Bernard Durkan (Kildare North, Fine Gael)
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89. To ask the Minister for Agriculture, Food and the Marine to outline the extent to which he sees scope for further development in the food ingredient sector; and if he will make a statement on the matter. [7248/15]

Simon Coveney (Cork South Central, Fine Gael)
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Long term global trends - population increases, urbanisation, a growing middle class and increasingly affluent new markets, particularly China and India and other Asian countries – are placing huge demands on world food resources and provide opportunities for food ingredients. Global trends in health and wellness, 'naturalness', nutritional awareness and convenience are also driving sophistication in recipe development and ingredient selection.

Ireland is well placed as we produce high quality, safe and sustainable ingredients. The dairy sector is gearing up to increase production by 50% by 2020 and value added ingredients can provide a market with less price volatility than commodity production. One major opportunity is supplying dairy ingredients to infant formula manufacturers. Exports of infant formula have increased by over 55% since 2010 to c. €920m and there is further potential for growth as infant formula manufacturers increase their Irish manufacturing footprint. Market opportunities are also expanding for dairy powders and proteins, butter and cheese ingredients which are used in a very broad range of functional foods, clinical, paediatric and sports nutrition products.

The prepared consumer foods sector is a major market for meat and dairy ingredients and there is a positive trend in demand for particular products and export markets. The Irish food industry includes suppliers of ingredients such as micronutrient premixes, seasonings, brine and cure ingredients, prepared sauces, stocks, and marinades, baking aids, Individually Quick Frozen (IQF) meat and vegetable ingredients. These suppliers are developing new business in European and Middle Eastern markets.

Ireland has also significant opportunity to develop new marine ingredient industries. There is strong demand from international companies for sustainable, high quality marine ingredients such as oils, calcium and proteins as well as fish oil for direct human consumption. New supplies of marine ingredients may be found in underutilised species such as krill and boarfish.

Market insight, manufacturing and R&D capability will be key to growth. The development agencies and research bodies are working closely with food companies to facilitate this. On the market side, Bord Bia research into end users of dairy ingredients in world markets has provided insights for Irish companies seeking to expand their export footprint exporters. Promotion of Ireland as a leading source of sustainable dairy ingredients has increased awareness of what we have to offer. Companies may avail of Bord Bia market insight services across sectors and also attend trade fairs such as Food Ingredients Europe which is taking place in Paris in December.

Teagasc Moorepark provides world class support in the dairy research area to companies exporting worldwide. In strengthening their technical and product development capability, companies can and do leverage the capabilities of Teagasc and the Universities.

Sustained growth requires targeted investment. Capital investment under the Dairy Fund, administered by Enterprise Ireland on behalf of my Department, has been followed by further major investments in manufacturing capacity and capability, in many cases supported by Enterprise Ireland. Food for Health Ireland (FHI) and the Dairy Processing Technology Centre (DPTC), both supported by Enterprise Ireland, are focused on developing next generation dairy ingredients. The investment by Kerry Group in its Global Technology and Innovation Centre at Naas and R&D initiatives by other food companies, highlight the potential for dairy ingredients. Initiatives in other sectors are under consideration.

In summary, there is considerable scope for further development in the food ingredient area.