focus: dairy & ingredients - irishfood magazine · 2017-10-20 · contents issue 7 2015 5 36...

Issue 7 2015

Kerry opens Global Technology and Innovation Centre

Origin Green reports on progress

A world first for ABP

www.irishfoodmagazine.com

FOCUS: DAIRY & INGREDIENTS

Innovation key to success for Dairygold Glanbia discusses sustainability

Ireland at Fi Europe

30 YEARSOF INNOVATION NEVER TASTED SO GOOD.This year Dawn Farms is celebrating 30 years in business. From modest but ambitious beginnings, we have grown to become a preferred partner to many of Europe’s leading ready-meal, pizza and sandwich brands. To us innovation is a key ingredient in our success. By continually evolving and adapting quickly to fast moving food trends, we have become part of many food success stories over the past thirty years. Visit www.dawnfarms.ie to discover the ingredients that set us apart.

GREAT INGREDIENTS,GREAT FOOD.

1985 -2015

Untitled-2 1 28/05/2015 14:31Dawn Farms 210x280.indd 1 29/05/2015 11:45


Follow on Twitter @IrishFoodMag for more updates on Ireland’s agri-food and drinks industry.

3Issue 7 2015

editorial

Issue 7 2015

A s 2015 draws to a close, there is an opportunity to reflect on the happenings of the Irish food and drinks industry. The year has seen some hugely significant developments for the sector including the reopening of the US market to Irish beef, the end of world-wide

milk quotas and the launch of Food Wise 2025, the industry’s strategy for growth over the next 10 years.

The ending of milk quotas in Europe is perhaps the most significant of these, with the Irish dairy industry aiming to increase milk output by 50 per cent over the next five years. That is well beyond the expectations of other dairy producers in the EU. Milk output has already seen an increase on last years’ figures, as David Owens, sector manager, dairy ingredients, Bord Bia (the Irish Food Board) tells us in our Dairy and Ingredients focus (see page 16). However, the global dairy industry has experienced a difficult year. While increased output was expected to have an impact on prices, to a small extent, the situation has been exacerbated by the ongoing trade embargo with Russia and a contraction in China’s economy. Nevertheless, speaking with many of the leading industry players in Ireland, it appears they remain confident of Ireland’s potential in the long term. Ireland’s focus on high-quality dairy ingredients and its continued scientific research into novel dairy ingredients, combined with Ireland’s natural, grass-based production system, are considered key attributes for the continued growth of the sector.

Sustainability is also an important element of Ireland’s B2B marketing strategy for all food and drink exports. However, it is more than a marketing tool, as Bord Bia’s (the Irish Food Board) recently launched Origin Green Sustainability Report 2015 demonstrates. spoke with Aidan Cotter, CEO, Bord Bia, about the achievements of Origin Green to date. He told us that operating sustainably is a must and says Origin Green is being heralded by organisations such as the World Wildlife Fund and the World Bank as an example for other nations to follow. Bord Bia welcomes the opportunity to share Ireland’s experience and knowledge internationally. See page 13 for more.

As always, we have all the latest news and trends.

Enjoy!

Oonagh O’MahonyEditor


contents

4 Issue 7 2015

contents

Editor: Oonagh O’Mahony

Reporters: Bernie Commins, Kennas Fitzsimons, Shauna Rahman

Design: Barry Sheehan

Production: Martin WhelanCiarán Brougham, Niall O’Brien, Michael Ryan

Chief Executive: Rebecca Markey

Advertising Executive: John Sheehan

Accounts: Tricia Murtagh

Administration: Sue Nolan

Publisher: David Markey

Copyright IFP Media 2015.No part of this publication may be reproduced in any material form without the express written permission of the publishers.

Published by:

IFP Media,

31 Deansgrange Road, Blackrock, Co. Dublin

Republic of Ireland.

T: +353 1 289 3305

F: +353 1 289 6406

E: [email protected]

www.ifpmedia.com


13 A leader in sustainability At the launch of the Sustainability Report 2015, Aidan Cotter,

CEO of Bord Bia, talks about the progress made by the Origin Green programme and what it requires to be a world leader

10 Kerry opens innovation centre of the future

‘Radical, innovative and futuristic’ is how Taoiseach Enda Kenny described the Kerry Group’s plans for its new Global Technology and Innovation Centre

6 News• Green Isle Foods wins

on the double• Franco-Irish Sheep

Club gathering• Michael Dillon

Memorial Lecture

• Belview completes successful first season

• Bord Bia announces winners of the 2015 Food and Drink Awards

• Asia Oyster Group achieve Origin Green membership

• Connacht Whiskey Distillery opens

contentscontents

www.irishfoodmagazine.com 5Issue 7 2015

36 Stripped back protein snacksRoss McDowell, founder and managing director, Stript Snacks, tells about the inspiration for his high-protein, low-calorie snack solutions

38 A world first for ABPIn 2015, ABP Ireland set a record when it became the first company in the world to achieve quadruple Carbon Trust certification

40 Finding the route to success in travel retail

The Duty Free retail market is worth over $60 billion. Recent research from Bord Bia’s consumer insights team explores the opportunities of global travel retail

42 Spotlight on...Inaugural Irish Cheese Awards

16 Ripe for expansionDavid Owens, sector manager, dairy ingredients, Bord Bia, says sustainable production is central to Ireland’s global appeal

18 Mixing science and industry delivers opportunity

The complete food matrix will be key to defining the health benefits of cheese, says Jens Bleiel, CEO, Food for Health Ireland

20 Co-op nurtures dairy innovation

Dairygold Co-Operative Society, Ireland’s largest farmer-owned dairy business, is committed to ongoing innovation to deliver the best products for its customers and the best results for its members

23 The Spanish acquisitionOrnua officially opened a new research and development facility in its Spanish ingredients division

24 Meeting market needs with dairy protein

Researchers at Teagasc are looking at means of aligning Irish dairy protein production and processing with long-term global nutritional needs

26 A golden opportunity for dairy

The lifting of milk quotas in April 2015 presents a golden opportunity for the Irish dairy industry to become a leading global dairy exporter, says Seamus MacLoughlin, senior development adviser with Enterprise Ireland’s food division

30 Sustainability: what does it mean for the Irish dairy industry?

There is a growing and powerful global sustainability agenda within the International dairy market, that is market driven, customer-led and consumer-focused, writes Shane McElroy, Glanbia

32 Fi Europe 2015 profiles Irish ingredient producers

exhibiting attending this year’s show

15 Dairy and Indredients

6 Issue 7 2015 www.irishfoodmagazine.com

newsGreen Isle Foods won two prestigious Deutsche Landwirtschafts Gesellschaft (DLG) awards for its new San Marco gluten-free pizza range. The San Marco gluten-free margherita pizza won gold, while its gluten-free pizza speciale took home silver. The pizzas use an innovative base recipe developed by Green Isle Foods to provide the

familiar pizza taste and flavour without gluten. The DLG, the German

Agricultural Society, promotes product quality of foods on the basis of binding and impartial quality standards, based on current scientific findings and the recognised test methods it has developed. Every year over 20,000 foods from Germany and other countries are tested in the DLG quality tests. Liam Hyland, head of exports at Green Isle Foods stated: “The award-winning, gluten-free range reflects Green Isle Foods’ commitment to bringing innovative products to the market that meet the evolving needs of consumers, as well as their expectations of taste and quality. Modern dieting means more than just

eliminating the bad, it also means increasing the positive in our diets and our gluten-free products

are first in a range of innovations by our world-class new product development

and technical team to capture this market. The coveted gold and silver

DLG awards are further proof of Green Isle Foods’ unwavering

commitment to excellence. We believe our gluten-free pizzas are as good as, if not better than regular, quality pizzas and we

are delighted to receive these DLG awards.”

A large delegation of French and Irish sheepmeat stakeholders attended the annual Franco-Irish Sheep Club gathering, which was held recently at Irish Country Meats’ headquarters in Co. Wexford. The Franco-Irish Sheep Club is a representative body of French and Irish sheepmeat stakeholders and includes farming organisations, producer groups, meat processors and the State promotional agencies Bord Bia and Interbev. Its aim is to provide a forum to discuss and explore common issues such as trading, technical and promotional matters.This was the first opportunity for John Bryan, the newly appointed chairman of the EU Commission Reflection Group, to meet with sheepmeat industry stakeholders. The Reflection Group was announced in October by Phil Hogan, EuropeanCommissioner for Agriculture and Rural Development. It will hold a series

of workshops to examine the challenges and opportunities that are likely to arise within the sheepmeat sector over the coming years. The first of three meetings is set for mid-November and a final draft report is expected to be published in mid-2016. The forum will bring together key players from the public and private sectors, as well as representatives from sheep production, processing and trade. Member State representatives from key producing countries are also expected to be present.

The group of delegates attending the Franco-Irish Sheep Club annual meeting in Irish Country Meats, Camolin, Co. Wexford.

Green Isle Foods wins on the double

Franco-Irish Sheep Club gathering

We’re passionate about taste and nutrition and we want to work with you

KERRY explore At Kerry, we believe in staying curious. Discovery is a large part of what we do every day. Whether it’s looking for new ways to enhance flavour, uncovering trends in food and beverages, or investigating consumer buying behaviour, we are inspired by change.

KERRY partnership Our customers, and yours, are at the heart of our business. We’re passionate about our industry and the work that we do. Together, we develop solutions that delight and nourish consumers around the world, and support the growth of your business.

KERRY people Kerry’s rich history and passion for food extends across all areas of our business. At Kerry, we think big. Our teams are encouraged to walk in consumer’s shoes. Our people are inquisitive, ambitious, responsive and most of all they deliver results.

Visit kerry.com for more information

Kerry Ad_210x280.indd 1 12/10/2015 15:11Kerry 210x280.indd 1 10/11/2015 14:35


news

Bord Bia announced 2015 Food and Drink Award winnersBord Bia has announced the winners of the 2015 Food and Drink Awards, which took place in November. The biennial awards, are designed to acknowledge and reward excellence within the Irish food and drink industry. Over 160 entries were submitted in eight categories.

The WinnersBranding Award Winner: Glanbia, Avonmore Super MilkConsumer Insight Award Winner: Glenisk, High Protein Greek YoghurtDigital Marketing Award Winner: Britvic Ireland for Club Orange #thebestbits campaignEntrepreneurial Award Winner: Gallagher’s Bakery, Pure Bred RangeExport Award Winner: Gallagher’s Bakery, Pure Bred RangeInnovation Award Winner: NobóSuccess at Home Award Winner: Celtic PureSustainability Award Winner: Glanbia IngredientsA Special Recognition Award was also presented to Island Seafoods

Belview completes successful first seasonGlanbia Ingredients Ireland’s (GII) nutritional ingredients plant at Belview in Co. Kilkenny has successfully completed its first season, the company has stated. Milk volumes have now declined from their seasonal peaks – milk deliveries to GII in the week to October 24 were 43 million litres, compared to the 2015 seasonal peak of 69 million litres in May. The facility is making significant progress in gaining all-important plant and product approval from major infant nutrition customers, GII has said. Belview was the first greenfield primary dairy processing facility opened in Ireland in 40 years. The plant was built to cope with an expected surge in Irish milk production post milk-quota abolition. GII said this growth has materialised with cumulative milk deliveries to GII since April are 19 per cent ahead of the same period last year. Production at Belview came to a scheduled conclusion recently, however this season, Belview processed 311 million litres of milk, producing 36,500 tonnes of high-quality powder products. All product types were successfully manufactured – whole milk powder (WMP); skim milk powder (SMP); enriched milk powder (EMP); skim milk concentrate (SMC); and cream. The closed season now provides an opportunity for taskforces to review processes ahead of production re-commencing inJanuary. GII says 2016 will see the facility deliver on its first full year of commercialised production for infant formula grade milk powders.

Michael Dillon Memorial LecturePhil Hogan, European Commissioner for Agriculture and Rural Development was the guest speaker at the Guild of Agricultural Journalists of Ireland’s seventh biennial Michael Dillon Memorial Lecture, in association with Kerry Group. The Lecture and black-tie dinner took place in October in the iconic hotel, The Shelbourne Dublin.Pictured are: Stan McCarthy, CEO of Kerry Group, sponsors of the event; Oonagh O’Mahony, editor,

and chairman of the Guild of Agriculutral Journalists of Ireland; and Phil Hogan, European Commissioner for Agriculture and Rural Development.

