Growing the success of Irish food & horticulture

AIDAN COTTER

CHIEF EXECUTIVE

BORD BIA

28 JANUARY 2009

Growing the success of Irish food & horticulture

February 2018

Joe Burke,

Beef & Livestock Sector Manager

Market Outlook

for Irish Beef Sector

Growing the success of Irish food & horticulture

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

2018

2017

2016

Irish weekly finished cattle supplies (head)

6.5% Increase in 2017 Cattle Supplies

Growing the success of Irish food & horticulture

Finished Cattle Supplies - Export Meat Plants 2015 - 2018(F)

1.58 1.64

1.75 1.78-1.80

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2015 2016 2017 2018(F)

Mill

ion

he

ad

Growing the success of Irish food & horticulture

357.1 368.3

313.5 315.3

352.6 364.8

311.7 313.1

240

260

280

300

320

340

360

380

Steers Young Bulls Heifers Cows

Kg

Car

case

We

igh

t

2016 2017

-3.5kg -4.5kg -1.8kg -2.2kg

Average Carcase Weights Decline

Growing the success of Irish food & horticulture

0

400,000

800,000

1,200,000

1,600,000

2,000,000

2,400,000

Total Dairy Suckler

2016 2017

-14,000

+44,000

+30,000

Calf Registrations up 1.3% in 2017

Source - ICBF / AIM

Growing the success of Irish food & horticulture

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

FR LM CH AA HE SIM BB

2016 2017

+18%

+11%

Calf Registrations by Breed 2017 vs ‘16

Source - AIM

-6%

-7%

-10%

+2%

+2%

Growing the success of Irish food & horticulture

UK: 283,000T 51%

CONT. EU: 240,000T 43%

INTERNATIONAL: 34,000T 6%

Irish Beef Exports 2017

2.5 Billion

+5%

557,000T (cwe)

+4%

Growing the success of Irish food & horticulture

0

50,000

100,000

150,000

200,000

250,000

UK

Fra

nc

e

Ho

lla

nd

Ita

ly

Sw

ed

en

Ge

rma

ny

Sp

ain

De

nm

ark

Be

lgiu

m

Inte

rna

t'l

Irish Beef Exports 2017 (tonnes cwe) Source: CSO, Bord Bia Estimates

+4% -5% -8% +7% -19% +2% +10% +72% +9% +37% Internat’l 34,000

Phillippines 19,000

Hong Kong 3,800

Switzerland 2,900

US 2,200

Ghana 1,900

Israel 800

Growing the success of Irish food & horticulture

Producer Prices: Ireland vs. UK & Continental EU (c/kg excl VAT)

W/e. 28/01: Irish R3 steer €3.88 vs. UK R3 steer €4.15, Continental EU R3 YB €3.93

250

300

350

400

450

UK R3 Steer

Ireland R3 Steer

Continental European R3 Young Bull

In Italy, R3 young bull price: €4.33/kg, Spain: €3.94, France: €3.92, Germany €4.06

Growing the success of Irish food & horticulture

£ Ste

rling p

/kg

(Source: AHDB) W/e. 27th Jan: GB R3 steers average £3.67 @ 87.8p = €4.18/kg

British Cattle Price Development in Sterling terms

Growing the success of Irish food & horticulture

Currency Exchange Rates

Peak in Aug ‘17 €1: £0.923

Value of Euro in Sterling terms

Average for 2017 €1: £0.877

2nd Feb 2018 €1: £0.878

Growing the success of Irish food & horticulture

200

400

600

800

1,000

1,200

1,400

1,600

France Germany UK Italy Ireland Poland Spain Netherlands

‘00

0 t

on

ne

s 2017(E) 2018(F)

EU beef production trend 2017 – 2018

-0.4%

+1.6%

-0.6%

+0.3%

+5.5% +0.5%

+2%

Source: EU Commission beef forecast working group

EU beef production increased by 1.6% last year. Slight further increase forecast: +0.4%

