Bord Bia's new Warsaw office gateway to 11 Central European Markets

Exports to Poland trebled in the past five years

Bord Bia Warsaw today welcomed An Taoiseach Enda Kenny T.D. to its new office, from which it aims to drive exports of Irish food and drink to eleven targeted Central European markets.

An Taoiseach, Bord Bia Chief Executive Tara McCarthy and Irish exporters highlighted the value of Ireland as a source of sustainable produced food and drink to importers during a business event in the Embassy of Ireland, hosted by Ambassador Gerard Keown.

An Taoiseach, remarked that Bord Bia’s presence in the region would assist exporters build enduring business relationships at a time when Ireland’s food and drink industry is seeking new premium markets for food and drink in order to meet the targets of FoodWise 2025.

"Our food and drink industry has always embraced the challenge of finding new markets for our produce, exporting over 80% of what we produce. From this strategic location Bord Bia can pave the way to new and valuable markets reaching to the eastern borders of the EU with a combined population of 103 million and a retail market worth €177 billion. While our three largest markets in the region currently absorb 85% of exports, there exists huge potential for further growth."

Poland is Ireland's eighth largest EU market for food and drink with exports reaching an estimated €185 million in 2016, an increase of 15% on the previous year.

Bord Bia Chief Executive Tara McCarthy said the decision to establish an office in Poland followed considerable research into potential growth in Poland itself and its location as a gateway to Central Europe.

"This office opens at a time when many Irish companies are looking to new opportunities while still holding their positions in traditional markets. The value of trade to Poland has almost trebled over the last five years with dairy, beverages and prepared foods, all showing strong growth in 2016. The potential for further growth here and in emerging EU markets will increase their attractiveness to exporters and the increasing awareness of Origin Green will offer important assurances to buyers on sustainable sourcing. Bord Bia Warsaw will provide exporters with the resources, consumer insight and market intelligence necessary to help them maximise opportunities in these markets".

Central and Eastern Europe accounts for over a quarter of a billion euro of Irish food and drink exports. The three largest markets, Poland, Czech Republic and Latvia, account for almost 85% of this trade which has doubled in value in the past five years.

The key sectors driving growth of Irish exports in the region are prepared foods (driven by fat filled milk powders in Poland), meat (driven by beef and pigmeat in Poland) and beverages (driven by Latvia and Czech Republic).

The 11 target countries are: Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, and Slovenia.

Sectoral Performance of Irish Food & Drink Exports to Poland

Polish Food & Drink Market and Trends

The Polish food and drinks retail sector was worth €42 billion in 2015 and accounted for 18.7% of total retail. Spending in this sector is set to rise by more than 10% annually between 2017 and 2020. Consumer confidence in Poland is strengthening as the job market brightens and as disposable income levels continue to grow.

Traditional foods purchased by consumers have included sausages, cheeses and breads as well as potatoes, typically a mandatory component of every meal. However, as they have become more health conscious, food buyers are increasingly looking for healthier, higher quality foods. This offers opportunities to Irish producers of premium foods targeting a growing middle class in Poland.

Irish Beef in Poland

Irish beef is growing in the Polish market, doubling in value over the last five years to €9 million.   The lack of standardisation and a very fragmented industry creates an opportunity for further growth of Irish beef in Poland, especially in the foodservice sector, with demand for consistent and high quality beef among a growing middle class increasing.

Irish Alcoholic Beverages in Poland

Exports of Irish beverages to Poland have almost quadrupled in the last five years, from €7 million to €26 million. Last year alone this growth fuelled predominantly by Irish whiskey exports increased by 150%. Whiskey is the fastest growing beverage category in Poland (5%) with the super- premium segment expected to grow at 10% per annum for the next 5 years. This offers huge potential for Irish suppliers not only in whiskey but also in other rapidly developing categories, namely premium beer, cider and gin.

Tullamore Dew has the largest market share, followed closely by Jameson with newer entrants to the market; Teeling Whiskey, Walsh Distillery and Nacuana already showing strong growth.

Irish Dairy in Poland

Exports of Irish dairy to Poland in 2016 were estimated at €18 million, an increase of 57%. The bulk of dairy exports to Poland are made up of cheese for Dairy ingredients and industrial use. Consumer dairy is represented in the market by Ornua with Kerrygold butter and cheese, Kerry with Cheesetrings, Cahills Irish Cheese and Truly Irish with butter.

Prepared Foods

Irish exports of prepared foods to Poland have seen significant growth, rising by 9% in 2016 to €117 million, mainly due to dairy based enriched powders for use in processing

Origin Green

There has been a significant level of interest from the Polish beef industry in Bord Bia and the Origin Green programme.