"How Future Dairy Expansion Will Benefit Ireland" Cormac Healy
-
Upload
asia-matters -
Category
Food
-
view
101 -
download
2
Transcript of "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy
![Page 1: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/1.jpg)
Asia Matters
Asia Ireland Food and Agritech Forum
14 July 2015Cork Institute of Technology, Cork
@asiamatters_biz #AsiaIrlFood @asiabizweek
In Food We Trust
![Page 2: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/2.jpg)
14 July 2015Cork Institute of Technology, Cork
How Future Dairy Expansion Will Benefit Ireland
Cormac Healy Director, Irish Dairy Industries Association, Ibec
![Page 3: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/3.jpg)
Cork Food & Agritech Forum
How Future Dairy Expansion Will Benefit Ireland
CIT, 14 July, 2015
![Page 4: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/4.jpg)
IDIA – who we areThe Irish Dairy Industries Association (IDIA) represents
primary and secondary dairy manufacturers including the Infant Nutrition sector in Ireland
![Page 5: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/5.jpg)
IDIA Membership
![Page 6: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/6.jpg)
ContentHow Future Dairy Expansion will Benefit Ireland
• Our dairy expansion plans
• The benefit to Ireland
• 2020 and beyond
• Importance of export – Importance of Asian markets
• Expanding export sales to Asia – challenges
• Summary
![Page 7: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/7.jpg)
Irish Dairy Industry Expansion
• FH2020 / End of EU Milk quotas
• Target: 50% growth in milk output
• Exports to grow to €5.5 billion
• Significant planning & investment (production, processing & markets)
• €2 billion in on-farm Investment
• €700+ million investment in processing capacity and value-add
![Page 8: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/8.jpg)
Benefits to Ireland
• Investment spend – existing and future
• Increased export earnings – additional €2 billion
• Employment creation – 15,000 additional jobs
• Regional economic impact
• Low import content – strong multiplier effect
![Page 9: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/9.jpg)
Hard Cash – measuring the benefit• An additional 2.75 bn. litres @ 32cpl equates to approx.
€900 million at farm-gate
• Export earnings growth of €2.0 bn. conservatively
• Key to value/contribution will be product mix for new milk
• Important factor in terms of dairy contribution is Irish economic spend
![Page 10: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/10.jpg)
Jobs Dividend
• Teagasc analysis of impact of post-quota dairy expansion to Irish economy points to 15,000 new jobs
• On-farm & inputs/services
• Transport
• Processing
• Marketing
• Research & innovation
![Page 11: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/11.jpg)
Additional benefits• Building a competitive dairy sector for the future
• Infrastructure & expertise
• Driving innovation
• Ireland’s food reputation
• Building multi-nationals’ interest / FDI
Increased meat processing activity (+250,000 head from dairy expansion) – equivalent to five meat plants
![Page 12: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/12.jpg)
2020 and beyond…….
![Page 13: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/13.jpg)
Food Wise 2025 predicts that over the next decade Ireland can;
• increase the value of agri-food exports by 85% to €19 billion,
• increase value added to the sector by 70% to €13 billion,
• increase the value of primary production by 65% to €10 billion.
Dairy sector will be major driver
![Page 14: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/14.jpg)
Export focus• 90% export dependent (moving to 95%)
• Exports to 138 countries in 2014
• Additional volumes will be export focussed
• Increasingly looking to international markets
• China & S.E. Asia particularly important
• USA, Gulf and Africa
![Page 15: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/15.jpg)
Irish Dairy Exports
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 e0
500,000,000
1,000,000,000
1,500,000,000
2,000,000,000
2,500,000,000
3,000,000,000
3,500,000,000
4,000,000,000
Source: CSO
*includes dairy enriched powders
![Page 16: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/16.jpg)
Dairy Exports are more internationally oriented…..
Distribution by region 2014 (%)
United Kingdom Other EU Int. Markets0
10
20
30
40 40
31 2932
28
40Food & Drink Dairy
Irish dairy products were exported 138 countries in 2014
![Page 17: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/17.jpg)
Irish Dairy Exports to China growing rapidly
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 e
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
OtherWheyButter & cheeseMilk PowdersIMF
€m
Source: CSO
![Page 18: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/18.jpg)
Source: OECD & FAO Secretariats
Emerging markets driving global demand
Beef Pigmeat Poultry Sheepmeat Butter Cheese WMP SMP Fish0
10
20
30
40
50World Developing OECD
Global demand for livestock & fish products (% Ch 2023 vs. 2011-2013 average)
![Page 19: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/19.jpg)
China33%
SE Asia30%
Europe
4.1%
Global Consumption of Dairy Products to 2023Total consumption to grow by 27%
Total Increase 2013-2023
Source: OECD FAO
![Page 20: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/20.jpg)
Dairy Exports to China & S.E. Asia• Irish dairy exports amounted to €604 million in 2014
• Almost €400 million to China
• Strong growth reflected in sales other S.E. Asia markets
• Malaysia, Vietnam, Thailand…..
![Page 21: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/21.jpg)
Two key Challenges• Reputation
• Food safety & Quality
• Building recognition of Ireland
• Innovation
• Competitiveness – Trade Negotiations
• Grass-based milk production – comparative advantage
• Modern well-invested processing
• Losing ground on trade agreements
![Page 22: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/22.jpg)
Brand Ireland
![Page 23: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/23.jpg)
Trade Negotiations• Two aspects to consider:
a) Direct benefit of reduced tariffs & removal of NTBs
b) Competitors moving ahead – NZ, Australia, TPP
• EU Trade negotiations:
Country Status
China Only an investment agreement
Vietnam Launched 2012. Nearing conclusion.
Malaysia Launched Oct-2010. Last round Apr-2012
Thailand Launched March 2013. 4 rounds.
Singapore Completed
![Page 24: "How Future Dairy Expansion Will Benefit Ireland" Cormac Healy](https://reader038.fdocuments.us/reader038/viewer/2022103120/55d172debb61eb12198b4759/html5/thumbnails/24.jpg)
• Dairy expansion making significant economic contribution
• Regional spread and low import content are major factors
• Future product mix will have bearing on scale of increase value
• Export focus
• China & S.E. Asia are major demand growth regions and a strategic focus for Irish dairy sector
• Reputation critical
• Trade negotiations – we can’t fall behind
Summary