9Issue 7 2015www.irishfoodmagazine.com

newsConnacht Whiskey Distillery opensConnacht Whiskey Distillery was officially opened in Ballina, Co. Mayo recently by Taoiseach, Enda Kenny. The €10 million investment will generate 40 new jobs at the 27,000ft2 distillery, which also features a visitor centre. The distillery expects to produce up to 70,000 cases of whiskey a year. It is only the second Connacht-based craft whiskey distillery, and one of a handful of developed craft distilleries across the country.Irish whiskey is the fastest-growing whiskey in the US. “Our goal is to introduce US consumers to the beauty of a hand crafted, pot-distilled Irish whiskey from western Ireland,” said Connacht Whiskey, director and past president and CEO of Remy Cointreau US, Tom Jensen.Rob Cassell, master distiller, Connacht Whiskey designed the stills at the distillery which are the only ones of their kind in Ireland. “We are very different from the massive, production-driven Irish distilleries,” Rob explained. “We are a company focused on bringing consumers small batch Irish whiskey that is smooth, full of character and has a distinctive flavour.”P.J. Stapleton, co-founder and co-director, Connacht Whiskey said: “People are becoming more engaged with Irish whiskey and are keen to try something different – and we are very confident that our pot-distilled whiskey will appeal to their palate. We will also be producing Conncullin Gin and expect to have that available nationally and internationally in 2016.”

Asia Oyster Group achieves Origin Green membershipAsia Oyster Group, which comprises four Irish oyster companies, recently achieved Origin Green member status following assistance from Bord Iascaigh Mhara ([BIM] the State agency with primary responsibility for developing the seafish and aquaculture industries in Ireland) and Bord Bia (the Irish Food Board). Majestic Oysters and Irish Premium Oysters from Donegal and Harty’s Oysters and Carlingford Oyster Company from Waterford and Louth, shared their resources to develop a unique market position in the Chinese seafood market. The group exports premium-grade product to exclusive restaurants and hotels in key cities in China. The group was successful in meeting the high standards set by ECOPACT, an environmental management system, developed by BIM for the Irish aquaculture industry. This, in turn, enabled the group to achieve Origin Green verified membership. This status was achieved after its long-term, target driven sustainability plan, in accordance with the Origin Green charter, was independently verified by the SGS group.Richard Donnelly, aquaculture business development manager, BIM explains how this collaboration was of benefit to all concerned: “By working as a collaborative, the group has capitalised on the synergy of developing new contacts in addition to presenting premium-quality oysters to the market. Its collective drive to ensure the businesses operate sustainably demonstrates a responsible approach to the environment and how this differentiates the products and will deliver an uplift in sales as a result. BIM and Bord Bia worked together with the companies to take them through this process and we will continue to work with the group to ensure the companies are supported in their endeavours.”

Pictured receiving their BIM ECOPACT and Origin Green certifications at BIM Head Office are: Des Moore, Majestic Oysters, Donegal; Sharon Colgan, Bord Bia; Ray Harty, Harty’s Oysters, Waterford; Ed Gallagher, Irish Premium Oysters, Donegal; Kian Louet Feisser, Carlingford Oyster Company, Louth; and Mo Mathies, BIM.

Taoiseach Enda Kenny with the directors of Connacht Whiskey: Tom Jensen, PJ Stapleton, Rob Cassell and David Stapleton.


industry

Kerry opens innovation centre of the future

T he Taoiseach was present in 2013 to break ground on the site and, two years later, returned to officially launch the Naas-based innovation

centre. Speaking at the opening of the facility in Naas, he said: “This €100 million investment by Kerry Group is a welcome vote of confidence in Ireland and a great boost for the local economy in Naas. Kerry is a world leader in the food sector and the new Global Technology and Innovation Centre will further enhance Ireland’s reputation for excellence in research, development and innovation in the food and beverage industry.”

Addressing stakeholders and Kerry Group

employees at the opening, Minister for

Agriculture, Food and the Marine, Simon

Coveney said the completion of the project

is the largest single investment in food

innovation ever by a company in Ireland.

He described the investment as “the most

strategic and significant development in the Irish economy in the last 10 years” and added: “It represents a resounding endorsement in the quality and expertise of Irish food science graduates to deliver food innovation in the most modern, global facility producing world-class ingredients and consumer products.”

A full gambit of its capabilitiesThe global food company came from humble beginnings as a dairy co-op on Ireland’s south-west coast. Today it is one of Ireland’s largest indigenous multinationals with annualised sales in excess of €5.8 billion. The company is well recognised for its speciality ingredients business, but the new facility, which comprises eight different suites, labs and innovation centres across a 28-acre site, reflects the growth of the group. Its all-encompassing array of technologies allows Kerry to display the full gambit of its capabilities across the food industry.

‘Radical, innovative and futuristic’ is how Taoiseach Enda Kenny described the Kerry Group’s plans for its new Global Technology and Innovation Centre. Well, the future has arrived with the recent opening of the facility in Naas


industrry

Kerry opens innovation centre of the future“We are leaders in the development, manufacture and delivery of innovative taste solutions, nutritional and functional ingredients for the food, beverage and pharmaceutical industries,” said Stan McCarthy, Kerry Group CEO. He added: “We are confident that this new global centre will be able to play a key part in differentiating us in the marketplace and in meeting the needs for product development for our global customers. “It will also allow for scalable probe into the future as well as being able to integrate acquisitions as we continue to grow the business.”

A trusted partnerKerry describes itself as a trusted partner for its customers across the globe. It has a long-standing history of supplying taste and nutritional ingredients to the marketplace, with over 30 years’ experience in the industry. The new innovation centre is a hub for Kerry’s nutritional expertise, with nutritional scientists, R&D teams and marketing focused on the nutritional, health and wellness market on a daily basis. Taste also sits within the business, which is critical to help bring together taste and nutrition. This, the company says, better enables Kerry to collaborate with its customers. Kerry has over 800 scientists across the globe, with 250 located in the new Global Technology and Innovation Centre in Naas.

Furthermore, between 300 and 400 personnel – including the applications team, the sensory team, analytics and the regulatory team – employed at the facility are involved in applying Kerry’s scientific knowledge to the food industry. Collaboratively, these teams help bring Kerry’s science to its customer.Stan added: “Kerry’s approach to innovation capitalises on our total taste and nutrition technology offering and unique end-use-market applications capability.”

The changing consumerToday’s consumers are more informed about their food, its role in their diets and the health benefits or lifestyle benefits that it can offer. At the Global Technology and Innovation Centre the consumer is key, driving the Kerry team to innovate and develop new product solutions that will meet market needs. The Kerry Group is proud of its awareness of consumer needs and says that a changing world requires new approaches. Innovation requires insight, insight requires research and research requires expertise, all of which Kerry has on offer at its innovation centre. “Today’s consumer markets, and changing food and beverage consumption trends, call for renewed vigour in product innovation and development of nutritious product solutions and menu offerings” said Stan. Kerry explains that the nutritional market landscape is quite diverse, with consumers in

Pictured with An Taoiseach Enda Kenny T.D. w Aine Walsh Flavourist with Kerry Group look at some fruit

flavour samples.


industry

each looking for products that meet their specific needs. The life stages and nutritional needs stages are really key for Kerry as it tries to understand the market and deliver the right solutions to the marketplace.

Research and developmentKerry’s Naas facility comprises 14 different focused R&D labs, with each lab specialising in one area, such as: savoury taste; flavours; texture; enzymes; proteins; and analytics.Within these labs, Kerry scientists conduct a range of physical and chemical analysis to ensure products meet specification. They also examine a product’s stability, as well as exploring opportunities to scale up for commercialisation. Its research also tests the efficiency of process and the functionality of its ingredients. These labs can also test the amino acid profiles of infant formulas, the sugar profile for the efficiency of enzymes, the caffeine in coffee, the heat in chili and the bitterness of a tonic. Its texture analyser can test the softness of bread, the crispness of crackers and the

elasticity of dough, among many other capabilities. Researchers are also able to break down food items into the individual flavour compounds. Then it uses the information garnered to reconstruct new flavours with its flavour team. For example, it might look at why one variety of apple taste different to another and feed that information into the team to deliver new apple flavour profiles.

Finished productsKerry’s culinary and beverages suites is where the food science comes together with culinary arts. Working with culinary chefs and expert mixologists in the beverages suite, customers can collaborate with Kerry to deliver real innovation in food. Kerry describes these suites as a space that brings all of the scientific knowledge and R&D together to make great-tasting, finished products that can be demonstrated to its customers in an area that includeds kitchen and dining spaces.Stan described the facility, as a key focal point for customer engagement within the Kerry business, offering them access to the

company’s full technology offering, as well as its scientific research, development and applications capabilities. In addition, it will act as a global centre of excellence for nutrition.“Kerry’s approach to innovation capitalises on the taste and nutrition expertise and in-use market capabilities,” Stan noted.

Commercialisation centreKerry’s commercialisation block replicates, on a pilot basis, all of Kerry’s processing technologies, plus the finished product technologies of its customers across all end-use markets. This completes the innovation journey – from consumer insight, through research, analytical, sensory and finally commercialisation. This, Kerry says, provides its customers with unrivalled speed to market, all under one roof.

A proud dayThe Kerry Group CEO said it was a proud day for the company, as its team prepared for the innovation of the future. “Our new Global Technology and Innovation Centre will serve as a focal point for Kerry’s customer engagement activities providing key customers with access to the Group’s complete breadth and depth of technologies, scientific research, innovation and applications expertise, across food, beverage and pharmaceutical markets. In addition, it will serve as the Group’s Global Centre of Excellence for Nutrition and will optimise product differentiation in the marketplace while providing unrivalled speed to market.”


interview

T he case for a programme like Origin Green is incontestable, Aidan says, given the challenges the world faces in terms of

feeding a growing population while, at the same time, managing the earth’s resources. “Sustainability is a sine-qua-non. It is just not an option to proceed without it.”

Ireland’s food and drink exports have been enjoying a period of unparalleled growth. Between 2009 and 2014, the value of Irish food and drink exports grew by 45 per cent, reaching a record high of €10.5 billion in 2014. With the world’s population predicted to grow to over nine billion by 2050, and an expanding middle class demanding more protein-based foods, Ireland is presented with a major opportunity to expand its exports. Food Harvest 2020, the industry led strategy to grow Irish exports to €12 billion by 2020 was updated in 2015, with the launch of a new roadmap, Food Wise 2025, which aims to increase exports to €19 billion over the next decade. “Greater levels of demand from a growing population represent a significant opportunity for Irish food and drink producers. However, we must remain cognisant of our responsibility to expand

in a manner that will not lead to the long-term degradation of our natural resources. To simultaneously mitigate the onset of climate change through the reduction of greenhouse gas emissions, remains one of the great challenges of the modern era and one in which everyone must play their part.”Striking this balance is what led Bord Bia to introduce Origin Green, in order to provide a structure for Irish farmers and food and drink manufacturers to demonstrate their commitment and progress in the area of sustainability.

Becoming a leaderAn overarching ambition of Origin Green is to make Ireland a leader of sustainability in the food and drinks industry. But what does it mean to be a leader? Aidan explains: “When we launched Origin Green three-and-a-half years ago, we set out four conditions that, if fulfilled, we felt could position Ireland as a world leader. The first of those was that we would bring everyone on the journey, that every farmer and every food business would sign up to the sustainability agenda by 2016. The second condition was that we would measure everything that matters, recognising that sustainability is

a very broad area. It’s economic, it’s social and it’s environmental. “The third condition was that everything we measured would have to be to an internationally-recognised standard, achieved by international accreditation or by using independent verification. The final condition was that this was not just a journey of measurement, although you can’t manage what you don’t measure, but rather, it would be a journey of continuous improvement.“We were, in effect, setting out to establish the first national sustainability programme in the world.”

