MATRIC Agri-Food Report
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PROFITING FROM SCIENCE WWW.MATRIX-NI.ORG MATRIX REPORT : VOL 4 10.2008 AGRI-FOOD HORIZON PANEL REPORT CREATING THE CLIMATE FOR GROWTH PREPARED FOR MATRIX BY PROFITING FROM SCIENCE WWW.MATRIX-NI.ORG MATRIX AGRI-FOOD PANEL MEMBERS HORIZON PANEL MEMBERS Alan Blair Clare Passmore (Chair) Albert Sherrard Chris Gibson (Foyle Food Group) Bryan Keating John Gilliland (Farmer) Clare Passmore John McLenaghan (Just Farm Energy) Colin Elliott John Woolven (IDG) Damien McDonnell (Chair) Ken Baird (Moy Park) Ed Vernon Maurice Johnston (Dale Farm) Frank Bryan Mike Mills (Jigsaw Tree) Gerry McCormac Colin Coffey (FSIP) Bernie Hannigan Sydney Neill (AFBI) Jim McLaughlin Frank Kee (QUB) PAGE 03 CREATING THE CLIMAtE for growtH CHALLENGE, CAPABILITY AND Challenges, as well as a spectrum of the role played by the Department of CAPACITY: THIS AGRI- FOOD HORIZON opportunities, were identified in the SMART Enterprise, Trade and Investment, and PANEL REPORT COMES AT DEFINING and integrated application of knowledge, the Innovation team in particular, for their MOMENT FOR NORTHERN IRELAND science and technology in Health, support and ongoing commitment. AND OUR INDUSTRY. IT PRESENTS A Production and Waste, and Energy. WINDOW FOR OPPORTUNITY AND A This new path must be supported with FACILITY TO GROW OUR ECONOMY The substance of the report drew on expediency and I believe that this Agri-food AND OUR SOCIETY IN A SUSTAINABLE extensive input from retailers, local and Horizon Panel report, when enacted, will AND COLLABORATIVE WAY. international food processors, exporters, provide the basis for Northern Ireland to primary producers, researchers, government achieve specialised global leadership in its In preparing the report, I could not have and many, many others. In particular, the quest to secure a safe, clean and healthy been more honoured to work along with industry panel appreciated the contribution future for the industry and our society as a representatives from across Northern of representatives from the Department of whole. Ireland’s Agri-food industry. They gave up Agriculture and Rural Development, Invest their valuable time, experience and insight NI, Queen’s University, the University of to agree a substantive, collective vision Ulster and the Agri-food and Biosciences for the future with passion and tenacious Institute. In thanking all those from within and enthusiasm. outside Northern Ireland who contributed, I have to thank Frank O’Donnell and The Panel took direction from ‘Vision 20/20’, Colm Reilly at PA Consulting for providing Clare Passmore the industry’s Foresight exercise, identified connections and co-ordinating our work. Agri-Food Horizon Panel Chair and built on our capacity and capability for world class science, knowledge, technology, Cross-sectoral and trans-technical innovation and business exploitation, to interaction is fast-emerging as an obligatory forge a collaborative framework, tools and success factor. In initiating MATRIX and environment, that will be crucial for delivering encouraging exchanges through the Horizon future opportunities. Panel approach, I must also acknowledge PROFITING FROM SCIENCE WWW.MATRIX-NI.ORG AGRI-FOOD HORIZON PANEL EXECUTIVE SUMMARY 1 PAGE 05 Part1: introdUCtion The production and processing of food plays world. The work is entirely developed from a critical role in the Northern Ireland economy. the Foresight vision of 20|20 in 2006 and it The industry creates 2.2% of Northern Ireland looks to the role Northern Ireland can play, as GVA1, employs 12% of the private sector and a specialist player, in the global food market. generates £2.4 billion in sales. The sector is This report seeks to ensure that the future a key contributor to Northern Ireland trade of Northern Ireland Agri-food continues to balances as it a net exporter of finished meat be founded on its legacy strengths but also products and milk. This is further supported by moves towards recognition that the evolution the contribution of distribution, packaging and of the sector implies the maximisation of all retail to the Northern Ireland economy. In fact, capabilities within the whole of Northern Ireland whilst the sector employs 19,000 processing society. It broadens the thinking on Agri-food jobs with 32,000 farming jobs, ancillary services to include non-food products and a growing employ 64,000 people in the Northern Ireland emphasis towards a multi-functional direction economy2. for the sector which will ensure the maximum exploitation of the assets in the sector. Northern Ireland is proud of its Agri-food heritage. The sector is predominantly grass in this report, the definition of agri-food based with a strong legacy of fine crop and includes a focus on traditional agriculture and animal rearing with an emphasis on great food but expands this definition to include quality and resilience. The management the impact of energy and environment on the of disease has always been of foremost sector and also how the sector impacts these importance and the sector understands