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IngredIents Edition 2008

IRISHFOOD

InsIde iRELAnd At HiE MARKET OVERVIEW ConSUMER inSiGHt INDUSTRY NEWS

dAiRY REPoRt LATEST RESEARCH GLAnBiA’S oPtiMUM PoSition INNOVATION

FROM CARBERY tREndS FRoM tHE USA MARIGOT PROVIDES NEW SOLUTIONS


the importance of QualityRecognising

Bord Bia, Irish Food Board, has offices in Dublin, Amsterdam, Frankfurt, London, Madrid, Milan, Moscow, New York, Paris and Shanghai.

Email: [email protected] Web: www.bordbia.ie www.foodisland.com

On the edge of Europe, yet at its heart is a world class source of innovative and quality dairy and food ingredient products. Our Island is a great source of a variety of natural ingredients, and in fact dairying is the starting point of our agricultural heritage and, today, high-value nutritional, nutraceutical and functional ingredients drive its �2 billion export industry.

Our seas are a wonderful asset, and it is well known that our environment is a great place to rear dairy cattle. Our green grass and temperate climate provide us with a natural advantage to service international customers. Our ingredientsindustry is modern, dynamic and innovative with cutting edge technologies andstate-of-the art production methods providing high-value ingredients andnutraceuticals to the world’s major food, baby food and infant formula operations.

Our highly developed suppliers of dairy and non-dairy ingredients from The Food Island can be found in the most distant markets. Behind these products is on-going research and development and increased investment for their future.

Come and visit Bord Bia at this year’s HiE exhibition at stands G031 and G046.

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Editor: Miriam Atkins Deputy Editor: Matt O’Keeffe Writers: Donal Nugent, Mike Wilson Design: Ciarán Brougham, Barry Sheehan Production: Niall O’Brien, Michael Ryan, Martin Whelan Financial Director: Mai Markey Commercial Director: Rebecca Markey Accounts: Tricia Murtagh Administration: Zara White Chief Executive: David Markey Copyright IFP Media 2008. No part of this publication may be reproduced in any material form without the express written permission of the publishers. Published by: IFP Media, 31 Deansgrange Road, Blackrock, County Dublin, Republic of Ireland. T: +353-1-2893305 F: +353-1-2896406 E: [email protected] W: www.ifpmedia.com

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5 EDItORIal

6 tRaDE StatIStIcS

8 InDuStRy nEwS

12 MaRkEtplacE A nAturAl source

John McGough, Manager of the ingredient sector at Bord Bia – irish Food Board, presents an overview of the ingredients industry in ireland.

16 optimum position

Glanbia continues to open new doors in nutrition by investing in the acquisition of leading US nutritional company optimum.

18 the new wAve minerAl supplement

A mineral supplement derived from one of the world’s purest sources, Marigot’s Aquamin is a product in tune with international consumer trends and industry needs.

20 in the cleAr

this year, at HiE, Carbery unveils isolac Clear+, the latest in its ‘fourth generation’ functional food ingredients. donal nugent spoke to Marketing Manager Paul donegan about the opportunities for this diverse Co Cork company.

22 Funding progress

ireland’s €286 million dairy investment Fund is designed to drive efficiency and increase the production of value added products in the irish dairy sector. Seamus MacLoughlin of Enterprise ireland highlights the importance of the Fund and updates readers on the progress so far.

26 IRElanD at HiE IrIsHFOOd profiles irish

exhibitors at HiE

28 R&D

tArgeted reseArch

Miriam Atkins talks to teagasc’s new Assistant director of Food Research, dr Bryan Hanley, about the importance of market-led research and his ambitions for the irish food industry.

30 tREnDS

consumer insight

IrIsHFOOd reports on the latest research commissioned by Bord Bia - irish Food Board, which offers an intricate insight into the mind of the European consumer.

33 From the usA… Mike Wilson reports on

the latest market and consumer trends affecting the food and drink industry in the USA.

35 dAiry report

Bord Bia has commissioned a report on the European dairy sector, which examines the potential areas of opportunity for irish dairy products between now and 2012. IrIsHFOOd presents some of the findings.

37 SOunD bItES

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2008 has proved to be a very volatile year for all industries and the food industry is no exception. Against a backdrop of an unprecedented economic crisis of global proportions, food suppliers have had to ensure that efficiency is paramount in all areas of business. Alongside this, within the ingredients sector in particular, innovation remains a key issue and, while costly, will provide the long-term solution to remaining competitive in this tougher trading environment. As Teagasc’s new Assistant Director of Food Research, Dr Bryan Hanley, explains on page 28 of this edition, Ireland is tackling the innovation agenda head on. “Even in these hard financial times it is absolutely essential to fund research that is of value to the public, in areas such as health and nutrition: obesity, diabetes, cardiovascular problems. The Irish Government has been very brave to continue to fund this work in the current economic situation, but tackling health issues through food research is the long-term solution and the way forward,” Dr Hanley states. And to ensure an efficient outcome from this research, Dr Hanley also highlights the efforts by Teagasc and Ireland’s third level institutes to undertake scientific projects that are market-led, which will directly benefit the Irish food industry.Ireland’s €286 million Dairy Investment Fund is an example of the Government’s commitment to drive efficiency and increase the production of value added products in the Irish dairy and ingredients sector. Seamus MacLoughlin of Enterprise Ireland highlights the importance of the Fund and updates readers on the progress so far on page 22.Throughout this edition of IrIsHFOOd, evidence of the industry bringing such innovation to the market is clear. At HiE this year, a number of Ireland’s leading players will present their latest developments, most of which target a health-hungry consumer audience. Weight management is in the spotlight in Paris for nutritional innovator Glanbia Nutritionals, with a new study that strengthens the science behind its whey-based weight management solution, ProlibraTM. The company’s acquisition of leading US nutritional supplements company, Optimum Nutrition recently is also set to give Glanbia a leading position in the fast-growing sports segment of the nutrition market.Marigot will present its extensive Aquamin range as a fortificant for the food and beverage industry as well is its new Aquamin soluble grade. Meanwhile, perrenial innovator Kerry will unveil an exciting new range of ingredient solutions specifically developed to meet nutrition and health concerns around weight management, gut health, digestibility and concentrated nutrition. Pages 26-27offer a profile of these companies.Finally, on pages 30-32 IrIsHFOOd presents the findings of Bord Bia’s (the Irish Food Board) latest PERIscope report, which offer an insight into the Continental European consumer today.

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PrePared consumer foodsThe overall export performance of the prepared foods category remained strong during 2007, showing a growth of six per cent in exports at €1.815 billion. Positive trends continue to be most evident in the pizza, luxury chocolate confectionery and frozen bakery sectors. Export values were boosted by the ongoing product innovation and market diversification evident within the Irish industry. This helped offset significant competitive challenges in the form of other European suppliers, rising ingredient costs and the strength of the euro. Exports of frozen pasta performed strongly in 2007, particularly to France and the UK. Sugar confectionery showed a rise in the value of exports in 2007 led by increased sales to France, Germany and Benelux.

agri-food and drink sectorIrish food and drink exports put in an excellent performance in 2007, rising by a further estimated €414 million to reach €8.62 billion. This follows the strong growth recorded in 2006 when exports exceeded €8 billion for the first time. The growth in the value of Irish food and drink exports was driven by the strength of the global market for dairy products, further diversification of Irish exports of prepared foods and a continued strong performance by cream liqueurs and whiskey. The UK was the main destination for Irish agri-food and drink exports in 2007, accounting for 42 per cent of all exports. Thirty-one per cent of exports went to Continental EU markets while the remaining 27 per cent went to international markets.

2007 saw demand increase for quality Irish seafood, with total sales of €754.4 million (excluding direct Irish landings at foreign ports), up 4 per cent on the 2006 figure of €724.6 million. Figures from Bord Iascaigh Mhara (BIM) - the Irish Sea Fisheries Board, indicates continuing growth in Irish retail and food service markets for seafood, with domestic seafood sales amounting to €394.2 million up 8.7 per cent on the 2006 level. Retail sales were valued at €180.6 million while sales to the food service sector amounted to €213.6 million.In 2007, Irish seafood exports had an approximate value of €360 million, similar to 2006, with France accounting for 24 per cent of total exports (€87 million). The second most important destination for Irish seafood was UK at €70 million. The Irish aquaculture industry performed well in 2007 with an estimated value of approx €131 million. Production of farmed salmon is estimated at 13,800 tonnes WFE (whole fish equivalent) and saw particularly strong growth in December as sales of Irish organic salmon soared.

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dairy and ingredientsThis category encompasses both primary dairy products such as butter, cheese and milk powders and value added dairy products such as infant formula, casein and chocolate crumb. The dairy sector put in an excellent market performance in 2007, helped by a significant strengthening in global prices for dairy commodities and ingredients. All major product categories showed higher export values, driven by a combination of both increasing volumes and strengthening prices, even allowing for the removal of export refunds in the second half of the year. Overall, it is estimated that exports for the year grew by 13 per cent to reach €2.36 billion. The global market for dairy products was boosted during 2007 by lower output due to drought and flooding in some key producing regions and also as a result of the fact that global demand continues to grow at a faster rate than supply. Almost 50 per cent of the growth in Irish dairy exports in 2007 came from Asian markets. As a result, dairy and ingredients accounted for more than 70 per cent of the total value of Irish food and drink exports to Asia during the year. Trade to the UK, other EU markets and the Middle East also performed strongly during the year.

meat and livestock

BeveragesBeverage exports put in a strong performance in 2007, driven by considerable growth in liqueurs, whiskey and beer exports. The value of exports recorded growth of over five per cent to an estimated €1.45 billion. Alcohol exports to Asia more than doubled during 2007, fuelled by strong growth for cream liqueurs, whiskey and stout in China and a recovery in the import demand for whiskey in Japan. Exports of cream liqueurs were helped by an improved trade to the UK, while further growth was also evident in the USA, China, Mexico, Russia and Continental Europe. Growth was helped by increased sales of flavoured liqueurs as well as traditional products. The US market also performed strongly for whiskey despite the weakness of the US dollar. Other markets to grow significantly included Russia and South Africa while sales to Europe reached expectations. Exports of Irish cider performed well in the first half of 2007, with key markets such as the United Kingdom, USA, Australia, Greece and Germany growing at double-digit levels.

