Bernard Durkan (Kildare North, Fine Gael)
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306. To ask the Minister for Agriculture, Food and the Marine the extent to which he continues to facilitate, promote and nurture the artisan food sector here; and if he will make a statement on the matter. [12726/17]

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 have grown 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. Recognising the value of the sector and its development and employment potential, FoodWise 2025 recommended actions to support it, 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 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 a year at farm gate level. My Department has supported a three year Bord Bia programme under the EU Promotion regime. It is estimated that output of farmhouse and specialty cheese could increase to over 4,500 tonnes a year and €33m in value 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 support package delivered nationally by the Local Enterprise Offices. This collaborative approach ensures that early stage companies develop skills and capabilities through a ‘learn by doing’ approach. Over 300 companies have been given the opportunity to get product on the Food Academy fixture. 

As a follow on to Food Academy Start, a select number of companies annually are identified as having high potential and progress to Food Academy Advance, an advanced stage, where they have access to expertise in branding, market research, business development and distribution, with the aim of scaling up production and even securing a national listing.  In all, 13 companies were signed up to start Food Academy Advance in February 2017, the third wave of companies to participate on this programme.

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

Farmer’s markets and other direct routes to market continue to play a vital role to companies in the start-up phase and beyond by giving low risk market access and direct consumer feedback. Food Wise 2025 recognises the importance of direct selling and includes a recommendation for the introduction of a Direct to Consumer development workshop. Bord Bia developed a regional workshop programme in 2016 to help support new and existing members of the food market network as they seek to grow their business directly with consumers.  These were expanded in 2017 and workshops have taken place in Dublin, Donegal, Cavan and Kerry.

The Food Market at Bloom 2017 also provides a platform for marketing, promotion and sales for up to 62 food and drink producers to reach around 100,000 consumers. The Food Market at Bloom is an established feature at Bloom and is also an important showcase opportunity for producers with trade buyers, from Ireland and the UK.   It increases awareness of smaller and new food companies and provides an opportunity for food companies to engage with and sell directly to the consumer.

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.