Mr. Mark Christal:

I thank the Cathaoirleach and the committee for the invitation to address it this evening. Enterprise Ireland helps manufacturing and internationally traded services companies to start, scale and grow businesses in international markets.

We work with export-focused companies across all regions and sectors of the economy, predominantly with SMEs, supporting them to improve their competitiveness and productivity, increase innovation and achieve their full growth potential. This growth results in direct and indirect employment and economic growth across all regions of Ireland. We also work with the network of 31 local enterprise offices, LEOs, through our centre of excellence to support the growth of microenterprise across the country.

In 2022, Enterprise Ireland, EI, companies directly employed 218,178 people, with 68% of these jobs outside Dublin. In 2022, EI-backed companies employed over 218,000 people across Ireland and generated more than €32 billion in exports. The EI client companies represented in these figures cover a vast range of sectors, including but not limited to construction, energy, engineering, food and drink, medical devices, ICT and pharmaceuticals.

In respect of the food sector, EI’s annual business review reveals that 50% of exports in 2022 were in the food and drink sector. This sector saw very strong growth in 2022, with the value of exports increasing by 23%, though some of that is accounted for by inflation, particularly in the dairy sector. In 2022, dairy, beverage and food FDI exports increased by 28% to €9.3 billion, primary meats and food technology exports increased by 17% to €4.59 billion and prepared consumer foods, seafood and horticulture exports increased by 11% to €1.91 billion. We also include climate, sustainability and agritech exports in this general sector and they increased by 12% to €364 million.

EI focuses on two main categories of companies: established companies with an exporting footprint and start-up companies looking to bring added value to Ireland’s strong food sector. We assist established brands in the food sector to access new markets or expand in existing markets using our network of 39 overseas offices. We also work closely with these companies to support research and innovation in production processes that result in new value-added products or ensure access to new markets and compliance with country-specific food import regulations.

A recent example of Government support for these companies in co-operation with EI was the capital investment scheme for the processing and marketing of agricultural products, which has seen approximately €100 million of public money utilised to support 34 important development projects in established food processing companies in the dairy and meat sector. This investment will ensure these companies can anticipate changing consumer demands, diversify their offering to increase the prominence of value-added products and access new markets in the medium to long term, thereby ensuring sustainable growth of this vital sector.

The second main area of activity for EI in food and drink is in supporting innovative start-ups to grow and thrive. Innovation is vital to the long-term success of the Irish economy and a core part of EI’s mission is to support start-up entrepreneurs and their teams. We do this by financially supporting promising start-ups, developing the capability of their management teams, supporting research and innovation and exploring overseas market development. We also work with our partners Teagasc and Bord Bia through the food works programme to nurture and develop food start-ups in Ireland.

In respect of the sheepmeat sector, our door is always open to new companies with viable ideas that can benefit from support, expertise and insight. That is the core mission of the agency. We are open to all new business ideas and will go out of our way to support entrepreneurs in the sheepmeat sector. It is not in our remit to support primary producers, that is, what is produced within the farm gate. Our main focus currently in this sector is to support processors exporting cuts of lamb to a range of markets, in partnership with our colleagues in Bord Bia, who focus on the marketing opportunities in these global markets. EI-supported companies in the primary meats sector, including sheepmeat, had exports of €4.5 billion in 2022, an increase of 17% on 2021. Total sales were €7.5 billion, an increase of 19% over the same period. The sector supported approximately 20,000 jobs across the regions outside Dublin, which was an increase of 1% on 2021. In 2022, for a third consecutive year, Irish sheepmeat exports recorded value and volume growth. The value of sheepmeat exports increased by 15% to €471 million while the volume of exports increased by 12% to 76,000 tonnes over 2021.

Domestic consumption of lamb accounts for 15% of total production with 85% exported. Some 75% of our exports are to Europe. European exports increased by 18% to €353 million in 2022. France remains the largest export market at 40%, followed by Germany, Sweden, Belgium, Denmark, the Netherlands, Luxembourg and eastern EU countries. Exports to the UK increased by 15% to €78 million in 2022, driven in part by some of the major Irish lamb processors optimising utilisation of their UK operations. Exports of sheepmeat to international markets grew by 15% in value terms.

sheepmeat exports during the first four months of 2023 were valued at €148 million, a 5% decline from the corresponding period in 2022, representing weaker lamb trade in key markets due to inflation and weaker consumer demand. Opportunities for exports to the US and China are emerging with Bord Bia and the Department of Agriculture, Food and the Marine working to address trade and market access issues for these jurisdictions. Australia and New Zealand remain the major competitors.

Under the 2008 beef and sheepmeat investment fund, 15 projects across the sector were supported with grant assistance of more than €69 million toward a total investment of €168 million. The objective of the fund was to support investment to increase scale and efficiency in primary processing, and added value in further processing for retail, food service and manufacturing outlets. The €100 million capital investment scheme for the processing and marketing of agriculture products, administered by EI, opened in January 2021 and closed in November 2022. So far, it has supported 34 projects in primary food processing plants across the country. The total public and private investment exceeded €420 million. The scheme supported transformational capital investment in SMEs and large companies to enable them to pursue product and market diversification strategies to achieve greater value add. The investments will assist companies to strengthen their operational capability and sustain the agrifood sector into the future.

Other funding that our primary producers have availed of include capital investment initiative for equipment; research, development and innovation, RDI, for new product and process development; lean and digitalisation supports for improved operational efficiencies and sustained competitiveness; management training; and more recently sustainability measures to address emissions targets.

EI also continues to invest in research and development in the primary meat sector through collaborative research, specifically in the meat technology centre, known as Meat Technology Ireland, MTI. MTI is an industry-led technology centre which brought together the beef and sheepmeat processing sector to work collaboratively for the first time. MTI enables highly competitive companies to come to the table, develop research projects, share know-how and address industry challenges. Phase 1 was approved in 2016 with core funding of €5.7 million. Phase 2 commenced in 2022 and was approved for €7.4 million with considerable additional scope for work on sustainability and digitalisation of this important industry. In supporting companies in this sector, EI’s focus is on the business opportunities, particularly overseas, that follow from primary production. That is where our expertise and statutory responsibilities lie.

The committee in its hearings has heard of the potential of the sheepmeat sector and in particular the sheep milk sector. EI will support innovative, export-focused businesses that seek to develop that natural resource into a commercial product. Our door is open and entrepreneurs looking to develop in this sector are welcome to explore how we can build thriving businesses, providing employment across all regions in Ireland.