The combined value of meat and livestock exports is estimated at almost €2.38 billion in 2007. Beef and cattle: Irish beef production is predominately a grass-based system, with 578,000 tonnes produced in 2007. In 2007, Ireland exported an estimated 523,000 tonnes of beef worth approximately €1.570 billion. In 2007, 207,000 cattle were exported live from Ireland worth approximately €110 million. Irish beef continues to be listed with more multiple retail chains in more EU markets than beef of any other national origin.Sheep and sheepmeat: During 2007, Ireland exported an estimated 49,000 tonnes of sheepmeat which was valued at approximately €174 million. France is the main market for Irish sheepmeat exports, accounting for approximately 56 per cent of total exports in 2007. The UK is also a substantial export market, taking 26 per cent of shipments.Pigs and pigmeat: In 2007, Ireland exported an estimated 129,000 tonnes (product weight) worth approximately €368 million. In 2007, the UK was the main market for Irish pigmeat taking approximately 56 per cent of our total exports. Continental EU markets accounted for 27 per cent of our pigmeat exports while the remaining 17 per cent went to international markets.


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Cooked bacon producer, Dew Valley Foods, has announced that it is to construct a new state-of-the-art R&D centre at its Thurles facility in Co. Tipperary. The development, which involved a €21.8 million investment with the support of Government through Enterprise Ireland, will see an expansion of current production capabilities and the development of a new employee skills development programme. The investment will also lead to the creation of 55 new high value jobs.Making the announcement Tánaiste and Minister for Enterprise Trade and Employment, Mary Coughlan, said: “I am delighted to announce an investment of €21.8 million by Dew Valley Foods. The investment is an excellent endorsement of the company’s well-placed confidence in its ability to compete internationally from its strategic base in Thurles. The food sector is a key industry in Ireland and Dew Valley is an excellent example of the type of innovative high-value added food companies that Enterprise Ireland is keen to support. This significant investment encompasses all the elements of Enterprise Ireland’s strategy for Irish businesses: it will enable international growth through innovation and enhances key employee skills and leadership capabilities.”Jack Blake, Managing Director of Dew Valley, added: “Through innovation, Dew Valley has become the leading cooked bacon supplier in Europe. With this multi-million euro investment we aim to increase our competitiveness in our modern high-tech facility and establish a new Cooked Bacon Research Centre. This research centre will allow Dew Valley to further innovate and develop new higher-value added cooked bacon products. In partnership with our customers we aim to enhance our leadership role.”

dew valley to oPen €21.8 million r&d centrekerry financial results

Kerry, the global ingredients and flavours and consumer foods group, has announced interim results for the half-year ended 30 June 2008. The Group made good progress in the first half of 2008, delivering strong organic growth and maintaining trading margins, despite significant currency and input cost pressures. Benefiting from the progressive development of its ‘go-to-market’ strategies, which have already produced excellent customer-focused benefits and project pipelines, a good performance was achieved throughout Kerry’s ingredients and flavours regional operations and end-use markets. Total Group revenue in the period amounted to €2,363 million. Excluding the effects of changes in exchange rates, acquisitions and business disposals, total sales revenue increased by 7.3 per cent on a like-for-like basis. Despite the impact of input cost increases and adverse currency movements, trading profit increased to €175 million reflecting an 8.1 per cent increase on a like-for-like basis. Commenting on the results Kerry Group Chief Executive Stan McCarthy said: “Kerry made good progress in the first half of 2008, delivering 7.3 per cent like-for-like revenue growth, while maintaining trading margins despite significant currency and input cost pressures. Building on the Group’s performance in the half-year and the underlying prospects for our business in all regions, we expect a good outturn for 2008 and reconfirm our expectation to grow earnings for the full year to a range of 151 cent to 155 cent per share.”

kerry, the global ingredients and flavours and consumer foods group, reports interim results for the year ended 30 June 2008. Pictured at the press briefing in the westin Hotel, dublin, is stan mc carthy, chief executive, kerry group plc.

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marigot’s latest researcHRecent research commissioned by ingredient company Marigot points to the positive impact its seaweed-derived, multi-mineral complex Aquamin may have in clinical and sports nutrition. The results found that Aquamin may reduce damage to bone mineral density caused by non-weight bearing endurance exercise, such as cycling and long distance running. The University of Colorado research is the latest in a number of studies which have shown the positive effects of Marigot’s multi-mineral ingredient. For example, a study published in Nutrition Journal earlier this year found Aquamin has the potential to ease the pain and stiffness caused by osteoarthritis of the knee. As a natural, vegetarian and sustainable source, news of Aquamin’s potential as an alternative treatment for this condition is a positive development for the brand.David O’Leary, commercial manager at Marigot commented: “Our research continues to prove that Aquamin has an important role to play in bone health. As new studies emerge and the supporting evidence mounts up, we are building a very positive picture of the potential benefits Aquamin has to offer. As consumers become increasingly interested in promoting their own long-term health and wellness through positive nutrition, we feel Aquamin can add huge value to products from a wide range of sectors.” Aquamin, derived from the rare seaweed Lithothamnium Calcareum, is available in a number of grades designed for different applications and pH ranges, including foods, beverages and dietary supplements. Aquamin Soluble, the most recent development, dissolves completely in water, leaving no sediment or cloudy appearance, making it ideal for functional drinks and sports beverages, two rapidly emerging categories in the drinks industry.

world Holstein friesian sHowThe 2008 World Holstein Friesian Conference and Show, which took place in October, was hosted by Ireland for the first time. Held every four years and attended by delegates and representatives from the 40 member countries of the World Holstein Friesian Federation, this year the event was hosted by the Irish Holstein Friesian Association (IHFA). At the opening of the conference Minister for Agriculture, Fisheries and Food, Brendan Smith, described the conference and show as “a unique opportunity for Ireland to showcase its dairy industry to a global audience”.He added that the conference and show was timely and emphasised the continued importance and value of the Irish dairy industry to the Irish economy. The Minister said that its economic contribution is very substantial with “exports in excess of €2.3 billion in 2007, with dairy products and ingredients comprising one third of Ireland’s total food and drink exports”.The Minister noted that the world dairy sector was facing very exciting times with the medium term outlook for increasing demand for its products. “Ireland, as well as some other countries, is well placed to grasp this opportunity on behalf of dairy farmers,” he said. Regarding developments at EU level, the Minister said that Ireland is preparing for the possible ending of the current quota regime by 2015.

glanBia announces Half-year figuresGlanbia plc, the international cheese and nutritional ingredients Group, has announced its results for the half-year ended 28 June 2008. The results show a good half-year performance, with increased revenue, profits, margins and earnings per share. Revenue is up 6.3 per cent, with like-for-like revenue up 20 per cent. Profit before tax (pre-exceptional) is up 37.6 per cent, with like-for-like profit before tax (pre-exceptional) up 49 per cent. In particular, Glanbia’s Food Ingredients USA and Nutritionals divisions delivered strong results and there was significantly improved performance from the Group’s international joint ventures.Commenting on the results, John Moloney, Group Managing Director, said: “Glanbia had a good first half delivering strong growth relative to the first half of 2007 and a 26 per cent increase in adjusted earnings per share. The second half of this year is expected to be somewhat ahead of the second half of 2007. Margins have recovered in our Consumer Foods Ireland division and there is a satisfactory outlook for our Agribusiness and Property division. While organic growth remains strong in both Food Ingredients USA and Nutritionals divisions, the performance of Food Ingredients Ireland in the second half will be reduced relative to the second half of 2007, as global dairy market volatility has created a time lag in balancing input costs and market returns. International joint ventures are expected to sustain their improved first half performance. For the full year, we are confident of a good overall performance and we believe the Group will deliver double-digit earnings growth, in line with market expectations.”The Group has also just announced the acquisition of Optimum Nutrition. Remarking on this move, Mr Maloney said: “We are delighted with the acquisition of Optimum Nutrition. Optimum has leading US sports nutrition brands and an excellent reputation in the sector. It represents a key strategic development in the growth of our Nutritionals business and is expected to be earnings enhancing from this year.” For more on this acquisition turn to page 16.

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John McGouGh, ManaGer of the InGredIent sector at Bord BIa – IrIsh food Board, presents an overvIew of the InGredIents Industry In Ireland.

Ireland, long viewed as being on the periphery of Europe, is now noted as a prime location in the world of food and drink, particularly for ingredients. Both the land and the seas that surround it are a source of high quality natural ingredients that are to be found in food and drink products across the globe.With an ever-increasing global emphasis on health and well-being, Ireland is in the enviable position of being able to reap the benefits of its prime location, providing consumers around the world with natural ingredients that have genuine health and nutritional benefits.

Hie 2008While FiE 2007 in London was the most successful ever for the Irish companies that took part, HiE 2008 in Paris looks even more promising. Bord Bia is the organisation responsible for the worldwide marketing and promotion of the Irish food, drink and ingredients industry. Ireland’s presence at major trade events like HiE, is organised with those companies in the industry with established reputations that are in a

position to bring forward new ideas, applications and solutions that have evolved from their investments in innovation.To establish a reputation as a world-class supplier of natural ingredients to the international food and drink industries requires a breath and depth of experience and capability. At HiE 2008, Ireland will be represented by such companies as Carbery, Glanbia Nutritionals, Kerry and Marigot. Combined, they will be offering ingredient applications and solutions for a broad spectrum of the food and drink industry right across the health and nutrition arena.

