Drivers and trends in global food consumption and market opportunities Declan J. Troy
Overview About Teagasc Global Challenges in food production Trends sustainability and health areas Market insights Sectoral opportunities Building trust Developing a National Strategy and the role of research Take home messages
To support science-based innovation in the Irish food sector that will underpin profitability, competitiveness and sustainability Overview and Vision
Introducing Teagasc Teagasc-The Irish Agriculture and Food Development Authority Teagasc Pronounced Chawg-ask is a Gaelic word meaning teachings or learnings State Body providing integrated research, advisory and education services to the Irish agri-food industry Funded 70% by State Grant, with balance earned from competitive research contracts, extension fees etc. and trading income Research services are provided by 150 researchers, 70 knowledge transfer specialists and 160 technicians at seven dedicated research centres There are almost 250 extension professionals based at county and local offices Seven colleges and local training/research centres are staffed by college lecturers, technicians and education officers
Teagasc goals 1. Improve the competitiveness of agriculture, food and the wider bioeconomy 2. Support sustainable farming and the environment 3. Encourage diversification of the rural economy and enhance the quality of life in rural areas 4. Deliver value from public money
What are we about? Not a basic research organisation Applied and strategic research Guiding Principles Relevance: Stakeholder consultation Quality: Publications, peer review Impact: Achieving change in sector - Need knowledge transfer Advisory Service and Food Development Dept key for this
Stakeholder consultation event Stakeholder engagement key to ensuring that we are focusing on the right topics
Cascade model - operational version of Teagasc AKIS Component research Research Farms Dairy Beef Sheep Component research BETTER farms Beef 37 Sheep 10 Dairy 37 14,000 Discussion Group members 45,000 Clients 140,000 Farmers
Current Facts 805 million still hungry (781 in developing countries) 50% increase demand by 2030, 100% by 2050 Vast majority live in rural areas with low income, poor infrastructure, food waste, sanitation Land and water use limitations Climate change affects these areas Animal based foods questioned
But. increasing global food consumption levels, growing incomes, and increasing sophistication of consumers with demands for food to deliver lifestyle benefits and innovative solutions for different life- stages.
Major Drivers Macroeconomic Environment Exchange Rate Fluctuation Energy Price Volatility EU Policy Framework - major reform of the Common Agriculture Policy (CAP) International Climate Change Policy Geo-political Instability International Trade Regulatory Environment Changing dietary preferences drive global demand for Protein
Demographics
Ageing Profiles
Water Use Increase
SWOT Analysis of Irish Food Systems
Sustainability Ireland s agri-food sector through its farmers, fishermen and forestry owners manages the vast majority of the natural resources in Ireland. The sustainability credentials of the sector must continue to be measured and benchmarked to underpin their validity and ensure that these credentials can continue to be enhanced, underwritten by strong records and data. A guiding Principle is that the environmental protection and economic competiveness will be considered as equal and complementary, one will not be achieved at the expense of the other. Recognising Agriculture s role in ongoing National, EU and International Climate Change and Energy Policy Development Further Development and Enhancement of Origin Green Programme at production and producer level. Prioritise Research Funding on Sustainability of Irish Food production
Growth Opportunities
Sectoral opportunities: Consumer driven added value component of the dairy products - Whey Protein Isolate Case Study Global forecasts for increased demand for protein, in particular protein from meat sources. Significant opportunities for import substitution of the Prepared Consumer Foods and to significantly increase product diversity - Seafood has unique selling point as it is a versatile, convenient and protein source with specific and recognised health properties which resonate with the consumer - Bio-Marine Ingredients Ireland Case Study Technology and advances in plant genetic research offer the potential for new products, new production methods and new approaches to the market for horticultural products which will drive growth and opportunities for the
Horticulture
37
Who do we trust? Courtesy of Food RisC Project 38
In US. 39
Whose communicating and to whom? Is it working? Landowners Farmers Processors Manufacturers Retailers Consumers Government ONGs Agencies Scientists 40
Irish National Strategy
Actions Agreed Need to both retain the current high quality, knowledgeable and experienced people it has developed and attract new ambitious educated and motivated people Promote itself as a career path of choice among school leavers and university graduates, as a modern sector with exciting opportunities in agri-food sector business expansion, innovation, marketing, consumer insights, research and technological development and nutritional product development. Development of measures to manage impacts of price/income volatility at farm level Improve access to finance for agriculture, forestry and seafood producers and Agri-food companies
Actions Agreed Development of scale at processing level Encourage Foreign Direct Investment(FDI) in Agri-food sector to locate in Ireland Develop on-farm diversification State Agencies to support market prioritisation and targeting. Further enhance Origin Green Programme as a tool to measure and demonstrate in domestic and global markets Ireland s credentials as a producer of sustainable, safe, nutritious and high quality food
Agreed Actions Future Agri-food research to be informed by consumer insights to improve translation of research output into commercial products on market. Improve coordination between Industry, State Agencies and Research Institutions to support the delivery of research which will deliver commercial outputs and products. Improve capacity of Agri-food companies to absorb Research and innovation output from Research bodies
Global Functional Food Market $43 Billion Europe 14% USA 38% Japan 40% 35% = $15bn Australia 2% Adapted from Leatherhead, 2014
Where are we going with Future trends for Fruit & Vegetable Crops 1. New or Under exposed varieties which deliver desirable customer attributes
Future trends for Vegetable Crops 2. High Nutrition Content
Future trends for Vegetable Crops 3. Convenience or Ready to Use while retaining health benefits
Key Government Reports
Irish National Strategy
Innovation Eco-system Public Research Performers Large businesses Small businesses Spin outs 1 2 3 4 5 6 7 8 9 Idea Concept Developed Proof of Concept Technology Validation in Lab Technology Validation in Relevant Environment Demonstration in Relevant Environment Demonstration in Operational Environment System Complete and Qualified Successful Mission Operations
Pushing Research to Achieve Economic Impact Relationsship Building