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A Sustainable, Resilient and Secure Food System in 2031: How

 Research and Innovation can help Rural Areas meet Growing Market

  Opportunities with particular reference to Ballyhoura Development




                             Paper presented

                                     by

                          Professor Gerry Boyle

                           Director of Teagasc




                Ballyhoura Rural Development Conference




The Future of Rural Areas to 2031 – A Positive and Integrated Examination of

    Challenges and Opportunities to Achieve Socially and Economically

                        Sustainable Communities




                            Charleville Park Hotel

                             12th November 2010
ABSTRACT

Global demand for food is set to surge over the coming decades in light of increasing

population, income and per capita consumption trends. Meeting this demand will challenge

global food systems as they also address           climate change and resource scarcity while

developing new and more sustainable ways of producing the additional food needed. This global

landscape presents opportunities and challenges for food producers in Ireland at all levels from

the larger export-oriented companies to the smaller local producers. The US-based ‘Middle

Agriculture’ movement is presented as a possible model to address the viability problem of the

many Irish farms. Ballyhoura has a strong integrated food production system that can be further

enhanced to support the establishment of small and speciality food producers as part of a

broader strategy linked to the environment and tourism.



INTRODUCTION

The scale of the challenge of producing enough food to feed a global population of over 8

billion in 2031 is now clear. Given the rate of population growth, combined with increasing per

capita food consumption, climate change and pressures being exerted on land, it is clear that

we will have to produce more food sustainably. We also need to provide the correct

information for people to make more informed choices about what they eat.



Ireland’s food system at national and local level cannot be isolated from these global

challenges: indeed, global food supplies and prices are of growing importance in all countries

and food security in Ireland will increasingly have to be addressed within a global market

place through the development of a more innovative and competitive industry. This will

require action at all levels of the food system. High quality research and innovation will be

critical in meeting these challenges, as well as promoting a thriving business sector to

increase economic productivity and sustainability.



My focus in this paper is on the actions and strategies that could be adopted by one small

rural area in Ireland, namely Ballyhoura, to enable it develop a resilient and sustainable food

industry capable of overcoming the challenges and grasping the opportunities arising from the


                                               2
dramatic changes underway in the broader global food landscape. In the opening section of

the paper, I will examine this broader global context, before providing a brief overview of the

Irish food system and of the policies and strategies now being put in place. In the final

section, I will explore how Ballyhoura might position itself with respect to these developments

and, in particular, how its local artisan and speciality food sector can be developed.



THE GLOBAL FOOD CONTEXT

Food security will be one of this century’s key global challenges. FAO projections envisage

that global food demand will rise by around 50% by 2030, driven by a global population set to

reach around 8.3 billion over this period accompanied by increased per capita consumption.

Moreover, consumption patterns are changing as incomes grow around the world1. The trend

towards more “western style” diets in emerging economies, with higher levels of meat, fish

and dairy consumption, will significantly increase the pressures on land and water resources,

and create new market opportunities for countries capable of producing surpluses of animal-

related products.



Increasing food production to meet this rising demand will lead to major environmental

challenges, both at a global level, via the contribution of agricultural and food systems to

greenhouse gas emissions, and more locally, such as through pressures on biodiversity,

ecosystems, soil and water. At the same time, global climate change will exacerbate these

factors and bring added pressures on food production in many countries.



Past successes in food production have resulted in significant increases in per capita food

availability, but this success has come at a high cost to the environment and has not

addressed the issue of access to adequate food by all of the world’s population. Future food

security must be based on ensuring fair access to adequate food supplies for all and this food

must be produced         in a manner that helps sustain the environment, preserve natural

resources and supports livelihoods of farmers and rural populations around the world. There
                                                                                         2
is an urgent need for what the Royal Society calls the ‘sustainable intensification’         of global

agriculture in which productivity is increased without adverse environmental impact and
1
    J. Kearney, Food consumption trends and drivers, Phil. Trans. R. Soc. B2010, 365, 2793-2807


                                                  3
without having to bring significantly more of the world’s declining stock of suitable land into

production.

`

A further challenge stems from rising obesity and other diet-related diseases that are

becoming increasingly problematic national and global health issues. The WHO projects that

by 2015 approximately 2.3 billion adults will be overweight and more than 700 million will be

obese,3 and obesity is increasing at a rapid rate in low and middle income countries,

particularly in urban areas. In the more mature EU and US markets, consumers will

increasingly seek for and pay a premium for foods with verifiable health, wellness and

sustainability attributes.



INTERNATIONAL COMMODITY MARKETS

International commodity markets have been characterised by a high level of price volatility in

recent years and this trend is expected to continue in the short to medium term,4 driven by

supply shifts, climate change, energy prices and policies (e.g. commitments to biofuel

production) and developments in agriculture and trade policies. However, overall the global

outlook for agricultural commodity prices is positive in the medium term. 5 In the long term, the

projections are for the continued growth of agriculture up to 20506. From an Irish perspective,

the positive medium to long term market prospects are founded on the flourishing global

demand for dairy products, a rising shortfall in EU beef supplies, growing food demand from

developing countries, and the specific food demands of an ageing and more affluent

population in the EU and US.



IRELAND UP TO 2031




2
 The Royal Society, Reaping the Benefits. Science and the Sustainable Intensification of Global
Agriculture, The Royal Society, London, 2009.
3
    http://www.who.int/mediacentre/factsheets/fs311/en/index.html
4
 Chatham House, Food Futures: Rethinking UK Strategy, Royal Institute of International Affairs,
London, 2009.
5
    OECD/FAO, Agricultural Outlook 2010-2019, OECD/FAO, Paris, 2010
6
    FAO, World Agriculture: Towards 2030/2050, FAO, Rome, 2006.


                                                 4
Two years ago Teagasc launched the results of a comprehensive Foresight exercise, in the

course of which all of the major stakeholders came together to identify a new long-term vision

for Ireland’s agri-food sector and its technological requirements7. The report envisioned our

future farmers and primary processors in 2030 as being key elements of an ‘Irish

Bioeconomy’ producing not only food, but also meeting energy and fibre needs and a range of

other renewable bio-resources. On the food processing side, we identified huge potential in

areas such as infant foods, functional foods and foods for health, whilst our farms and open

countryside were seen as providing valuable environmental goods and services. We

envisaged a bright future for farming, food processing and related bio-based industries, built

around a well-trained workforce capable of applying the very best technologies developed

and delivered by our research organisations.



A recent Forfas report 8provides an assessment of the economic and social implications for

Ireland over the next 15 years arising from global-level developments. The report projects an

increase in population by up to 60% to over seven million by 2040, and says it could even

conceivably reach nine million by then. (The latter figure may now be unlikely in light of the

impact of the current recession on immigration and emigration). The country will then have a

higher proportion of older people and higher dependency ratios. The report also suggests that

the Irish economy has the potential to prosper over the next two decades, quoting the ESRI’s

expectations of a possible return to growth in 2012, and achieving growth rates of up to five

per cent per annum to 2015. These figures point to a growing domestic market in the medium

term for high quality food products.



FUTURE POLICY AND TRADE FRAMEWORK

The Common Agricultural Policy will provide the main policy framework for development of

the primary agriculture and agri-food industries to 2020 and beyond. Formal negotiations

have yet to begin on the CAP after 2013 and it is unlikely that full details of any new

arrangements for the CAP will be agreed until late 2012. Thus, for the present, there is a
7
 Teagasc, Towards 2030: Teagasc’s Role in Transforming Ireland’s Agri-Food Sector and the Wider
Bioeconomy, Teagasc, Carlow, 2008.
8
 Forfas, Sharing our Future: Ireland 2025. Strategic Requirements for Enterprise Development ,
Dublin, 2009.


                                                5
degree of uncertainty as to the level and shape of future support for the sector. There is

pressure in the context of new reform to strengthen the link between payments to farmers to

the achievement of more public good objectives in the areas of environment, landscape,

biodiversity and animal welfare.