Protein PowerLast year, at FiE 2007 for example, Carbery showcased its innovative range of value added whey proteins, with a focus on their organic and vegetarian offerings. Its organic range of whey protein concentrates allows the company to cater for the needs of manufacturers that target to enter or to expand in this growth market. Carbery

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offers a wide range of whey protein ingredients, including concentrates, isolates and hydrolysates. Optipep is Carbery’s hydrolized whey protein range which is easily absorbed by the body making it ideal for infant, clinical and sports nutrition. To add to the company’s capabilities in the area of whey proteins, their entire range can be declared as vegetarian, thereby allowing its customers expand their offering into this market. At HiE in Paris they will be unveiling their new advanced whey protein isolate for beverage applications. With no off-notes or sediment, it can be used for protein fortification of ready-to-drink beverages including water and sports drinks.

weigHt managementAt HiE 2008, Glanbia Nutritionals will have weight management under the spotlight. This division of Glanbia plc is known as an innovator in the expert delivery of science-led ingredients and customised solutions for a broad range of industries. The company has invested in studies that strengthen



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the science behind its whey-based weight management solution, Prolibra. Glanbia see the results as good news for companies looking to launch healthy weight control products with a low GI claim; the independent trials show a statistically significant reduction of up to 37.8 glycaemic index units in the blood after consuming Prolibra. A rich source of calcium, Prolibra is an entirely natural high protein milk mineral complex suited to a wide range of applications including beverages such as dairy, smoothies, ready-to-mix options as well as nutrition bars and snacks.

innovative solutionsKerry Group, and particularly its ingredients division, has grown to become one of the best-known technically advanced manufacturers of specialty ingredients in the world.HiE has been the scene of new launches within its extensive range of protein and nutritional ingredients, as well as the unveiling of exciting research in the area of bioactive ingredients. Under the protein and nutritional headings, Kerry currently offers innovative ingredient solutions for infant and medical nutrition, sports and lifestyle nutrition as well as mainstream food and beverage markets. The Ultranor milk protein range, for example, is part of an extensive protein portfolio that also covers organic and hexane free soya proteins, protein fractions and bioactive ingredients with specific nutritional benefits.

calcium BenefitsMarigot has been a consistent participant at both FiE and HiE over the last decade. Known for its Aquamin brand, the company produces natural mineral additives for applications in food and drinks, nutraceuticals, dietary supplements and cosmetics. They harvest

a rare type of calcified seaweed that has an expectionally high level of calcium while also containing an impressive range of other essential minerals. With ongoing studies to scientifically back up the bone health benefits that can be offered by the Aquamin range of ingredients, the company continues on its track of investigating and developing new applications. At FiE 2007 they unveiled the new Aquamin soluble grade, which offers highly soluble calcium, magnesium and over 70 other trace minerals, dispersible in any clear beverage application. The Irish ingredients industry is

responding to the changing consumer trends worldwide, while the country’s superb location and environment means that Irish suppliers are well placed to meet these growing demands. Because Ireland has a strong reputation for high quality food production, the combination of tradition and enhanced technological capability is driving real growth in the Irish ingredients sector. Increased Government and private investment in the industry, alongside a dedication to deliver on the innovation agenda, is ensuring that Ireland is at the forefront of this exciting and fast-paced sector.

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OptIMuM

Glanbia, the international cheese and nutritional ingredients company, has recently undertaken an exciting development by investing in the acquisition of leading US nutritional supplements company, Optimum Nutrition. Optimum Nutrition is based in Illinois and has operations in North Carolina and Florida. The company, which has a 22-year track record in the manufacture and supply of whey-based premium nutritional supplements to the US and global nutrition markets, is set to give Glanbia a leading position in the fast-growing sports segment of the nutrition market. With powerful brand equity and a solid reputation in the sports nutrition market, the company is a

GlanBIa contInues to open new doors In nutrItIon By InvestInG In the acquIsItIon of leadInG us nutrItIonal coMpany optIMuM nutrItIon.

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glanBia oPens facility in cHina

Glanbia Nutritionals has opened its cutting-edge manufacturing facility in

Suzhou, China.

Located to the north west of Shanghai, in Suzhou, the site specialises

in developing value-adding nutritional solutions, based primarily

on vitamins and minerals, for a range of sectors including functional

foods and beverages, nutraceuticals, performance nutrition, dietary

supplements and infant nutrition. Guests at the grand opening of

the 1500m2 facility learned how the site was modelled on Glanbia

Nutritionals’ network of facilities in Europe. These existing sites have

helped to establish the company as a global leader in high quality vitamin

and mineral solutions, sports and specialist nutrition.

Prior to the opening, production, applications and technical experts from

Glanbia Nutritionals’ European operations provided extensive training

for the Suzhou site’s employees. In addition, key Suzhou personnel spent

up to six months shadowing their European counterparts in Glanbia

Nutritionals’ state-of-the-art facility in Germany. A long-term collaborative

strategy is in place to ensure systems and analytical methods delivered in

Suzhou continue to the highest international standard.

close strategic fit with Glanbia’s core areas of expertise in whey and sports nutrition and brings Glanbia up the value chain into consumer markets. “We have been involved in the sports nutrition area as an ingredient provider for a number of years and this allows us to move into the consumer space,” Colum Dunne Director of Research and Development at Glanbia Nutritionals said. “Optimum is a leading supplier of branded products in the US and we have an excellent opportunity to build on the brand equity that Optimum Nutrition has built up over the years.” The company believes the new investment will be a close strategic fit with their core areas of expertise and sit well with the group’s stated growth strategy and ambition to internationalise its business. Optimum’s facilities will not be integrated but will run as an adjacent business to Glanbia’s own business.Optimum Nutrition is a leading manufacturer of nutritional supplements with some of the most trusted brands in the USA including ’Optimum Nutrition’, ‘Gold Standard 100% Whey’ and ‘ABB’. In 2007, Optimum Nutrition generated US$185 million (€125 million) revenue and US$32 million (€22 million) operating profit. At year-end December 2007, the company had gross assets of US$51 million (€35 million). The business is being acquired on a debt-free basis and will be funded from Glanbia’s existing resources. According to Colum, this year Glanbia expects the new business to contribute in the region of 1 per cent of earnings per share in 2008. “We are certain that it will open many doors for us.”


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An Irish company at the forefront of organic multi-mineral supplements, Marigot Ltd. has evolved over its 15-year history from a niche ingredients provider to a trusted international supplier of functional-food solutions. Offering a totally natural product, harvested from calcified seaweed, with not just calcium but magnesium and 70 other trace minerals, Marigot’s keynote brand, Aquamin is, today, incorporated into a huge array of products in the food, nutraceuticals, dietary supplement and cosmetic categories. The company’s ongoing commitment to new product development (NPD) and the support of a growing body of international research has been pivotal to market development and the company now exports to 27 countries worldwide.

advantagesDavid O’Leary is Commercial Manager with Marigot Ltd. With headquarters in Carrigaline, Co Cork, and production

facilities in Ireland and Iceland, David says the company’s biggest advantage “is that we are organic, natural and mineral rich. Our products are lactose free, plant derived, mineral rich, and non synthetic and yet highly functional so for people looking for inclusion in an organic or natural product line, they tick all their boxes.”The company’s customer base is diverse, not just geographically but operationally, but prevailing trends can often be attributed to cultural factors. “There are different demands and drivers in different markets,” he explains. “Seaweed in Asia Pacific is seen as highly functional and we have a presence in all markets there. In the USA, we have a fairly significant presence in dietary supplements. In Europe, its slightly more conservative so it appears there more in food.”The high availability of Aquamin to the human body is one of its most attractive characteristics and Marigot puts considerable emphasis on science-based research that supports

a MIneral suppleMent derIved froM one of the world’s purest sources, MarIGot’s aquaMIn Is a product In tune wIth InternatIonal consuMer trends and Industry needs.

tHE nEw wavE MInERal SupplEMEnt

the coMpany’s BIGGest advantaGe Is that we are orGanIc, natural and MIneral rIch

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its claims in this respect. A portfolio of research is being undertaken at institutions around the world and, at various stages of evolvement and completion, shows increasing evidence for the positive contribution of Aquamin to overall human health. Central to this, naturally, are the benefits to bone health. “We have studies that show its effectiveness in reducing symptoms in bone and joint health pain,” David explains. “People with osteo-arthritis or osteoporosis issues can take Aquamin within a specific time frame and see benefits in terms of reduced swelling, improved mobility and less stiffness.” Going forward, David sees the output of these international studies leading to the development of highly functional and targeted end products. “The mainstay of our research is specifically around bone and joint research – we would like to position ourselves as positively influencing health in these areas. The more trials you do, the more science you have to verify the products and that leads to specific claims.”The company is also looking at other sectors such as digestive health, where initial research findings are proving promising.

enHancing Product staBilityAquamin’s qualities as a product stabiliser are also being confirmed by new findings. Independent scientific research on the addition of Aquamin products to UHT milk and yogurt products found a number of positive results, including improved viscosity in the UHT milk and enhanced fruit flavour and increased freshness in the long-life yoghurt.“The questions we are now asking are ‘does it offer a benefit compared to other mineral sources?’ and ‘can we prove functionality there?’” David says. The answers are proving increasingly positive and emphatic. “Not only are consumers getting a good source

of calcium and minerals, Aquamin’s advantages for the food industry include the enhancement of the overall texture and taste profile of the food.”

soluBle solutionWith a range of products designed for a variety of food and non-food uses, Aquanmin’s flexibility and adaptability is not in doubt. The most significant recent introduction into the range is undoubtedly Aquamin Soluble. A totally soluble mineral supplement designed for beverages, waters and the isotonic drinks market, it has no impact on taste and leaves no sedimentation or aftertaste – making it unique in the marketplace, according to the company. Aquamin Soluble is now used in products as diverse as juices, sports drinks, smoothies, water and hot beverages. Interestingly, it is also used to boost one product already recognised for its high calcium content. Many dairy producers use Aquamin supplementation to respond to the growing consumer demand for added calcium products, with its naturalness and cost effectiveness among its key attractions.

awarenessAs the Aquamin brand become increasingly well known and trusted within the industry, David sees opportunities in the long run for it to be recognised as a consumer brand, with a logo signifying its presence over a wide range of products. “We’re a relatively small company so we are trying to cover all bases,” he says. “We are putting good products, backed by good science, out there. We would like to get our customers on board for the development of the brand and inclusion of the brand logo onto packaging. In the long run, we’d like to create a general consumer awareness around the unique properties of Aquamin.”