Measuring successTo date, over 470 food and drink manufacturers, accounting for almost 95 per cent of Ireland’s food and drink exports, have registered with Origin Green. The programme has a target to have 100 per cent of producers voluntarily signed up by the end of 2016.Meanwhile, at farm level, more than 55,000 Irish farms have joined the programme, accounting for 90 per cent of Ireland’s beef production and half of its milk output. In terms of measuring sustainability, Origin Green has established baselines

In 2012, Bord Bia (the Irish Food Board) introduced Origin Green, the world’s first nationwide sustainability programme for the food and drinks industry, and announced that Ireland was

preparing to prove itself as a world leader in sustainability. Three years later, at the launch of the Sustainability Report 2015 at Bord Bia’s Global Sustainability Forum, Aidan Cotter, CEO

of Bord Bia, talks about the progress to date and what it requires to be a world leader

A leader in sustainability


interview

from which improvements can be measured. At industry level, this progress is outlined in company sustainability plans with target deadlines of three to five years. The success of companies in achieving their targets is independently assessed and verified by the SGS group, which, in 2015, was named as an industry leader for the second year running in the prestigious Dow Jones Sustainability Indices World and Europe.Meanwhile, the Sustainability Report 2015 sets out new goals for Origin Green. “The four conditions that I mentioned have been sufficient to start us on our journey and to set us on track to becoming a world leader, but to remain there and take us to the next stage of our journey, and guide our future work, we need to establish a new set of priorities.”

Progress on farmAmong the headline figures to date for Origin Green are the 90,000 carbon assessments that have been conducted across 45,000 beef and almost 9,000 dairy farms. Delivery on this ambition is made possible by utilising Bord Bia’s Quality Assurance schemes, which, since 2011, have begun to incorporate carbon footprint measurement. This is being conducted on a national scale, routinely on an 18-month cycle. “No other country anywhere is carbon footprinting its farms on a routine basis, and in a process of measurement, feedback and continuous improvement. Farms are also measured on their performance around water conservation and biodiversity, as well as on animal health and welfare and on food safety.”

In 2013, Bord Bia introduced the Sustainable Dairy Assurance Scheme, which it describes as the first national dairy scheme of its type anywhere in the world – a robust and internationally-accredited programme that not only sets out the requirements for best practice in Irish dairy farms but provides a means of measuring and improving the performance of every participating farmer. “We are halfway through the first audit cycle of dairy farms and by next year we will have 100 per cent of milk production covered. We are rolling this out among all of the other enterprises as well and we are confident that all will be covered by the programme – pigs, poultry, sheep, grain and horticulture – by next year.”

Processing progressBord Bia realised that setting one template for all companies would not deliver the best outcomes. With that in mind, it introduced the Origin Green Sustainability Charter, under which member companies develop their own sustainability plans, setting out clear, measurable and time-bound targets under three target areas: raw material sourcing; manufacturing processes; and social sustainability. As part of the programme, food and drink manufacturers have committed to over 800 sustainability targets. The targets provide for reductions of €12 million and €17 million in energy and water usage respectively by 2017, and seek to reduce general waste generation by 14,000 tonnes. It is impressive, given the scale of expansion envisaged over this period.

The future of sustainabilityAidan explains that Origin Green has set out five new priorities to maintain Ireland’s commitment to ongoing improvement in sustainability. “One is lowering our environmental footprint, where we will prioritise emissions, biodiversity and water quality. The second is about enhancing our impact on society, with a singular focus on health and wellbeing, which we regard as the biggest single, long-term driver of change in food markets today. And, with attention now focusing on obestity, or ‘diabesity’, it is essential that the food industry is seen to be part of the solution, and not perceived as part of the problem.”“The third area is to close the sustainability loop at home and extend the programme beyond the farm and factory to retail and foodservice and create a showcase for sustainability in which everyone can be involved.“The fourth area is that we recognise that, in the context of the scale of improvements that will be required, collaboration and innovation will be critical to continued progress. “The fifth area is about sharing the story of Origin Green with others who may wish to embark on a similar journey. We also want to explore how we can translate what, three-and-a-half years ago, we launched as a business-to-business initiative, into one that can have a much wider reach, and making it relevant to consumers’ lives.”

15www.irishfoodmagazine.com Issue 7 2015

focus

Dairy and Ingredients


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Ripe for expansionJust nine months into a quota-free era, Irish dairy farmers are already delivering increased output. With this output destined for international markets, David Owens, sector manager, dairy ingredients, Bord Bia (the Irish Food Board) says sustainable production is central to Ireland’s global appeal

T he dairy industry is a central pillar of the food and drinks industry’s overall ambition for growth and expansion to 2020 and beyond. Central to that growth plan is the removal of milk

quotas across Europe in March 2015. With output no longer constrained, Ireland is expected to increase its milk output by 50 per cent this decade. In the first six months, post-quota, Ireland is well ahead of 2014 dairy output. David explains that, with our grass-based, lower-cost production system, Irish farmers were well positioned for the changing market dynamic post-quota. He says the Irish dairy herd expanded this year by 6 per cent and this, combined with favourable production conditions at farm level, created ideal circumstance for growing output.

In the first nine months of 2015, Irish milk output is 10 per cent higher than 2014, which equates to 480 million additional litres. October has been another strong performing month for the industry and David expects output to be up by 20 per cent year-on-year. “That’s on a month in 2014 when weather conditions were not as good; farmers would have been aware of the upcoming superlevy and were taking actions to reduce production. But, still, it is a significant jump year on year and, potentially, we could be looking at over 6.2 billion litres of milk this year, an increase of 640 million litres on 2014. This would mean we have produced 1.2 billion litres of our Food Harvest 2020 target of 2.5 billion.” David says Ireland is a significant


focus

dairy products grows.” The change in China’s one-child policy, he adds, will also have an impact on demand in time.

Meeting consumer demandDavid explains that Irish dairy meets the high standards Chinese consumers demand. “The Chinese consumer is very conscious of where they source their products. They are looking at country of origin, food safety and quality parameters. Ireland has a strong reputation in these areas. What we are doing at farm level – our strong dairy heritage, our natural, grass-based production system, protecting the environment – resonates strongly with the Chinese consumer. Our supply-chain controls and focus on food safety fit in with their priorities. All of that is very important for the Chinese consumer. Irish dairy production is very much based on that and to that point we are extending our activities in the Chinese market where we are launching an Irish dairy consumer website.”

Supporting sustainabilitySupporting Ireland’s reputation for quality products is the voluntary, nationwide sustainability programme, Origin Green, which operates at both primary and producer levels. There has been a strong commitment by Ireland’s leading processors to the programme and, in 2013, as part of the Origin Green programme, the Sustainable Dairy Assurance Scheme (SDAS) was rolled out among farmers. “In preparation for the lifting of quotas, we developed the SDAS with industry. It is an intensive farm audit that looks at both quality assurance and environmental sustainability criteria and combines both. This is a globally unique farm standard, which is strongly supported by all stakeholders across the dairy industry,” says David. He continues: “This builds on the credentials for which the Irish dairy industry is already renowned for among our customer base: our natural, sustainable, grass-based system, which is ideal for producing excellent quality dairy products. “This allows Ireland and the Irish dairy industry to position ourselves as a leading supplier of sustainable dairy, which is growing in importance for our international customer base.” With all of the extra output, post quota, destined for international markets, David says programmes like Origin Green and the SDAS differentiate Ireland’s product offering. “It is important that we continue to raise standards and work with customers to communicate our message, which is all about sustainable dairy.”

outlier in Europe in terms of its ambitions for expansion and its growth in 2015 post quota. Compared to an overall increase of 10 per cent in Ireland, Europe as a whole has seen a 1.3 per cent rise in production so far this year. “Some of the largest producers in Europe, including Germany, Poland, the UK and Denmark have seen production rise this year by between 1 and 2 per cent, with lower production coming, significantly, from France and Italy. The Netherlands has grown volumes by 4 per cent to date this year.”In Ireland, David says: “Conditions were ripe for expansion. Our herd is growing, we have more cows on the ground and, following two profitable years in 2013 and 2014, farmers have invested in expansion in preparation for quota abolition.” However, he notes, lower dairy prices this year are significantly affecting farmer incomes.

Global shiftsIreland isn’t the only country experiencing growth in output, with global production outpacing demand in 2015. Market demand has been impacted by a number of factors including: ongoing weaker demand in China; the Russian ban on imports; and higher oil prices. However, David says: “What we have seen in recent months are some indications of an easing in global supply.” Lower output from New Zealand, he says, is already having an impact on the market. “New Zealand is more exposed to a downturn in Chinese imports, more so than any other exporter given their reliance on whole milk powder. As a result of a decline in Chinese imports, the falls in the farm gate milk price in New Zealand has been sharper and swifter than anywhere else, falling by more than 30 per cent year-on-year, or by over 40 per cent from the peak prices of 2014. This is having an impact at farm level in New Zealand as prices are below the costs of production. Last season, its production reached record levels, up 3 or 4 per cent on the year previous. But, we have seen reports that cow culling is higher this season, and it won’t use as much feed as they have in previous years. So, supply from New Zealand is falling back. September volumes were back by over 7 per cent, with forecasts

for the season varying from a 5 to 10 per cent decline. Weather conditions are also starting to have an impact on production in New Zealand.” The lower availability from New Zealand, and slower growth in production in the EU and the US, will help to rebalance the supply-demand situation, which is required until markets start to improve, David adds.

Upward trajectoryOn the back of higher production at farm level, there has been a lift in dairy export volumes to date this year, however lower market prices has affected the overall value of Irish exports. David explains that there has been a significant increase in butter and dairy fat exports in both value and volume, driven by market demand from the US and the Middle East. “The US has been a very strong market for butter this year. Its own butter prices reached record high on the back of strong domestic demand and we have significantly grown our exports to the market. The Middle East has seen a significant uplift in places such as Egypt and Saudi Arabia.” Volumes of both butter and cheese to the UK, our largest export market, are higher this year but returns are lower. Exports of specialised nutrition products have grown strongly to date this year reflecting higher production capacity. Significant growth has been evident in the UK, the Netherlands, China and Saudi Arabia. After the UK, China is the second largest market for Irish dairy exports, the value of exports have grown by almost a quarter this year. David says, Irish dairy exports to China could reach €500 million in 2015, which is exceptional growth given that, back in 2004, export value to China was under €20 million. He adds that the strength of performance is reflective of the four specialised nutrition manufacturing companies based in Ireland, which account for 10 per cent of global and 40 per cent of European production. “Milk formula products account for the bulk of our exports to China, although we do export a wider range of dairy ingredient powders, UHT liquid milk, butter and cheese. As Chinese consumers move more towards western eating habits, the demand for high-quality

delivers

opportunity

Mixing

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Considering the complete food matrix will be key to defining the health benefits of cheese, says Jens

Bleiel, CEO, Food for Health Ireland

F ood for Health Ireland (FHI) is a unique collaboration between seven Irish research institutions and five

of Ireland’s leading dairy companies. Majority funded by Enterprise Ireland, the five dairy companies also fund the research work of FHI. Jens says that having the industry partners on board is what makes FHI such an interesting research concept. “The five companies are important contributors and that, for me, is a really interesting element because it makes the research relevant for industry. They invest in FHI and they want to see results.”

Is grass-based milk better?The latest industry-inspired research

being undertaken by FHI is looking at

whether Irish milk, which is produced on

a grass-based system, has any impact on

cheese production, compared to non-

grass-based milk. This research stemmed

from another FHI project examining

the impact grass-based whey has on the

production of infant formula. “That is a

really important ingredient for baby food

and we know that the Chinese companies,

for example, really appreciate that Irish

milk is coming from Irish cows in green

fields. We are investigating the nutritional

benefit of this and we can see already that

there is, analytically, a difference, but we need more time to know what that means from a nutritional perspective.” Jens expects results from this research to emerge in the coming months. “The interesting thing is that we will extend that research to cheese making,” says Jens as he explains that grass-based dairy products are enjoying a boost in popularity. “Even in the US we have seen that yogurts from grass-fed cow’s milk are very on-trend and sold in speciality shops at premium prices.” Jens says that consumers associate positive health benefits with dairy products sourced from grass-fed cows. “That is a nice marketing story, and we are trying to find the science behind it to understand if cheese that comes from

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grass-fed milk is in any way different, more nutritious or healthier. We are asking: does it have a different composition or more specific elements that make grass-based cheese healthier?”

