Revitalising Rural Ireland - Food

Transcription

1 Revitalising Rural Ireland - Food Prof. Cathal O Donoghue Head, Teagasc Rural Economy Development Programme (Outgoing) Dean, College of Arts, Social Sciences and Celtic Studies, NUI Galway (Incoming) Secretary, Burren Lowlands Development Former CEO, Commission for the Economic Development of Rural Areas

2 Economic Growth (per capita in constant prices) GNP pc GDP After sharp decline and bouncing along bottom, we are now in recovery -15% growth GNP per capita now higher than thes peak -Ignore most recent value

3 Employment Growth Employment growth since lowest point in 2012 Q jobs - However 8% less than peak challenge to create jobs

4 Population Share Year 1996 Year 2002 Year 2006 Year 2011 County Dublin Dublin City Cork City Limerick City Galway City Waterford City Towns (10000+) Towns ( ) Towns ( ) Towns ( ) Villages ( ) Open Countryside Population Share Area outside cities 62% to 64% Population Share Towns % 35% Population Share Dublin 29% 28%

5 Impact of the economic downturn on Unemployment Rate (% Change ) Type of Area Small and Medium sized towns biggest impact change in unemployment Open Country Village( ) Town( ) Town( ) Town( ) Town(10000+) Waterford City Galway City Limerick City Cork City Dublin City (incl. DL) Dublin County Nation

6 Regional Employment Growth 2012-Present State Border Midland West Dublin Mid-East Mid-West South-East Growth Lowest Point in Economic Cycle-Present South-West Employment Growth Highest on East Coast and in Commuting reach of Dublin West - Weakest

7 Sectoral Growth 2012-Present Fastest Growing sectors Agri, construction, Tourism, Hotels and Food - Opportunities for Rural Areas

8 Top and Bottom Counties (Change in Live Register) Top Rank 1 Kerry 2 Meath 3 Clare 4 Limerick 5 Galway Bottom Rank 27 Sligo 26 Carlow 25 North Tipperary 24 Laois 23 Westmeath Larger urban centres and commuting zones and Kerry Not Dublin Midlands and SE slowest recovery in unemployment

9 Small Towns - Double Poverty Poverty and Jobless Households - One third of working age households without employment Key Cross- cutting Challenge a hard challenge Consistent poverty Children in consistent poverty Jobless households Cities & suburbs 4.9% 8.1% 19.8% Towns and envi with pop=>5000 Towns and envi with pop 1000<=< % 13.2% 29% 10.1% 14.9% 31.5% Mixed urban / rural areas 7.5% 8.1% 24.6% Rural 6.5% 8.3% 24.3% State 6.9% 9.3% 24%

10 Rural Towns Index Focus on Economic Strength Combination of Unemployment Rate and Net Migration Rate in 2011 Not necessarily an East-West Issue Weakest towns (Red) Furthest from Cities (in general) Commuting-in towns Lower Skills However the local economic hub for rural areas Source David Meredith Low Rank ~ Strong (Blue) High Rank ~ Weak (Red)

11 Change in Population in 2016 vs 2011 Census (Town and Rural Lowest District) Population Growth (decline) -Periphery -Even when strong historically like Clifden -Rural TopTowns and Coastal Districts, the only Bottom areas with falling population Rank 1 Navan RD Meath 2 Carrick On Suir UD Tipperary SR 3 Kilkenny UD Kilkenny 4 Killarney UD Kerry 5 Kinsale UD Cork 6 Midleton Cork 7 Longford UD Longford 8 Gort Galway Rank 209 Swineford Mayo 210 Glenties Donegal 211 Ballyshannon Donegal 212 Belmullet Mayo 213 Dunfanaghy Donegal 214 Enniscorthy UD Wexford 215 Bundoran UD Donegal 216 Clonmel UD Tipperary SR 9 Kinsale RD Cork 10 Nenagh UD Tipperary NR 217 Enniskillen 2 Cavan 218 Clifden Galway

12 Jobs per m of Gross Value Added by Turnover size SME s are more job intensive per unit of output Jobs per m of GVA Source CSO

13 Share of Employment by Enterprise Size Micro most important in Rural Areas Small and Medium share similar Large businesses more important in urban areas

14 National Spatial Strategy Recognise Quite a young population in towns, even in more remote areas Skills level often lower, particularly in weakest towns Jobless Households Negative Equity Likely to remain so for the foreseeable future Long term challenge for services and economic development Existing NSS weak on towns and rural areas Vital to have a national policy for these area Nationally as many people live in rural towns as in Greater Dublin!! New Strategy being prepared important to reflect rural Ireland issues

15 Commission for the Economic Development of Rural Areas CEDRA Objective Develop a strategy guiding medium-term economic development of the Rural Areas for the period to Voluntary Commission Chaired by Pat Spillane Established November 2012 Report Presented to the Minister in November Recommendations Minister for Rural Affairs appointed June 2014 with objective of implementing CEDRA report CEDRA Inter-Departmental Group July 2014 New Government Department