its two key factors. This is not in itself a complete significance to society in general. review of energy and the environment and there is a proposal for MATRIX to consider a complete This foresight study examines the Agri-food review of these sectors individually as they sector in Northern Ireland as it faces the present cross-cutting themes to all sectors. challenges of a globalised and changing 1. Lantra Northern Ireland Labour Market Intelligence 2. the figures used here are based on 2005 data supplied by dEti and invest northern ireland PROFITING FROM SCIENCE WWW.MATRIX-NI.ORG PART 2 Part 3 THE SIZE OF THE PRIZE THE AGRI-FOOD SECTOR IS SIGNIFICANT TO NORTHERN IRELAND BUT FACES SUBSTANTIAL CHANGE Any work or proposals for investment in this As outlined above, the Agri-food sector is very At a more local level of European and UK sector, must consider in full, the economic important to Northern Ireland. However, there contexts there are changes occurring due to: implications that such investments would have are substantial changes occurring with the • EU enlargement on the sector. This Foresight report, building policy environment and overall market dynamics • CAP reform on the 20|20 identified areas is proposing that that offer both challenges and opportunities to • Food security measures northern ireland adopts very specific leadership the sector. These include: • Drive towards health improvement through areas that can be used to leverage growth and • Critical global events such as the Word changes in food attract attention and focus to the Northern Trade Organisations wish to remove all Ireland Agri-food sector. agriculture export subsidies by 2013; In this context the industry in Northern Ireland • Critical sector events such as the is also facing continued pressure on prices, The implications of these proposals can be continued change in food prices and a increasing demands from consumers for more measured in terms of turnover and productivity shift in customer perception with regards personalised products, pressure from multiples gain. Increasing employment in the sector to nutrition; to meet increasingly difficult demands on is not identified as the key challenge but • Fundamental shifts in established global safety, quality and cost, and the continued rather the increase in GVA is deemed to be patterns such as the availability of land developments in technology that offer both the most significant factor. At all times in for farming, water shortages, flooding, challenges and opportunities for reform. the deliberations of this report, an effort has water purity, urbanisation, migration, and been made to ensure that any proposals or population growth; recommendations can accomplish economic • Land related issues including soil erosion, growth and sustainability. These achievements degradation and increased competition for would need to be seen in the light of any land resources from energy; investments to be made. • A shift in the dietary patterns of entire populations from grain based diets to meat and dairy products; and • Emerging pressure on the sector concerning Carbon Footprints (from the Retail Side), new directives (Water Frameworks, Nitrates), Energy Costs and emerging constraints (legislative areas on new animal diseases and animal welfare). These will increase the cost base within the sector. PAGE 07 Part 4 THE POTENTIAL OF NORTHERN IRELAND SCIENTIFIC CAPABILITY HAS NOT BEEN ADEQUATELY EXPLOITED BY INDUSTRY WHERE FOCUS IS LIMITED TO MEDIUM TERM DEVELOPMENT AND COST REDUCTION The analysis of the existing Agri-food sector in the deep understanding of food components farms) and the embedded energy within those Northern Ireland demonstrates some very key (animal and plant genetics) to food safety and assets. The prize here is to allow farming to points. Firstly, there is a need to analyse the the development of new products for the new remain sustainable through energy security, sector from a food perspective and then from a food markets of the world. These capabilities reduction of costs, reduction of carbon multifunctional perspective. are strong and highly competitive and yet they footprint and the bioremediation of the waste appear not to be fully leveraged within the and the development of biodiversity. In the food perspective, there are two local industry. The benchmarking of the food predominant company types - those that supply aspect of the sector demonstrates that there The following table presents a summary of the the local market with produce (e.g. bakeries is a need to increase the connection between capability of Northern Ireland in this sector and and smaller food companies) and those that the exploitation capability within Northern shows that there are two quite distinct aspects are focused on export related markets (e.g. ireland and the scientific capability that is being to it. the first of these is the strong exploitation large scale poultry firms). these large-scale required in the evolving food markets of the capability that exists with regards to technology producers find themselves under continual world.