Oireachtas Joint and Select Committees

Tuesday, 16 October 2012

Joint Oireachtas Committee on Agriculture, Food and the Marine

Review of Food Harvest 2020 Strategy: Discussion (Resumed) with Irish Dairy Board and Bord Bia

2:25 pm

Photo of Paschal MooneyPaschal Mooney (Fianna Fail) | Oireachtas source

I am sure I speak for every member when I say the work the Irish Dairy Board has been doing and continues to do is impressive. I know the jewel in the crown is Germany, but I am curious to know if the shamrock has been abandoned as a brand? I am aware there was a court case in Germany, but is the shamrock used elsewhere?

In the context of the key branded product categories, I assume - they might expand on this point - the delegates spend a considerable amount of time on testing various packaging. The Kerrygold butter brand has been hugely successful. I do not believe it has ever been changed since it was first introduced. I was an emigrant in London in the late 1960s and early 1970s when I saw it with great pride. It has been kept, but in the case of the cheese and milk powder products, I am curious to know how the particular colourings were arrived at and whether they have made an impact in selling Ireland, or is the objective just to blend in with other food products?

On investing in new products and finding new markets, are the delegates involved in co-ownership arrangements in any of the markets in which they are involved, or how do they get into these markets? I presume they market test their products and then launch them, but do they have local partners into which they buy or share with? I ask that question because I note they are moving into sub-Saharan Africa to the Democratic Republic of Congo, Angola and Nigeria. There is a company in Zambia called Zambeef Products - I am not sure if the delegates are familiar with it - which is headed up by a Limerick man, Mr. Francis Grogan, who worked either with Bord Bia or the Irish Dairy Board before emigrating to Zambia. I know this because I was a member of a delegation which visited Zambia in 2006 when we were introduced to him. I declare an interest in the sense that following that visit I bought a small number of shares in the company which I watch assiduously. They have not gone through the roof because in recent years the Zambian kwacha has been devalued, but I believe the business is now one of the leading food companies in Zambia and that it has started to expand into Nigeria and other African countries. It has its own manufacturing and distribution networks. It produces chicken and beef products. I do not believe it produces dairy products, mainly because of the type of animal it has, but I do know it is now involved at a local level in retail outlets located across Zambia. I raise this issue, first, because I want to bring it to the attention of the delegates and, second, to highlight the Irish connection.

In terms of having a marketing strategy and trying to break into new markets, obviously the delegates are looking at Africa. We all talk about China, but Africa is increasingly becoming more developed. It is developing a larger middle class with more consumer spending power. The delegates have identified Nigeria in particular in that regard. That is the reason I have focused on that aspect, but in terms of marketing, how do the delegates decide on the packaging for their products? Do they change it often and do they retain it once it proves successful? The food industry is so competitive and the major food companies, Nestlé, Kelloggs and others, are constantly changing their packaging. I know it is expensive to do this, but I am curious to know the delegates' policy position in that regard.

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