With respect to the specific measures within the CAP, it is important to emphasise the need to

maintain the focus on enhancing our competitiveness and ensuring the long-term

sustainability of the sector, as well as addressing situations of extreme price volatility in order

to secure supply.


The international trade policy framework, as determined though WTO and regional trade

agreements, is also of enormous importance to the sector. It is, therefore, vital that Ireland’s

key agri-food interests continue to be fully reflected in the input to these negotiations.


FOOD HARVEST 2020

The recently published Food Harvest 20209 report has outlined a development strategy for the

agri-food sector in the coming years. It paints a picture of the future where the Irish agri-food

industry grows “sustainably through the delivery of high quality, safe and naturally based

produce.” (p.3). The report presents a vision for the agri-food sector that foresees

“development of new working relationships in the food chain, piloting new product streams,

targeting resources at new markets, enhancing levels of productivity and competitiveness,

and developing leadership positions across a range of sectors.” (p.4). Underpinning this

strategy is increasing output of key commodities and growth in the value of these products

through development of value added food products.



A central message is that the ambitious growth targets set can only be realised by sustained

investment in ideas, knowledge and skills, and by encouraging innovation and creativity.

These are key to achieving international competitiveness, responding to the changing needs

of the market and the consumer, enhancing the sector’s environmental sustainability and

developing value-added foods on the home and international markets.



9
 Department of Agriculture, Fisheries and Food, Food Harvest 2020. A Vision for Irish Agri-Food
and Fisheries, Department of Agriculture, Fisheries and Food, Dublin, 2010.


                                                6
THE IRISH FOOD SYSTEM

Agri-food is Ireland’s largest indigenous industry as well as its most global, reaching over 170

markets around the world. Significantly, its relative importance to our economy has grown

steadily over the last decade: in 2002, it accounted for 7 per cent of total Irish exports, while,

in 2007, the figure was 10 per cent10. And because of its low import content, which sees

almost 75% of inputs sourced locally, the wider agri-food- related sector accounts for 32% of

net foreign earnings for all primary and manufacturing industries.11



Food safety and security are set to become much bigger issues at global level and with

volatile food commodity prices, the agri-food sector will continue to be an important part of the

national economy and of strategic relevance in terms of food security. 12 As we look ahead to

2031, our agricultural industry will be increasingly seen as providing us with a valuable buffer

against the unpredictability of global food supply and prices. However, for the industry to

continue to make a strategic contribution will require it to be increasingly innovative and

competitive.



Ireland’s food industry is well positioned to meet expectations of long- term sustainability, and

to take advantage of current and emerging market trends. Our natural and green image

provides the basis for an integrated approach to sustainable food production, and the industry

must develop a strategy that can realise the potential that sustainable production, distribution

and consumer sentiment offers.



Prospects for the dairy sector in the medium to long term are positive. Given projections for

significantly increased demand, the abolition of EU milk quotas in 2015 opens a real

opportunity for the Irish dairy sector for increased milk production. The sector also possesses




10
 Bord Bia, Strategic Priorities: Growing the Success of Irish Food, Drink and Horticulture 2009-11,
Bord Bia, Dublin, 2009
11
 B Riordan, The Net Contribution of the Agri-Food Sector to the Inflow of Funds into Ireland: A
New Estimate, Department of Agriculture, Food and Forestry, Dublin, 2008.
12
 Forfas, Sharing our Future: Ireland 2025. Strategic Requirements for Enterprise Development,
Dublin, 2009.


                                                 7
a significant cost advantage in the form of an environmentally sustainable rain- fed grass-

based production system, which allows milk to be produced efficiently for much of the year.



At this point in time, when such emphasis is being placed on export growth to lead us out of

our current economic difficulties, the international orientation of our food industry, its success

in growing exports, and its potential for further development uniquely positions the sector to

underpin the national goal of sustainable economic renewal.



In realising these opportunities, Ireland will need to respond to the same global challenges

and pressures already referred to. For example, farmers will need to adapt and innovate to

deal with climate changes, biodiversity action plans and farming regulations, particularly new

regulations in the area of nitrates, revised fertiliser rules, mycotoxin appraisal for grain

assurance, and tighter restrictions in licensing and use of pesticides. Food manufacturers,

processors, distributors and retailers will need to be more resource efficient and tackle waste

throughout the food system, and to further reduce food safety hazards and risks (including

from imports). Rising food and input prices have sharpened attention on the need for more

efficient resource use throughout farming and food systems to increase productivity.



The need for research and innovation is clear in order to respond to these challenges.

However, many of these challenges cannot be addressed by a continuation of the thinking

and approaches of the past. Agricultural and food research is also being asked to address

issues that are both multi- and inter-disciplinary. New technologies (ICT, nanotechnologies,

biotechnology, etc.) will become increasingly important. New approaches to international

competitiveness will be required that place a much greater emphasis on innovation, flexible

responses to rapidly changing market demands, and producing a wide range of food and non-

food products and services. We will, therefore, have to progress well beyond the traditional

understanding of agriculture and agriculture research to deal effectively with these demands.



BUILDING LINKS BETWEEN FOOD PRODUCTION AND THE BROADER ECONOMY TO DELIVER

RESILIENCE AND SUSTAINABLE DEVELOPMENT – THE CASE OF BALLYHOURA




                                                8
The principal messages to take from this global overview is that food security will become a

priority issue for all countries in the lead up to 2030 and that the food needed to feed a

growing population will have to be produced in a very different way in the future. Resources

such as land, water, energy and fertilisers are becoming increasingly scarce and will have to

be used more sparingly. The impact of climate change and the need to preserve biodiversity

will add to the need for new approaches. In this scenario, the production and distribution of

local foods takes on a new significance.



BALLYHOURA’S AGRI-FOOD SECTOR

Having considered the overarching drivers of change in the agri-food sector that will shape

both farming, the food industry and the rural economy in the years to come, this section

explores how Ballyhoura might position itself with respect to these developments. Emphasis

is placed on using local food resources to increase local resilience and facilitate the

development of the area’s economy.



An assessment of the Geodirectory establishes that, as of 2008, there were 5,499 enterprises

in the area, of which 2,899 were farms. The assessment identified a further 175 food or agri-

supply, including vets, businesses and 88 food retail outlets. Farms in the Ballyhoura are, in

general, larger than the national average, with many between 50 – 80 Ha (CSO, 2000).

Relatively few are greater than 80 ha. The average farm size in 2000 was 35.5 ha. This is

slightly larger than the national figure of 31 ha. Most of Ballyhoura’s farms are orientated

towards dairy and beef production.



Taken together, the data from the Census of Agriculture and the Geodirectory indicate that

there are strong linkages between food production, on the one hand, and food processors

and ancillary suppliers, on the other. A number of towns within the area are particularly

dependent on agri-food enterprises, particularly Mitchelstown. As the agri-food sector in

Ireland has restructured and consolidated over the past decade, these locations have been

particularly exposed to job losses (Breeo Foods/Dairygold). These developments have

compounded the impact of the economic downturn on the area.




                                              9
The economic and policy environment within which farming operates has undergone

significant change over the course of the past decade. The next decade will bring the

equivalent, if not greater changes, with further opening up of the EU and global food markets,

on the one hand, and deregulation of food production on the other, i.e. abolition of milk

quotas. For many farmers within the Ballyhoura area this holds the opportunity to grow their

enterprises for the first time in many years. Yet simultaneous to these developments, farmers

are faced with increasing restrictions associated with environmental concerns. Opportunities

to strengthen farm businesses through diversification are also opening up as key consumer

markets develop. These include bio-energy and bio-fuels, production of food for niche

markets and the provision of environmental services. Underpinning these developments is, as

a consequence of current social and economic challenges, a renewed emphasis on the rural

economy and its potential to contribute to national social and economic development and

growth of export earnings.



One of the exciting opportunities to emerge from these various developments is that of a

niche market for direct sales to consumers and for quality speciality local foods. Ballyhoura’s

agri-food sector can, whilst contributing to exports, build on its present capacity to produce

high quality foods through the development of local food systems and niche market products.