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One of Ireland’s most progressive food ingredient companies, Carbery has always made maximum use of its geographical location. Based in West Cork, in one of the country’s most fertile farming regions, the company draws from local dairying resources to produce genuinely diverse portfolio: over 20 different types of cheese, alcohol and leading edge ingredients and flavour solutions. Little wonder the company counts some of Europe leading food companies among its clients in food, beverage and nutrition solutions.

HigH functionalityA cornerstone of the Carbery offering is its impressive portfolio of R&D-led food ingredients. Designed to respond to niche, but highly lucrative, consumer demands, Carbery’s range of ingredients enrich a wide variety of sports applications, including energy bars, ready-to-drink (RTD) sport formulations, biscuits and powders as well as infant and invalid formulations. Best known among its brands are the Isolac range, including Isolac Clear, a whey protein isolate designed for fortified waters and RTD applications; and Isolac Instant, an ingredient in powdered sports supplements. Carbelac, meanwhile, is the company’s whey protein concentrate; and Optipep, its most recent addition, a range of hydrolysed whey protein concentrates and isolates.

sourceCarbery’s reputation in functional food ingredients has won the company a European client base that stretches from Scandinavia to Spain. Carbery takes a flexible approach to distribution, operating both an agent network and also working closely with individual food manufacturers where particular specifications need to be met. Since 2005, the company has delivered functionality to a ‘fourth generation’ level. First generation refers to primary processing, i.e., when whey is converted to power; second generation is the delivery of a whey protein concentrate which is ultra-filtrated and purified to achieve 35 per cent to 80 per cent protein content. The third level is to remove fat and lactose, creating a whey protein isolate and, finally, fourth generation processing sees the protein hydrolysed or pre-digested, using special enzymes, so that the end consumer, whether an athlete or invalid, enjoys quicker absorption and therefore quicker recovery. “We’ve been manufacturing fourth generation whey proteins since 2005,” Paul Donegan, Marketing Manager at Carbery, explains. “We have significant resources in research and development that allows us to develop dedicated value-added ingredients. There is a premium attached to them, they are not a main stream product.”

new additionThis year Carbery will use the occasion of HiE to launch the latest addition to the Isolac range. Isolac Clear+ has been developed, like all Carbery products, through the company’s in-house research capability. Designed to deliver a stable, neutral tasting protein in RTD formats, Isolac Clear+ delivers excellent clarity in clear drinks and, according to the company, boasts a number of functional attributes, including ease of dispersion in manufacturing, reduced foaming in production and a large particle size that allows for good recirculation in solutions. Being a fourth generation product, it also has the excellent biological values associated with whey while being low in fat and lactose.“Typically, there’s a stability issue with protein supplements and Isolac Clear+ allows food manufacturers to supplement ready-to-drink sports beverages with higher levels of protein in a stable, highly palatable format,” Paul explains.Ideal for low pH drinks with high acidity (and, therefore, the leading carbonated beverages) its high functionality also means the process of fortifying with protein is simplified. In addition, a clean organoleptic profile means its flavour doesn’t have to be masked so it can be used in waters as well as powdered beverages.

thIs year, at hie, carBery unveIls Isolac clear +, the latest In Its ‘fourth GeneratIon’ functIonal food InGredIents. donal nuGent spoke to MarketInG ManaGer paul doneGan aBout the opportunItIes for thIs dIverse co cork coMpany.

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strategyHiE is important to the company as both a showcase and a meeting ground for established and prospective customers. “It’s the most important event of the year in this sector. We put a lot of effort into promotional activity and marketing particularly when we have a new product ready to go,” Paul says.In a year of uncertainty in the food

industry in general, the company’s strategy has been to remain resolutely focused on its competencies and its opportunities. “It’s very important to have robust market research and to create products that the market wants. In everything Carbery does, we stay rooted in commercial sense. We do a lot of research and talk to our customers, it keeps us grounded in where the market is.”

a cornerstone of the carBery offerInG Is Its IMpressIve portfolIo of r&d-led food InGredIents


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In April 2007, Government grant assistance of over €114 million was awarded to 19 capital investment projects under the Dairy Investment Fund. The Fund, which is expected to generate an estimated capital spend of €286 million in the Irish dairy sector, is designed to ensure the long-term competitiveness of the dairy industry in Ireland. Its purpose is to increase the efficiency of the main dairy outputs by supporting the upgrading of existing plant and buildings to capture new business and/or develop new added value products. It will support the provision of new modern plants to replace smaller, inadequately equipped facilities. Furthermore, it will support product specialisation, involving some companies building on their market position and developing the technological know-how to increase added value. The projects are ongoing and the main bulk of the grants are being claimed in 2008 and 2009. Here IrIsHFOOd talks to Seamus MacLoughlin, Senior Development Adviser, Dairy and Functional Foods Dept. in Enterprise Ireland, about the importance of this Fund and updates readers on the developments so far.

What is importance of the Dairy funD for the sector in general?The background to the Dairy Fund is set against the backdrop of the twin challenges of CAP (Common agricultural Policy) and future WTO reforms combined with the competitive pressures being experienced by the dairy sector in the first half of this decade. Alongside these external issues, the general infrastructure of the Irish dairy sector needed to be made more efficient and it became critical to develop and implement a programme to support strategic change within the dairy sector to secure its long-term future. The 19 projects, which were approved grant assistance in 2007 under the resulting competitive Fund, are seen as critical to enabling the sector achieve competitiveness, efficiency and greater profitability. This will, in turn, ensure long-term sustainability and secure better returns for the processing industry and its farmer suppliers.

What are the primary goals of this investment initiative?The desired impacts resulting from the capital investment programme are twofold: a) increased value added and; b) improved efficiency.

Ireland’s €286 MIllIon daIry InvestMent fund Is desIGned to drIve effIcIency and Increase the productIon of value added products In the IrIsh daIry sector. seaMus MaclouGhlIn of enterprIse Ireland hIGhlIGhts the IMportance of the fund and updates readers on the proGress so far.

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increased value addedThe Irish dairy processing industry had traditionally focused on producing large volumes of commodity type products such as Skim Milk Powder and butter without being market driven. These products had been cushioned from market fluctuations by the safety net of intervention and Ireland has been more dependent on intervention than any other EU member state. Ireland processes approximately 60 per cent of its milk into intervention-type products and 40 per cent into value added products such as cheeses, yoghurts and functional ingredients. However, as intervention ceilings decline progressively as part of the 2003 Luxembourg Agreement on the reform of the CAP the pressure on the industry to alter its product mix has intensified against a background of increased competitive pressures. A key factor to achieve a sustainable Irish dairy industry should be a commodity:value added product mix reversed from 60:40 to 40:60. The 19 projects, which were recommended for approval under this Fund, all aim to achieve this objective.

imProved efficiencyIn addition to the CAP changes, WTO negotiations will inevitably lead to greater global competitiveness in agricultural products. This will be particularly relevant in the dairy sector where a combination of progressive cuts in export refunds (to be eliminated by 2013) and the reduction in tariff rates will intensify competitive pressures beyond anything experienced to-date. Ireland’s plant and equipment needed a major investment programme to ensure competitiveness. Irish processors, as suppliers of ingredients to the global food industry have to meet the high specification requirements of food manufacturers. These 19 investment projects will all address efficiency issues and will result in a more competitive industry.



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comPanies involved in ProJects under tHe dairy investment fund:

Arrabawn Co-operative Society Arrabawn Co-operative Society has been awarded a grant of €6.84 million for a €17.1 million whey, SMP and butter project.

Carbery Milk Products Ltd Carbery Milk Products Ltd has been awarded three grants under the Dairy Investment Fund. €6.77 million has been awarded to a €16.92 million cheese project; €3.07 million has been awarded to a €7.68 million functional and nutritional project; and €9.6 million has been awarded to a €24 million whey and lactose project.

DairygoldCo-operative Society Ltd Dairygold Co-operative Society Ltd has also been awarded three grants under the Fund. €9.32 million has been awarded to a €23.3 million cheese and whey project; €3.48 million has been awarded to a €8.69 million protein fractionation Project; and €5.45 million has been awarded to a €13.63 million Speciality Cheeses Project.

Glanbia PLC Glanbia PLC has been awarded grants for two projects. €9.59 million has been awarded for a €23.99 million Cheese and Milk Protein Fractionation project and €8.99 million has been awarded to a €22.47 million Whey Protein Concentrate (WPC) Project.

