Growing the success of Irish food & horticulture
AIDAN COTTER
CHIEF EXECUTIVE
BORD BIA
28 JANUARY 2009
Growing the success of Irish food & horticulture
Mark Zieg
Beef Market Outlook
January 2017
Growing the success of Irish food & horticulture
Irish Beef Exports 2016
535,000T (cwe)
+5%
€2.38bn
-1%
Distribution of Irish Beef Exports
(inc. offal)
52%
46%
2%
51% 46%
3%
0%
10%
20%
30%
40%
50%
60%
UK EU Internat'l
2015
2016 (e)
Source: CSO, Bord Bia Estimates
Growing the success of Irish food & horticulture
Irish Beef Export Destinations 2016 (tonnes CWE)
Source: CSO, Bord Bia Estimates
0
50,000
100,000
150,000
200,000
250,000
UK
Fra
nc
e
Ho
llan
d
Italy
Sw
ed
en
Germ
an
y
Sp
ain
De
nm
ark
Be
lgiu
m
Inte
rna
t'l
-2% +1% +18% +9% 6% 20% 13% -8% +17% +67%
Market increases reflect +5% in availability
Growing the success of Irish food & horticulture
EU Beef Consumption Source: EU Commission
7000
7200
7400
7600
7800
8000
8200
8400
8600
8800
EU
EU-15
-733
+469
Consumption growth in 2016 = 2.4%
No change forecast for 2017
Growing the success of Irish food & horticulture
+1.4
+3.1
+0.1
+1.8 +1.1
-3
1.6
-6.0
-4.0
-2.0
0.0
2.0
4.0
% C
han
ge
Beef Consumption in European Markets 2016
Source: Kantar Worldpanel, EU Beef Forecasting Group, Bord Bia
Growing the success of Irish food & horticulture
Import Development European Markets Source: EU Beef Forecasting Group
0
50
100
150
200
250
300
350
400
450
500
UK Germany Netherlands Italy France Sweden
2015
2016
2017
+7 +5 -33 +6 ? -9
Growing the success of Irish food & horticulture
Export Development European Markets Source: EU Beef Forecasting Group
0
50
100
150
200
250
300
350
400
450
500
Germany Poland France UK Italy
2015
2016
2017
-19 +1 -19 +4 +5 +4
Growing the success of Irish food & horticulture
EU Beef Imports/Exports Source: EU Commission
‘000 t
on
nes c
we
50
100
150
200
250
300
350
2012 2013 2014 2015 2016 2017
Imports
Exports
EU-28 Beef Exports
2016: +10%
2017: +2%
EU-28 Beef Imports
2016: +3%
2017: +3%
Growing the success of Irish food & horticulture
EU Beef Imports/Exports (Jan-Oct) ‘000 tonnes cwe
300
389 418
504
245 248 241 248
0
100
200
300
400
500
2013 2014 2015 2016
Exports -Beef + LiveCattle
Imports+17.2%
+2.7%
Source: Comext
Growing the success of Irish food & horticulture
Source: Eurostat
EU Beef Key Export Destinations (Jan – Sept 2016)
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
2015 2016Total Exports increased by 15%
Exports to Israel increased by 8,500T
to
nn
es c
we
Global Beef Production 2016 vs 2017 Source: Gira, USDA
0 2000 4000 6000 8000 10000 12000 14000
2017 (F) 2016YOY: -3% 5 YR AVG: -13%
YOY: 2% 5 YR AVG: 6%
YOY: 1% 5 YR AVG: 2%
YOY: 2% 5 YR AVG: 0%
YOY: 3% 5 YR AVG: -3%
1.4% increase in Global Beef Production in 2017
‘000 tonnes cwe
YOY: 4% 5 YR AVG: 18%
YOY: 0% 5 YR AVG: -2%
Global Exports 2016 vs 2017
0 500 1000 1500 2000 2500
2017 (F) 2016
Source: USDA
Total Exports Increasing by 2.7%
YOY: 12% 5 YR AVG: 16%
YOY: 8% 5 YR AVG: 22%
YOY: 6% 5 YR AVG: -5%
YOY: 1% 5 YR AVG: -4%
YOY: 3% 5 YR AVG: 12%
YOY: -5% 5 YR AVG: -4%
YOY: 6% 5 YR AVG: 5%
YOY: -17% 5 YR AVG: -4%
YOY: 5% 5 YR AVG: 2%
YOY: 5% 5 YR AVG: 33%
YOY: 7% 5 YR AVG: +14%
Key Importers 2016 vs 2017
0 500 1000 1500
2017 (F)
2016
Source: USDA
1% increase in Global Beef