In setting out a future orientated perspective of food in Ballyhoura Country, my focus will be

on the potential of these aspects of the local food economy. This is not to ignore the

importance of the large number of farms and associated businesses that are and will continue

to make valuable contributions to economic development and growth both within the area and

nationally.



THE SMALL FOOD BUSINESS SECTOR IN IRELAND

Growing consumer demand for speciality food products, a desire for local produce combined

with a strong entrepreneurial spirit, has resulted in the rise in the number of small food

companies operating in Ireland. These companies are supplying a speciality food market in

Ireland with an estimated output valued at some €475 million at retail selling prices, are




                                              10
growing at ten per cent annually and currently employ about 3,000 people. 13 Most of these

companies are owner managed, in many cases have a strong farming basis and tend to cover

a diverse range of products.



Artisan producers usually source their supplies locally and surveys show that spend to value

in the locality for artisan produce is about twice that for spend from supermarket food

products. Also 72% of Irish consumers agree that food produced locally results in higher

product quality (Bord Bia).



Organic produce has close links with the artisan sector. It is a growing sector, with about 70%

of organic produce imported suggesting local supply opportunities exist. According to new

research, the volume of Irish organic food sales has increased year on year by 13.2 percent,

reaching a value of €124 million in the year to July 2009, compared to €104 million in the year

to July 2008. (Source: Bord Bia TNS July 2009). The report also showed that an increasing

number of people had started buying organic products on a more regular basis in recent

years.



A feature of the artisan sector is the wide range of routes to market that exist. These include

farm shops, box schemes, farmer markets, independent shops and delis, catering/hospitality

sector, and more recently, the larger retailers are providing opportunities for artisans to

display their products. This gives some level of proofing against non- payment or a particular

market outlet disappearing. There is optimism in the sector. A recent survey of stall holders

at farmers’ markets carried out by Teagasc showed that respondents are very positive about

the long- term viability of farmer markets and many plan on expanding into retailer outlets and

other direct selling routes14.



However, while there are many opportunities for artisan and speciality food businesses there

are also many challenges for the sector. These businesses by tradition are often part-time,
13
 Bord Bia, Strategic Priorities: Growing the Success of Irish Food, Drink and Horticulture 2009-11,
Bord Bia, Dublin, 2009
14
  Griffin, C., Technical Needs Survey of Artisan and Speciality Food Producers Selling at Farmers’
Markets, Teagasc, Dublin, 2009.


                                                 11
small scale, labour and time demanding and in many cases family run. Having both the

technical and business expertise necessary to be successful within a small unit is difficult.

The consumer, however, does not accept a less safe product or a product which has

inconsistent quality because the food producer is small scale. The food safety problem

encountered by the pork meat sector just twelve months ago shows how damaging a food

safety- related product recall can be in terms of both cost and reputation to a sector.



There are however many exciting developments in food, particularly in the healthy/natural

foods area, but consumers and legislators require proof of any health claims being made.

Examples are consumer demands for removal of non-natural additives and for low salt

products. This is referred to as providing clean label foods. Removing salt or other

preservatives which have been in use as long as food has been preserved poses challenges

in terms of food safety, taste, colour and even yield and texture. Therefore, food producers

and food researchers need to provide product development solutions that will benefit

consumers, meet legislative requirements and provide an economic return for the

manufacturer.



Food Harvest 2020 pays particular attention to the emergence of the local and artisan food

sectors. Particular emphasis is given to the recognition that, for Irish agriculture to create

employment, it must “extend beyond the strict definition of ‘food production’ to incorporate

cultural products linked to the environment and tourism.” (p.12). A number of key goals are

established within the report pertinent to the development of local food systems and food

based micro-enterprises including:

    –   Promote sustainable and locally embedded food procurement policies and systems.


    –   Promote and broaden the opportunities, including local markets, for consumers and

        visiting tourists to purchase local food.


    –   Conserve and promote distinctive local food traditions at EU level and with bodies

        such as the TASTE Council and Slow Food.




                                                12
The report also highlights the integrated nature of rural tourism development which draws on

a local milieu incorporating routes through the countryside (walking, cycling and horse riding

trails) and the craft industry. Of far greater significance is the recognition that an “integrated

agri-food-tourism strategy has the potential to serve a growing demographic of tourists

interested in authentic, culinary experiences from food trails to cookery courses.” (p.12).



BALLYHOURA’S BEST: SERVING LOCAVORE’S*

Successful development of local food supply systems will be to the benefit of local producers,

retailers and consumers. Local food needs to be made real through further development over

a two year period of short-food supply chains initially focused on direct sales, i.e. farmers

markets and or box schemes. These outlets should be viewed as business incubators where

producers hone their products through direct contact with the consumer and their business

skills.



As producers refine their product offering, it will be necessary to grow the scale of local

markets through penetration of food supply systems at both retailer and institutional levels.

Increasing the capacity of food enterprises can be achieved through either growth of

individual enterprises or collaboration between groups of food producers. This can be

achieved through partnership with local schools, health care facilities, businesses and other

private enterprises. The benefits of local procurement strategies, including, reduced costs and

*Those who are interested in eating food that is locally produced, not moved long distances to market,

are called "locavores."




environmental impacts (particularly reduced carbon consumption), direct links between public

and private institutions and local communities, and seasonal, fresh produce, need to be



highlighted. Key challenges to public procurement need to be tackled. These include ensuring

any potential difficulties surrounding consistency of supply are overcome and, most




                                                 13
importantly, overcoming regulatory barriers. A review by Morgan and Morley highlights the

challenge and means of overcoming regulatory restrictions on public procurement15. One of

the most significant barriers to public procurement (not private procurement) of locally-

produced foods is EU regulations, particularly the principle of non-discrimination on the

grounds of nationality in the awarding of public contracts. Research by McLeod and Scott

identifies a number of examples of ways to promote local food without breaching EU

regulations including use of sustainable procurement policies to increase the amount of local

food procured by public institutions without specifying “local”.16



Morgan & Morley describe several of the methods used by other countries, including:

     –   Organic procurement policies. By specifying organic in countries with a large number

         of organic producers, one can increase the amount of local food. This is particularly

         relevant to Ireland, given the emphasis on increasing organic food production.


     –   Purchasing regional specific products, such as the European certified PDO or PGI.

         This is very challenging in the Irish context, as there are only four food products with

         these credentials. (EU quality schemes - guaranteeing quality: Protected Designation

         of Origin (PDO) and Protected Geographical Indication (PGI) for agricultural farm

         products and foodstuffs).

     –   Incorporating seasonality into public food demand.


     –   Service specification, such as levels of freshness, quick delivery response times and

         minimal packaging may favour local businesses.


     –   Operating below EU procurement thresholds. This is prohibited, but still practiced in

         some areas.


     –   Allowing for the use of “lots” during tendering. This allows companies to bid for all or

         part of the contract, which is beneficial for smaller suppliers who may otherwise be

         excluded.
15
  Morgan, K. and Morley, A., Re-localising the Food Chain: The Role of Creative Public
Procurement, The Regeneration Institute, Cardiff University, 2002.
16
 McLeod, M. and J Scott, Local Food Procurement Policies: A Literature Review, Nova Scotia
Department of Energy, 2007.


                                                14
–   The use of variants, which is “a contractual method that prescribes two or more

         variations of the product(s) that can be supplied”. This method is commonly used by

         those wishing to purchase environmentally-friendly products, since in this situation,

         “green” suppliers can bid on “conventional” contracts and have their environmental

         qualities favourably considered.


     –   Third party organizations manage meal provision, e.g. non-profit organizations or

         parent organizations in schools.


     –   Occasional sourcing, e.g. a regular local, organic meal served every two weeks.


OPPORTUNITIES FOR LOCAL FARM HOUSEHOLDS


Various studies by Teagasc show that approximately three out of four Irish farm enterprises

are unviable. This is partly reflected in the continual decline in farm numbers. There are a

number of options for enhancing the viability of a large proportion of existing farms. A central

challenge is to add value to existing small and mid-sized farming operations.