Glenisk Ltd Glenisk Ltd has been awarded €3.1 million for a €8 million organic yoghurt and milk project.

J & L Grubb Ltd J & L Grubb Ltd was awarded €2.32 million for their €5.8 million speciality blue cheese project.

Kerry Ingredients (Ireland) Ltd Kerry Ingredients (Ireland) Ltd has been awarded grants for two projects in Listowel and Charleville: €9.82 million for a €24.56 million demineralised whey project and €5.73 million for a €19.09 million SMP and butter project.

Lakelands Co-operative SocietyLakelands Co-operative Society has been awarded grants for two projects under the Dairy Investment Fund: €3.27 million for a €6.53 million value-added whey project and €8.67 million for a €17.33 million spray dryer project.

Newmarket Co-operative Society Newmarket Co-operative Society will receive €6.73 million grant aid for a € 16.82 million cheddar cheese project

Tipperary Co-operative Society Ltd Tipperary Co-operative Society Ltd has been awarded €5.44 million for a €13.6 million Emmental cheese project.

Town of Monaghan Co-operative Society Town of Monaghan Co-operative Society was awarded a grant of €3.48 million towards a €6.97 million butter project.

Wexford Creameries LimitedWexford Creameries Limited has been awarded a grant of €2.6 million for a €6.5 million cheddar cheese project.

hoW much of the money has been paiD out to Date?The 19 projects have to be completed within the four-year period April 2007 to April 2011. To date, three projects are essentially complete and seven projects are due to be completed in 2009. A further six projects will be completed in 2010 and the three remaining projects will be in 2011. The grant claims for all projects are ongoing with the main bulk of the grants being claimed in 2008 and 2009.

What programmes/inDiviDual schemes have been implementeD/are up anD running?The following three projects are substantially complete and in production:Tipperary Co-operative Society - Emmenthal Cheese project Glenisk Ltd – Organic yoghurtGlanbia plc – Cheese and Milk Protein

has the scheme leD to any rationalisation Within the Dairy inDustry?While there were no joint venture projects approved under the Fund, many of the projects entailed a strong element of cooperation between processors, particularly in the area of whey processing. From the onset of the Fund it became clear that there was a greater level of co-operation and discourse between many of the industry participants than had been evident heretofore. Most companies have come to the realisation that there are huge external forces impacting on them, over which they have no control, but that they have a better chance of future sustainability by co-operating and sharing ideas and resources with others than by adopting a go-it-alone approach. It is expected that this change in attitude within the industry will lead to future consolidation and joint venture activity, thus further enhancing competitiveness and efficiency. This may be the greater legacy of the Fund than the actual grants.

Will the Dairy funD contribute to irelanD’s Drive to be at the fore of innovation in the area of functional fooDs?Although the Fund did not set out to particularly address this issue, it became clear that many of the high value projects which companies submitted for assessment centred on this theme. At least eight of the final successful 19 projects have an emphasis on innovative ingredient solutions or functional food. This is indicative of the level of importance which Irish dairy companies are placing on this category and its expected future importance to the dairy sector.


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Glanbia Nutritionals, a division of Glanbia plc, is an innovator in the expert delivery of science-led ingredients and customised solutions for a broad range of industries. These include nutritional solutions ranging from functional foods, beverages, dairy, clinical, infant and performance nutrition, dietary supplements and personal care. Weight management is in the spotlight in Paris for nutritional innovator Glanbia Nutritionals, with a new study that strengthens the science behind its whey-based weight management solution, ProlibraTM. The independent human clinical trials reveal a statistically significant reduction of up to 37.8 glycaemic index (GI) units in the blood after consuming Prolibra – good news for companies looking to launch healthy weight control products with a low GI claim. A rich source of calcium, Prolibra is an entirely natural whey protein milk mineral complex suited to a wide range of applications including beverages, such as dairy, smoothies and ready-to-mix options, nutrition bars and snacks. Glanbia Nutritionals is also presenting its MeadowPure™ UltraGrad omega-3 polyunsaturated fatty acids and its range of proteins for the sports nutrition sector, including Solmiko milk protein isolate and nutritional recovery ready-to-mix beverage Provon® Revive. Also on show is the company’s portfolio of customised vitamin, mineral and nutrient premixes that can be tailored to offer manufacturers a bespoke solution.

glanbia nutritionals

Glanbia Innovation Centre,Leggetsrath Business Park, Carlow Road,Kilkenny, Ireland.Contact: Eimear O’NeillTel: +353 (056) 7796000Fax: + 353 (056) 7796001E-mail: [email protected]: www.glanbianutritionals.com

carBeryStand B084, Hall 1

Carbery is a major international whey protein supplier headquartered in Ireland. Established in 1965, Carbery developed an extensive range of whey protein concentrates, isolates and hydrolysates, as well as other dairy-derived ingredients. Carbery also owns Synergy, a unique global supplier of taste solutions to the nutrition and functional food sector, as well as everyday foods and drinks. Carbery is owned by four Irish co-operatives, employs 300 people and has a turnover of over €220 million. Carbery will be unveiling its new advanced whey protein isolate for beverage applications at Health Ingredients Europe 2008. The new ingredient Isolac Clear+ can be used to fortify ready to drink products and is ideal for functional waters and sports drinks. Carbery’s hydrolysed whey protein ingredient Optipep™ will also be showcased on stand. A high quality whey protein hydrolysate, Optipep is easily absorbed by the body, making it ideal for infant, clinical and sports nutrition applications. Carbery will be demonstrating its entire portfolio of whey ingredients at the show, highlighting its range of whey protein concentrates, isolates and hydrolysates, which enrich a wide variety of sports applications, including bars, RTD drinks, biscuits and powders. Visitors to the stand will also be given insight into Carbery’s unique taste masking expertise, critical for ensuring success in all areas of nutrition.

carbery

Ballineen,Co Cork,Ireland.Contact: Paul DoneganTel.: +353 (0) 23 22200Fax: +353 (0) 23 47541E-mail: [email protected]: www.carbery.com

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kerry InGredIents and flavoursStand G031 Hall 1

A world leader in food ingredients and flavours, Kerry develops, manufacturers, and delivers technology based ingredient, flavour and integrated solutions for food, beverage and nutrition sectors. A key differentiator at Kerry is its ability to bring together multiple technologies, industry expertise and in-depth market knowledge from around the world to deliver innovative solutions that meet its customers’ unique challenges. At this year’s HiE event Kerry unveils an exciting new range of innovative ingredient solutions specifically developed to meet nutrition and health concerns around weight management, gut health, digestibility, concentrated nutrition as well as meeting mass market demand for great tasting all-natural label-friendly ingredients. Technological competencies, application capabilities, extensive pilot facilities and in-dept market insights enables Kerry to provide a unique range of value-added ingredient solutions which help customers address specific performance, taste and nutrition challenges. Technological offerings from Kerry include the Ultranor™ range of performance milk proteins, the Hyprol™ hydrolysed protein series, the EmulGold™ range of prebiotic soluble fibre, Biolactase™ the natural solution to lactose intolerance as well as the Beatreme™ range of natural dairy flavours and ingredients. Additionally hear and see what Kerry has to offer in relation to satiety and separately probiotic bacteria support systems. Recent innovative developments include: Ultranor Beta™; Ultranor™ LV3; Satiety Enhancing Agents; Beatreme™ Butter & Cream Solutions; and Biolactase™

Kerry ingreDients & flavours

Tralee Road, Listowel, Co. Kerry, IrelandContact: Vicky MurphyTel: + 353 (0) 68 50462 Fax: + 353 (0) 68 21562Email: [email protected]: www.kerrydairy.com

Marigot produces natural mineral additives for application not only in food, but also in nutraceuticals, dietary supplements and cosmetics. Harvesting a rare type of calcified seaweed off Ireland’s southwest coast, Marigot offers its extensive AquaMin® range as a fortificant for the food and beverage industry. The unique nature of the seaweed used to develop AquaMin® lies in its exceptionally high level of calcium content (approximately 34 per cent), while also containing a range of other essential minerals. Calcium & mineral intake within the human diet is highly important to ensure good bone health. Changing dietary habits to include a sufficient daily calcium level can prove difficult and is a slow process and so, according to Marigot, the best way forward for increasing calcium intake includes the fortification of everyday foods and beverages with AquaMin®.With the continued success of the AquaMin® range in the global market, and current research projects proving its effectiveness in maintaining bone health, the company is keen to develop the range available and investigate new types of applications. The most recent development unveiled is its new AquaMin® soluble grade. This product offers highly soluble calcium, magnesium and over 70 other trace minerals, dispersable in all clear beverage applications. Marigot is actively promoting this new soluble grade in the industry and is showcasing it at HiE in Paris this year.

marigot group

Strand Farm, Currabinny, Carrigaline,Co. Cork. Ireland.Contact: David O’LearyTel: +353 21 4378728Fax: +353 21 4378588Email: [email protected]: www.marigot.ie