-5.4%

Growing the success of Irish food & horticulture

1.2

+2.6

-2.3

+1.5 +0.9 +0.7

-4.0

-2.0

0.0

2.0

4.0

UK Ireland France Netherlands Germany Italy Spain

% C

han

ge

Beef Consumption – Key Markets 2017

Source: Kantar Worldpanel, EU Beef Forecasting Group, Bord Bia

+4.5

Growing the success of Irish food & horticulture

• Calf exports 40% higher, at 101,600 hd

• Weanlings & stores up 20%, to 59,200 hd

• Adult cattle grew by 17%, to 27,100 hd

0

50,000

100,000

150,000

200,000

2015 2016 2017

2017 Live Exports reach 188,000 hd (+30%)

Finished/Adult Cattle

Weanlings/Stores

Calves

Growing the success of Irish food & horticulture

(head) 2016 2017 % change

Total

NI

GB

Italy

Spain

Netherlands

Belgium

Other EU

Turkey

Other int. mkt.s

145,437

24,531

6,785

18,558

37,008

27,041

432

9,212

19,269

2,601

187,870

26,073

5,851

19,441

50,451

41,848

5,525

5,709

30,562

2,410

+30%

+6%

-14%

+5%

+36%

+55%

+1500%

-38%

+60%

-7%

Live Cattle Exports 2017 Distribution of Live Exports from Ireland to w/e. 30th Dec.

Growing the success of Irish food & horticulture

Growing the success of Irish food & horticulture

Bord Bia Beef Focus 2018

1. Drive awareness and positioning to support increased sales:

Britain: Focus on “British and Irish” Beef commonality

Germany: Roll out new campaign around premium, natural, sustainable

Netherlands: Protect market position: animal welfare, sustainability & “raised at grass”

Italy: Develop our premium positioning based on taste, natural, sustainable production

2. Focus on converting growth & diversification opportunities in other European markets

3. Securing access and building new business in international markets

Growing the success of Irish food & horticulture

Growing the success of Irish food & horticulture

Growing the success of Irish food & horticulture

Irish Beef Promotion Germany

Growing the success of Irish food & horticulture

Annual per capita consumption for

beef in 2015: 13.5kg

Total Volume of beef sales in 2016

were 481.000 tons (+1.4%) with further

growth expected until 2021 (+4.4%)

Total Sales Value of beef in 2016 was

€6.4bn with further growth expected

until 2021 (+5.0%)

Customer Support (Promotions, Tastings, Trade Fairs, IBVs)

Media & PR & Bloggers

Digital / Social Media

Germany

Growing the success of Irish food & horticulture

Netherlands

Growing the success of Irish food & horticulture

Netherlands

Growing the success of Irish food & horticulture

Italy

Growing the success of Irish food & horticulture

IR ISH BEEF

CAMPAIGN

I TALY

Supporting Emerging Listings in Asia

Growing the success of Irish food & horticulture

Knowledge Transfer

Programme

Inward buyer &

media study visit

East-meets-West

winners trip

Tech Seminar & EMW Launch (17 March 18)

Tech Seminar x 2 (tbc)

Beijing

CIMIE, (20-22 Sept)

Tokyo FOODEX (7-10 March ‘18)

Shanghai SIAL CHINA (16-18 May ‘18)

Technical Seminar FHC Show (13-15 Nov ‘18)

Hong Kong

Ireland

Trade Shows

Seminars

Study Visits

East-meets-West (18 May ‘18)

East-meets-West

EUROPEAN BEEF & LAMB

Excellence in Food Safety and Sustainability

Growing the success of Irish food & horticulture

New Marketing Strategy for the Irish Meat Sector

Background: Beef Marketing Strategy (2008-) based on Premiumisation & Differentiation

Positive outcomes: more & better customers/exports increased

Significant challenges: Brexit, access to markets, trade deals, changing consumer trends, environmental concerns, animal welfare, Food Wise 2025 targets

Stakeholder engagement (steering group & individual meetings)

Provide strategic guidance to the Irish meat sector

Ensure the support model from Bord Bia delivers its services effectively in the context of this strategy

Growing the success of Irish food & horticulture

Other key activities for 2018

• Market Prioritisation Study

• Insight into GMO & Grass Fed: trade buyers & consumers

• Strategy for Origin Green phase-2:

Protect integrity

Stay ahead of competitors

Drive impact for stakeholders / in-market

OG Sustainable Producer Awards 2018

• Marketplace International

Growing the success of Irish food & horticulture

AIDAN COTTER

CHIEF EXECUTIVE

BORD BIA

28 JANUARY 2009

Growing the success of Irish food & horticulture

February 2018

Joe Burke,

Beef & Livestock Sector Manager

Market Outlook

for Irish Beef Sector