The full matrix Jens says this is a particularly interesting area of research given the reputation of cheese within diets. “Cheese has always had a bad image for health and, in the past, that’s what scientists were saying, that cheese has fatty acids and salt so it must be unhealthy. We know now, however, through our latest research, that that is not true. It is not the individual food ingredient we have to look at, we need to consider the complete food matrix. We did an epidemiological analysis of what we call the National Adult Nutrition Survey (NANS) database where the food intake of 1,500 people is registered. We found that there is a positive correlation between milk product consumption and certain health biomarkers such as hip-to-waste ratio, cholesterol levels and also satiety.” Jens explains: “We are now doing research to understand why that is and what is in cheese that makes it healthy. We assume that it is the complete matrix, including the calcium, certain peptides, macro and micro-ingredients that make cheese a really healthy food product. We are currently setting up an intervention study with 240 people where we will try to confirm that the consumption of cheese is indeed healthy and why that is.”

Market opportunitiesOther ongoing research at FHI is exploring the potential of new components coming from milk treated with Kosher and Halal enzymes. Jens says the Kosher and Halal markets have increased, and present a significant opportunity for industry. “In former times, we used animal enzymes and although the enzyme isn’t in the final product, they wouldn’t be accepted as Kosher or Halal. So, we changed our enzyme systems to enzymes that do not come from animals to create new peptides or hydrolysis, which may have functionality

in areas such as sport performance, muscle growth, glycaemic control and appetite modulation. These ingredients can be then used in products such as yogurts, dairy drinks or smoothies. “We are currently finalising that work and the plan is to go into human intervention trials to see if the new components prove to have a functional benefit for human beings.”

Contract research FHI is in its second phase of investment. In its first phase, FHI generated six results, which are in the process of commercialisation. Now the industry partners – Carbery, Dairygold, Glanbia, the Kerry Group, and Ornua – are negotiating licenses with the universities to access these results. As well as the core work of FHI, the consortium also uses its resources to conduct contract research for its industry partners and external companies. “These companies are coming with specific issues that they have in their market. It can be a process problem, for example: how do they get more efficiency out of their process? How can they make it safer or more effective? Or it could also be that they have some ingredients and they want us to test them for functionality. Or, they might ask us to produce some literature work, or to set up proof of principle studies for them. They come to us for a whole variety of reasons.”Jens says FHI is well positioned to answer these challenges because of its organisational structure. “We can usually solve these problems because we have access to six universities in Ireland, as well as Teagasc, and each of those seven research organisations has different capabilities that we combine to execute world-class research in health and wellbeing.”As well as access to expertise, Jens says having Teagasc Moorepark as part of its research infrastructure provides a great advantage as FHI can access facilities to scale production. “We have all of the facilities to produce ingredients on a large scale, we can produce cheese on a large scale, we can look at infant formula

production, and we can look at how we can scale up an ingredient that is produced in the lab, which is important because producing it at industry level is a totally different environment to being in a lab. That’s the advantage of having an organisation like FHI, we can join the dots together to generate results that are beneficial for all food companies. One university alone probably wouldn’t be able to do that.”

Collaborative workJens says thatanother advantage of the FHI programme has been the collaboration between industry and universities. “When I began here in 2009, starting to build the programme, you could almost say there was no dialogue between scientists and industry. Partly because of the language problem, a lot got lost in translation. We had to build a bridge between the two and develop a level of trust and confidence so that they could work together. For the scientist, that means there no conflict in using high-quality science that is also relevant or interesting for the consumers. In the beginning, there was often a belief that if the science is compelling to consumers then it can’t be good science. “On the other side, industry often believed that scientists don’t understand market needs. It was one of the key functions of FHI to build this bridge between science and industry and now we have continuous meetings, between scientists and industry and we all have learned to appreciate each other for the respective positions and interests. That’s one of the big advantages that we have. Our industry partners now have access to a network of 100 scientists across Ireland, who are leaders in their area, and this communication has become easy and is built on trust and respect.” Jens is hopeful that, as FHI progresses, there will be even more opportunities for collaboration between industry and academic research. He believes the structure of FHI is well placed to expand its research and increase its contract research agreements.


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D airygold is a co-operative organisation, located in the south-west of Ireland. Owned by its farmer members,

it is the second-largest milk processor in Ireland, accounting for close to 18 per cent of the Irish milk pool. With Ireland set to increase its milk pool by 50 per cent by 2020, it is Dairygold’s ambition is to ensure that its milk output delivers on value, for both customers and members, says Paul Bouchier, head of R&D, Dairygold.

“Innovation is one of our core values. If you don’t innovate, you die. You have to stay alive and grow. The more value-add we can deliver to our customers, the stronger our business offering. This helps to drive the whole business forward.”

Processes Innovation, Paul explains, is as much about the processes as the end product. He says ongoing innovation within Dairygold’s processes offers customers greater assurance in terms of product quality and reduces the potential for variation in products. Paul says Dairygold has an added advantage as it is 100 per cent co-operative owned. Dairygold works closely with its farmer members and has greater control on inputs at farm level, which helps to deliver the optimum product for Dairygold’s processing facilities and team to work with. Dairygold is a key supplier of cheese and dairy powders to Ornua (a commercial co-operative that markets and sells dairy products on behalf of its members), as well as a supplier of whey and milk powders to infant milk formula (IMF) producers

Co-op nurtures dairy innovationInnovation is the key to survival in business and, more importantly, an essential requirement for continued growth and expansion. Dairygold Co-Operative Society, Ireland’s largest farmer-owned dairy business, is committed to ongoing innovation to deliver the best products for its customers and the best results for its members


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based in Ireland, Europe and Asia. Paul says an important part of the innovation work at Dairygold is overseeing the quality and functionality of its dairy ingredients, ensuring they contain the optimum nutrition to meet the profile needs of infants. Its innovation processes also consider the needs of customers further along the stream.

Value-added delivers resultsPaul explains that delivering value-added solutions is the key to ongoing success for the dairy industry. He explains that the interest in functional ingredients has moved beyond IMF to lifestyle nutrition, delivering tailored products that suit different categories such as the elderly or customers interested in sports and fitness. “People are becoming more scientifically aware and more understanding about nutrition. We need to take these things on board,” says Paul, explaining that changing consumer trends help to drive innovation within the company. The growing awareness of health and wellness among consumers has also led Dairygold to develop new cheese solutions that meet the changing demands of this consumer base. To date, Dairygold can make cheese containing only 10 per cent fat and also with a higher calcium value. Paul explains that innovation on that front can be challenging as fat and calcium play a role in the overall composition of cheese, and delivering such dramatic changes while maintaining taste and quality is a positive achievement.

Leveraging resources While research is at the heart of Dairygold’s business, Paul says it comes about in a number of different ways, especially in working closely with customers to respond their changing needs. However, Paul adds that customers also expect Dairygold to

present them with innovative solutions that fulfill a requirement. Therefore, the Co-operative’s on-site team of innovators explore solutions, tapping into emerging customer trends. As well as its own research work, Paul explains that Dairygold is also leveraging other resources at its disposal, such as Food for Health Ireland (FHI) and the Dairy Processing Technology Centre (DPTC), of which Dairygold is a stakeholder. Both FHI and the DPTC are collaborative research centres in Ireland, which are funded, in the main, by Government but also by investment from leading dairy industry partners. Paul says the consortium offers benefits to all its member stakeholders who learn from each other in a non-competing way. He adds that FHI is operating at one end of the dairy spectrum, researching the potential for extremely high-value-added products, offering clinically proven results. Paul says this research is concerned with smaller volume/higher margin products. “Meanwhile, DPTC is about getting value from large-scale production.”The DPTC and its stakeholder companies are exploring opportunities for greater efficiency. “Any increase from value-added solutions in this area is huge because of the volume of product you are producing. Because milk quotas have ceased it is important to deliver quality solutions for high-volume products.”

Sustainability Another area of innovation and added-value within Dairygold’s operations is its commitment to sustainability. Dairygold is a verified member of the nationwide sustainability initiative, Origin Green. It signed up in 2013, setting out a charter with targets for sustainable improvements by 2016. Origin Green, a Bord Bia (Irish Food Board) initiative, is not a one-size-fits-all solution and allows


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companies to set relevant targets under three headings: raw material sourcing; manufacturing processes; and social sustainability. Dairygold has set targets under each of these areas.

Farm levelOn the supply front, Dairygold, as a co-operative, is at an advantage, says Dave Fitzgerald, head of sustainability at Dairygold. “For us, the big raw material is milk, coming from our own farmers. One of the things we are doing is rolling out the Sustainable Dairy Assurance Scheme (SDAS). Currently, we have over 88 per cent of our almost 3,000 milk suppliers signed-up.”Achieving that goal is supported by the co-operative’s close relationship with members. “We have a dedicated advisory service and customer-relations side of the business to support our farmers. Through that service, advisers go out and talk to farmers and advise them about the scheme and how to apply for it. They also assist them in preparing for an audit and dealing with any issues that might arise.“We have also invested €1 million in

a three-year, joint programme with Teagasc (the Irish agriculture and food development authority). The aim of this is to support our milk suppliers to achieve profitable and sustainable dairying in the post-quota era.”

ProcessingOn the processing side, Dairygold has a number of targets addressing water and energy efficiency. “We have a fairly aggressive target overall and we have already improved water efficiency per litre of milk in cheddar cheese production by 20 per cent since 2011. The overall target is to deliver 22 per cent improvement in 2016 so we are well on target,” says Dave. He explains that Dairygold has been innovative in its approach to sustainability, introducing new technologies to improve its performance. This includes the introduction of an anaerobic digester (AD). “That is used to process waste water from the Castlefarm production plant. The AD processes the waste water and it generates a bio-gas, which is a renewable fuel. We use that to supply 6 per cent of the heat requirement

of the production plant. “The Mitchelstown investment is essentially complete and Mallow is due to come on stream in 2016. As part of both of those investments, there has been significant investment in energy efficiency. There are various technologies that would have been used as part of that – energy-efficient motors, heat-recovery systems, and there is a technology called mechanical vapour recompression, which is a very energy-efficient technology.”

Sustainability chainDave says Dairygold has always been an innovator in the area of sustainability, being one of the first dairy companies in Ireland to convert to natural gas, as well as one of the very first to introduce combined heat and paper (CHP) technology, both of which contributed to a significant reduction in carbon emissions. “That goes back 30 years, but I think our sustainability approach has become much more coordinated through Origin Green.” He says the introduction of Origin Green in advance of the removal of European-wide milk quotas is a huge benefit and point of differentiation for Irish processors competing on the international stage. “For Dairygold, which is primarily a business-to-business business, a lot of our customers would be very focused on sustainability, and our sustainability initiatives provide Dairygold with an opportunity to partner with customers in areas such as carbon emissions, because we would be a part of our customers’ carbo- emissions story. So, customers are very keen to understand what Dairygold is doing on sustainability and that can be a key point of differentiation for a business. That goes across the board, not just carbon emissions and water efficiency, it also includes ethical practices and social contribution, which are all areas that we are working on,” says Dave. “It’s really impressive to see the range of food processors involved in Origin Green and to have that link, through the quality assurance schemes at farming level right through to processing and to the final customer. That supply-chain approach is really important.”


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O rnua is an agri-food commercial co-operative, which markets and sells dairy products on behalf of

its members, Ireland’s dairy processors and the Irish dairy farmer. It is Ireland’s largest exporter of dairy products, accounting for approximately 60 per cent of Ireland’s dairy exports to over 100 countries.

In 2014, Ornua had annualised sales of over €2 billion, its dairy trading and ingredients (DTI) division accounted for 32 per cent of Ornua’s turnover in that period. Ornua is focused on building a sustainable future through the investment in route to market acquisitions, in-market resources, innovation, lean manufacturing, volatility management and manufacturing capacity and capability.

Acquisition for growthWith that goal in mind, Ornua acquired the business and assets of Luxtor S.A., a Spanish pizza cheese business, from Telepizza in summer 2014. The deal includes a long-term contract for the supply of cheese to Telepizza, the fifth largest pizza chain in the world. This acquisition was described as one of the highlights for Ornua’s DTI division in 2014. It has been described as being in line with the Group’s plans to make a strategic investment in southern Europe, which it considers a milk-deficit region.

New business opportunitiesOrnua says it will focus on increasing its scale in the southern-European market through customer-led innovation. Ornua Ingredientes España provides expert

cheese solutions for the pizza sector that complement the cheese solution technologies being developed in the Group’s other international businesses in regions such as the Middle East, the US and the UK. The state-of-the-art R&D centre enhances the business’s ability to develop new product lines and formats for existing and new customers. Furthermore, it strengthens Ornua’s position as a global provider of innovative cheese solutions to the quick service restaurant and food service sectors.“We are delighted to be re-affirming our commitment to the Spanish market, which we see as offering great growth opportunity for Ornua,” said Ornua CEO, Kevin Lane. “Since acquiring the business in 2014, we have strengthened our position in the Spanish market by building a significant manufacturing, trading and sales hub to service our growing southern-European customer base. Investment in new product development will allow us to build on that, enabling us to more effectively meet the changing needs of our customers and to target new markets.”

