Bernard Durkan (Kildare North, Fine Gael)
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178. To ask the Minister for Agriculture, Food and the Marine the extent to which the artisan food sector continues to develop; the potential for the future; and if he will make a statement on the matter. [37980/16]

Michael Creed (Cork North West, Fine Gael)
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The artisan and speciality food sector was valued at c €632 million across the island of Ireland in 2014 including €462 million in this jurisdiction, with over 350 producers employing more than 3,000 people. Growth prospects for the sector are positive overall, driven by increased consumer interest in the provenance of food, environmental concerns, health and a desire to support the local economy. While the possible impact of the UK referendum on consumer sentiment remains to be seen, it is estimated that the sector may grow in value to €700 million in 2016, including €500 million in this jurisdiction.

Artisan and speciality food businesses can have a significant impact on local economies as businesses are typically owner managed and may be closely linked to local farms. The FoodWise 2025 strategy recognises the value of the sector and its development and employment potential. Food Wise 2025 recommends actions to support the sector to realise its potential, including festival markets, a pipeline for new entrants to the Artisan Food Market at Bloom, promoting meet the buyer opportunities, delivery of small business specific consumer and market insights, and programmes to assist producers to extend business reach. A number of artisan businesses have participated in successful programmes such as Food Academy (developed by Bord Bia, Local Enterprise Offices and Musgraves/Supervalu and delivering growth and jobs) and Food Works (developed by Bord Bia, Teagasc and Enterprise Ireland for start-up food entrepreneurs).

The farmhouse cheese sector alone includes over 50 cheese-makers producing more than 150 types of cheese valued at over €12 million per annum at farm gate level. My Department has supported a three year Bord Bia farmhouse cheese programme under the EU Promotion regime. The output of farmhouse and specialty cheese could well increase to over 4,500 tonnes a year, worth c. €33m without significant additional capital expenditure.

In terms of small food businesses in general, close to 500 food companies with a turnover of €100k-€3.5m are registered with Bord Bia for supports and services. These owner managed businesses tend to produce high-end products with a strong focus on the domestic market.

In addition, over the last 5 years over 400 new companies with revenues of less than €100k have entered the sector. Through the Food Academy Start programme, these companies typically start with a standardised support package delivered by the Local Enterprise Offices nationally. This collaborative approach ensures the skills and capabilities of early stage companies are developed through a ‘learn by doing’ approach and over 300 companies have been given the opportunity to get product on the Food Academy fixture.

Although taken singly these businesses are small, cumulatively the Irish small food business sector is a critical component of and contributor to the strength of local and rural economies. It is well recognised that entrepreneurship is the seedbed for innovation and supports such a Food Works help to embed the culture and belief in scalable start-ups through innovation.

Farmers markets remain a valuable entry point for many potential food entrepreneurs and those building a local and visitor customer base. In November Bord Bia ran a series of workshops for farmers markets – in Limerick, Cork, Galway and Wicklow. Total attendance was 109, exceeding the Bord Bia target of 80, and included experienced market holders as well as start up and potential producers. Feedback was very positive and Bord Bia is now considering developing a programme for market managers to support the development of this important local route to market.

For a number of years my Department has provided bursaries for the UCC Diploma in Speciality Food Production, a food science and business course for food producers, potential start-ups and those interested in developing businesses and /or promoting the artisan sector. Over 180 students have graduated, many are successfully running small artisan and speciality food businesses. My Department will continue to fund bursaries over the next 4 years to maintain this momentum.