Mr. Paul Kelly:

We thank the joint committee for inviting us and commend it for holding these meetings on this vital issue. We welcome the opportunity to appear before it. I am joined by my colleague, Mr. Shane Dempsey, head of consumer foods, who will make the majority of the presentation. I will make some introductory remarks on the overall position in the agrifood sector.

Agrifood is our most important indigenous industry. In total, between direct jobs, indirect jobs and linkages with the wider agricultural and rural community, approximately 230,000 people are employed in the sector, or one in eight jobs in the economy. That is the same of number of jobs as there are in the car industry in Germany. It is, therefore, our single most important industry. As we have seen in some of the announcements made in recent days, it has its highs and lows. It is under a lot of pressure in the domestic marketplace, but at the same time it is at the cutting edge of innovation in the overall food sector, not just on an Irish or European basis but on a global basis.

The profile of the food industry includees 690 enterprises, 94% of them being SMEs and 6% being large companies. Many of them have a strong export focus, but they also supply the domestic market. We sell about €9 billion worth of goods into the economy and about €9 billion into overseas economies. Food Harvest 2020, the strategy housed in the Department of Agriculture, Food and the Marine, was strongly industry-led in its development and has a vision of smart, green growth, with an ambitious export target figure of €12 billion by 2020. The industry is strongly linked with the broader economy and accounts for two thirds of exports by Irish companies. We purchase €11.5 billion worth of raw materials, other products and services in the domestic economy, while accounting for 90% of agricultural output.

There are key drivers in the industry. Competitiveness is vital, as is the brand, regardless of whether one is selling directly to the consumer or other businesses. Reputation is very important. Food safety underpins any food business operator in this or any other state. The reputational issues that flow from this are of vital importance to the food industry, as we attempt to maintain and grow our share of the domestic market and, particularly, export markets. From our perspective, it is vitally important that the image of the food industry and its reputation are not just protected but also enhanced.