Aidan Cotter of BordBia gave the speech at the Asia Ireland Food and Agritech Forum in Cork, 14 July as part of Asia Business Week Ireland 2015

1. Asia Matters
Asia Ireland Food and Agritech Forum
14 July 2015
Cork Institute of Technology, Cork
@asiamatters_biz #AsiaIrlFood @asiabizweek
In Food We Trust

2. 14 July 2015
Cork Institute of Technology, Cork
New Realities in Asian Markets
for Ireland: The Success of Origin
Green.
Aidan Cotter
Chief Executive, BordBia (Irish Food Board)

3. Growing the success of Irish food & horticulture
Growing the success of Irish food & horticulture
“New Realities in Asian Markets for Ireland”
… and the Role of Origin Green
Aidan Cotter Tuesday, 14th July 2015
Asia Ireland Food and Agritech Forum

4. Growing the success of Irish food & horticulture
0
1
2
3
4
5
6
7
8
9
10
1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050
Billions
3 billion
7.3 billion
6 billion
5 billion
4 billion
9 billion
World Population 1950 - 2050
54% in cities
66% in cities
30% in cities
Source: UN World Population Prospects; the 2012 revision
What’s Driving Global Demand for Food……
8 billion

5. Growing the success of Irish food & horticulture
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0% 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
China
India
Other
Asia
Japan
United States
EU
Others
Shares of Global Middle Class Consumption, 2000-2050
Source: OECD Working Paper
“3 billion consumers
will join the middle classes
over the next 20 years”
changing lifestyles,
shifting dietary habits”
India and China Make Waves in the Global Middle Class

6. Growing the success of Irish food & horticultureSource: UN World Population Statistics, 2012
More than three of every four people live in Asia or Africa
%
0
10
20
30
40
50
60
70
Asia Africa Europe Latin America North America Oceania
59
18
9 9
5 1
2010 2015 2025
Africa
+302m
Asia
+364m
Latin America +61m North America +29m
From 2015 to 2025 population will grow by 760m

7. Growing the success of Irish food & horticulture
Global population continues to grow older
0
10
20
30
World Asia Europe North
America
Africa
15 15
27
25
6
2010
2015
2025
% of population aged over 60
…in Europe, by 2025 more than 200 million people
will be over 60 …

8. Growing the success of Irish food & horticulture
Source: OECD & FAO Agricultural Outlook 2015-2024
Emerging markets driving global demand
0
10
20
30
40
50
Beef Pigmeat Poultry Sheepmeat Butter Cheese WMP SMP Fish
World Developing OECD
Global demand for livestock & fish products
(% Ch 2024 vs. 2012-2014 average)

9. Growing the success of Irish food & horticulture
990 FAO Food Price Index
1990 to date, 2002-2004 = 100)
50.0
100.0
150.0
200.0
250.0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Nominal
Price Index
Real
Price Index
2008
2011

10. Growing the success of Irish food & horticulture
0
2
4
6
8
10
12
2009 2010 2011 2012 2013 2014
€7.2bn
€7.9bn
€8.9bn €9.1bn
€10.0bn
€10.5bn
Source: CSO
Irish Food and Drink Exports 2010 - 2014

11. Growing the success of Irish food & horticulture
0
2
4
6
8
10
12
2010 2011 2012 2013 2014
3.4% 4.3% 5% 6% 8.6%
Billions(€)
ROW
Asia
Asia’s Share of Irish Food and Drink Exports is growing

12. Growing the success of Irish food & horticulture
Total Irish Food and Drink Exports to Asia
€267m
€383m
€453m
€605m
€902m
2010 2011 2012 2013 2014

13. Growing the success of Irish food & horticulture
Export Growth by Region
2014 vs. 2013 (% Change)
-10
-5
0
5
10
15
Int. Markets Continental EU United Kingdom
15
2
0

14. Growing the success of Irish food & horticulture
Growth in exports to International Markets: Asia Dominates
58
36
18
11
9
0
20
40
60
80
Rest of Asia China Nth. America Middle East Africa
Food and drink exports by region (% Change on 2013)

15. Growing the success of Irish food & horticulture
China
€547m
S. Korea
€47m
Malaysia
€44m
Japan
€58m
Thailand
€40m
Philippines
€39m
Vietnam
€38m
Singapore
€33m
Other
€54
2014: Total: €902m
Irish food & drink exports to Asia: China Dominates

16. Growing the success of Irish food & horticulture
Dairy
€530m
Prepared Foods
€114m
Beef Offal
€58m
Pigmeat
€108m
Seafood
€49m
Beef
€21m
Beverages
€18m Other
€5m
Total: €902m
Irish food & drink exports to Asia: Dairy Dominates

17. Growing the success of Irish food & horticulture
Irish food & drink exports to China growing rapidly
No. 2 Dairy Market
No. 2 Pork Market
No. 6 Overall
0
100
200
300
400
500
600
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
€Millions

18. Growing the success of Irish food & horticulture
Irish Dairy Exports to China growing rapidly
0
50
100
150
200
250
300
350
400
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Other
Whey
Butter & cheese
Milk Powders
IMF
€m