Imports in 2016 YOY: 0% 5 YR AVG: -15%
YOY: 2% 5 YR AVG: 17%
YOY: 2% 5 YR AVG: 0%
YOY: +15% 5 YR AVG: 45%
YOY: -11% 5 YR AVG: -6%
YOY: 0% 5 YR AVG: -21%
Growing the success of Irish food & horticulture
OECD Meat Consumption Indicator 2017
World Average Beef Consumption 6.4 Kg per capita
China 3.8 kg per capita
Growing the success of Irish food & horticulture
Beef Markets Summary 2017
• Higher Irish beef exports in 2016
• EU consumption growth holding in 2017
• Increase in EU Exports outpacing Imports
• Global production is expanding
• Exports => Lower volume from Australia, New Zealand
=> More from USA, Brazil, India, Canada, Paraguay
• International consumption growth driven by Asia, and Africa
Growing the success of Irish food & horticulture
Growing the success of Irish food & horticulture
RESPONSE Brexit Challenge
BRITAIN Maintaining Loyalty and Position ahead of Brexit
Growing the success of Irish food & horticulture
Growing the success of Irish food & horticulture
Maintaining Profile in UK Retail and Foodservice
Growing the success of Irish food & horticulture
Promotional Events Supporting Trade
Growing the success of Irish food & horticulture
GERMANY Driving Awareness and building premium positioning
21
We have a
great story
to tell
Farmers are
our most
trusted
ambassadors
Country,
Tradition,
People =
Origin Green
People
want
facts!
Don’t tell
everything
at once
Don’t just tell.
Show!
Let’s start
with grass
THIS IS OUR SEEDING GROUND FOR THE IRISH BEEF
COMMUNICATION PLATFORM FOR THE NEXT 3 / 5 / 10
YEARS.
LE
AR
NIN
GS
Launching a New Sustainability focussed Campaign in 2017
Growing the success of Irish food & horticulture
Growing the success of Irish food & horticulture
Tas te
23
HE
AD
LIN
ES
Headline:
Who would have thought
it? This is how juicy
sustainability can be.
Headline:
Discover a new taste:
True passion.
Headline:
We all agree:
That's Irish grass
at its most beautiful.
Putting an Irish Slant on Sustainability for the German Market
Growing the success of Irish food & horticulture
24
INTRO (tease)
INTERACTION (entertain)
INFORMATION (educate)
Event
TV
POS
Literature
Radio
FIRST CONTACT FAN BASE
Social
Media
Moving Images
PR
Banner
US
ER
JO
UR
NE
Y
Growing the success of Irish food & horticulture
Netherlands Maintaining Image based on Quality, Environment and Welfare attributes
Growing the success of Irish food & horticulture
Growing the success of Irish food & horticulture
Italy Supporting Communications of Premium Beef at Retail and Foodservice
Growing the success of Irish food & horticulture
A new promotional strategy partnering with trade and media
Growing the success of Irish food & horticulture
Nordics Supporting high end market opportunities at retail and foodservice
Growing the success of Irish food & horticulture
ASIA Extending Market Reach
Growing the success of Irish food & horticulture
EU Promotion – Intern/Journalist/buyer visits
EU Beef and Lamb Promotion - Asia
EU Promotion – Symposiums & Seminars
Growing the success of Irish food & horticulture
Chefs Irish Beef Club Strengthen the CIBC presence in the Nordic markets and establishing presence in Dubai
Targeting 95 Chefs in 2017
Growing the success of Irish food & horticulture
Beef Outlook 2017 - Mark Zieg
Thank You