Food.pdf Mar. 2014 | Page 14

HARVEST On target for growth Food Harvest 2020 was devised by the agri-food sector and it’s providing a valuable road map to the challenges ahead, writes Frank Dillon I reland’s agriculture and food industry was at a low point when the industry came together with various stakeholders in 2009 to devise an ambitious plan under the title, Food Harvest 2020. Launched the following year, it set targets to increase the value of primary output in the agriculture, fisheries and forestry sector by ¤1.5 billion a year, a 33 per cent increase on previous levels. It also sought to increase the value-added element in the agri-food, fisheries and wood products sector by ¤3 billion and to achieve total exports from the sector of ¤12 million. The plan was greeted with scepticism from some quarters, but the industry is now on course to achieve the objectives. The food sector is on a roll. Annual growth targets are being met and exports are already close to ¤10 billion. That’s before you consider the huge impact that the abolition of milk quotas in 2015 will have on the industry. Estimates suggest that this could result in a 50 per cent expansion of the dairy sector by the end of the decade. Quotas, which have been in place for 35 years, have acted as a brake on the sector, but the industry is gearing up for expansion. Recent moves by two of the largest companies in this sector, Glanbia and Kerry, bear witness to this. Glanbia Food Ingredients is currently constructing a plant in Belview on the Kilkenny/Waterford border, which will create more than 1,600 jobs in a massive ¤400 million investment. Kerry is establishing a new plant in Kildare, with the creation of more than 1,000 jobs. “We recently worked with Glanbia to quantify the impact of the growth in their milk supply,” says John Higgins of consultants EY. “Our analysis showed a pre-expansion economic impact of ¤1.54 billion which supported 5,592 jobs across the Sustainability: Irish Distillers IrishDistillerscommitmentto sustainabledevelopmentwas oneofthereasonsitwas invitedtobecomeoneofthe10 foundingparticipantsofthe BordBiaOriginGreeninitiative, avoluntaryprogrammethat encouragesIrishfoodand drinkmanufacturersto operatesustainably. Sustainabilityisakeypartof thecultureofIrishDistillers accordingtoitschiefexecutive andchairmanAnna Malmhake,whosays responsibleproductionand consumptionarecentralto theirbusiness.Theoriginal MidletonDistilleryinCork,now aheritage centre,wasbuiltin 1825inanareaabundantwith itstwokeyrawmaterials:it wasintheheartoftheMunster cerealgrowingregionandhad waterfromtheDungourney River. Thecurrentoperating distilleryisalsobasedin Midletonanditproducestwo maintypesofIrishwhiskey;pot stillwhiskeywhichisis distilledinbatchprocess,and grainwhiskeywhichisdistilled inacontinuousprocess Thecompanyhasembarked ona¤100millionexpansion projectatitsMidletondistillery whichwillseeproduction 14 |THE IRISH TIMES | March 26, 2014 capacitydoubled. Around20percentofthe ¤100millioninvestmentis directlyrelatedtoimproving sustainabilitythroughreduced environmentalimpact,suchas increasedenergyandwater efficiency,andimprovedrisk management. IrishDistillersrecentlyhad itsJamesonbottleredesigned sothatitweights30percent less.Thishasresultedina savingofmorethan435tonnes ofglass. Also,some98percentofall packagingwastefromIrish Distillers’bottlingplantin Dublinisnowrecycled. economy. The planned growth in milk supply is expected to boost those numbers by ¤509 million and 1,851 jobs respectively. As Glanbia processes around 28 per cent of the national milk pool, the economic impact of the national growth in milk production is clear.” “Milk production has a significant impact nationall