Noel Rock (Dublin North West, Fine Gael)
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306. To ask the Minister for Agriculture, Food and the Marine the actions his Department are undertaking to increase the levels of innovation in food processing; his views on a person's (details supplied) opinion that levels of innovation in this sector are low; his views on whether the State is falling behind on this ahead of Brexit; and if he will make a statement on the matter. [17046/17]

Michael Creed (Cork North West, Fine Gael)
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Innovation is an important cross cutting theme of the Food Wise 2025 strategy and is crucial to achieving the future sustainable development of the sector, particularly in view of the challenges arising from Brexit.  Food Wise identified gaps in translating research into products and practice, and in industry capacity to absorb new research.  The Food Wise High Level Implementation Committee (HLIC), which I chair, reviews progress on Food Wise and has agreed that as well as providing technical supports for innovation, innovation needs to be embedded as a core value by food companies themselves, and staff need to be equipped to manage innovation. 

My Department and relevant agencies are providing significant supports for innovation. Between 2010 and 2016 my Department provided funding of over €65m, on a competitive basis, to higher education and other public research institutes for food related research through the Food Institutional Research Measure (FIRM). One of the main areas funded is ‘Food Processing Technology and Engineering’ where funding amounted to c. €20.5m for 35 collaborative inter-institutional research projects during the period.  A further €20m was invested to support research in 38 projects under the areas of ‘Functional Food & Health’ and ’Food Product Development, Formulation and Sensory Science’ and, in addition, another €9.8m was funded in the area of ‘Food Chain Integrity and Safety’.

A key output of FIRM is to train early stage researchers at PhD and postdoctoral level in the specialist skills relevant to the Irish food sector, providing a pipeline of skilled scientists ready to take up RDI positions in the food processing industry.  My Department also funds the Agrifood and Forestry Graduate Development Programme (AFGDP) which equips newly trained researchers with transferable managerial skills needed for smooth entry into the food industry.  My Department also supports agriculture and food themed projects that prove successful in competitive Calls under the Irish Research Council’s Employment-Based Post Graduate programme.  These competitive supports are guided by the ‘SHARP’ strategic research and innovation agenda drawn up by a DAFM-led cross-funder Working Group under the National Research Prioritisation Exercise and assisted by an industry-led broad stakeholder research advisory group hosted by my Department.

A key recommendation of Food Wise was a greater focus on consumer insights in driving future investment in research, development and innovation. This recommendation has been followed by Bord Bia in establishing “The Thinking House”, an innovative and industry-focused centre dedicated to bringing insights from consumers, often in distant markets, back to Irish food producers to inform product formulation, development and marketing.  Some 80% of New Product Development fails due to lack of consumer insight.  The team at the Thinking House already work with over 100 manufacturers embedding the principles of design innovation and insight to build business and partnerships with multi-national players.The Thinking House also aims to close the gap between research and consumer needs, leading to better value for money and greater return on investment for R&D centres and promotion of an interdisciplinary approach to solving marketing questions by working with academia to overcome the barriers they face. 

Innovation and entrepreneurship can be closely linked.  Food Works, an entrepreneurship initiative by Bord Bia, Enterprise Ireland and Teagasc, centres on start-up businesses with the potential to scale up quickly and make an impact internationally. A survey in 2016 found that 60% of Food Works alumni are trading, with 32% involved in exports.

Enterprise Ireland has supported the innovation agenda with a targeted focus on supporting food and beverage clients to enhance their competitiveness and innovative capability.  My Department funds Enterprise Ireland innovation vouchers and lean competitiveness programmes in relation to food and beverage companies.  Enterprise Ireland also support R&D direct company funding and  technology centres and have developed an Innovation 4 Growth Programme to assist companies to diversity into new products and Innovation Partnership funding (third level and company collaboration) .  A third Innovation4Growth programme is due to commence in the second half of this year. 

The Dairy Processing Technology Centre (DPTC) is a €25m investment supported by the Department of Jobs through Enterprise Ireland and the dairy industry partners and will be hosted by the University of Limerick.

Teagasc and dairy industry shareholders are investing €10 million in the expansion of the Moorepark Technology Ltd (MTL) pilot plant facility in Fermoy Co. Cork.  This will provide a platform to support the ambitions of the dairy industry to produce value added foods and ingredients for international markets.

The “Meat Technology Centre” is a virtual centre hosted in Ashtown, Teagasc.  Composed of 9 leading Irish meat companies and 4 Research Organisations (Teagasc, DIT, UCC and ICBF) it will benefit from an €8m investment over 5 years is €8m made up of contributions from Enterprise Ireland and the meat industry.

In overall terms, Teagasc annual spend on research is some €68m.  Teagasc, working in conjunction with other national development agencies, provides a comprehensive support service for the food processing industry with a particular focus on supporting small and medium- sized enterprises (SMEs) and start- up food businesses.

The strategic aims of the Teagasc Food Programme are to increase the level of scientific innovation in Ireland’s food processing sector , to support innovation, growth and export capability in food industries, to improve and develop the safe and clean image of Irish food products and to ensure viable technology transfer from Teagasc research programmes to industry.

Teagasc provides product development supports to all sectors and sizes of food businesses, with a special emphasis on SMEs, high innovation potential early stage and start-up businesses.  A wide range of modern food processing facilities and equipment is available to food businesses at both Teagasc Ashtown and Teagasc Moorepark.  An ultra-modern pilot plant, Moorepark Technology Ltd. (MTL), contains the most up-to-date and versatile pilot scale processing equipment. 

Teagasc is hosting the Meat Technology Centre (MTC), a collaborative entity with industry and resourced by highly qualified researchers who will undertake market focused strategic research programmes for the benefit of the meat industry. The MTC will fuel growth in the Irish beef and sheep meat sector by creating and commercialising a pipeline of science and technology based innovations, leading to enhanced processes and product development.

In the speciality food area, The Cheese Institute has been designed by Bord Bia and Teagasc and is aimed at both start-ups and current industry operators.  Specifically tailored to the farmhouse and speciality cheese industry, the initiative includes production methods, operational capability,market insight, know-how for transition to larger scale businesses and viewing trends and opportunities.

In relation to seafood, in particular, Bord Iascaigh Mhara has a Centre in Clonakilty and is  undertaking a two year study on the sector to better understand the innovation needs of the industry and benchmark it internationally.

While this represents a considerable programme of work and investment , the challenges facing the agrifood sector following the UK decision to leave the European Union are unique and retaining and diversifying markets will require industry, academia, state bodies and Departments to work closely together to ensure that all continue to focus on innovation, to identify what works best and to succeed in making innovation an integral part of the development of the agrifood sector and of its direct and indirect contribution nationally and regionally.