Mr. Mike Neary:

I thank the Chairman and members for the invitation to address the committee this evening on the challenges facing the fruit and vegetable industry in Ireland. The horticulture industry is an important sector of agriculture, with an estimated output value of €531 million in 2022 at farm gate prices. Horticulture food crops represent more than 80% of this output value, at €431 million, with amenity horticulture, that is, non-food crops, making up the remaining 20%, at a value of €100 million. The industry produces a wide range of food crops, including potatoes, mushrooms, field vegetables, fruit and protected crops, which are primarily sold on the home market. There is a key focus on the retail channel, although an important export channel exist for mushrooms that are supplied into the UK market. Employment in horticulture is estimated at 7,000 full-time in primary production, with a further 11,000 employed in downstream businesses.

Recent seasons have been challenging for the fruit and vegetables sector, with a number of contributing factors. This has resulted in overall consolidation within the industry, some grower exits and a reduction in the production area of certain crops. Existing growers are becoming more specialised and heavily invested to remain competitive in an increasingly challenging environment. Key challenges include the high costs of energy and overall higher costs for key inputs, the difficulty of securing sustainable returns from a competitive marketplace to cover increased costs and capital investments, access to and availability of an adequate supply of labour, particularly in the busy growing and cropping season, land availability to manage crop rotations, reduced availability of plant protection products to maximise plant growth and yields, and the cost and availability of growing mediums. These challenges all arise in the context of growing crops in a climate that can be difficult and challenging at times. We have seen that this year, with periods of drought followed by excessive rainfall, which have a significant impact on the field and harvesting operations.

Current consumer trends are creating opportunities to grow the demand for fresh produce through highlighting and reinforcing the role it plays in contributing to a healthy balanced diet. The Irish public is currently consuming below the recommended number of daily portions of fruit and vegetables. This presents an opportunity for growth, as already stated. In addition, as Ireland imports certain fruit and vegetables that could be grown here in season, and as climate change and Brexit pose greater challenges to international supply, there are and will be import substitution opportunities for horticulture in Ireland. Food security is important and horticulture should continue to play a central role in maintaining national food security for fresh produce.

Bord Bia collaborates and works closely with the horticulture industry across a number of programmes and initiatives. Bord Bia is a member of the Horticulture Industry Forum, which includes grower representatives and other State organisations. The forum, which facilitates co-operation among stakeholders, recently contributed to the National Strategy for Horticulture 2023-2027, which was launched in June. Bord Bia is implementing a number of significant three-year promotional campaigns on the domestic and UK markets to promote increased sales and consumption of horticulture produce.

These include campaigns for fruit, vegetables, potatoes and mushrooms on the domestic market and also for mushrooms in the UK, our key export market. Our Food Choice Matters campaign, which is underpinned by the Bord Bia quality mark, features horticulture strongly and, with a high level of recognition of the mark by consumers, it provides an important signal of the origin and quality of local fresh produce on the supermarket shelf. We also activate and support a number of school programmes that have the promotion of increased fruit and vegetable consumption and eating a healthy balanced diet at their core.

Bord Bia promotes and supports the amenity horticulture sector through our gardening promotion campaigns and the EU Green Cities programme, which is aimed at greening our cities and urban areas and creating sales opportunities for local plants. Bloom is our major gardening and food event. It is held for five days over the June bank holiday weekend every year and attracts over 100,000 visitors. It is a showcase for our food, drink and horticulture sectors and brings our food and plant producers front and centre with the public, building awareness and sales opportunities for participating businesses.

Bord Bia provides a range of client capability services on an individual basis to the industry. These include the development of marketing strategies, provision of market insight, building skills in the areas of category management, negotiation and digital and improving lean performance at business level. Bord Bia also provides support to many organisations and associations that support and represent the interests of the different sectors of horticulture.

I thank the Cathaoirleach for inviting Bord Bia to address the committee this evening. My colleague and I are eager to respond to any queries members may have. If we are unable to provide the required detail, we will follow up with the individual members. I thank members for their attention.