MarIGotStand G046 Hall 1


IngredIents Edition 200828 www.irishfoodmagazine.com

Dr Bryan Hanley has just stepped into a newly created position at Ireland’s agriculture and food development body, Teagasc, and has already found his feet. Although, he admits, he is still coming to terms with the full extent of the post’s remit, as Teagasc’s new Assistant Director of Food Research he has very definite views on where his focus should lie. The focus in his view should be on managing innovation and research to ensure that all of the work underway at Teagasc is in line with the industry and market-led. “I want to oversee innovation management and make sure that we are providing added value to Irish agri-food companies. At the end of our research projects we need to have something coherent to relay to the industry – not just a report but also something more tangible. Most of the research is publicly funded so the consumer is the primary target, but we must work with the industry to get the benefits of our research to the consumer.”“Within the current economic climate it is crucial that we undertake research that is of value to the public, in areas such as health and nutrition: obesity, diabetes, cardiovascular problems. We need to identify those health-related conditions that can be managed through diet and ask what can we do to tackle this.”“What underpins all of Teagasc’s efforts, however, is that we have to undertake

excellent science,” Bryan continues. “We may be a small country but we are already achieving excellence in certain areas.”Commenting on the areas that he feels Ireland excels in, Bryan points to probiotics and gut biology, as well as food safety. “Meat research is another area that Ireland is very well acknowledged for throughout Europe and this is a difficult area to crack,” Bryan adds. “And we will be excellent in a number of other key areas going forward. We want to be groundbreaking.” Dr Hanley is well placed to take on such an ambitious task. His CV demonstrates an impressive research career within the food sector. Having graduated from Chemistry at the University of St Andrews, Bryan completed his doctorate at the University of Edinburgh in Biological Chemistry. His extensive experience in the food arena began at the Department of Agriculture in the UK where he worked in a research post within the area of nutrition and health. He has previously worked for Glaxo, the Institute of Food Research, Norwich, the Rowett Research Institute, Aberdeen, and the Central Science Laboratory, York. After a secondment to the European Commission, he returned to the UK as Research Director at Leatherhead Food International, where he set up the Nutrition Department. He left to take up

a post as Associate Director, Discovery, with Mead Johnson Nutritionals, based in the UK before moving on to his most recent position at Market Biosciences as Director, Regulatory and Scientific Affairs, Europe. However, his ambitions at Teagasc are grounded very firmly in pragmatism. Managing innovation requires an understanding of the real benefits that certain innovations can, or sometimes can’t, offer. “Innovation is a very elastic term – you can have something that is incredibly innovative but can take ten years to market, and you can have something that is less innovative but can be more easily and readily marketed. We have to safeguard both of these. We must examine the innovation pipeline that is in place and ask: ‘how does our work fit into that innovation pipeline, and is it close to being realised, or is it still a fair distance away?’. What I am looking to do is to progress these innovations in the pipeline towards realisation. It is fantastic doing science for the sake of it – and I say this as a scientist – but the real value is when we take it forward and it is realised for consumers.”“The benefit of our work here at Teagasc to Irish companies in an international sense is that this research can generate revenue. The bottom line is generating money and benefiting the health of consumers.”

taRgEtED RESEaRcHMIrIaM atkIns talks to teaGasc’s new assIstant dIrector of food research, dr Bryan hanley, aBout the IMportance of Market-led research and hIs aMBItIons for the IrIsh food Industry.

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functional offeringSo what about the functional foods sector and Ireland’s race to be at the fore of this consumer-driven phenomenon? “Functional food is a difficult nut to crack because lots of people are working on it but, if we focus, there are some areas waiting for us. Infant nutrition and the early programming of diets will offer long-term public benefits and these areas are hugely important. Ireland has all the expertise in these areas; we just need to apply it. But we also have to look at the baby boomer generation – those people who are currently in their 50s and 60s. It is about adding quality to life as opposed to just extending life. The things that inhibit people in life are cardiovascular problems, obesity, diabetes and osteoporosis and so we need to address these.” One of the current projects underway at Teagasc is the Eldermet project, which aims to improve digestive health in older people through a better understanding of intestinal bacteria. The Eldermet project is investigating the link between gut bacteria, food and health in the elderly in Ireland. As people age, the beneficial properties of intestinal bacteria appear to weaken, and the immune system also slows down. Changes in these bacteria are linked to inflammatory disorders and even

obesity. It is not yet clear which body defence functions and mechanisms are most dependent on gut bacteria, which is what Eldermet plans to find out.Controlling gut bacteria by changing the diet would then offer the chance to improve health - especially in older people. Bryan notes that it is a “courageous and interesting project”. “There aren’t many projects, worldwide, facing up to this issue. We are real trailblazers in this area actually.”“When it comes to developing innovative solutions, the Irish food industry is keen, interested and very globally aware. The real challenge is not just the big companies like Kerry, Dairygold, Carbery, etc, but particularly the small-to-medium enterprises. We need to connect to them and we have to make our science available to them in a format they can not only recognise, but also afford. Through Teagasc the Irish industry has access to a huge amount of relevant scientific research and we need to communicate to companies how they can use this effectively.”Bryan also highlights the Government’s efforts to fund food research and commends the support that is given to the industry. Currently, Teagasc is embarking on its Vision Strategy – a programme of research initiatives dedicated to improving Ireland’s competitiveness in the international

marketplace. Following a Government review, which prioritised the need to invest heavily in the food science sector, Teagasc’s Research Vision Strategy was put in place. Its stated aim is to achieve world-class competence in selected key areas. This will involve capital expenditure of €27 million and the employment of an additional 30 leading world-class scientists from Ireland and abroad. The key areas of work are Animal Bioscience; Plant Bioscience and Bioenergy; Environment and Land Use; Economics and Rural Research; and Food and Health Programme. Teagasc is presently recruiting a team of high international renown in the food research arena to lead the different projects as Principal Investigators. “Even in these hard financial times it is absolutely essential to fund this research. This research is taking us into the area of cell biology: looking at addressing problems such as obesity, which we could not do without the confidence of Irish public funding. My colleagues in Europe are very envious of the belief the Irish Government has in our knowledge economy. The Irish Government has been very brave to continue to fund this work in the current economic situation, but tackling health issues through food research is the long-term solution and the way forward. We are very ambitious but our goals are achievable.”

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IRISHFOOD reports on the latest research coMMIssIoned By Bord BIa - IrIsh food Board, whIch offers an InsIGht Into the MInd of the contInental european consuMer.

Bord Bia – Irish Food Board has commissioned an intensive study looking at the single most important ingredient in the food market: the consumer. PERIscope is Bord Bia’s biennial study that has been tracking the Irish, British and Northern Irish consumer since 2001. In 2006 Bord Bia expanded this study to include consumer views from five Continental European countries – France, Spain, Sweden, the Netherlands and Germany.Continental PERIscope provides a detailed perspective on how consumers view food related issues and report their behaviours. The 2008 study expands on the first study undertaken in 2006, allowing a comparison between countries now and also over time. During May and June of this year, Bord Bia commissioned fieldwork amongst a sample of adults over 18. A large, quantitative study of 1,000+ was undertaken through an on-line panel of households. To ensure an equal representation of each population, quotas were set against age, gender, region and social factors. Here, we examine some of the results from this study, and inspect the rapidly changing demands of the modern consumer – demands which Irish suppliers are well placed to meet.

under PressureThe 21st century brought with it an increasing emphasis on time. The ever-present tick-tock of passing time has

leaked into the food and drink industry, with consumers torn in all directions by time pressure, resulting in momentous change. In the past two years, Continental Euopean consumers have, according to PERIscope’s 2008 report, found themselves under increasing pressure due to their action-packed lifestyle. Convenience remains a strong factor in food choice where we see across all countries that adults are often too busy to cook, dinner is often a last minute choice and there is a greater tendency to pick foods that are quick to cook. There is evidence of a ‘time short’ society – although there is an effort to become healthier in eating patterns there is also a demand for quick meal solutions. In particular French adults report higher usage of convenience meals and ready-to-eat foods, however, levels remain lower than those amongst Irish and UK consumers.

cooking: a cHore or a creationIrish and UK adults lag behind their mainland European neighbours in regard to cooking expertise. The Dutch and Swedish in particular enjoy ‘dinner party’ style cooking – ideal for ‘premium’ or ‘connoisseur’ new/alternative produce/sauces/accompaniments. They are also not afraid to try new tastes, in line with an openness to advanced cooking skills.French and Spanish consumers are more

passionate about cooking (more so than any other country). Fun in cooking is experienced by the Germans, Dutch and Swedish. Those who feel cooking is important because eating well is important are the French and Irish.Whilst the Irish see cooking as important, they show a low skill set and find it boring whilst our European neighbours are more engaged with cooking and a love of food. The Spanish seek natural, fresh and quality foods, while the French want taste but time short options.Cooking methods used vary by each countries cultural background, whilst the Dutch, French and Germans stir-fry a lot, the Spanish boil (also stir-fry) and the Swedish fry. Steaming is popular in France, and there is increased ownership of a steamer in Spain by younger adults perhaps an emerging health trend for Spain.There is also a general agreement across all countries that meal times are important to families, to eat dinner together as a family.

HealtHy livingThe move to a healthier lifestyle among consumers across the countries is becoming evident, as the following trends show:• Sugaryfoodsarebeingavoided

(range 70 per cent – 84 per cent applies)

• Consumersareeatingmorelowfat foods (Ireland and Britain lower, Spain and France highest)

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• Consumersareincludingmorehighfibre foods in the diet

• Consumersarecuttingbackonconsumption of convenience/ready meals – this is most evident in the Netherlands, Spain and Sweden.

When trying to become healthier, the Spanish are most receptive towards “lower cholesterol” products. Other countries would increase the intake of these type of products but not to the same extent. The Swedish are least inclined towards vitamin and mineral enriched products, while fish has a huge ‘health’ appeal across Continental Europe.There is a varied reaction to carbohydrates such as bread, cereals, pasta, etc. in terms of whether they contribute to a healthy diet or not. Respondents in Germany and the Netherlands would heavily support consumption of these, Spain to a lesser extent and all others remain split.For milk and dairy, France, Germany, the Netherlands and Spain are in favour

of eating more of while Sweden, ROI (Republic of Ireland) and the UK are unsure.

linking food and wellnessThere is cross-country agreement of with the following statements:• “Goodfoodcanenhancebodyand

mind.”• “Tobehealthyitisimportanttoeat

properly.”• “Ithinkdietandlifestylearemore

important than medication in preventing heart disease.”