The Spanish acquisitionIn 2014, Ornua entered into a new venture in Spain. Twelve months

later, it officially opened a new research and development (R&D) facility in its Spanish ingredients division, which is all part of the

company’s strategy for growth in southern Europe

Ornua España staff pictured at the opening of its new research and development centre in Ávila, Spain.


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P rojected growth in the world population is raising concerns among international organisations, such as the World Health

Organization, which has questions about the adequacy of protein supply to meet future nutritional needs, explains Mark Fenelon, head of Teagasc’s food programme. “This is further exacerbated by current consumer demand for the deployment of extra protein ingredients to formulate higher protein variants of familiar consumer dairy products.”

Irish milk processors, through ongoing investment, currently have adequate manufacturing capacity to deal with the increasing volume of milk supply generated from the ending of milk quotas across Europe. Nevertheless, Teagasc’s food chemistry and technology department at Moorepark is conducting protein research to underpin Ireland’s capacity to respond to this market opportunity and challenge. And, through this research, it is delivering technological innovations for the Irish dairy industry. Two outcomes from Teagasc’s work include:• significant developments in membrane

separations for protein ingredient production; and

• the unintended consequence of higher protein content mozzarella-style cheese resulting from co-development of reduced fat and salt variants.

New added value productsIn less than half a century, membrane separation technologies have gained widespread application with milk processors throughout the dairy industry, Mark explains. “Membrane separation technologies provide cost-effective opportunities for the complete deconstruction of milk and the subsequent recombination of selected milk components.” This allows processors to create novel, added-value products that complement existing dairy commodity portfolios. Separation, in its various forms, is at the core of protein technology research at Moorepark. Teagasc is taking inspiration from traditional curd separation techniques used in cheese making and adapting it to generate protein-enhanced consumer products. Meanwhile, it is also using crossflow membrane filtration technologies to advance the opportunities for sustainable processing of novel functional ingredients.

Crossflow microfiltration

The launch of ceramic-based crossflow microfiltration (MF) in the dairy industry was heralded for its capability to separate microorganisms from skim milk, Mark explains. He adds that further MF applications quickly followed, which can deliver new protein fractions. In particular it is delivering new clean wheys, which have added nutritional value. “These highly functional, high-nutrition ingredients are used in sports, medical and infant nutrition. They retain native structures that have specific nutritional benefits in terms of digestibility. They can also be used to create novel functionality in structured gel systems, depending on the application, whether you are using it in structured materials, such as ice-cream, yogurts or soft cheeses. But the main benefits are from a nutritional quality perspective.”

Researchers at Teagasc (the agriculture and food development authority in Ireland) are looking at

means of aligning Irish dairy protein production and processing with long-term global nutritional needs

Meeting market

needs with dairy protein


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Ultrafiltration

Ultrafiltration (UF) is regarded as the workhorse of dairy industry separations, according to Mark. He describes it as a molecular sieving system that allows small molecules and water to permeate membranes while proteins and fat are retained. “The production of high-value whey protein concentrates and total milk protein for sports and medical applications relies totally on UF-based processes.”

Reverse osmosis

There is an economic payback when it comes to reverse osmosis. It can be used for energy-efficient concentration of solids content. This is simply the removal of water from products in a very cost-effective way. Furthermore, it is used for the recovery of waste waters, thus reducing the environmental impact of dairy processing plants by recovering solids from effluent streams. Depending on the type of process stream, recovery of

milk solids, particularly from flush waters can provide both an economic and

environmental benefit for dairy processors by reducing

in-process losses and reducing the loading on effluent treatment

facilities. Process water recovery by reverse osmosis is a staple technology in many dairy installations, whereby a commercial installations water balance can be improved by the recovery or polishing of waters for re-use in process applications. This application is also linked to reduced effluent volumes.”

Nanofiltration

Mark describes nano filtration as an interesting technology. “It provides dairy processors, in particular, but also water treatment facilities, with the ability to remove minerals, particularly ions of sodium, potassium and chloride in dairy streams where there is a very high dairy mineral content.” Mark explains that nano filtration is is used in two ways: one for the removal of minerals, predominantly mono-valent ions; and, secondly, it also has a dewatering effect similar to revese osmosis, whereby concentration of solids is achieved by a pressure-driven osmotic effect. “In high-protein streams, such as whey protein isolates and whey protein concentrates for sports nutrition, it is used as a more cost-effective and energy-efficient way to remove water from high-protein streams.” New process technologies are being created for next-generation fractionation techniques with specific application for dairy streams. The recovery of high-value, low-concentration nutrients from milk by cascade filtration processes offers the industry the opportunity to valorise Irish milk with potential value-add applications in infant, sports and medical nutritional products.

Reduced-fat and-salt cheesePizza consumption continues to expand globally, Mark explains. “Especially in the US where sales value was estimated at US$38 billion in 2014. Nevertheless, pizza at high consumption rates can contribute significantly to dietary fat and sodium, especially among the young. As a result, there is an increasing demand for cheeses with reduced levels of salt and fat.” Mozzarella cheese is the predominant cheese used in this

application. An EU-funded FP7 project ‘Novel processing approaches for the development of food products low in fat, salt and sugar reduced’ (known as PLEASURE) has recently been completed. This project addressed the twin research objectives of reducing fat and salt simultaneously, from 22 per cent to 11 per cent and from 1.7 per cent to 1 per cent, respectively, in mozzarella-style cheese. An important aspect of the investigation included research into balancing the effects of reduced-fat and reduced-salt cheese in order to normalise the characteristics of the cheese.“Performance during cooking of mozzarella-style cheese is a key attribute when selecting for pizza toppings. Compared to standard full-fat, full-salt mozzarella, reduced-salt reduced-fat cheese (RFRS) made using a standard procedure was of inferior quality when used in pizza. The heated cheese had a tougher texture, was not as stretchable and, overall, had poor functional characteristics, i.e., when heated and melted it did not give a nice uniform molten covering; the cheese tended to stay as the distinct pieces of shredded cheese like it did before it was cooked. “Everyone is after reduced fat cheese, but in reducing the fat, the casein content of the cheese increases and the casein component of the cheese doesn’t hold as much moisture. Hence, the impaired quality in cooking applications.” However, Teagasc researchers modified the structure of the protein network in the cheese by reducing the degree of calcium phosphate-induced cross-linking of the casein molecules, which helps to create physical properties closer to that of full-fat mozzarella, while also maintaining its reduced-fat, reduced-salt status. Additionally, they have altered the manufacturing process to allow the addition and retention of tailored enzyme modified cheese (EMC), a step which significantly improves the flavor of the resultant cheese.

Future lookingRecent infrastructural investments by Irish dairy processors is well positioned to take advantage of future market opportunities for milk-protein based products by competitively producing innovative ingredients and products for export in preserved form. Teagasc’s research will contribute to advances in the industry, helping the Irish dairy industry respond to changing demands long into the future.


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A golden opportunity

for dairyThe lifting of milk quotas in April 2015, which is

estimated to increase supply by 50 per cent to over eight billion litres by 2020, presents a golden

opportunity for the Irish dairy industry to become a leading global dairy exporter, says Seamus

MacLoughlin, senior development adviser with Enterprise Ireland’s food division – the government

organisation responsible for the development and growth of Irish enterprises in world markets.

S ince quotas ended, Seamus says, anecdotal evidence suggests milk supply has increased ahead of expectations. Ideal

conditions, have helped to deliver this increase, however, Seamus adds, Irish dairy farmers were well prepared for the ending of quotas and had equipped themselves to respond quickly to the development.

The end of quotas has coincided with a

number of adverse market factors, including

Russia’s ban on western food imports and

pressure on China’s economy, which have

resulted in turbulence in global dairy markets.

Meanwhile, worldwide milk production was

also up in the past year due to benign global

climatic conditions. “When these things

happen prices are going to decline. Our

opinion is that it is a short-term issue, we

would take a more long-term view of things.

Overall, the release of quota can only be good

for Ireland.”

Investing for the futureResearch and development (R&D) will be key to the success of Ireland’s dairy industry, says Seamus. “Our mantra is always about value-add. There’s no point producing commodities, we’ve done that, we are very good at doing that, but it is really about return and margin. Our focus and role is to encourage dairy processing companies to invest, not only in the bricks and mortar of extra processing but also in adding value. That only comes about by investment in research and development.”That investment is already in evidence, with some of Ireland’s leading dairy processors committing to the industry’s future. Examples include the announcement of a €36 million expansion of Lakeland Dairies milk powder processing operations in Co. Cavan. This was followed, in March 2015, with the opening of a new state-of-the-art dairy plant by Glanbia Ingredients Ireland in Belview, as part of a €235 million investment programme.


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It is the largest indigenous infrastructural investment made in 80 years. In October 2015, Kerry Group opened its new Technology & Innovation Centre, following a €100 million investment. The outputs of these investments will be for export markets.

Supporting growthSeamus explains that Enterprise Ireland plays a key role in the dairy sector at processor level, assisting them to build capacity and capability to ensure they can compete in world markets with the type of value-added products that can command premium prices. Typically, Enterprise Ireland engages with the processors across three key areas: • enhancing manufacturing capability with

assistance towards capital expansion investments; • enhancing value add with assistance towards

innovation and R&D; and • enhancing competitiveness with programmes

such as Lean Manufacturing, Leadership for Growth (L4G), management training etc.

“These three areas are closely intertwined and support packages, drawing on all three elements, are developed for companies to ensure that every grant-supported investment will return value added benefit, not only to the companies and their farmer shareholders, but also to the Irish economy in terms of increased export sales and increased jobs.”Enterprise Ireland has played a pivotal role in the growth of Ireland’s dairy industry by administering, on behalf of the Department of Agriculture, Food and the Marine, a €100 million Dairy Capital Investment Fund. Delivered in 2007, it represented the first major injection of capital funding into the industry since quotas began. More recently, in the period 2013-2014, there has been intensive engagement with the sector, resulting in Enterprise Ireland committing €89 million in grant assistance towards 36 dairy and infant milk formula (IMF) projects. These will result in a total investment of €730 million by the sector.

R&D As well as encouraging and assisting Irish companies with their innovation programmes, Enterprise Ireland also ensures Ireland’s overall dairy innovation infrastructure meets highest international standards. “This R&D infrastructure is a key part of Ireland’s attractiveness to global food companies and the universities and Teagasc play an important role here in collaborative and contract research”. Enterprise Ireland also provides the lion’s share of funding for Food for Health Ireland (FHI), a collaboration between Irish research institutions and Irish dairy companies. Its objective is to identify


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and commercialise new bioactives from milk and to develop new functional food ingredient products. Launched in February 2015, the Dairy Processing Technology Centre (DPTC)is another collaborative initiative between industry and Irish research institutions. It is focused on developing next-generation dairy processing technologies. Enterprise Ireland is the principle financial contributor to its initial five-year funding requirement of €25 million. The DPTC is a collaborative model in which the best research talent in Ireland relevant to industry needs is brought together with the dairy sector to solve strategic research and innovation needs.Seamus says State funding for both FHI and the DPTC came at a time when Ireland’s coffers were depleted. However, the Government recognised the benefit of adding value to the dairy industry. “It is in the national interest. Milk is Ireland’s single largest raw material commodity and the investment is about adding value to that and growing the economy. It was on the basis of that argument that the funding was secured.”

Infant milk formula IMF is a key value-added segment of Ireland’s dairy industry. Ireland is a manufacturing base for three of the world’s top IMF producers – Danone, Abbott and Pfizer – from which they supply over 10 per cent of the world’s exports. “It’s Enterprise Ireland’s vision that Ireland will be the premier location to produce IMF based on abundant safe ingredients, innovative competitive processing and the ability to commercialise and leverage world-class R&D infrastructure.” Enterprise Ireland works with Irish-based IMF producers to support their capacity, environmental, capability and R&D agenda to deliver innovative, sustainable products catering to the global market needs. Futhermore, Enterprise Ireland also supports indigenous dairy processors as they move up the value chain in terms of sub-supply of infant milk formula raw materials. Many of these key investments will reinforce and build on this expertise by enabling the dairy companies manufacture

dairy compounds and blends that can be incorporated in infant formula without the need for further processing by the formula companies. A key milestone for the indigenous sector was the 2014 launch of a branded, ready-to-consume IMF for the Chinese market manufactured at Kerry’s Charleville facility.

