Bord Bia to Double Exports to the Middle East by 2020
30 Oct 2013 --- The Irish food and drink industry is set to double exports to the Middle East, to exceed €500 million, by 2020. Bord Bia announced the target today as almost 60 representatives from the industry departed Dublin to participate on a Trade Mission to the Middle East, led by the Minister for Agriculture, Food and the Marine Simon Coveney TD.
Over the next six days, representatives from some 25 Irish food and drink companies and nine agri-service providers, will travel to five cities across three countries to meet with potential new customers, visit farms and factories and network with local Irish business contacts. In 2012 Irish food and drink exports to the Middle East were valued at €275 million, with the Gulf States (Qatar, Saudi Arabia, UAE, Oman, Kuwait & Bahrain) accounting for 70% or €192 million.
Speaking ahead of the Trade Mission, Minister Coveney commented “As the Irish food and drink industry seeks to grow exports to €12 billion by 2020, the Middle East is set to become an increasingly important export market. The current market dynamics including strong GDP growth, increased consumer spending power, the process of urbanization, combined with demographic trends such as population growth, continue to create an environment which stimulates new business opportunities.”
Bord Bia Chairman Michael Carey added “In 2012, Ireland’s exports to the Gulf States were dominated by dairy and dairy ingredients (€168.3m), followed by prepared foods (€14.3m) and beverages (€8.3m). At a time when the Irish dairy industry plans for export growth post 2015, this timely Trade Mission affords an invaluable opportunity to raise awareness of the range and unique qualities of Irish food and what we can offer to customers in the Middle East.”
It is estimated that as much as 80-90% of food consumed in the Gulf region is imported. The Economist Intelligence Unit (EIU) forecast that food imports by Gulf States will reach US$53.1bn by 2020, double the value in 2010 (US$25.8bn). According to Aidan Cotter, Chief Executive, Bord Bia “Population growth has played, and will continue to play, a significant role in the surge in demand for food and food imports. At the turn of the century there were 28.5m people living in the Gulf region. By 2010 this had increased to 44.5m people, a 56% increase in population in one decade and by 2020, it is forecast the population will exceed 50m people. Despite successes in developing domestic food production capabilities, the market will remain largely reliant on importing food to meet the growing demands of consumers, while dairy and meat in particular are categories which will see growth in demand and an increase in import requirements.”
Further opportunities to grow exports of Irish food in the Middle East will be enhanced as access to markets for Irish beef and sheepmeat in the region increases. The decision by the GCC earlier this year to formally lift longstanding bans on exports of Irish beef and sheepmeat from Ireland to the region was a milestone in delivering on the potential which the region offers the Irish meat industry.
Aidan Cotter added “The combined elements of economic growth, population growth, changing dietary habits and increased demand for food, in an environment with significant limitations on food production, ensure that food security is a key strategic and policy concern for Gulf States. Our focus this week will be to position Ireland as a sustainable supply solution to current and potential customers.”
Since 2010, Bord Bia Marketing Fellowship graduates have been located in the UAE working on behalf of ten Irish food companies to leverage market insights and develop new business.
Whilst dairy and dairy ingredients represent the vast majority of Ireland’s food exports to the Middle East, a wide range of Irish food products are sold in the Gulf region including beef, farmhouse cheeses, poultry, oysters, salmon, bakery, confectionery, herbs, tea, relishes, preserves and potatoes. Following events such as Bord Bia’s Marketplace International, an inward buyers visit to the artisan food market at Bloom and more recently the attendance of key retailers at the Global Sustainability Conference in September, Irish food companies have secured listings with leading retailers and high-end foodservice operators based in the Middle East. Irish beef is positioned as a premium product in many of the top restaurants and 5-star hotels, while Irish speciality foods, including farmhouse cheese, have enjoyed growing success in recent years, particularly in the UAE.
In February 2014, Bord Bia will participate at Gulfood, the world’s biggest annual food and hospitality show taking place in Dubai. The Ireland stand, which will include dairy, meat and consumer food companies, will be a significant and timely representation of the Irish industry following this week’s Trade Mission. Gulfood is expected to attract over 77,000 food buyers from around the world.