• “Agooddietcanhelpyourmentalhealth.”

Ownership of kitchen utensils perhaps reflects the move to healthier diets with a decline in ownership of deep fat fryers, most notable among Swedish, Spanish and Dutch adults. There is also increasing ownership of an electric juicer, especially in Spain.

grocery sHoPPing and food cHoicesAttitudes to shopping are similar across the countries, however there are some notable differences. Shopping is often planned around the weekly menu. Consumers shop in the same store but look for the best value by opting for private label brands and taking advantage of sales and promotions. Price is important in all countries particularly for the Netherlands where quality of fresh food is less important than price. Spanish, Swedish and Irish consumers place a premium on quality of fresh food.Dutch consumers are more price-sensitive and have the highest level of interest in sales and promotions. Impulse purchasing is strongest among Swedish and Irish consumers and weakest among the Spanish.Spanish and Swedish are more likely to rate branded products as superior to private label brands (the Dutch favour



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Meat, dairy and fruit and vegetables are all iMportant to european diets. foods that are easy to prepare and low in fat are appealing to all adults.

l try to eat a lot of fruit and vegetables.

l dairy foods are an iMportant part of My diet (lower within netherlands).

l it is iMportant to spend tiMe over dinner as a faMily.

l i like to try new foods.

l i enjoy eating out.

l i think frozen food is as good as fresh in terMs of quality (lower within sweden and ireland).

l Meat is an iMportant part of My diet.

l i tend to pick foods that are easy to prepare (lower within netherlands and gerMany).

l i try to eat foods that are low in fat (lower within sweden and ireland).

l i like to have aMple tiMe to cook/prepare Meals (lower within france, gerMany and ireland).

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private label potentially from the financial perspective). The report also shows that ‘pester power’ from children is more evident among French and German consumers.

Buying localFor the majority of consumers in all countries, ‘local’ refers to the province or the county in which they live. The French have a more mixed response, citing “province, farmers markets and close proximity to where I live”.Local food is most important to the French, Spanish and Irish (almost six in ten scoring it very/fairly important). The Dutch are strongly indifferent to local food with one third rating it neither/nor and a fifth scoring it as not at all important.Similarly the Dutch show the lowest levels of purchasing frequency – according to the report local food is not something that the Dutch actively take time to seek out or purchase whereas the Spanish are conscious of buying local: on average they buy weekly with a fifth buying daily. The French, Germans and Swedish on average buy local weekly.

environmental terminologyAwareness levels for environmental terms differ across countries. The majority of countries are not aware of food miles; of those that are aware, they predominantly relate it to the “distance food has to travel from producer to shop”.There is much greater awareness of the term ‘sustainability’ and it has some impact on the way consumers purchase their food. Sustainability impacts on almost half of all Swedish shoppers choices and over a third of French shoppers choices.All countries understand sustainability to mean, firstly, “meeting the needs of present without compromising future generations needs” and, secondly, “production practices that have no future effect on the environment”.The Spanish are most aware of the term “carbon footprint” (67 per cent) while only 39 per cent of Dutch adults have ever heard of it. One quarter of all Spanish, German and Swedish adults claim that carbon footprints impact on their shopping choices.

food laBellingEuropean adults find it difficult to understand labelling and the nutrition claims on food. They also state that they would like manufacturers to help them eat more healthily. There is a greater incidence of “always checking” for country of origin with the majority citing they want to know where their food comes from. This is quite strong amongst the Swedes with almost half always checking country of origin. The report states that the French and Spanish are most likely to check for a quality symbol, while a large proportion of Dutch adults do not look for either a quality symbol or for country of origin.‘Fresh’ as a label component is very important with an average of nine in ten adults across the countries stating they think it is very important. The highest ratings of fresh being very important are amongst Irish and Swedish adults. However, ‘natural’ as a label component achieves a marginally lower score on importance, except for the Spanish where natural is very important.

eating out There is a higher incidence amongst the Spanish, Swedish and Irish for having eaten out in the past seven days. Although there is a decrease for Spain in the incidence of eating out, it is still a very large part of their culture.The main reasons for eating out more are:• “Atreat/somethingdifferent.”• “Don’twanttowaitforsomething

to cook.”• “Chancetomeetupwithfriends.”• “Tootiredtomakesomethingat

home (longer working days).”• “Morechoiceofplaces.”

Outcomes from the Bord Bia Continental PERIscope study 2008 present a myriad of challenges for the food and drink industry, offering those operating within the food industry a valuable insight into the mind of the Continental European consumer. It is imperative that stakeholders in the food market take these challenges on board and work to meet the changing face of the European food market.

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commodity Prices Pressure food comPaniesUS food companies appear to be changing the way they view purchasing raw materials. In light of recent spikes in commodity prices, more and more companies are seeing the purchase of raw products as a long-term challenge and are courting major agribusinesses like ADM and Cargill to help them manage those costs. Traders at those companies are considered to have a better understanding of commodity price cycles.Historically, food companies enjoyed cheap and relatively stable raw material supplies. That began to change two years ago as commodity prices began moving higher. According to the US Department of Agriculture (USDA), average prices for wheat, corn, soybeans, soybean meal and soybean oil are all well above their 10-year averages. Solid domestic and global demand for dairy products, combined with tight global supplies, propped up dairy prices in 2007 and will keep them relatively high in 2008. High diesel prices are also affecting

transportation costs for packaged food companies. Packaged food companies faced high input cost inflation in 2007 and have given even higher preliminary input cost inflation guidance for 2008. There is typically several months of lag between commodity price changes and when they affect the financial results of packaged food companies. Each company is affected differently based on its product mix, hedging strategies and purchase contract structures.

Bad PePPers ignite consumer fears An Associated Press poll says that nearly half of US consumers have changed their eating and buying habits in the past six months because of worries they might become ill from eating contaminated food. The poll comes on the heels of a national salmonella outbreak that sickened more than 1,400 Americans. The outbreak was first linked to raw red plum tomatoes, but months later it was determined to have come from peppers imported from Mexico.

MIke wIlson reports on the latest Market and consuMer trends affectInG the food and drInk Industry In the usa

FROM tHE uSa …

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According to the Associated Press, 88 shipments of fresh and dried peppers were turned away by border inspectors as of January 2008 - ten per cent had salmonella contamination. In the last year, eight per cent of 158 intercepted shipments of Mexican peppers had salmonella. The outbreak is expected to cost the fresh produce industry - especially tomato growers - $200 million. The AP poll reveals that 86 per cent of those surveyed want produce to be labeled so it can be tracked from processors back to the farm, an issue that has divided the industry. The United States Country-of-origin labeling (COOL) legislation becomes mandatory this year. The rule covers beef, veal, lamb, chicken, goat, and pork as well as fresh and frozen fruits and vegetables. Food service establishments, such as restaurants, lunchrooms, cafeterias and food stands are exempt from COOL requirements.The salmonella occurrence, considered to be the largest food-borne outbreak of illness in the past decade, is causing produce businesses to rethink previous positions against broader regulations for traceability. “I think now that the industry is realising, based on this outbreak, that we need to have the ability to trace back so we can segregate where the problem is and not devastate the entire industry,” says Mike Doyle, Director of the Center for Food Safety at the University of Georgia.

ePa: etHanol not cause of food inflation The Environmental Protection Agency (EPA) denied a request by Texas Governor Rick Perry to waive half of the renewable fuels standard (RFS), a federal mandate to include a minimum of nine billion gallons of renewable fuel in 2008 US auto fuel supplies. EPA Administrator Stephen Johnson said careful review showed a lack of evidence supporting Texas’ assertion that the full RFS would cause severe economic harm to the US and Texas economies. Gov. Perry had cited ethanol’s affect on feed and food prices, despite a study by Texas A&M University researchers that the requested waiver would have little impact. The study was validated by economists at Purdue University, who tied most of the recent spike in corn prices to higher oil prices, which had in turn caused the demand for ethanol and corn to jump.The Grocery Manufacturers Association meanwhile has been leading a coalition of food and livestock groups who have continuously called for a reduction in the RFS and elimination of the ethanol blenders’ credit and import tariffs. Scott Faber, Vice President for Federal Affairs for GMA, says the fight for reducing the mandate isn’t over and adds his organisation is in “regular conversations with many governors” who are concerned about the increasing amount of corn diverted to fuel production.


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DaIRy REpORt

The European dairy markets are in flux, and the uncertainties have been exacerbated following the recent and dramatic changes in global food and energy prices. Given the current situation, Bord Bia (Irish Food Board) commissioned a report to examine the key demand trends that are evident in the European market for dairy products (both end-products and ingredients) and the implications of this for Irish producers. This study, which was carried out by Giract, provides an objective description of an opportunity space for exporting Irish dairy products and ingredients.

exPort oPPortunities in ingredientsExport market opportunities for ingredients from Ireland depend both on market dynamics as well as on the size and development of the ingredient trade in Europe.Market demand for dairy ingredients is returning to a new equilibrium after the major price swings over the last two years. It is too early to say at which price level they will stabilise but it is likely to be substantially higher (possibly between 25 to 50 per cent according to an OECD

report) than the 2006 level. This has left many food processors concerned about the future use of dairy ingredients. Overall, dairy ingredient demand will remain stable and grow slowly with the market. Further substitution may occur in the fat areas, where competition with vegetable fats has not played out completely, although it is believed that this will not take place in the current forecast period. The ingredient use of cheeses, butter and cream represent an important fraction of the total market for these products.Omitting the more difficult butter oil

Bord BIa has coMMIssIoned a report on the european daIry Markets, whIch exaMInes the potentIal areas of opportunIty for IrIsh daIry exports Between now and 2012. IRISHFOOD presents soMe of the fIndInGs.