16 Delivering Rural Economic Development Key Challenges Short Term Create more Employment in Rural Areas Long Term Reskill and restructure nature of employment Key Themes Rural Economic Development Cross-cutting delivery Improve Coordination of Policy and Programme Implementation Challenging Department and Agency business plans v.v. rural economic development No Silver Bullet Lots of Small Steps Areas of Potential Job Creation Rural Resources (Agriculture, Marine, Tourism, Creative, Renewable) Exporting Sector (FDI, Export sector, Commuting into cities) Domestic Demand (Services supplying rural economy)

17 Food Sector Development (Drawing upon work of Maeve Henchion, Teagasc)

18 Food Wise 2025: Local Roots Global Reach New Agri Food Strategy Increasing the value of agri-food exports by 85% to 19 billion. Increasing value added in the agri-food sectors by 70% to 13 billion. Increasing the value of Primary Production by 65% to 10 billion The creation of an additional 23,000 jobs across supply chain

19 CEDRA Background Research Speciality Food Speciality foods are characterised as being premium products, commanding a premium price, with unique characteristics Speciality food production in Ireland was valued at approx. 615 million in 2012 and originated from about 350 producers, employing more than 3,000. (Mintel, 2012) This reflects an increase in both numbers and value over time: there were approx. 60 producers in 1996 and estimated turnover of 450 million in 2004 (Taste Council, 2004). The current market for artisan and speciality food is domestic, accounting for a 3% share of the local market for food Increased consumer trend for local businesses is another opportunity; restaurants in particular are responding.

20 Source of Inputs for Agri-Food Businesses Source of Inputs Food Micro & SME s have a higher local impact But a higher import share Source Teagasc Agri-Business Survey

21 Destination of Outputs for Agri-Food Businesses Source of Outputs Challenge to get more SME s to export Much lower export share the larger businesses Only 10% of speciality food is exported (Bord Bia) Evidence from New Zealand shows export markets can be developed for speciality food through effective investment in innovation, research, marketing and distribution. Marketing supports for export markets important different to those required for the local market. Source Teagasc Agri-Business Survey

22 CEDRA Recommendation The Commission recommends that support provided to the food industry at present should focus on the expansion of the speciality food and beverage sector through the implementation of initiatives that will facilitate product development and access to export markets. Challenge to build base To expand domestically Link more closely with tourism and heritage To get more to export Large Medium Small Exporting Small Domestic Micro

23 CEDRA Background Research Speciality Food Need to prepare a cross departmental strategy for the sector. Encourage Programmes such as FoodWorks, Organisations such as the Artisan Forum and the Taste Council, Initiatives such as Innovation Vouchers, enterprise awards (e.g. National enterprise Awards by CEBs, JFC innovation awards) Initiatives that show case entrepreneurs.

24 CEDRA Background Research Enterprise Supports Improved infrastructure is necessary to facilitate an expansion of the speciality food sector The shortage of incubation spaces (required to kick-start new businesses but also for innovation) should be addressed through identification of where the gaps are geographically. The use of alternative resources, such as catering establishments that are not being used during the off-peak season should be investigated and a register established.

25 CEDRA Background Research Enterprise Supports Soft as well as hard infrastructures are required to support the expansion of the speciality food sector Investment in education is an important strategic objective Excellent food-related courses are available in the 3rd level sector, the availability of some artisan skills is limited. Continual development in artisan food skills for producers and retailers is required. A mentoring programme could be developed using successful entrepreneurs, linked to incubation spaces? Networking could be developed. provide communities of learning

26 CEDRA Background Research Value Chains Strengthen food supply chains can enable greater value added production There are barriers across the whole food supply chain from producer through to processor. E.g. lack of a locally available small-scale abattoir. At the other end of the chain, encourage pop-ups local register of suitable empty commercial spaces. The development and enhancement of producer groups can help to develop both local brands, facilitate producers in sharing and reducing costs and help to improve the skill level and quality of product.

27 CEDRA Background Research Marketing Building a brand around food produced on farms participating in Agri-Environmental Schemes could add value to food produced in an environmentally sensitive way Over 3bn has been spent since 1994 on Agri- Environmental schemes with a significant proportion of farmers participating. Heretofore the primary objective of these programmes has been delivering environmental public goods. Private value could also be generated by building a brand with values that resonate with consumers. This brand could be based on incorporating environmental schemes such as AEOS and REPS into Bord Bia quality assurance programmes

28 CEDRA Background Research Policy Aligning public policies, local planning and regulatory frameworks can support the development of the speciality food sector Important role for local authorities Models of good practice in the UK highlight how local authorities could work with prospective partners to build broad-based public support for a comprehensive and strategic approach to food planning for their area. Central and local government and regulatory bodies could make it easier for start-ups and SMEs at various stages of development. There should be a seamless system of support available from the agencies.

29 From Idea to Fork Food SME Development Pathway - Needs to be coordinated a local level CoCo Animation Food Idea Food Skills Teagasc R&D NGOs Pilot Plant Financial Support DAFM Food Academy Market Test LEADER Farmer s Market Supply Enterprise Market Ireland Intelligence Scalable Manufacturing Supply Chain Expand Export Environmental Health Market Research Branding EHO ETB Business Skills Business Support Bord Bia LEO Inter-Trade Ireland

30 22/08/2016 From The Ground Up - Education and Health Supporting SME s and Innovation Linking Urban / Rural Cultural Diversity Sustainability and Feeding the Planet