The LEADER Programme 2007-2013, with a total fund of €425, is a potential source of

funding for farmers seeking to establish alternative rural enterprises. However, it has been

noted in the Irish case and elsewhere in the EU that farmers have been ‘slow’ to engage with

the programme.17     Work by Macken-Walsh has shown that bureaucratic challenges and

regulative constraints are perceived by some farmers as barriers to farm diversification and

the establishment of new rural enterprises. Another barrier is that farmers strongly identify

themselves with farming as a way of life and are reluctant to get involved in the type of

activities in line with the LEADER approach.


‘MIDDLE AGRICULTURE’ MOVEMENT


The US Middle Agriculture model is one possible new solution which could be looked at here

in Ireland to assist farmers in marketing food products directly to local customers or selling

through increasingly global marketing structures.18 A core feature of the Middle Agriculture

movement involves joining together in a federated co-operative structure the practices and

17
 Macken-Walsh, A. and L Dunne, Rural Development and Potential for an Irish ‘Middle
Agriculture’, Public Affairs Ireland Journal, PAI Publications Ltd., May 2010, Issue 69.


                                               15
resources of small and mid-sized farms with the necessary professional industry skills to

market, brand, package and distribute their products. The products are targeted at the

growing niche in food markets that caters for a more socially, culturally and environmentally-

conscious consumer19. Farm families’ application of such marketing and branding skills to the

primary commodity means moving them up the value-chain. The middle agriculture

movement in the US emphasises not only the need to move up the value chain but to take

ownership of a greater proportion of the value-chain.


The middle agriculture model highlights the need to develop and attach a ‘food story’ to the

product, incorporating the social, cultural and ecological capitals that are identified as core to

the branding strategies of contemporary rural development products. Ireland holds

considerable potential for such products, both domestically and internationally. High

environmental quality and farm systems features such as grass-fed beef, puts Ireland in a

potentially very strong position. The large proportion of farmers in Ireland who participated in

the Rural Environmental Protection Scheme (REPS) is also conducive to the production of

food that has the branding stamp of ‘sustainability’. “The Middle Agriculture federated

cooperative is a potential model for achieving the ‘creative combining’ of family farm culture,

knowledge and resources with industry strengths to improve the viability of many small and

mid-sized Irish farms”20.



BALLYHOURA’S BEST: MAKING THE LINKS

The local nature of food will be central to the Ballyhoura Area’s brand, which emphasises

landscape, environment, culture and heritage. The contribution of food to both enterprise

development and broader economic development, particularly of the tourist sector, will be

complemented by artisan food products. These products will draw from Ballyhoura’s unique

landscape and food heritage to develop strong brands which will form key elements of their




18
    Macken-Walsh, A., Agriculture, Rural Development and Potential for a ‘Middle Agriculture in
Ireland’. Teagasc, RERC Working Paper Series, No 10, March 2010.
19
   Yee, Lawrence. 2004. Strategy for an Agriculture of the Middle. Paper presented to the
Renewing Agriculture of the Middle Task Force, February. Racine, Wisconsin.

20
     Macken-Walsh, 2010, p.17.


                                               16
unique selling points in regional, national and international markets. Eventually, the products

themselves will form a key element of the marketing strategy for the Ballyhoura Area.



Over the course of the past decade, Ballyhoura has developed a high profile amongst

domestic and international tourists through the organisation of events, including the Beast of

Ballyhoura, a 36 hour adventure race that incorporates running, cycling, kayaking and

shooting, and the International Walking Festival. Both of these draw on the area’s landscape

and heritage in combination with key infrastructure, i.e. Ballyhoura’s mountain biking trails.

Other events include the Independence (music festival) which has grown to attract up to

5,000 attendees each year.



These events have proven to be very successful and raise the profile of the area. They also

serve as a means of further developing the area’s food and rural economy. Chaining events,

such as the adventure race, to a local food festival is increasingly seen as a means of building

synergies between disparate activities and developing ‘brand awareness’ amongst both the

local and visitor community. Perhaps, a key challenge for the organising committee of the

Beast of Ballyhoura is the incorporation of ‘The Beast’s Feast’ into next year’s event?



These events also serve as a means of developing further tourist infrastructure. International

evidence suggests that people seek physical and mental challenges in landscapes that reflect

key cultural values, including respect for nature, the environment and heritage. Examples

include the Santiago de Compostela, aka the Camino (100,000 walkers arriving in Santiago in

2006; 250,000 arriving in 2010) and the Grande Randonnee 20 (GR 20) in Corsica. From the

walker’s perspective, these occupy two ends of the hiking spectrum; the Camino is largely

flat, the GR20 is largely vertical. What unites them is the way in which these trails embed

tourists into the local food economy. They are designed in such a way that people follow way-

marked trails completing a ‘stage’ each day. Each stage starts and ends in a small town or

village (in the case of the Camino) or, in the case of the GR20, mountain huts with associated

camping facilities. It is estimated that in 2010, 20,000 people walked the GR20 and spent a




                                              17
minimum of €500 each along the trail. This equates to €10 million. Of this, €6 million was

spent on food and drink. None of this is imported.



The growth of this ‘activity, or experience’, market presents a number of opportunities for

Ballyhoura. These can be developed within the area and in conjunction with neighbouring

areas. Fundamental to the development of this market is the provision of a variety of

appropriately graded and marked trails, the provision of a mix of accommodation options and

(drying) facilities and locations where visitors can integrate with the local community through

the mediums of food, drink, culture and heritage.


The agri-food industry must seek new opportunities from the unfolding developments in EU

and world trade policy, from major changes in food markets driven by lifestyle and

technological factors and new benchmarks of performance in Ireland's transformed economy

and society. These trends continue to transform the retail sector and will continue to do so for

the coming decade. This involves not just changing consumer demand for food products but

the rapid evolution of channels of food distribution and sale.


TEAGASC SUPPORT


Teagasc is committed to supporting all sectors of the food processing industry and we have

tailored programmes to suit the particular needs of a very diverse food sector. We are working

closely with Enterprise Ireland as the national industry development agency in building the

competitiveness and export capability of the small and medium sized enterprises (SMEs). We

provide technical advice and supports for all artisan food businesses and we have dedicated

food technologists working specifically with the meat and dairy artisan sector. This is a

specific initiative for food artisans supported by the Departments of Agriculture, Fisheries and

Food and Community, Gaeltacht & Rural Affairs. We use a combination of supports to provide

these businesses with the knowledge, skills and technologies to produce safe quality food.

These supports include providing technical information, marketing advice, in conjunction with

Bord Bia, technical training courses and also advice for individual businesses on their specific

needs. We also provide businesses with access to modern food production units and a




                                               18
product testing service for product development purposes from our well resourced food

research centres at Ashtown, Dublin and Moorepark, Cork.


CONCLUSIONS

There is a growing recognition of the role the agri-food sector and broader rural economy can

play in bringing about sustainable growth in the Irish economy and, in particular, its

importance in contributing to balanced regional development.



This is welcome development following years during which we have witnessed report after

report either ignore the sector or relegate it to an after-thought. For a long period, Ireland

pinned its aspirations for development to the mast of ‘high-tech’ industry and downplayed the

role of agriculture. However, I now detect a growing questioning of the role of economic policy

and a growing realisation that we have successful international agri-food companies; we have

well-educated and trained people coming into food and agriculture; we have an excellent and

unique model of innovation in Teagasc and strong links with the third level sector.



Getting out of our current difficulties will require growth that is balanced across our areas of

strength and that is also regionally balanced. Agri-food is an area of strength. Rural Ireland

cannot rely on the construction industry as it did during the ‘Celtic Tiger’ era. Growth and

employment in rural Ireland must be built on the more sustainable foundation of its bio-based

resources. We can build a consumer-focused and sustainable agri-food sector built on

innovation and expanding out to embrace a broader integrated biology-based economy, is a

model for future economic growth. The position is clear. Food will become increasingly

scarce, while demand for more and better food produced in a sustainable manner will grow.