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and cream opportunities, the export opportunities presenting the best potential incremental value in order of importance are:l Caseinl Butterl HSH (hard / semi-hard) cheesel Whey proteinl Industrial Mozzarellal Milk proteinOf all the ingredients, whey and milk proteins are believed to have the best long-term potential because there is room still for product innovation. De-mineralised whey products (DWP) and lactose continue to offer significant potential as long as European infant food production remains located in Europe, although it is assumed that relocation will not happen in this period.

ireland’s rePutation for quality Quality is a main tool for export. Irish products have consistently been regarded as being at the top end of the market in terms of quality, and hence the export strategy must exploit this by selling at the same price and emphasising the better quality. However, under the present high price conditions, price comes before quality. But, as prices come down in the future, the opportunity for higher quality products to make their mark once again will increase. A-brand producers are the most sensitive to the premium quality issue and will be the gatekeepers of this trend.

green ProducersSustainability surely holds potential for ‘green’ producers such as Ireland in the future but again, at the current prices, these concerns are unlikely on their own to present a competitive edge,. However, Ireland should cultivate this aspect carefully as being potentially beneficial. The one condition to be fulfilled is that the cost of the supply

chain from Ireland does not outstrip the sustainability benefits earlier in the production chain, mainly at the farm.The competitiveness of vegetable fats is also a great factor of uncertainty. Further butter and butter oil substitution programmes in ice cream and bakery may resume once the price difference becomes sufficiently important.

market focusThe most logical countries to focus on are Italy and Spain because they have a structural deficit in dairy ingredients. Spain is certainly the easier market to enter directly as Italy is much more fragmented and much supply goes through local distributors. Germany, on the other hand, presents huge trade opportunities for many ingredients and moreover has an attitude to naturalness and quality that is closer to what Irish suppliers can offer.Eastern Europe may present an interesting opportunity as the developing market is in need of quality ingredients and technical service.

market oPPortunityThe major market opportunity in terms of both volume and value for 2012 is HSH cheese. Cheddar will be the major product in all three presentations: branded, Irish provenance and commodity. Other HSH cheeses may be targeted by country. Ireland has already established a position in Emmental in France.Both processed cheese and industrial Mozzarella continue to offer opportunities, while Analog and cheese spreads offer very limited opportunities.Irish provenance continues to be the key. This has best resonance in the UK, where Ireland is seen as “part of the British Isles” and in Germany, where the green card is particularly valuable.

IrIsh products have consIstently Been reGarded as BeInG at the top end of the Market In terMs of qualIty

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A major development in the advancement of milk research was recently launched with the aim of delivering better health benefits for consumers and providing higher quality, innovative products in the Irish dairy market. The establishment of a NationalFunctional Foods Research Centre (NFFRC) has received €20 million funding from Enterprise Ireland*, who have worked extensively with four leading dairy companies including Dairygold Food Ingredients, Glanbia Nutritionals, Carbery and Kerry Ingredients to develop a medium for maximising the commercial value of their primary products. The research consortium also includes: University College Cork (UCC); UniversityCollege Dublin; University of Limerick; and Teagasc (the Irish agriculture and food development authority). Led by University College Cork (UCC) – the administrative base for the centre – the four Irish food companies will undertake a research agenda that will include extracting bioactive molecules from milk to develop ingredients that when added to products like yoghurts, dairy spreads, cheese and drinks, can have beneficial effects for those with conditions like cardiovascular disease and colon cancer.These bioactive molecules will also be tested to measure their impact on obesity, insulin, sensitivity, immunity, infection issues and early infancy development. A specific research strand will also focus on developing ingredients to improve infant formula so that babies can get nutritional benefits similar to those in breast milk.Commenting on the development, Dr Paul Roben, Enterprise Ireland, said: “By agreeing to work together to develop a strategy for their sector, these companies have identified a range of high-value products that when brought to the international marketplace will lead to increased exports and create employment and we expect that the industry will benefit in a number of ways. We anticipate that as the centre grows, more companies will become involved from sectors such as pharmaceutical and biotech companies.”

*Enterprise Ireland is the Government agency responsible for the development and promotion of the indigenous business sector.

Dan Browne, Chairman of Bord Bia, has received a special award from the Agricultural Science Association (ASA). Recognised as one of the outstanding achievers in the Irish food industry, he was lauded by the ASA for his ‘outstanding contribution to the profession of agriculture and to the agriculture and food industry over the past 50 years’. Dan Browne’s career in the food industry spanned many and diverse aspects including his early work as a research scientist involved in grassland research at Johnstown castle in Wexford after his graduation in agricultural science from UCD. From there he became heavily involved in establishing a world-class dairy research centre at Moorepark in Cork. That was at a time in the early ‘60s when the Irish dairy industry was in its infancy with low cow yields, basic product manufacture and low levels of dairy research. Such was the high regard that Dan Browne was held that he became a presenter of dairy advisory programmes on Irish television in the early 1970s just as Ireland was entering the EU and embarking in a massive dairy expansion programme both at farm and factory levels. Dan Browne then took an entirely different course in his long and varied career when he joined the private sector, becoming manager of the then Cork Marts-IMP meat plant at Midleton, Co. Cork. Six years later in 1980 Dan, together with the Waterford-based Queally Brothers, set up Dawn Meats, which went on to become one of the biggest meat processors in Europe. He still found time for public service, becoming Chairman of Teagasc, the Irish Agriculture and Food Development Authority for a five-year period and is currently Chairman of Bord Bia, the Irish Food Promotions body.

Bord Bia cHairman Honoured

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the funding for the establishment of the national functional foods research centre was formally announced by an tánaiste mary coughlan, minister for enterprise, trade and employment, with feargail o’morain, enterprise ireland.

Partnering in nutrition



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Best PracticeProfessor Patrick Wall, Chairman of the European Food Safety Authority, gave a strong warning to the food industry when he spoke at the annual conference of the Animal and Plant Health Association (APHA) (Ireland) recently. The theme of the conference related to animal health issues and Professor Wall said that the growing trend towards convenience foods increases health risks unless high standards are maintained along the entire food chain. His warning was based on the fact that the longer the food chain and the more ingredients in convenience products the greater the food safety risk. The University College Dublin based lecturer had high praise for all of those involved in Irish food production and processing. However, he said, the ever lengthening food chain poses challenges for everyone involved. This is because the more ingredients involved in producing convenience products then the more difficult traceability becomes in the event of a recall being necessary due to contaminated product.In highlighting the issues involved Professor Wall added that there can be no room for complacency, in order to maintain and increase Ireland’s marketshare in what is a very intensive and competitive international marketplace. Prof Wall also highlighted the fact that laboratories across Europe are sharing information on food and food ingredients so that early identification and traceability of any food products that are at risk can be quickly established. Bar coding involving forensic microbiology is now being used to identify pathogens in food, livestock and processing facilities so that any instances of food contamination can be quickly traced. His advice to the industry is that Ireland needs to continue strengthening its own food analysis facilities so that the highest safeguards remain in place and, in the event of a problem arising, the industry would have the capacity to trace food products and ingredients back to their origin and minimise the risk to the consumer.Prof. Wall concluded that by continuing to invest in food surveillance methodology Irish producers can ensure the maintenance of safety standards that will provide the necessary reassurance to our customers and allow us to continue to market ourselves as ‘Ireland - the Food Island’.


New research commissioned by Bord Bia - Irish Food Board, with the assistance of innovation insight and consulting firm Innovaro, looks to examine the future landscape of the global food and drink industry. The study, which was undertaken in the Spring 2008, set out not only to determine key future trends that will occur in the food arena over the next decade, but also to assist food and drink companies by identifying opportunities for growth that may occur in the future. The programme developed a vision of the future drivers of change on food production and consumption over the next 10 years. The main programme event involved workshops that brought together a unique mix of leading-edge sources of insight to identify major future changes. The programme brought

in experts from semiotics, human nutrition, premium catering, food media and technology trends, who were joined by companies such as Glanbia, Kerry Foods, Danone, Irish Distillers Pernod Ricard, Sainsburys, Arup and Shell. According to the report, it is the relentless growth in the world’s population that is acting as the fundamental factor driving the demand for food worldwide. An underlying cause for the expanding population is the fact that people are living longer, with the number of those aged over 60 expected to triple from 705 million in 2005 to a massive two billion by 2050. And with this comes a growing appetite for food. In 2008 for the first time in history the proportion of the population living in urban areas will reach 50 per cent. Globally, this shift will see 70 per cent of the world’s population absorbed by urban areas by 2050. This affects alterations in diet, which the report identifies as intensifying the demand for feed grains, meat and dairy products. Coupled with income growth, a shift in dietary habits and the income effect of migration from low to high-income regions, this drives international demand and, significantly fortifies food commodity prices. With a massive 70 per cent of the world’s water used in agriculture, the scarcity of the renewable but finite resource in coming years will spark an increasingly urgent supply constraint. According to the research, by 2025 1,800 million people worldwide will be residing in regions with water scarcity, a situation that may be heightened as growing urban areas place pressure on neighbouring water resources. Such a scarcity will result in rising prices, water wars and issues with both bottled and embedded water.Climate change is also addressed in the report, which states that increases in the frequency of ‘freak weather’ have potential implications for agriculture and food supplies. Whether due to drought or floods, farming is more vulnerable to weather conditions than ever before, with a potential for market and price volatility not previously experienced. Sustainability is paramount going forward and the report notes that climate change will ensure that there will be a continued focus to achieve sustainability in supply chains with full recyclability.

tHe landscaPe of tHe future

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