David Millard

Aquaculture Development Division, BIM

Setting the Scene

An overview of the Irish Seaweed Industry

Máirtín Walsh

BIM

• Historical Context • Recent Years • Current Situation • Opportunities and Challenges for the future

Historical Context

• Long history of use of seaweed in Ireland. • Recognized “industry” established in 1947 with Arramara

Teoranta. (2 plants, Donegal & Galway) • Industry peaks in 1970s with annual production of approx.

100,000 tonnes. (6-10 factories) • Production comprised mainly of A. nodosum, L. hyperborea

and L. digitata. • Industry was focused on supplying raw materials for the

Food processing sectors and the Agriculture and Horticulture sectors.

• Commodity Industry with relatively few value added initiatives undertaken.

Recent Years

• Industry has consolidated in recent years. • Production has stabilised at 25,000t/annum. • Industry dominated by Agricultural and Horticultural

Sectors. (>90% production) • New entrants in the sector. • Remains an Export focused industry. • Emergence of greater focus on value add & research. • Emergence of high value added niches like gourmet food

and cosmetics. • Emergence of Aquaculture as source of seaweed.

Current Situation • Agriculture Sector still dominates the industry but other sectors

showing progress. • Recent Investment in Sector from abroad. • National Seaweed Harvesting Licencing system undergoing very

significant change. (DECLG/Local Authorities) • Mechanical harvesting still under consideration. • Ireland has largest manual seaweed harvesting industry in Europe. • Numerous new entrants and entrepreneurs have entered the

industry and continue to do so. • Aquaculture continues to grow and diversify.

Opportunities

There are numerous opportunities for seaweed businesses. The key is to effectively match research, production & processing capabilities with market and consumer trends to deliver innovative, exciting, functional products. We must match our products to the market and not try to “move” the market to accept our products.

Opportunities

Consumers of seaweed are very diverse and their priorities can be very different but with some overlap; Functionality. (Raw material & Ingredients) Scientific Research. (Proven benefits) Sustainability and Ecological Standards. (Ethics) Indulgence & Luxury. (Exclusivity & Quality) Taste and Gourmet. (Award winners etc.) New flavours and bold ideas. (Vegetarian food, food trends like Natural foods, Dairy free, Lactose free etc.)

Opportunities

Commodity

Raw Material

Processed Agricultural

Products

Sea Veg. & Dried

Seaweed

Functional Foods

Nutritional Supplements

Cosmetics & Therapies

Veterinary Products

Medical Applications

Value (Complexity)

Food Food Products: Wholesale Prices for seaweeds generally quite strong. We generally produce dried & milled products, these are expensive in terms of energy consumption and labour inputs and do not lend themselves strongly to innovation. They are generally cheaper and simpler in terms of capital set up costs and packaging etc. We must look at mechanising our processing, transferring technology from other food sectors and producing “wet” products where possible to reduce energy/labour costs. Opportunities; Prepared soups, Beverages, Sauces, Inclusion with Seafood, Specialist dietary products, Additives. Innovation, clever packaging & efficiency is vital.

Skincare Cosmetics & Therapies High Quality and Natural Cosmetics offer diverse opportunities. Market Research to Identify the priorities of the end user is key in this sector. Product Quality, Revolutionary Product Innovation, Standards, Novel and Innovative Product formats, Novel applications and delivering an engaging company “back-story” vital in this sector. Contract manufacturing negates need for high Capital investment. Raw material must be of very high quality. Right first time is vital here, second chances are rare.

Veterinary Animal Welfare & Pet Products Veterinary and Animal welfare is a very interesting sector, worthy of strong consideration by our sector. Strong growth in this sector. Growing Organic sub-sector. Animal welfare increasingly important at all levels. Better understanding of nutritional needs. Humanization of pet products. Recession proof. Research.. Research.. Research

Realising the Commercial Opportunity

Opportunities exist in the Seaweed Industry, however a number key requirements must be met to achieve the full commercial benefit. These requirements may appear numerous and complex but our industry meets most or all of the these every day. We have some key gaps which we must address. We must adapt and where necessary change.

Realising the Commercial Opportunity Raw Material Processing Innovation Research Marketing

Aquaculture Highest Food Standards Partners Partners Identify the UserTarget Markets Food Safety Guidelines Innovation Centre (SDC) Research Progs. Clear MessageEntrants Processing Guidelines Market Research Funding Marketing SupportLicences Staff Training Product Testing Implementation Comms. SupportTechnical Support Technology Research Inputs Publish Results Trade DevelopmentTraining Funding Marketing Capabilities Communication of Ongoing Promotion Harvesting Recognition Communications Results & BenefitsTarget Markets Energy Management Innovation CapabilityEntrants Continuing InnovationLicencesCommunity SupportTraining

Overcoming Challenges Implement Gold Standard Food Safety System. Above and beyond what we must do as per the Law. Do we develop a National Seaweed Processing Manual? Do we introduce “Standardised” Processing Techniques. Do Introduce Training Systems and Relevant Awards for Processing sector? There is a clear need for the Industry to go on a mechanisation drive for the processing sector. We must publicize and leverage the introduction of new enhanced standards after implementation. Do we pursue Integration with wider Food Industry?

Community / Small Enterprise

• Small Enterprise and Community Enterprises are vital for the future of the Seaweed Industry.

• Loss of Coastal Population, Employment, Skills and Heritage have been identified by the EU as a major issue for member states.

• Seaweed can play it’s part in preserving coastal communities and generating income for communities.

A Coop Model?

Q & A Session

Coffee/Networking

Discussion and Close