There is a growing link between food and health, and these industries are becoming

increasingly integrated. We have major research and commercial strengths in both. We can

take advantage of this growing market, both through the medium of our large food companies

and small, locally-based producers. Ballyhoura is well-served by food enterprises at both

ends of the scale. Together, they can help establish the Ballyhoura Food industry as a model

for what Ireland as a whole can aspire to over the next few decades.

Acknowledgement:



                                              19
I wish to acknowledge the contribution made by the following Teagasc staff members in the

preparation and writing of this paper: Mr David Meredith, Rural Economy Research Centre; Dr

Lance O’Brien, Head Office; Mr Pat Daly, Ashtown Food Research Centre; and Dr Gerard

Barry, Ashtown Food Research Centre.




                                            20

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Prof. Gerry Boyle Teagasc

  • 1. A Sustainable, Resilient and Secure Food System in 2031: How Research and Innovation can help Rural Areas meet Growing Market Opportunities with particular reference to Ballyhoura Development Paper presented by Professor Gerry Boyle Director of Teagasc Ballyhoura Rural Development Conference The Future of Rural Areas to 2031 – A Positive and Integrated Examination of Challenges and Opportunities to Achieve Socially and Economically Sustainable Communities Charleville Park Hotel 12th November 2010
  • 2. ABSTRACT Global demand for food is set to surge over the coming decades in light of increasing population, income and per capita consumption trends. Meeting this demand will challenge global food systems as they also address climate change and resource scarcity while developing new and more sustainable ways of producing the additional food needed. This global landscape presents opportunities and challenges for food producers in Ireland at all levels from the larger export-oriented companies to the smaller local producers. The US-based ‘Middle Agriculture’ movement is presented as a possible model to address the viability problem of the many Irish farms. Ballyhoura has a strong integrated food production system that can be further enhanced to support the establishment of small and speciality food producers as part of a broader strategy linked to the environment and tourism. INTRODUCTION The scale of the challenge of producing enough food to feed a global population of over 8 billion in 2031 is now clear. Given the rate of population growth, combined with increasing per capita food consumption, climate change and pressures being exerted on land, it is clear that we will have to produce more food sustainably. We also need to provide the correct information for people to make more informed choices about what they eat. Ireland’s food system at national and local level cannot be isolated from these global challenges: indeed, global food supplies and prices are of growing importance in all countries and food security in Ireland will increasingly have to be addressed within a global market place through the development of a more innovative and competitive industry. This will require action at all levels of the food system. High quality research and innovation will be critical in meeting these challenges, as well as promoting a thriving business sector to increase economic productivity and sustainability. My focus in this paper is on the actions and strategies that could be adopted by one small rural area in Ireland, namely Ballyhoura, to enable it develop a resilient and sustainable food industry capable of overcoming the challenges and grasping the opportunities arising from the 2
  • 3. dramatic changes underway in the broader global food landscape. In the opening section of the paper, I will examine this broader global context, before providing a brief overview of the Irish food system and of the policies and strategies now being put in place. In the final section, I will explore how Ballyhoura might position itself with respect to these developments and, in particular, how its local artisan and speciality food sector can be developed. THE GLOBAL FOOD CONTEXT Food security will be one of this century’s key global challenges. FAO projections envisage that global food demand will rise by around 50% by 2030, driven by a global population set to reach around 8.3 billion over this period accompanied by increased per capita consumption. Moreover, consumption patterns are changing as incomes grow around the world1. The trend towards more “western style” diets in emerging economies, with higher levels of meat, fish and dairy consumption, will significantly increase the pressures on land and water resources, and create new market opportunities for countries capable of producing surpluses of animal- related products. Increasing food production to meet this rising demand will lead to major environmental challenges, both at a global level, via the contribution of agricultural and food systems to greenhouse gas emissions, and more locally, such as through pressures on biodiversity, ecosystems, soil and water. At the same time, global climate change will exacerbate these factors and bring added pressures on food production in many countries. Past successes in food production have resulted in significant increases in per capita food availability, but this success has come at a high cost to the environment and has not addressed the issue of access to adequate food by all of the world’s population. Future food security must be based on ensuring fair access to adequate food supplies for all and this food must be produced in a manner that helps sustain the environment, preserve natural resources and supports livelihoods of farmers and rural populations around the world. There 2 is an urgent need for what the Royal Society calls the ‘sustainable intensification’ of global agriculture in which productivity is increased without adverse environmental impact and 1 J. Kearney, Food consumption trends and drivers, Phil. Trans. R. Soc. B2010, 365, 2793-2807 3
  • 4. without having to bring significantly more of the world’s declining stock of suitable land into production. ` A further challenge stems from rising obesity and other diet-related diseases that are becoming increasingly problematic national and global health issues. The WHO projects that by 2015 approximately 2.3 billion adults will be overweight and more than 700 million will be obese,3 and obesity is increasing at a rapid rate in low and middle income countries, particularly in urban areas. In the more mature EU and US markets, consumers will increasingly seek for and pay a premium for foods with verifiable health, wellness and sustainability attributes. INTERNATIONAL COMMODITY MARKETS International commodity markets have been characterised by a high level of price volatility in recent years and this trend is expected to continue in the short to medium term,4 driven by supply shifts, climate change, energy prices and policies (e.g. commitments to biofuel production) and developments in agriculture and trade policies. However, overall the global outlook for agricultural commodity prices is positive in the medium term. 5 In the long term, the projections are for the continued growth of agriculture up to 20506. From an Irish perspective, the positive medium to long term market prospects are founded on the flourishing global demand for dairy products, a rising shortfall in EU beef supplies, growing food demand from developing countries, and the specific food demands of an ageing and more affluent population in the EU and US. IRELAND UP TO 2031 2 The Royal Society, Reaping the Benefits. Science and the Sustainable Intensification of Global Agriculture, The Royal Society, London, 2009. 3 http://www.who.int/mediacentre/factsheets/fs311/en/index.html 4 Chatham House, Food Futures: Rethinking UK Strategy, Royal Institute of International Affairs, London, 2009. 5 OECD/FAO, Agricultural Outlook 2010-2019, OECD/FAO, Paris, 2010 6 FAO, World Agriculture: Towards 2030/2050, FAO, Rome, 2006. 4
  • 5. Two years ago Teagasc launched the results of a comprehensive Foresight exercise, in the course of which all of the major stakeholders came together to identify a new long-term vision for Ireland’s agri-food sector and its technological requirements7. The report envisioned our future farmers and primary processors in 2030 as being key elements of an ‘Irish Bioeconomy’ producing not only food, but also meeting energy and fibre needs and a range of other renewable bio-resources. On the food processing side, we identified huge potential in areas such as infant foods, functional foods and foods for health, whilst our farms and open countryside were seen as providing valuable environmental goods and services. We envisaged a bright future for farming, food processing and related bio-based industries, built around a well-trained workforce capable of applying the very best technologies developed and delivered by our research organisations. A recent Forfas report 8provides an assessment of the economic and social implications for Ireland over the next 15 years arising from global-level developments. The report projects an increase in population by up to 60% to over seven million by 2040, and says it could even conceivably reach nine million by then. (The latter figure may now be unlikely in light of the impact of the current recession on immigration and emigration). The country will then have a higher proportion of older people and higher dependency ratios. The report also suggests that the Irish economy has the potential to prosper over the next two decades, quoting the ESRI’s expectations of a possible return to growth in 2012, and achieving growth rates of up to five per cent per annum to 2015. These figures point to a growing domestic market in the medium term for high quality food products. FUTURE POLICY AND TRADE FRAMEWORK The Common Agricultural Policy will provide the main policy framework for development of the primary agriculture and agri-food industries to 2020 and beyond. Formal negotiations have yet to begin on the CAP after 2013 and it is unlikely that full details of any new arrangements for the CAP will be agreed until late 2012. Thus, for the present, there is a 7 Teagasc, Towards 2030: Teagasc’s Role in Transforming Ireland’s Agri-Food Sector and the Wider Bioeconomy, Teagasc, Carlow, 2008. 8 Forfas, Sharing our Future: Ireland 2025. Strategic Requirements for Enterprise Development , Dublin, 2009. 5