Long-term opportunitySeamus says the underlying global dynamics are promising for the dairy industry, with an increasing global population and increasing consumption. With that, he says, the industry can be optimistic about the long-term prospects for the sector. “Our vision for the future is that competitiveness and innovation, resulting in value-added products, will be the key to delivering long-term price stability and profitability to both the Irish dairy processors and their farmer suppliers in a quota-less environment. Enterprise Ireland will be working closely with the dairy industry to achieve this.”

Teagasc researchers partner with the industry to drive innovation in the agriculture and food sector. The Teagasc advisory network assists farmers to combine environmentally sensitive technical innovation with prudent business management, and Teagasc education courses equip future farmers to become lifelong innovators.

www.teagasc.ie

Innovation Partner for the Agriculture and Food Sector

Sustainable Agriculture

New Technologies

Technology for the Food Sector

Reducing Greenhouse Gas Emissions

Breeding New Potato Varieties

High Quality Gluten Free Breads

Maintaining Clean Water

Satellite Mapping for Precision Farming

Phage Therapy for Controlling MRSA

Grass based Livestock Systems

Sexing semen for Animal Breeding

New Product Development

Teagasc 210x280 page.indd 1 25/06/2014 12:27


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The structure of the international dairy market has changed over the last decade and with it the environment within which milk suppliers, their advisers and everyone in the dairy industry must operate. There is a growing and powerful global sustainability agenda that is market driven, customer-led and consumer-focused, writes Shane McElroy, Glanbia

arkets are looking for security of supply as global demand for dairy continues to

increase. Global food companies are seeking high levels of quality assurance based on visibility and integrity across the whole dairy supply chain.

These companies, many of whom are

Ireland’s leading customers, are also looking

for sources of supply that can demonstrate

efficient and sustainable production, aligned

to their own sustainability commitments.

They recognise the value that sustainability

offers to their brand, as a more sustainable

brand is a more desirable brand. Consumer

demands are changing as well. There is a

growing cohort of informed consumers

who are focused on health and wellness

and clean product labelling. Dairy, with its

natural goodness and nutritional value, is

an ideal fit.

Sustainable food productionWhile the quality of food ingredients has

always been an imperative, increasingly

in recent years, global food companies and consumers want to know that food

ingredients are produced using responsible

farming practices at producer level. These

producer and processor responsibilities

come under the broad headings of social, economic, environmental and animal health and welfare.In some developed countries, social sustainability and animal welfare are important to consumers, as demonstrated by Fairtrade and the five freedoms of animal welfare. Throughout most developing countries, though, it is price stability and security of supply that are most important. For Asia, and particularly the expanding infant formula market, quality of ingredients and traceability throughout the entire supply chain are paramount. A number of food scares in recent years have led to the highest traceability standards being required to access these markets.For global food companies, with well-known brand names, sourcing food ingredients, the integrity and reputation of their brand will rest on the quality of the raw materials they select. Before signing mutually beneficial, long-term contracts to purchase dairy ingredients from Irish milk processors, these companies want to know that the milk production systems on the supplying farms are sustainable. They also want to ensure that the quality, safety and security of that supply will be upheld by good farming practices.In addition, in recent years, traceability and transparency of the agricultural inputs,

including animal feeds, fertilisers, chemicals and animal remedies, etc., used in food production are becoming increasingly important. Records of the sourcing and usage of these products are now required to ensure food quality and safety is maintained by traceability throughout the supply chain.

Changing supply patternsIn recent years climate change, weather events and water availability have had their part to play in the constantly changing demographic of world dairy production. The availability of resources, particularly water, is increasingly dictating the agricultural outputs of many areas of the world. These changes in world climate and significant weather events may in the long term work in Ireland’s favour. As a country whose dairy production system is less exposed to world feed prices, by growing a large proportion of our animal feed requirements at relatively low costs, we are more capable than many countries at riding out the price volatility storms that will occur.

Dairy sustainability from an Irish perspectiveIreland exports more than 85 per cent of its dairy products. In 2010, the Irish dairy industry set itself the ambitious target,

what does it mean for the Irish dairy industry?


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under the Food Harvest 2020 programme, of sustainably increasing milk production by 50 per cent by 2020. A sustainable Irish dairy industry is important for two reasons:• as a significant employer and valuable

income stream for the Irish economy, to promote continued success and growth targets, the dairy sector needs to base itself around sustainable practices that will allow it to thrive; and

• sustainable practices throughout the dairy production supply chain, from field to fork, are of increasing importance to governments and global food companies that buy our dairy produce.

The sector has seen a shift over the last number of years from commodities-based supply to one that is increasingly brand-centred and consumer focused. It is the production and marketing of high-value dairy products that is likely to provide the best return to the Irish dairy sector. These products include high specification milk powders and infant formula, as well as performance and clinical nutrition ingredients.Although we produce less than 1 per cent of the world’s milk, Ireland supplies the dairy ingredients for approximately 15 per cent of the infant formula produced globally. As you would expect, the highest standards of quality and traceability are imperative for this market. With the recent food scares, including melamine, botulism and dicyandiamide, in the southern hemisphere, the four infant formula companies (three of which are based in Ireland), strive to ensure that the reputation of their brand is maintained by using only the highest-quality and fully traceable dairy ingredients.Ireland’s unique selling points as a sustainable dairy producer:• Small, farmer-owned family farms,

operating to the highest standards in all the key areas of sustainability – social, economic, animal welfare, environmental, quality and traceability;

• Relatively low-cost production from rain-fed, pasture-based milk production;

• Operating in a highly regulated environment with good governance of agricultural practices;

• Farmer-owned processing facilities,

which are becoming increasingly efficient, well-invested and capable of producing the high-specification dairy ingredients demanded by global food companies;

• Ireland is internationally recognised as a food island, with a clean and green reputation; and

• Ireland already has a strong presence in the high-value markets of infant formula and performance nutrition, with an opportunity to build on these strengths.

Verification of our sustainability credentialsWhile these points of differentiation will allow the sustainable growth of our dairy sector, Ireland needs to be able to credibly demonstrate these to a global audience. Bord Bia’s Origin Green initiative and the more specific Sustainable Dairy Assurance Scheme (SDAS) provide the tools to promote Ireland’s green credentials, and also to independently verify that the practices employed at farm level are as responsible and sustainable as we know them to be.Origin Green commits Irish food and drink producers to operating sustainably – in terms of greenhouse gas emissions, energy conservation, water management, biodiversity, community initiatives and health and nutrition. The SDAS is an independently accredited scheme that offers further assurances as to the quality of Irish milk, the responsible practices carried out on farms and the sustainability of Ireland’s grass-based dairy production system.

‘Open Source’Following a 2235 million investment

programme in our milk processing

facilities at Ballyragget, Belview, Virginia

and Wexford, Glanbia Ingredients Ireland

(GII) is now focused on marketing the

expanded volumes of the highest-quality

dairy products and ensuring that milk

suppliers get the supports they need

to produce the extra volumes of milk.

Belview has now successfully completed

its commissioning season, processing 311

million litres of milk in 2015.

To meet the specific needs of customers,

GII has developed its own on-farm

sustainability programme called

‘Open Source’. The GII Open Source

sustainable dairy programme builds

upon the Bord Bia scheme and includes

a more focused approach to herd

health management and other areas of

importance to dairy customers.

GII is acutely aware of the need for

sustainable farm practices to promote the

growth in milk output that suppliers have

committed to. To this end, the GII Open

Source programme is well resourced, with

a team of sustainability advisers who are

supporting GII milk suppliers through

the sustainability audit process. This team

of advisers are working alongside the GII

Farm Development and Milk Quality

teams, and together will support milk

suppliers to produce expanded volumes of

the highest-quality milk in an efficient and

sustainable way.

/day

It is currently increasing at over

The world’s population

has doubled since

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Fi Europe and NI will be held this year in Paris Nord

Villepinte on December 1-3, 2015. It brings together

the world’s leading food and beverage buyers, R&D, business development and marketing specialists from

all around the globe. Ireland will be represented by a

range of companies from dairy ingredients to seafood and technological solutions

providers. Here, profiles Irish ingredient

producers exhibiting at this year’s show. Five companies

will be exhibiting at the Bord Bia (Irish Food Board) Origin

Green stand (6G59).

FiEurope2015

CARBERYCarbery Ingredients is an international, nutritional ingredients company, headquartered in Cork, Ireland. It has production, R&D and marketing capabilities in Europe, the US, South America and Asia. With its market-leading Optipep whey hydrolysate range, Carbery is working towards unlocking new opportunities for its customers in performance nutrition, weight management and healthy ageing. Part of the Food for Health Ireland (FHI) consortium, Carbery is at the leading edge of milk-based bioactive ingredient science. The company owns flavour specialist Synergy, whose flavour science experts collaborate with Carbery’s researchers to offer a unique taste and application capability plus extensive expertise of protein-based products for developed and emerging markets.

CONNEMARA INGREDIENTSSituated on the Atlantic coast in one of the world’s most un-spoilt and cleanest natural environments off the west of Ireland, Connemara Ingredients is a B2B supplier of natural marine ingredients to functional ingredient and nutraceutical manufacturers. Its decades of expertise gives it a unique understanding of the marine, the natural environment and the balance between harnessing seafood and seaweeds from the sea, ensuring traceability from source. It is committed to maintaining the highest food safety and quality standards including organic certification and maintaining a strong position on key sustainability issues. At Connemara Ingredients, research and development is part of the company DNA. It firmly believes that the interface between science, technology and the development of commercial innovation, and aligning that innovation with its partners, is exciting and leads to mutual growth. Its goal is to deliver smarter ingredient solutions including its new Aquafucus and next-generation marine components for the health and wellness markets. It is concentrating on the delivery of high-quality, science-based innovations, applications know-how, and service excellence to generate its products with unique selling propositions for its customers.

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GLANBIA NUTRITIONALSGlobal ingredient innovator, Glanbia Nutritionals, a division of Glanbia plc, delivers smarter ingredient solutions including protein fortification, peptide and next-generation grains for food and beverage, sports nutrition, and health and wellness markets. The company is equipped with high-quality, science-based innovations, applications know-how, and service excellence to help customers grow their business. The latest ingredient innovations include a gluten-free range featuring OatPure gluten-free Jumbo Oats, which guarantee a max 10ppm of gluten via a closed loop quality system and Bioferrin iron-activating lactoferrin.

CP INGREDIENTSCP Ingredients has over 30 years’ experience supplying dairy ingredients to global markets. Its knowledge of the global dairy markets, combined with an esteemed research and development team, puts the company at the forefront of product innovation and supply. CP Ingredients is a supplier of milk powders, milk proteins, whey proteins, yogurt powders, cream powders and a range of organic powders. Its subsidiary company, Real Ingredients, manufactures and supplies cream cheese, cheddar slices for burger, mozzarella, Gouda, Emmental and Edam. The company’s flavour house, Flaverco, has an extensive library that includes: sweet; savoury; fruit; herb and spice; plant extract; nut; meat and fish; and alcoholic-style flavours. The R&D-focused company collaborates with customers to provide products that reduce their processing time, storage and transport costs. The company’s excellent network of forwarders enables it to seamlessly coordinate any customer request.CP Ingredients Ltd is continually working on developing innovative ingredients in order to meet its customers’ current and future needs.

DAIRYGOLD FOOD INGREDIENTS IRELAND Dairygold Food Ingredients Ireland (DFI), part of the Dairygold Co-operative Society is based in the heartland of Ireland’s fertile milk producing region. With 95 per cent of its shareholders committed to its future development strategy DFI continues to invest in its facilities, technology and systems across its production locations in the temperate south of the country.This is an exciting time for Ireland’s dairy industry and DFI is ready to capitalise on the increasing global demand for the highest quality dairy ingredients and cheese solutions. The goal of this Origin Green verified member is to produce the finest dairy ingredients sustainably, ensuring traceability from source, while adding significant value to its customers’ unique selling propositions for products. Leading through innovation, its research and development team strives to develop market-leading initiatives while, in parallel, its quality assurance and technical departments ensure that the highest quality standards are maintained through every step of the supply chain to its strategic customer base though to consumers across the globe.