19. Growing the success of Irish food & horticulture

20. Growing the success of Irish food & horticulture

21. Growing the success of Irish food & horticulture
Chinese Consumer Trends:………………… Evolving
Food Choice
Food
Safety
Taste
Country of
Origin
Health
Natural
Production
Convenience
Indulgence

22. Growing the success of Irish food & horticulture
Retail Environment in China: “Extremely Fragmented”
Traditional
Supermarkets
Serve “mass” market
low income groups
Stocking local product,
low opportunity for
premium imported
Growing MNC
Hypermarkets
A platform with mixed
success in China (failure to
localize
Serving mass market with
local and imported food
products
Emerging Premium
Supermarkets
Serving burgeoning
upper middle class and
high income + expat
A key market for
premium products such
as imported shellfish

23. Growing the success of Irish food & horticulture
Rise in use of mobile technology
Source: McKinsey Global Institute, March 2013

24. Growing the success of Irish food & horticulture

25. Growing the success of Irish food & horticulture
Market Entry Strategy in China
Having a
Presence
on the
ground!
Understand
the market
Find the
right
partner
Negotiate a
win-win
deal
Execute!
This does “not” happen overnight. It can take anywhere from 12-
18 months to gain traction in the market! The most import step –
Choosing the RIGHT PARTNER

26. Growing the success of Irish food & horticulture
Exporting Food & Beverage Products to China
Look at Food
Additives!
Many legal in
the EU are
banned in
China
Ex certain
sugars in
confectionary
Look at Marketing
Claims
Organic Labelling
“Cost Restrictive”
Does your partner / Customer have an import
licence

27. Growing the success of Irish food & horticulture
South KoreaSouth KoreaIndonesiaVietnam
Consumer insights through ethnography in dairy markets

28. Growing the success of Irish food & horticulture

29. Growing the success of Irish food & horticulture

30. Growing the success of Irish food & horticulture

31. Growing the success of Irish food & horticulture
A World Leader in Sustainability
Measuring what matters…
Accreditation, independent verification…
Performance based on science
innovation and best practice…
Every farm and food manufacturing business
signs up to the sustainability agenda…

32. Growing the success of Irish food & horticulture
Energy Emissions Water
Biodiversity Socio-economic data
Traceability Welfare
Environment Animal Health
Food
Safety

33. Growing the success of Irish food & horticulture
Farm Quality & Sustainability Audits
45,000 Beef Farms
90% of Beef Exports, Audited & Carbon Footprinted
18,000 Dairy Farms
100% Milk production, participants entering audit cycle
Pigmeat, Poultry, Eggs, Horticulture, Grain
Sustainability measures being implemented
90,000 carbon assessments on farms to date

34. Growing the success of Irish food & horticulture
Company Recruitment Pipeline
460 Companies Registered
90% of exports
189 companies at workshop/
plan development phase
167 plans being processed
104 plans accepted
Over 75% of exports

35. Growing the success of Irish food & horticulture

36. Growing the success of Irish food & horticulture

37. Growing the success of Irish food & horticulture
THE WORLD WILDLIFE FUND
AND WE’VE SEEN
A FEW MAJOR WINS
IRELAND BECAME THE FIRST COUNTRY TO COMMIT TO THIRD-PARTY
VERIFIED, 100% SUSTAINABLE FOOD EXPORTS BY 2016

38. Growing the success of Irish food & horticulture
Our Approach
ETHNOGRAPHY
2
researchers
48 home
visits
36 store
visits
300 hours
in-field
14 brand
clinics
Shanghai
Beijing
Chengdu
Consumer insights through ethnography in dairy markets

39. Growing the success of Irish food & horticulture
Emerging Urban Middle Class
will become the future
mainstreamers
Western lifestyles
have influenced
consumption
patterns
Growing concern
for their environment
Soul Searching – questioning money
and materialism
The Urban Lifestyle is Challenging Chinese
Desire For Balance

40. Growing the success of Irish food & horticulture
Core Consumer Insight
Chinese consumers believe that countries that produce the best food balance
the needs of people today and tomorrow

41. Growing the success of Irish food & horticulture
Communicating Irish Dairy
Clean & Green
is strongly
associated with
NZ and the
Netherlands
Science is
strongly
associated with
the US &
Germany
No-one owns
the cross
generational
message of
sustainability

42. Growing the success of Irish food & horticulture
Origin Green
resonates with
Chinese
consumers…
…because this
multi-dimensional
brand
message…
…is about a
balanced
approach to food
production…
…that is
genuinely
different to NZ
and other
countries.
Communicating Irish Dairy

43. Growing the success of Irish food & horticulture
Components of S & P 500 Market Value
Intangible Assets Tangible Assets
0%
20%
40%
60%
80%
100%
1975 1985 1995 2005 2010
83
68
32
20 20
17
32
68
80 80
Source: Ocean Tomo

44. Growing the success of Irish food & horticulture
Growing the success of Irish food & horticulture
“New Realities in Asian Markets for Ireland”
… and the Role of Origin Green
Aidan Cotter Tuesday, 14th July 2015
Asia Ireland Food and Agritech Forum