  • 6. degree of uncertainty as to the level and shape of future support for the sector. There is pressure in the context of new reform to strengthen the link between payments to farmers to the achievement of more public good objectives in the areas of environment, landscape, biodiversity and animal welfare. With respect to the specific measures within the CAP, it is important to emphasise the need to maintain the focus on enhancing our competitiveness and ensuring the long-term sustainability of the sector, as well as addressing situations of extreme price volatility in order to secure supply. The international trade policy framework, as determined though WTO and regional trade agreements, is also of enormous importance to the sector. It is, therefore, vital that Ireland’s key agri-food interests continue to be fully reflected in the input to these negotiations. FOOD HARVEST 2020 The recently published Food Harvest 20209 report has outlined a development strategy for the agri-food sector in the coming years. It paints a picture of the future where the Irish agri-food industry grows “sustainably through the delivery of high quality, safe and naturally based produce.” (p.3). The report presents a vision for the agri-food sector that foresees “development of new working relationships in the food chain, piloting new product streams, targeting resources at new markets, enhancing levels of productivity and competitiveness, and developing leadership positions across a range of sectors.” (p.4). Underpinning this strategy is increasing output of key commodities and growth in the value of these products through development of value added food products. A central message is that the ambitious growth targets set can only be realised by sustained investment in ideas, knowledge and skills, and by encouraging innovation and creativity. These are key to achieving international competitiveness, responding to the changing needs of the market and the consumer, enhancing the sector’s environmental sustainability and developing value-added foods on the home and international markets. 9 Department of Agriculture, Fisheries and Food, Food Harvest 2020. A Vision for Irish Agri-Food and Fisheries, Department of Agriculture, Fisheries and Food, Dublin, 2010. 6
  • 7. THE IRISH FOOD SYSTEM Agri-food is Ireland’s largest indigenous industry as well as its most global, reaching over 170 markets around the world. Significantly, its relative importance to our economy has grown steadily over the last decade: in 2002, it accounted for 7 per cent of total Irish exports, while, in 2007, the figure was 10 per cent10. And because of its low import content, which sees almost 75% of inputs sourced locally, the wider agri-food- related sector accounts for 32% of net foreign earnings for all primary and manufacturing industries.11 Food safety and security are set to become much bigger issues at global level and with volatile food commodity prices, the agri-food sector will continue to be an important part of the national economy and of strategic relevance in terms of food security. 12 As we look ahead to 2031, our agricultural industry will be increasingly seen as providing us with a valuable buffer against the unpredictability of global food supply and prices. However, for the industry to continue to make a strategic contribution will require it to be increasingly innovative and competitive. Ireland’s food industry is well positioned to meet expectations of long- term sustainability, and to take advantage of current and emerging market trends. Our natural and green image provides the basis for an integrated approach to sustainable food production, and the industry must develop a strategy that can realise the potential that sustainable production, distribution and consumer sentiment offers. Prospects for the dairy sector in the medium to long term are positive. Given projections for significantly increased demand, the abolition of EU milk quotas in 2015 opens a real opportunity for the Irish dairy sector for increased milk production. The sector also possesses 10 Bord Bia, Strategic Priorities: Growing the Success of Irish Food, Drink and Horticulture 2009-11, Bord Bia, Dublin, 2009 11 B Riordan, The Net Contribution of the Agri-Food Sector to the Inflow of Funds into Ireland: A New Estimate, Department of Agriculture, Food and Forestry, Dublin, 2008. 12 Forfas, Sharing our Future: Ireland 2025. Strategic Requirements for Enterprise Development, Dublin, 2009. 7
  • 8. a significant cost advantage in the form of an environmentally sustainable rain- fed grass- based production system, which allows milk to be produced efficiently for much of the year. At this point in time, when such emphasis is being placed on export growth to lead us out of our current economic difficulties, the international orientation of our food industry, its success in growing exports, and its potential for further development uniquely positions the sector to underpin the national goal of sustainable economic renewal. In realising these opportunities, Ireland will need to respond to the same global challenges and pressures already referred to. For example, farmers will need to adapt and innovate to deal with climate changes, biodiversity action plans and farming regulations, particularly new regulations in the area of nitrates, revised fertiliser rules, mycotoxin appraisal for grain assurance, and tighter restrictions in licensing and use of pesticides. Food manufacturers, processors, distributors and retailers will need to be more resource efficient and tackle waste throughout the food system, and to further reduce food safety hazards and risks (including from imports). Rising food and input prices have sharpened attention on the need for more efficient resource use throughout farming and food systems to increase productivity. The need for research and innovation is clear in order to respond to these challenges. However, many of these challenges cannot be addressed by a continuation of the thinking and approaches of the past. Agricultural and food research is also being asked to address issues that are both multi- and inter-disciplinary. New technologies (ICT, nanotechnologies, biotechnology, etc.) will become increasingly important. New approaches to international competitiveness will be required that place a much greater emphasis on innovation, flexible responses to rapidly changing market demands, and producing a wide range of food and non- food products and services. We will, therefore, have to progress well beyond the traditional understanding of agriculture and agriculture research to deal effectively with these demands. BUILDING LINKS BETWEEN FOOD PRODUCTION AND THE BROADER ECONOMY TO DELIVER RESILIENCE AND SUSTAINABLE DEVELOPMENT – THE CASE OF BALLYHOURA 8
  • 9. The principal messages to take from this global overview is that food security will become a priority issue for all countries in the lead up to 2030 and that the food needed to feed a growing population will have to be produced in a very different way in the future. Resources such as land, water, energy and fertilisers are becoming increasingly scarce and will have to be used more sparingly. The impact of climate change and the need to preserve biodiversity will add to the need for new approaches. In this scenario, the production and distribution of local foods takes on a new significance. BALLYHOURA’S AGRI-FOOD SECTOR Having considered the overarching drivers of change in the agri-food sector that will shape both farming, the food industry and the rural economy in the years to come, this section explores how Ballyhoura might position itself with respect to these developments. Emphasis is placed on using local food resources to increase local resilience and facilitate the development of the area’s economy. An assessment of the Geodirectory establishes that, as of 2008, there were 5,499 enterprises in the area, of which 2,899 were farms. The assessment identified a further 175 food or agri- supply, including vets, businesses and 88 food retail outlets. Farms in the Ballyhoura are, in general, larger than the national average, with many between 50 – 80 Ha (CSO, 2000). Relatively few are greater than 80 ha. The average farm size in 2000 was 35.5 ha. This is slightly larger than the national figure of 31 ha. Most of Ballyhoura’s farms are orientated towards dairy and beef production. Taken together, the data from the Census of Agriculture and the Geodirectory indicate that there are strong linkages between food production, on the one hand, and food processors and ancillary suppliers, on the other. A number of towns within the area are particularly dependent on agri-food enterprises, particularly Mitchelstown. As the agri-food sector in Ireland has restructured and consolidated over the past decade, these locations have been particularly exposed to job losses (Breeo Foods/Dairygold). These developments have compounded the impact of the economic downturn on the area. 9
  • 10. The economic and policy environment within which farming operates has undergone significant change over the course of the past decade. The next decade will bring the equivalent, if not greater changes, with further opening up of the EU and global food markets, on the one hand, and deregulation of food production on the other, i.e. abolition of milk quotas. For many farmers within the Ballyhoura area this holds the opportunity to grow their enterprises for the first time in many years. Yet simultaneous to these developments, farmers are faced with increasing restrictions associated with environmental concerns. Opportunities to strengthen farm businesses through diversification are also opening up as key consumer markets develop. These include bio-energy and bio-fuels, production of food for niche markets and the provision of environmental services. Underpinning these developments is, as a consequence of current social and economic challenges, a renewed emphasis on the rural economy and its potential to contribute to national social and economic development and growth of export earnings. One of the exciting opportunities to emerge from these various developments is that of a niche market for direct sales to consumers and for quality speciality local foods. Ballyhoura’s agri-food sector can, whilst contributing to exports, build on its present capacity to produce high quality foods through the development of local food systems and niche market products. In setting out a future orientated perspective of food in Ballyhoura Country, my focus will be on the potential of these aspects of the local food economy. This is not to ignore the importance of the large number of farms and associated businesses that are and will continue to make valuable contributions to economic development and growth both within the area and nationally. THE SMALL FOOD BUSINESS SECTOR IN IRELAND Growing consumer demand for speciality food products, a desire for local produce combined with a strong entrepreneurial spirit, has resulted in the rise in the number of small food companies operating in Ireland. These companies are supplying a speciality food market in Ireland with an estimated output valued at some €475 million at retail selling prices, are 10