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MARIGOT LTDEstablished in 1992, Marigot Ltd is a functional marine ingredients company. Its range of marine minerals includes Aquamin, and Aquamin Mg. Aquamin is derived from one unique raw material, the red algae Lithothamnion species. With a distinct composition, which includes calcium, magnesium and 74 trace-minerals, Aquamin can be used in food, drinks, and dietary supplements where it is proven to deliver clear bone, joint and digestive health benefits. According to the company, independent clinical trials published in international peer-reviewed journals have supported its research in the marine-mineral nutrition sector. Aquamin Mg is an excellent source of magnesium, which is derived from the clean ocean waters off the Irish coast. The company has three manufacturing facilities, with an international network of exclusive agents and distribution partners serving the needs of local markets. Marigot is dedicated to sustainability, harvesting only mature, calcified seaweed, and leaving ‘live’, young seaweed untouched. Harvests of this sustainable material ingredient are carefully planned, controlled and monitored by Marigot, to ensure timely harvesting to protect the natural ecosystem.

THE LITTLE MILK COMPANYIrish Organic Milk Producers Ltd (IOMP) t/a The Little Milk Company, was established in March 2008 to act as the product development and marketing body for 10 Irish organic milk producers. Since it was established, it has broadened its remit to produce premium cheddars and soft cheeses. The company partners with some of Ireland’s leading cheese producers to create its own brand of cheese and now has nine varieties in its range, including multi-award-winning cheeses. It has also expanded its range of organic cheese powders, while the company’s organic milk is manufactured into organic, skim milk powder and organic, dry whole milk powder. All of which come from milk sourced from its organic farms from cows that are grass fed at least nine months of the year. Over the past two years, the company has collected 28 global awards, most recently winning gold at the Mondial du Fromage. The Little Milk Company took its products to the international stage in 2013 and has since secured listings in over 1,000 stores across the world, with markets as far away as Australia and the US. Closer to home its export markets include the UK, Belgium, France and Germany. The IOMP members are committed to sustainable farming and are mindful of animal husbandry.

ORNUA Ornua is an agri-food, commercial co-operative that markets and sells dairy products on behalf of its members, Ireland’s dairy processors and the Irish dairy farmer. It has annualised sales of circa €2.5 billion. Headquartered in Dublin, the business employs some 3,000 people globally. It is responsible for over 60 per cent of Ireland’s dairy exports to more than 110 countries. Ornua is the proud owner of the Kerrygold brand, which is found in shops and homes around the world. Its brand portfolio also includes Pilgrims Choice, Dubliner cheese, Eureka, Forto and BEO, a popular milk powder sold in Africa. With pre-packing and blending facilities located in Germany, the UK, the US and the Middle East and extensive R&D experience, the Group is constantly exploring new formulation possibilities to enhance its ingredients range. It develops bespoke food ingredient solutions for many of the world’s major food manufacturers. Its business is structured on three core platforms: foods, trading and ingredients and DPI, a speciality food distribution company in the US. Group subsidiaries in the UK, Spain, Germany, Nigeria and North America pack, distribute and market a wide selection of branded products, dairy ingredients and specialty food items of both Irish and non-Irish origin.

FROM NATURE TO NURTURE

www.glanbiaingredientsireland.com

4974 15 GIN Ad for Irish Food magazine v1.indd 1 28/10/2015 9:35 a.m.Glanbia 210x280.indd 1 30/10/2015 09:41


industry

Ross McDowell, founderand managing director,

Stript Snacks

Stripped back protein snacks

Ross McDowell, founder and managing director, Stript Snacks, tells that the idea behind his high-protein, low-calorie snack solutions stemmed from his own needs as a consumer. It has since evolved into a growing export business

S tript Snacks is an air-dried, beef snack made with fully traceable Irish beef. Ross has partnered with Irish meat processing company,

Kepak, to scale the product for export growth. Ross says the partnership offers market advantages too, with Kepak a well-established exporter. He says the company’s success with its own hot-snacking brand, Rustlers, is an advantage in exploring export opportunities.

Food WorksThe partnership with Kepak developed through Ross’s involvement with Food Works, a programme that sees three State agencies – Bord Bia (the Irish Food Board), Teagasc (the agriculture and food development authority in Ireland) and Enterprise Ireland (the Government organisation responsible for the development and growth of Irish enterprises in world markets) – support high-potential food entrepreneurs. The inspiration for Stript Snacks developed

during Ross’s time working and living in

South Africa. Ross describes himself, at the

time, as an average professional – working

hard and keeping active.

“I found myself looking for a snack that

wasn’t overly processed or full of sugar

but nothing hit the mark,” he explains.

While the traditional snacking market

wasn’t meeting Ross’s needs, he discovered

South African biltong. “It’s been around

for hundreds of years, before fridges

were introduced. It’s air-dried beef and it

delivered on all fronts. It was portable and

high in protein and really tasty.” It was then

that Ross started making his own biltong at

home, experimenting with different recipes.

His homemade snacks proved popular with

friends and when Ross returned to Ireland

in 2012, he says, there had been a big shift

in consumer attitudes since he had left five

years earlier. Ross realised Irish consumers

were increasingly interested in health and

wellness, with a renewed focus on quality

food. He felt that his meat snacks would fit

into that market and he began to look at it

as a commercial opportunity.

www.irishfoodmagazine.com 37Issue 7 2015

industry

Fine-tuning During his time with Food Works, Ross sold his products at local farmers markets, getting customer feedback on the product and adapting the product. He says he also watched what his competitors were doing. Ross realised that, for the product to have a greater appeal the meat would need to be more tender than the other products on the market, as well as being as lean as possible. Additionally, the naturalness of the product was important for Ross. “It contains no sugar, artificial sweeteners or preservatives. It’s all natural and high in protein.” Kepak supplies all of the beef. It is fat-trimmed and cut into strips at Kepak’s BRC, grade A facilities. It is then bulk packed and sent to a manufacturing partner in Dundalk where it is marinated and air-dried before being hand packed. During the air-drying process, the meat loses 50 per cent of its weight through water evaporation, this, Ross explains, leaves only the nutrients and rich flavour behind.Each pack contains a 25g portion of lean, top-side, fully-traceable beef. The product contains 13g of protein, it is low-calorie, containing 61 calories per pack. “That’s less calories than a rice cake, per unit weight.”Currently, Stript Snacks are available in two flavours: cracked black pepper and red chilli. Ross says the company is looking at other flavour offerings, as well as considering other protein options. “Beef is our lead product at the moment but we are keeping an eye on consumer trends.”

BrandingThe US market is the leading market for meat snacking, according to Ross. He says it is experiencing double digit growth, year on year. Meat snacking is well established in the market but, Ross says: “It was just a chewy snack, now more innovative brands are tapping into the protein market, with more interesting flavours”. Ross says it was important to create a brand that conveys Stript Snacks’ positioning as a healthy snack option. He says a premium-look, handy, portable packaging was designed to fit into the active lifestyle category.

Mass marketWhile there is a growing trend towards healthy eating in Ireland, Ross says the real opportunity for Stript Snacks is in the UK market. “The meat-snacking market in the UK is worth £150 million, so if it really works it will be in the UK.”Stript Snacks tested the waters in Ireland with a fast launch, trialling a number of sales channels, including: convenience, sports nutrition outlets, sport-supplement specialist and corporate snacking. “The best result came from corporate snacking,” says Ross. He explains that corporate clients have a good understanding of the benefits of products such as Stript Snacks and, as it targets the right kind of demographic all under one roof, the take-up of products is much quicker. Some of the companies’ corporate clients in Ireland include: Google, Facebook, Airbnb, Sky, and Hubspot. “The uptake is this sector has been phenomenal.”Now, Stript Sancks has its sights firmly set on the UK market and participated in a food service expo in London to build relations in the market. The company is

set to begin working with a distributor in London, Simple Simon, exploring the same corporate food service market. Ross says he is hopeful of building on existing business with multinationals that are based in Ireland. Furthermore, he is in discussions with another distributor about servicing food service chains, such as the military and universities, across the UK. “Meat snacking is much more developed in the UK, especially in the chilled channel,” Ross says. He explains that there are big brands in the market that are doing well, however, the Stript Snacks offering is different in terms of its production, tenderness, natural ingredients and lack of sugar. This, Ross says, will offer a point of differentiation. The company is also working with a consultant in Germany, a former Bord Bia fellow, who is looking at opportunities in the German market, which, Ross says, is the biggest market in Europe in terms of meat snacking.


industry

In 2015, ABP Ireland set a record when it became the first company in the world to achieve quadruple Carbon Trust certification. ABP’s group sustainability and environmental manager, John Durkan says there is nothing to lose and everything to gain from a strong sustainability commitment

A s one of Europe’s largest meat processors, ABP Food Group is committed to the continued growth of its

business. ABP has identified sustainability as a key driver of that growth and, as well as being a leader in the food industry, ABP is also striving to be a leader in the area of sustainability. The company was a founding member of Ireland’s nationwide sustainability initiative, Origin Green, and, in 2015, became the first company in the world to achieve quadruple Carbon Trust certification.

“Sustainability is very important for ABP and is an integral part of the way we undertake our business and has been for the past 10 years. We see it as something that is essential for our business, both internally and externally. Externally, we communicate it to our retail partners. Those retailers have similar sustainability objectives and we feel that it is important that we work hand in glove with our customers to help them achieve their goals through some of the initiatives that we undertake in our business.”

Resource managementThe path to sustainability started for ABP in 2008 when it began collecting data on the waste it generated, its carbon footprint and water footprint. John explains that this data collection also looked at all of ABP’s sites to see which ones best managed their outputs and resources. “We collated the data, looking at the techniques each company had, across the whole organisation, but particularly in

Ireland to see how we could learn from each other and improve resource efficiency.” As a consequence of this data collection, ABP introduced a number of sustainability programmes across its business, addressing waste, water and carbon emissions. “There is a programme in ABP call ‘Doing more with less’ and it is a resource-efficiency programme. It has delivered substantial savings in resource usage,” explains John. Results include: a 19 per cent reduction in carbon emissions, which equates to 6,377 tonnes of CO2; a 21 per cent reduction in water use, which is a saving of 196,471m3 of water; and an energy saving of just over 9 per cent, which is 3,972 mega watts of electricity. Meanwhile, in 2014, ABP Ireland also achieved a zero-waste-to-landfill status across its six Irish facilities, with ABP UK following suit in 2015. John describes this as a significant achievement for the global exporter. “We saved 100,000 tonnes of waste going to landfill over the past two to four years. When it came to waste, we did a series of waste audits within the organisation. We identified the sources of waste and looked at techniques, and technology and training to reduce the amount of waste that we were generating. We looked at the materials that we were generating as waste and looked at how to segregate those and add value to them.” John says success in this area required ABP to look at its waste in a totally different light. “By segregating the waste we could go to the

market and sell some materials for recycling. For example, we baled our cardboard and it went to paper mills. In the same way, we had clean plastic and baled that for people who wanted to recycle it. It made us look at the materials and our waste and we took a major step to say we didn’t want to landfill material anymore because it isn’t good for the environment.” Through its efforts, ABP has reduced waste generation by 82 per cent. “This shows that the initiatives we have adopted are delivering results,” John says.

Every drop countsWater has been another important target for the food company. John explains that it is essential for the business to ensure it uses the best-quality, pristine waters in its food processes and, while there is an abundance


industry

of rainfall in Ireland, that does not lessen the costs to businesses of extracting, heating and treating water. “If we run out of water we can’t continue to operate, so we have put a huge focus on water and how we can save it,” explains John. He says ABP has introduced a water sustainability programme throughout its operation called ‘Watching every drop’. “It’s very simple and we communicate that to our stakeholders, which includes employees, through breakfast meetings and management meetings. We have costs related to water in our business, we extract it and we heat it and treat it for our processes and we know exactly what the cost of that water is. That’s good for business. It is also good to communicate that to our employees, to explain the reasons we are trying to save water. It’s

good for the environment and it’s good for business

economically because it saves us resources.”At its site in Cahir, ABP has reduced water use by 50 per cent while, at the same time,

increasing production by 30 per cent. “That has been

a phenomenal result for us. We did that in two ways, firstly, through

a capital investment in new technologies and techniques, new equipment, buildings and structures, and cleaning systems. For example, we have better floors and better insulation. We have better ways for washing that include selecting the right nozzles, temperatures and water pressure. We also looked at the ways we use our water, establishing key performance indicators for water use so our operators understand the numbers that we are talking about. The second most significant improvement is operator/stakeholder engagement. “We can put a value on the water employees use and that gives them a better understanding of the impact savings have and helps them to focus on the goals.”ABP’s Cahir facility has also achieved recognition form the European Water Stewardship board, recently attaining the gold standard.

