Bord Bia is leading 20 Irish food exporters at the Seafood Expo Global (SEG) trade fair in Brussels this week, competing against 77 other exporting countries for business in a sector that promises considerable growth in the future. The event also celebrates innovation, and Irish company Iasc Atlantic Seafood is nominated for an excellence award for its latest sauce and dressing. Speaking in Brussels Bord Bia CEO Tara Mc Carthy said that trade events like SEG play a key role in Bord Bia’s marketing strategy:
“We are using SEG to deepen existing relationships with international buyers and forge new ones. Later in the year we will also participate for the first time at the Japan International Seafood and Technology Expo as well as at the 2017 China Fisheries Show. Our promise to supply sustainably produced quality seafood from companies that are independently certified under Ireland’s Origin Green programme is unique and we are informing buyers of the huge investment by our industry to meet this commitment. These investments have helped grow demand for Irish seafood with average unit price increasing by 67% in the past six years, during which time our exports have grown by 51% and reached 72 countries.
McCarthy added that despite the challenge of Brexit, prospects look positive for this year on the back of higher demand and increased quota allocation. In the long term global consumption of seafood is also projected to grow by 42 million tonnes per annum as the world population is set to reach 8 billion by 2025.
Excellence Award for Iasc
Product innovation and responding to consumer demands are essential to retaining and attracting customers according to McCarthy. She congratulated Iasc Atlantic Seafood on being nominated for a Seafood Excellence Award at SEGA following the success of its Duo Seafood Umami Sauce and Dressing. The Bord Bia Thinking House had previously worked with “Iasc” in developing their award winning “Seafood Umami Pearls” and Mc Carthy encouraged other companies to avail of the expertise available in the Thinking House to develop innovative products and concepts. James Grimes and Colin Ross, co-directors of Iasc Atlantic Seafood Company said these two nominated products are game changers in many ways, for the home cook and the professional caterer or food manufacturer.
Brexit and Importance of Diversification
A constant topic of discussion at SEG this year is Brexit and its impact on trade. Although exposure of Irish seafood to the UK market is limited to 13% it still accounts for a considerable export value of €73m. Access to waters however is a major concern to the sector going forward. Bord Bia is working with individual companies using its Brexit Barometer to identify exposure to the UK and to plot a course through the current challenges. On completion of the barometer Bord Bia is offering advice to companies on supports to assist them manage the current difficulties.
While the seafood sector is more diversified in terms of EU and international markets than many Irish food sectors with over 61% of product going to EU countries (non-UK) and 26% outside the EU McCarthy says that Bord Bia is actively seeking new market opportunities:
“This year we are planning two market studies for exporting companies to Singapore and Vietnam. The purpose of the visits is to identify key market trends and enabling exporters to present their products to prospective customers. We have also put in place an extensive inward buyer visit programme to allow prospective customers to see first-hand how Irish seafood is landed and processed.
The recent announcement by Minister for Agriculture Food and the Marine Michael Creed T.D. on the restoration of market access for live crab exports to China will provide us with another channel to explore and develop with buyers at SEG and into the future”
EU markets, namely France, Spain, UK, Italy and Germany continue to be the main destinations for Irish seafood. The continued recovery of the key markets saw France, our largest market grow by 9% in value to account for 26% of total seafood exports. Exports to Spain recorded an increase of 14% to represent some 14% of total sales. Similarly, higher demand drove exports to Italy and the UK with increases of 33% and 12% respectively in value terms. Trade to Germany also grew, though by a modest 3% in value terms on the back of a rise in volume and improved market positioning.
Third Country markets have played an increasingly important role in diversifying seafood exports with the main Asian markets - China, South Korea and Japan - together increasing by an estimated 12% in value terms in 2016. Strong export growth to Japan (+55%) and China (+32%) compensating for an 8% decrease in the value of trade to South Korea. Seafood exports to Hong Kong also performed strongly increasing in value terms by 13% during this period.
Origin Green
“In a competitive export market it is essential to listen and respond to the demands of customer” said Tara Mc Carthy. We have done that with the development of our Origin Green sustainability programme, the only one of its kind in the world and it now sets us apart from our competitors. To its credit our seafood industry is one of the most progressive sectors in terms of Origin Green participation with 49 verified members and another 29 in the pipeline. ”
Health and nutrition has been a focus area within the Origin Green Sustainability Charter from the outset. Given the growing importance of this issue and the need for urgent action, in mid-2016 it became a mandatory target area within all Origin Green plans.
Participating Companies at SEG
Atlanfish, Connemara Seafoods, Emerald Mussels, Errigal Bay, Gallagher Bros, Irish Fish Canners, Irish Seafood Producers Group (ISPG), Keohane Seafoods, Killybegs Seafoods, Kush Shellfish, Live Irish Shellfish, Norfish, O'Cathain Iasc, Premier Fish, Rockabill Shellfish, Sean Ward Fish Exports, Shellfish Ireland, Sofrimar, The Irish Organic Salmon Co, Wild Atlantic Shellfish.
EU support
Bord Bia’s participation at the SEG trade fair was supported by EU funding from the European Maritime and Fisheries Fund
Performance by category 2016 at a glance
Pelagic
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The pelagic sector experienced a challenging 2016. Decreases in the boarfish and mackerel quota were the main reasons for the decline in exports. The increased cost of raw material particularly herring and mackerel has also impacted the competitiveness of pelagic processors packing value added product for export.
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Currency fluctuations and the impact of Brexit have resulted in a loss of returns for companies selling into the UK.
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In addition ongoing restrictions on trade to Russia and a currency crisis in West Africa along with increased competition from the Faroe Islands and Iceland have significantly impacted demand.
Whitefish
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Whitefish exports increased by 13% in value terms in 2016 to reach €58m driven by a 15% increase in volume.
Shellfish
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Shellfish exports progressed by 19% in value to reach a total value of €233mn largely driven by a 12% increase in average unit prices.
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Shellfish exports to China and Japan showed strong growth (up 55% and 198% respectively) despite the closure of the Chinese market to Irish live crab for the majority of 2016. Promotional activities with key customers and trade show participation boosted trade to China in particular.
Salmon
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Salmon exports decreased by just over 5% in value driven principally by an 8% decline in volume in 2016.
Oysters
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Oyster exports stood at almost €34 million, up 27% on the same period in 2015 despite an increase in volumes of just over 8%.
Mussels
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Total mussel export values were static in 2016 (reaching a value of €15m) against a backdrop of a 3% decrease in volumes exported. Promotional campaigns such as the Bord Bia ‘Flex your mussels’ campaign was reported by producers to have had an extremely beneficial effect on the domestic market.