  • 11. growing at ten per cent annually and currently employ about 3,000 people. 13 Most of these companies are owner managed, in many cases have a strong farming basis and tend to cover a diverse range of products. Artisan producers usually source their supplies locally and surveys show that spend to value in the locality for artisan produce is about twice that for spend from supermarket food products. Also 72% of Irish consumers agree that food produced locally results in higher product quality (Bord Bia). Organic produce has close links with the artisan sector. It is a growing sector, with about 70% of organic produce imported suggesting local supply opportunities exist. According to new research, the volume of Irish organic food sales has increased year on year by 13.2 percent, reaching a value of €124 million in the year to July 2009, compared to €104 million in the year to July 2008. (Source: Bord Bia TNS July 2009). The report also showed that an increasing number of people had started buying organic products on a more regular basis in recent years. A feature of the artisan sector is the wide range of routes to market that exist. These include farm shops, box schemes, farmer markets, independent shops and delis, catering/hospitality sector, and more recently, the larger retailers are providing opportunities for artisans to display their products. This gives some level of proofing against non- payment or a particular market outlet disappearing. There is optimism in the sector. A recent survey of stall holders at farmers’ markets carried out by Teagasc showed that respondents are very positive about the long- term viability of farmer markets and many plan on expanding into retailer outlets and other direct selling routes14. However, while there are many opportunities for artisan and speciality food businesses there are also many challenges for the sector. These businesses by tradition are often part-time, 13 Bord Bia, Strategic Priorities: Growing the Success of Irish Food, Drink and Horticulture 2009-11, Bord Bia, Dublin, 2009 14 Griffin, C., Technical Needs Survey of Artisan and Speciality Food Producers Selling at Farmers’ Markets, Teagasc, Dublin, 2009. 11
  • 12. small scale, labour and time demanding and in many cases family run. Having both the technical and business expertise necessary to be successful within a small unit is difficult. The consumer, however, does not accept a less safe product or a product which has inconsistent quality because the food producer is small scale. The food safety problem encountered by the pork meat sector just twelve months ago shows how damaging a food safety- related product recall can be in terms of both cost and reputation to a sector. There are however many exciting developments in food, particularly in the healthy/natural foods area, but consumers and legislators require proof of any health claims being made. Examples are consumer demands for removal of non-natural additives and for low salt products. This is referred to as providing clean label foods. Removing salt or other preservatives which have been in use as long as food has been preserved poses challenges in terms of food safety, taste, colour and even yield and texture. Therefore, food producers and food researchers need to provide product development solutions that will benefit consumers, meet legislative requirements and provide an economic return for the manufacturer. Food Harvest 2020 pays particular attention to the emergence of the local and artisan food sectors. Particular emphasis is given to the recognition that, for Irish agriculture to create employment, it must “extend beyond the strict definition of ‘food production’ to incorporate cultural products linked to the environment and tourism.” (p.12). A number of key goals are established within the report pertinent to the development of local food systems and food based micro-enterprises including: – Promote sustainable and locally embedded food procurement policies and systems. – Promote and broaden the opportunities, including local markets, for consumers and visiting tourists to purchase local food. – Conserve and promote distinctive local food traditions at EU level and with bodies such as the TASTE Council and Slow Food. 12
  • 13. The report also highlights the integrated nature of rural tourism development which draws on a local milieu incorporating routes through the countryside (walking, cycling and horse riding trails) and the craft industry. Of far greater significance is the recognition that an “integrated agri-food-tourism strategy has the potential to serve a growing demographic of tourists interested in authentic, culinary experiences from food trails to cookery courses.” (p.12). BALLYHOURA’S BEST: SERVING LOCAVORE’S* Successful development of local food supply systems will be to the benefit of local producers, retailers and consumers. Local food needs to be made real through further development over a two year period of short-food supply chains initially focused on direct sales, i.e. farmers markets and or box schemes. These outlets should be viewed as business incubators where producers hone their products through direct contact with the consumer and their business skills. As producers refine their product offering, it will be necessary to grow the scale of local markets through penetration of food supply systems at both retailer and institutional levels. Increasing the capacity of food enterprises can be achieved through either growth of individual enterprises or collaboration between groups of food producers. This can be achieved through partnership with local schools, health care facilities, businesses and other private enterprises. The benefits of local procurement strategies, including, reduced costs and *Those who are interested in eating food that is locally produced, not moved long distances to market, are called "locavores." environmental impacts (particularly reduced carbon consumption), direct links between public and private institutions and local communities, and seasonal, fresh produce, need to be highlighted. Key challenges to public procurement need to be tackled. These include ensuring any potential difficulties surrounding consistency of supply are overcome and, most 13
  • 14. importantly, overcoming regulatory barriers. A review by Morgan and Morley highlights the challenge and means of overcoming regulatory restrictions on public procurement15. One of the most significant barriers to public procurement (not private procurement) of locally- produced foods is EU regulations, particularly the principle of non-discrimination on the grounds of nationality in the awarding of public contracts. Research by McLeod and Scott identifies a number of examples of ways to promote local food without breaching EU regulations including use of sustainable procurement policies to increase the amount of local food procured by public institutions without specifying “local”.16 Morgan & Morley describe several of the methods used by other countries, including: – Organic procurement policies. By specifying organic in countries with a large number of organic producers, one can increase the amount of local food. This is particularly relevant to Ireland, given the emphasis on increasing organic food production. – Purchasing regional specific products, such as the European certified PDO or PGI. This is very challenging in the Irish context, as there are only four food products with these credentials. (EU quality schemes - guaranteeing quality: Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI) for agricultural farm products and foodstuffs). – Incorporating seasonality into public food demand. – Service specification, such as levels of freshness, quick delivery response times and minimal packaging may favour local businesses. – Operating below EU procurement thresholds. This is prohibited, but still practiced in some areas. – Allowing for the use of “lots” during tendering. This allows companies to bid for all or part of the contract, which is beneficial for smaller suppliers who may otherwise be excluded. 15 Morgan, K. and Morley, A., Re-localising the Food Chain: The Role of Creative Public Procurement, The Regeneration Institute, Cardiff University, 2002. 16 McLeod, M. and J Scott, Local Food Procurement Policies: A Literature Review, Nova Scotia Department of Energy, 2007. 14
  • 15. The use of variants, which is “a contractual method that prescribes two or more variations of the product(s) that can be supplied”. This method is commonly used by those wishing to purchase environmentally-friendly products, since in this situation, “green” suppliers can bid on “conventional” contracts and have their environmental qualities favourably considered. – Third party organizations manage meal provision, e.g. non-profit organizations or parent organizations in schools. – Occasional sourcing, e.g. a regular local, organic meal served every two weeks. OPPORTUNITIES FOR LOCAL FARM HOUSEHOLDS Various studies by Teagasc show that approximately three out of four Irish farm enterprises are unviable. This is partly reflected in the continual decline in farm numbers. There are a number of options for enhancing the viability of a large proportion of existing farms. A central challenge is to add value to existing small and mid-sized farming operations. The LEADER Programme 2007-2013, with a total fund of €425, is a potential source of funding for farmers seeking to establish alternative rural enterprises. However, it has been noted in the Irish case and elsewhere in the EU that farmers have been ‘slow’ to engage with the programme.17 Work by Macken-Walsh has shown that bureaucratic challenges and regulative constraints are perceived by some farmers as barriers to farm diversification and the establishment of new rural enterprises. Another barrier is that farmers strongly identify themselves with farming as a way of life and are reluctant to get involved in the type of activities in line with the LEADER approach. ‘MIDDLE AGRICULTURE’ MOVEMENT The US Middle Agriculture model is one possible new solution which could be looked at here in Ireland to assist farmers in marketing food products directly to local customers or selling through increasingly global marketing structures.18 A core feature of the Middle Agriculture movement involves joining together in a federated co-operative structure the practices and 17 Macken-Walsh, A. and L Dunne, Rural Development and Potential for an Irish ‘Middle Agriculture’, Public Affairs Ireland Journal, PAI Publications Ltd., May 2010, Issue 69. 15