Carbon control Carbon footprinting is another important target for ABP. “We have a number of initiatives across our sites looking at reduction, energy efficiency and fossil fuel reduction.” John says that, as time goes on and new technologies come to fruition, this initiative will support its goals for carbon reductions across the business. To date, ABP has achieved carbon neutrality at one of its sites in the UK. “It generates its own electricity from a carbon neutral source. So it has scope-1 and scope-2 carbon neutrality. That is unique in the business because nobody else has that at this stage.”ABP also has a supply chain programme that takes cognisance of the carbon emissions at farm level. This is one of the commitments it has made under the Origin Green sustainability charter, which includes sustainable raw material sourcing as one of its pillars for sustainability. Bord Bia and the Origin Green programme further support ABP’s mission for sustainable raw material sourcing through its carbon footprint assessments of beef farms as part of its Quality Assurance scheme. “That is unique in the world for farmers. It uses a carbon calculator where auditors, as well as assessing for beef Quality Assurance, also assess the carbon footprint of each of the animals that is going to slaughter. The assessments demonstrate to farmers the efficiency of their farm through the footprinting.”

A journeyJohn is proud of the achievements of ABP to date, however, he is quick to add that the company has more ambitious targets for the future. “This is a journey and we are nowhere near the end of it. We have targets for 2020 of 50 per cent water reduction, electricity reduction in the order of 30 per cent, carbon footprint reduction of 40 per cent. They are significant targets and we are progressing well in that journey, based on the figures to date.”


trends

Finding the route to success in travel retail The world’s first Duty Free was established in Shannon Airport, Ireland in 1947. Today, the Duty Free retail market is worth over $60 billion. Recent research from Bord Bia’s (the Irish Food Board) consumer insights team explores the opportunities of global travel retail (GTR) and the nuances of the market compared to traditional retail, with particular focus on the whiskey, boxed chocolates and fine food categories.

A ccording to the Travel Retail report from Bord Bia’s consumer insight team, the Duty Free experience has changed

over the years. Despite this, consumers still call travel retail ‘duty free’, even though duties were abolished within the EU since 1999. In previous decades, the report notes, Duty Free shopping was synonymous with functional value, such as low-cost alcohol and cigarettes. In 2015 it is a misnomer, as they see it as luxury, emotional shopping. “Consumers have moved from an experience which was all about ‘duty’ (savings on taxes) to one which is now characterised by ‘free’ (the freedom to explore and to indulge).”

Understanding shoppers in travel retailThe report identifies nine GTR shopper

typologies. These profiles can vary

depending on the travel occasion and the

shopper’s needs. For example, a business

person may enter Duty Free in strict

‘routine’ mode. Meanwhile, on a weekend

trip the same person may be more interested

in browsing and exploring.

There are a variety of drivers that lead

shoppers to the Duty Free experience:

Driven by pleasure:• The Gifter: Has a defined problem and

needs travel retail to solve it. Shopping to

flatter, endear and even as a personal gift.

• The Explorer: Driven by a core belief

that ‘I never know what I’ll find’, they

are open and interested in browsing.

Consumers are in treat mode and often

do not consider price.

Driven by task:• The Surrogate Shopper: This consumer

is running an errand for someone else. They are usually equipped with a list and want to get in and out fast.

• The Price Fiend: Focused on value and has often done price checks in advance.

• The Researcher: This shopper is on a mission and has done their homework.

Driven by ease:• The Last Minute-er: Travel retail is an

opportunity for these consumers to gather their last minute essentials.

• The Routine Queen: This consumer is equipped with a list and knows their way around Duty Free. They are open to being engaged by new brands but do not seek it out.

• The Souvenir Hunter: This consumer has had a great break abroad, and is seeking tokens of provenance for friends and family. Products should carry some of the uniqueness of the place’s visited.

• The Bedlam Mum: She’s focused on getting her family through Duty Free with minimal ‘damage’. Her mindset is the opposite of what it would be if she were alone.

Gifting A key opportunity in travel retail is gifting, whether its gifts for others or for the consumer themselves. When buying for others, consumers are looking to flatter the recipient or to cement a relationship. In these instances, gifts need to – in the case of flattery – display their premium credentials overtly; or – to endear – have universal appeal and show that thought has gone into gift selecting.

When shopping for oneself, personal treats say clearly: yes, I deserve this. These gifts are all about outward signs of luxury and defy normal logic regarding price.

Brand buildingCentral to brand building in Duty Free retail, according to the report, is the ability to leverage provenance: in this case, a product’s ‘Irishness’. The report found that, in general, Irishness plays a key role in Duty Free in Ireland. Outside of Ireland, however, Irishness becomes much less dominant, and the focus goes to quality and premium credentials of the wider category. The role provenance plays differs between shoppers, depending on their needs. For example, in some instances there is a preference for a ‘cheesy Irish’ product, such as a fun souvenir. In other circumstances, a more sophisticated, layered meaning of Irishness is appropriate. Thus, the report notes, provenance is situation-specific.At the heart of the Bord Bia Travel Retail report is the challenge for Irish brands, particularly those operating in the whiskey, premium boxed chocolates and fine foods markets to succeed in travel retail. Overall, when considering these products, consumers often determine a purchase in the category in advance (e.g. pick up whiskey, pick up some boxed chocolates), but leave the brand choice to the moment of purchase. Irish whiskey is an established global premium category. “Irish whiskey transcends its Irishness to become a beacon of premiumness, no matter where it is sold,” the report states. The world of whiskey thrives on stories and characters: brand propositions are not


trends

just made from great liquid, but from the tradition, craft and personality of the master distiller as well. For whiskey lovers it’s all about taste. There is a constant role for whiskey tasting, offering a set of different whiskey brands and tastes (smoky/peaty/floral etc.) from a set of different Irish regions, would be a powerful driver for the purchaser. The report suggests that small brands also have a role to play in offering something different to the major Irish whiskey brands. Their job is to explain the narrative of burgeoning new Irish distilleries – and tell their authentic stories. In Duty Free, the small brands’ primary target are whiskey connoisseurs (Explorers) who are interested in exploring whiskey. Their secondary target are confident Gifters who seek authentic new whiskies for whiskey lovers to discover.The chocolate category is split into ‘supermarket premium’ and ‘special premium’. Every brand needs to know where it stands and the report suggest it’s difficult to do both at the same time. Chocolate is loved by all and represents a safe gift option. Chocolates are ideal for sharing, so this

category should target shoppers such as: Gifters, Souvenir Hunters, Explorers and Routine Queens, with a proposition to suit each opportunity. Premium chocolates are all about tastes, aromas, and beauty of packaging. Chocolates purchased in Ireland should have clear Irish provenance – in packaging cues – but also in tastes and promise. Packaging is key to delivering value in boxed confectionery, which is all about universal ‘premiumness’. Improving packaging quality (sophistication, attention to detail, aesthetic pleasure) is the core means of building brands and growth. Fine food is ‘off-piste’ for the Duty Free shopper: it is both not on their radar as an obvious purchase, and it is located away from the main action of Duty Free. Thus, it acts as a ‘fighter category’ that must have a clear benefit in order to be noticed. The best attribute for fine foods is authentic Irish provenance: they represent the very best of Irish produce and are deeply authentic. There are two stumbling blocks facing this category: Is the food legal to import into my country of destination? Will this food maintain its quality throughout my travel?

To grow in this category of travel retail, fine

foods must move into the ‘consideration

set’ of all gifters/souvenir hunters who

pass through Irish Duty Free. Creating a

compelling premium-gifting experience is

important. This can be achieved through

storytelling. All premium food has a

story to tell – about its ingredients, its

provenance, its people. Irishness is at the

heart of this category – expressed through

fine ingredients, care and attention and

traditions.

Normal rules don’t applyWhen people travel, they exist differently

in the world and the normal rules of

shopping don’t apply in Duty Free.

With that in mind, travel retail presents

consumers with an opportunity to discover

new products and new brands that they

wouldn’t consider day-to-day. “Travel has

the effect of energising at multiple levels: it

opens the mind, it is a source of learning,

it encourages engagement with others, and

it constantly places new things into the

traveller’s path.”


Spotlight On...

Cheese Awards honour 36 Irish cheesemakers

Inaugural Irish

Over 145 cheeses were judged across 12 classes at the inaugural Irish Cheese Awards, which

were organised by CAIS, the Association of Irish Farmhouse Cheesemakers

I n total 36 Irish cheesemakers were honoured at the only competition dedicated entirely to Irish cheese. Mount Leinster Clothbound by Coolattin

Chedder in Co. Carlow was named the Supreme Champion at The Irish Cheese Awards 2015. From all the gold medal winners Mount Leinster Clothbound by Coolalttin Cheddar also won the best cow’s milk cheese, while Ardsallagh Cranberry by Ardsallagh Goat Products from Cork, won best goat’s milk cheese and Macroom Buffalo Mozzarella by Macroom Buffalo Cheese from Cork, won best other milk cheese.

Jane Murphy, Chair of CAIS says the awards are about honouring quality, therefore any product worthy of gold was recognised as such. A Lifetime Achievement Award was also presented to cheesemaker Veronica Steele from Milleen’s Cheese, for her outstanding contribution to the farmhouse cheese

industry. Veronica and her husband Norman began producing cheese in 1976 in West Cork and she is regarded as one of Ireland’s first farmhouse cheese producers. Veronica was a pioneer in the farmhouse cheese revolution and found herself mentoring and tutoring other aspiring cheese makers.Jane says CAIS represents all forms of farmhouse cheeses, from smaller niche producers to larger, exporting producers.Currently, in Ireland there are 50 farmhouse cheese producers. A farmhouse cheese producer is recognised for their use of raw milk and hand production, which, Jane says, often takes place on the farm supplying the milk. According to Eimear O’Donnell, Bord Bia’s consumer dairy manager, the current export value of Irish farmhouse cheeses is €6.6 million, up from €4.5 million in 2012. Irish farmhouse cheese is available in over 25 markets worldwide. Ireland’s main export markets for farmhouse

cheeses include, the UK, France, Germany,

Belgium, the Netherlands, Denmark, Italy,

Spain, the US, Canada, the United Arab

Emirates, Japan, and Singapore.

Irish farmhouse cheesemakers are

exploring opportunities in new markets,

such as the Middle East and Australia.

In addition to new markets, Eimear

says, farmhouse cheesemakers are also

exploring opportunities in established

markets through new customers and new

channels and by also offering a new range of

products. For example, Cashel Farmhouse

Cheesemakers launched its new organic

blue cheese on the German market earlier

this year. There are also new companies

entering the category including The Little

Milk Company in Waterford, which offers

a range of organic cow’s milk cheeses;

O’Brien’s Farm Cheese in Limerick; and

Cais na Tire in Tipperary, a new sheep’s

milk cheese.

Award Winning Quality Beef

Address: 14 Castle St, Ardee, Co. Louth, Ireland Telephone: +353 (0) 41 6850 200 Email: [email protected]

ABP Food Group is the leading exporter of beef products and a leading supplier to the retail, catering and manufacturing markets in Ireland, the UK, Europe and around the World.

www.abpfoodgroup.com

ABP 210x280.indd 1 21/09/2015 11:47

Origin Green, Ireland’s national sustainability programme, is helping businesses like yours to puttheir sustainability beliefs into practice. It provides essential and verifi ed proof that the food anddrink you source is sustainably produced.

So, in working with Origin Green members, you will be making good on your commitment tosustainability within your business while protecting the world’s scarce resources for generationsto come.

Ireland’s new contract with naturehelps your business grow.

origingreen.ie

159115 Origin Green Irish Food 280x210.indd 1 12/02/2015 14:12Bord Bia 2? 210x280.indd 1 16/02/2015 10:56

focus: dairy & ingredients - irishfood magazine · 2017-10-20 · contents issue 7 2015 5 36...

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