A Randles IDB

Irish Dairy Board 2014

MEXICO - DUBLINBUSINESS CONFERENCE

2nd of May 2014Dublin, Ireland


Ireland’s leading dairy export company.Our core purpose is to build sustainable routes to market for Irish dairy products.

Irish Dairy Board 2014 3

VIDEO


1. GROUP OVERVIEW


EXPORTING TO OVER 100 COUNTRIES WORLDWIDE


AFGHANISTANALGERIA

ANGOLA

AUSTRALIA

AUSTRIA

BAHAMAS BAHRAINBARBADOS

BELGIUM

BERMUDA

BURKINA FASO

CANADA

CENTRAL AFRICAN REP.

CHAD

CHILE

CHINA

CONGO

COSTA RICA

CYPRUS

CZECH REP.

DENMARK

DOMINICAN REP.

EGYPT

EL SALVADOREQUATORIAL GUINEA

FRANCE

GABON

GAMBIA

GERMANY

GIBRALTAR

GREECE

GUINEA

HONG KONG

HUNGARY

INDIA

INDONESIA

IRANIRAQ

ISRAEL

ITALY

IVORY COAST

JAPAN

JORDAN

KENYA

KOREA REP. OF

KUWAIT

LIBERIA

MADAGASCAR

MALAWI

MALAYSIAMALDIVES

MALI

MALTA

MAURITANIA

MAURITIUS

MEXICO

MOROCCO

MOZAMBIQUE

NETHERLANDS

NIGERIA

NORWAY

PAKISTAN

PERU

PHILIPPINES

POLAND

PORTUGAL

QATAR

ROMANIARUSSIAN FEDERATION

SAUDI ARABIASENEGAL

SEYCHELLES SINGAPORE

SLOVAKIA

SOUTH AFRICA

SPAIN

SRI LANKA

SWEDEN

SWITZERLAND

TAIWAN

TANZANIA

THAILAND

TOGOTRINIDAD & TOBAGO

TUNISIA TURKEY

USA

UAE

UK

VENEZUELA VIETNAM

ZAMBIAZIMBABWE

WE ARE A GLOBAL BUSINESS


IRELAND’S 50% GROWTH PROJECTION

5bn 7.5bn50%

2020

All this additional milk is destined for export markets


3. IDB’s EXPORT BUSINESS WITH

MEXICO


EXPORTING TO MEXICO SINCE 1965

99

2020

In-market

NPD

2012

M&A & Route to Market

2015Strong demand for food ingredients/milk proteins

B2B Customers

Regional Distributors

Regional Blenders

Public


MEXICO - KEY MARKET DRIVERS

1• Dairy demand growing 2-3 %

annually

2• Mexico will import 80% of its

dairy needs by 2030

3• Cheese consumption growing 7%

p.a. for last decade (F/service)


MEXICO’S DAIRY NEEDS

11

2020

In-market

NPD

2012


2015

69%

31%

Import dependency

Production Imports

From 2000-2008 :Consumption grew 42%

Production only 12%

Imports626,000MT

SMP

CHEESE

MPC

WMPWHEY

CASEIN /(ATE)

AMF

2013 ImportsSource: SIAP, Mexico, 2014


FREE TRADE AGREEMENTS

12

2020

In-market

NPD

2012


2015

NAFTA

USA

Canada

Other (50 Countries)

Guatemala

Honduras

El Salvador

Uruguay

Pacific Alliance

Peru

Chile

Colombia

71% of dairy trade happens under free trade agreements

Source: CANILEC, 2014


TAX TRADING ENVIRONMENT

• Cheddar 125%• Gouda 20%• Powders 125.1%• Casein 0%• NAFTA: 0%

• VAT is refunded• Food is VAT exempt

• Assigned directly by the government or tendered

• Government or public

• 16% on all goods

VAT Quota

DutyRefund


CHEESE CONSUMPTION : 2004-2013

Source: http://www.indexmundi.com

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013200000

220000

240000

260000

280000

300000

320000

340000

360000

380000

18,500MT Increase YOY AVG


2nd LARGEST IMPORTER OF ALL CASEINS (2013)

Source: GTIS, 2014

Canada

Indonesia

Tunisia

Japan

Spain

Italy

Germany

Mexico

United States

0 10000 20000 30000 40000 50000 60000

25%

10%

7%

5%4%4%3%

3%3%

36%

World Share

United States Mexico Germany ItalySpain Japan Tunisia IndonesiaCanada Others


46%

26%

12%

8%

5%2%

1% 1% 0% 0%

New ZealandIrelandFranceGermanyUruguayArgentinaLatviaBelarusPolandUSA

Source: GTIS 2013UN

Comtrade

IRELAND ACCOUNTS FOR A QUARTER OF MEXICAN CASEIN/ATE IMPORTS


&

Since 1989. Public &

Private sector. Exclusivity.

Developed key supply

customer partnerships

Government + Consular

access

Close customer

service

Continuous Feedback

M. McCarthy

IDB’s PROVEN IN-MARKET SALES STRUCTURE


Strengths• Recipe Formulation – Irish casein

key• Quality – limited preferred origins• Local IDB sales infrastructure &

customer rapport• Credit Management – Risk

Management Protocol in place • IDB market share 26%

Threats• MPC/casein production capability in

USA• Customer Recipe Reformulation• Substitutes / MPC from USA• Imported cheese • Regulatory Changes

Weaknesses• Currency volatility• Business security & Market Risk • Lengthy credit terms • Food Safety Law Ambiguity

Opportunities• Grow with the customer • Customer Portfolio Diversification • Market reach opportunities into

Central America• Population income and growth (F/S)• FTA’s

SWOT


THANK YOU

@IrishDairyBoard

Irish Dairy Board

A Randles IDB

Business

Transcript of A Randles IDB