  • 16. resources of small and mid-sized farms with the necessary professional industry skills to market, brand, package and distribute their products. The products are targeted at the growing niche in food markets that caters for a more socially, culturally and environmentally- conscious consumer19. Farm families’ application of such marketing and branding skills to the primary commodity means moving them up the value-chain. The middle agriculture movement in the US emphasises not only the need to move up the value chain but to take ownership of a greater proportion of the value-chain. The middle agriculture model highlights the need to develop and attach a ‘food story’ to the product, incorporating the social, cultural and ecological capitals that are identified as core to the branding strategies of contemporary rural development products. Ireland holds considerable potential for such products, both domestically and internationally. High environmental quality and farm systems features such as grass-fed beef, puts Ireland in a potentially very strong position. The large proportion of farmers in Ireland who participated in the Rural Environmental Protection Scheme (REPS) is also conducive to the production of food that has the branding stamp of ‘sustainability’. “The Middle Agriculture federated cooperative is a potential model for achieving the ‘creative combining’ of family farm culture, knowledge and resources with industry strengths to improve the viability of many small and mid-sized Irish farms”20. BALLYHOURA’S BEST: MAKING THE LINKS The local nature of food will be central to the Ballyhoura Area’s brand, which emphasises landscape, environment, culture and heritage. The contribution of food to both enterprise development and broader economic development, particularly of the tourist sector, will be complemented by artisan food products. These products will draw from Ballyhoura’s unique landscape and food heritage to develop strong brands which will form key elements of their 18 Macken-Walsh, A., Agriculture, Rural Development and Potential for a ‘Middle Agriculture in Ireland’. Teagasc, RERC Working Paper Series, No 10, March 2010. 19 Yee, Lawrence. 2004. Strategy for an Agriculture of the Middle. Paper presented to the Renewing Agriculture of the Middle Task Force, February. Racine, Wisconsin. 20 Macken-Walsh, 2010, p.17. 16
  • 17. unique selling points in regional, national and international markets. Eventually, the products themselves will form a key element of the marketing strategy for the Ballyhoura Area. Over the course of the past decade, Ballyhoura has developed a high profile amongst domestic and international tourists through the organisation of events, including the Beast of Ballyhoura, a 36 hour adventure race that incorporates running, cycling, kayaking and shooting, and the International Walking Festival. Both of these draw on the area’s landscape and heritage in combination with key infrastructure, i.e. Ballyhoura’s mountain biking trails. Other events include the Independence (music festival) which has grown to attract up to 5,000 attendees each year. These events have proven to be very successful and raise the profile of the area. They also serve as a means of further developing the area’s food and rural economy. Chaining events, such as the adventure race, to a local food festival is increasingly seen as a means of building synergies between disparate activities and developing ‘brand awareness’ amongst both the local and visitor community. Perhaps, a key challenge for the organising committee of the Beast of Ballyhoura is the incorporation of ‘The Beast’s Feast’ into next year’s event? These events also serve as a means of developing further tourist infrastructure. International evidence suggests that people seek physical and mental challenges in landscapes that reflect key cultural values, including respect for nature, the environment and heritage. Examples include the Santiago de Compostela, aka the Camino (100,000 walkers arriving in Santiago in 2006; 250,000 arriving in 2010) and the Grande Randonnee 20 (GR 20) in Corsica. From the walker’s perspective, these occupy two ends of the hiking spectrum; the Camino is largely flat, the GR20 is largely vertical. What unites them is the way in which these trails embed tourists into the local food economy. They are designed in such a way that people follow way- marked trails completing a ‘stage’ each day. Each stage starts and ends in a small town or village (in the case of the Camino) or, in the case of the GR20, mountain huts with associated camping facilities. It is estimated that in 2010, 20,000 people walked the GR20 and spent a 17
  • 18. minimum of €500 each along the trail. This equates to €10 million. Of this, €6 million was spent on food and drink. None of this is imported. The growth of this ‘activity, or experience’, market presents a number of opportunities for Ballyhoura. These can be developed within the area and in conjunction with neighbouring areas. Fundamental to the development of this market is the provision of a variety of appropriately graded and marked trails, the provision of a mix of accommodation options and (drying) facilities and locations where visitors can integrate with the local community through the mediums of food, drink, culture and heritage. The agri-food industry must seek new opportunities from the unfolding developments in EU and world trade policy, from major changes in food markets driven by lifestyle and technological factors and new benchmarks of performance in Ireland's transformed economy and society. These trends continue to transform the retail sector and will continue to do so for the coming decade. This involves not just changing consumer demand for food products but the rapid evolution of channels of food distribution and sale. TEAGASC SUPPORT Teagasc is committed to supporting all sectors of the food processing industry and we have tailored programmes to suit the particular needs of a very diverse food sector. We are working closely with Enterprise Ireland as the national industry development agency in building the competitiveness and export capability of the small and medium sized enterprises (SMEs). We provide technical advice and supports for all artisan food businesses and we have dedicated food technologists working specifically with the meat and dairy artisan sector. This is a specific initiative for food artisans supported by the Departments of Agriculture, Fisheries and Food and Community, Gaeltacht & Rural Affairs. We use a combination of supports to provide these businesses with the knowledge, skills and technologies to produce safe quality food. These supports include providing technical information, marketing advice, in conjunction with Bord Bia, technical training courses and also advice for individual businesses on their specific needs. We also provide businesses with access to modern food production units and a 18
  • 19. product testing service for product development purposes from our well resourced food research centres at Ashtown, Dublin and Moorepark, Cork. CONCLUSIONS There is a growing recognition of the role the agri-food sector and broader rural economy can play in bringing about sustainable growth in the Irish economy and, in particular, its importance in contributing to balanced regional development. This is welcome development following years during which we have witnessed report after report either ignore the sector or relegate it to an after-thought. For a long period, Ireland pinned its aspirations for development to the mast of ‘high-tech’ industry and downplayed the role of agriculture. However, I now detect a growing questioning of the role of economic policy and a growing realisation that we have successful international agri-food companies; we have well-educated and trained people coming into food and agriculture; we have an excellent and unique model of innovation in Teagasc and strong links with the third level sector. Getting out of our current difficulties will require growth that is balanced across our areas of strength and that is also regionally balanced. Agri-food is an area of strength. Rural Ireland cannot rely on the construction industry as it did during the ‘Celtic Tiger’ era. Growth and employment in rural Ireland must be built on the more sustainable foundation of its bio-based resources. We can build a consumer-focused and sustainable agri-food sector built on innovation and expanding out to embrace a broader integrated biology-based economy, is a model for future economic growth. The position is clear. Food will become increasingly scarce, while demand for more and better food produced in a sustainable manner will grow. There is a growing link between food and health, and these industries are becoming increasingly integrated. We have major research and commercial strengths in both. We can take advantage of this growing market, both through the medium of our large food companies and small, locally-based producers. Ballyhoura is well-served by food enterprises at both ends of the scale. Together, they can help establish the Ballyhoura Food industry as a model for what Ireland as a whole can aspire to over the next few decades. Acknowledgement: 19
  • 20. I wish to acknowledge the contribution made by the following Teagasc staff members in the preparation and writing of this paper: Mr David Meredith, Rural Economy Research Centre; Dr Lance O’Brien, Head Office; Mr Pat Daly, Ashtown Food Research Centre; and Dr Gerard Barry, Ashtown Food Research Centre. 20