Partner For What’s Next 7109_Sustainability_Advert_Farmers_Journal_A4_April_2021.indd7109 Sustainability Advert Farmers Journal A4 April 2021 indd 1 06/05/2021 14:46:02 005Untitled-1 agribusiness.indd 1 5 07/05/202106/05/2021 10:52:2916:33:37 AGRI BUSINESS INTRODUCTION crossroadsIRISH AGRICULTURE AT A While the impact of COVID-19 has been dramatic, it is Brexit that casts the longest shadow over Irish agriculture s the Irish economy reopens Irish agriculture hasn’t yet felt the over the coming weeks and full impact because the UK hasn’t society emerges from the CO- implemented border controls nor has VID-19 bubble, we will begin it concluded major trade agreements to see where real damage has giving enhanced access for agricultural EHHQLQpLFWHGRQWKHHFRQ produce to the UK market from outside Aomy. Dealing with a global pandemic the EU. required an immediate response that The principle has been established Justin no level of contingency planning could WKRXJKE\JLYLQJ&DQDGDDVSHFLoF McCarthy have fully prepared us for. 3,000t beef quota and Irish agriculture Editor and As we start the journey on the road faces the likelihood that this will be chief executive, back to normal, the phrase “new nor- repeated with Australia, New Zealand Irish Farmers Journal mal” is already a well-worn cliché. Once and South American countries in time. we get the basics of a proper haircut, All of this will devalue the UK market for we all look forward to getting out to Irish exports parallel to UK agricultural meet friends and business associates produce continuing to sell uninterrupt- face to face again after what seems like ed in the EU. a lifetime of online screen calls. We will appreciate the opportunity to have a CLIMATE CHANGE drink in a noisy bar and enjoy a trip to Tackling climate change remains an our favourite restaurants. ongoing issue and our familiarity with it Yet, we have to wonder will the new makes it no less important. normal reveal that many of these haven’t It is a global issue that is being ad- survived the shutdown that has extend- dressed at a national level and that has ed beyond a year? While this year’s re- particular consequences for Ireland port reveals the ingenuity of businesses whose main natural resources are grass adapting to survive the pandemic, it is and water. This makes us a particularly inevitable that there are those that won’t suitable area of the world for livestock make it. production but, in the absence of a glob- Farming and food processing quickly al approach to the issue, our agriculture adapted to keep food supplies going will be forced to constrain its production and it is a tribute to our farmers, factory capability. While COVID-19 workers and Department of Agriculture Irish farmers now need to focus on was a shock RIoFLDOVZKRDORQJZLWKVKRSDVVLVWDQWV securing the funding at EU level through all kept the shelves stocked even at the not just the CAP but the Just Transition and a major height of panic-buying. Fund to enable them to concentrate on disrupter, it Consumer behaviour adapted by delivering the maintenance of the rural is unlikely to returning to preparing food in the home, environment in the way that policymak- have the something that was an opportunity for ers wish. same long- retail and hastened online retail. 7KLVRQHVL]HoWVDOODSSURDFKWR While COVID-19 was a shock and a climate change may not be the best term impact major disrupter, it is unlikely to have the approach and Brexit will cast a long on Irish same long-term impact on Irish agricul- shadow over Irish agriculture.
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