ISSUE 7 2018

INGREDIENTS

IRELAND AT HIE 2018

SEAWEED OPPORTUNITIES

INNOVATION FOR GLOBAL GROWTH

DA I RY FO C U S O RGA N I C AWA R D SS U STA I N A B L E PAC K AG I N G

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Irish Food Ad (Dairy Ireland).indd 1 08/11/2016 17:43Irish Food Ad (Dairy Ireland).indd 1 08/11/2016 17:43Kerry 210x280.indd 1 21/03/2017 09:23

3ISSUE 7 2018

Published by: IFP Media, Castlecourt, Monkstown Farm, Glenageary, Co. Dublin, A96T924, Ireland. t +353 1 709 6900 e info@ifpmedia.com

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ISSUE 1 2017

SCIENCE AND RESEARCH

SUPPORT INNOVATION

IRELAND - A FOOD

FDI DESTINATION

2016 - A RECORD

YEAR FOR EXPORTS

MINISTER CREED SPEAKS AHEAD OF TRADE MISSION

MEET THE EXPORTERS AT GULFOOD 2017

MIDDLE EAST

CELEBRATING IRISH FOOD

AROUND THE WORLD

INNOVATION FOCUS

INTERVIEW: BORD BIA CEO

TARA McCARTHY

SUSTAINABILITY

AWARD-WINNING ACHIEVEMENTS AT FLAHAVAN’S

ORIGIN GREEN MEMBERS DOUBLE SUSTAINABILITY TARGETS

ISSUE 2 2017

ISSUE 3 2017SEAFOOD

BORD BIA LAUNCHES

BREXIT BAROMETER

PRIVATE LABEL FOCUS

MAINTAINING STANDARDS

IN FOOD-SAFETY

ASIA SHOWS STRONG POTENTIAL

FOR IRISH SEAFOOD EXPORTS

CASTLETOWNBERE FISHERMEN’S CO-OP

IS LEADING THE WAY IN SUSTAINABILITY

ISSUE 4 2017

BEVERAGES

MEAT TECHNOLOGY

IRELAND LAUNCHES

RECORD YEAR FOR KERRYGOLD

FOCUS – INTERNATIONAL MARKETS

WHISKEY CONTINUES TO DRIVE EXPORT SUCCESS

CRAFT BREWERS AND DISTILLERS DISCUSS ORIGIN GREEN

ISSUE 5 2017

UK MARKET

BORD BIA OUTLINES DATA-DRIVEN RESPONSE TO BREXIT

IRISH BEEF ENGAGES UK CONSUMERS

IRELAND AT SFFF AND LUNCH!

FO O D-S E N S O RY S C I E N C E

U S DA A DV E RT I S I N G A P P ROVA L

A E U RO P E A N P E RS P EC T I V E

O N I R E L A N D/U K T R A D E

ISSUE 6 2017

IRELAND AT ANUGA

SOUS VIDE OPPORTUNITIES HEAT UP

KERRYGOLD LAUNCHES NEW PRODUCTS IN GERMANY

GERMAN MARKET

I N N OVAT I O N S U P P O RTS I N I R E L A N D

AC T I V E E N GAG E M E N T O N F D I

A B P D R I V E S FO RWA R D W I T H S U STA I N A B I L I T Y

ISSUE 7 2017

DAIRY &INGREDIENTS

IRELAND AT FI EUROPEIRISH INVESTMENT IN DAIRY NUTRITION

SUSTAINABILITY SCHEME GAINS GROUND

T R A D E M I S S I O N TO JA PA N A N D S O U T H KO R E A R&D TA X C R E D I T R EG I M E

N AT I O N A L FO O D H U B L AU N C H E D

Irish Food Ad (Dairy Ireland).indd 1 08/11/2016 17:43

Irish Food Ad (Dairy Ireland).indd 1 08/11/2016 17:43Irish Food Ad (Dairy Ireland).indd 1 08/11/2016 17:43Kerry 210x280.indd 1 21/03/2017 09:23

www.irishfoodmagazine.com E D I TO R I A L

Editor: Oonagh O’Mahony

Contributors: Miriam Atkins, Matt O'Keeffe

Design: Barry Sheehan Production: Ciarán Brougham

Advertising Executive: Robert Kane Chief Executive: Rebecca Markey

Accounts: Tricia Murtagh Administration: Sue Nolan Publisher: David Markey

Cover image courtesy of Bord Bia.Copyright IFP Media 2018. No part of this publication may be reproduced in any material form without the written permission of the publishers.

2018issue 7As 2018 draws to a close, we can take a moment to reflect on the year that’s been. For Ireland, 2018 presented some challenges, including the weather, which brought storms and snow in the first quarter and a heatwave in the second. The impact of these weather events is still being felt by those within the agri-food industry. On a trade front, uncertainty around future trade with the UK remains firmly on the agenda. Market diversification has also been firmly to the fore, and the Irish food industry celebrated important wins during the year, including gaining access to the Chinese market for beef. The Minister for Agriculture, Food and the Marine Michael Creed and Bord Bia (the Irish Food Board) continued, apace, their work promoting Irish food and beverages in international markets, most recently visiting Indonesia, Malaysia and China (see page 6).

However, if there was one topic that captured consumers’ imagination during the year it must be that of packaging. Consumers worldwide were mobilised following the final episode of the BBC’s Blue Planet Two series. Since then, packaging has been under the spotlight, with the food industry particularly in focus. Therefore, the announcement by Bord Bia that sustainable packaging is to be a mandatory target under the Origin Green sustainability charter is timely. To help the industry prepare for this changed environment, Bord Bia recently held two seminars on packaging in which the challenges and opportunities were discussed. Read more about this on page 40. As always, we also have the latest news and developments from across the industry and look forward to bringing you more of the same in the year ahead.On behalf of the team at , I would like to wish all our readers best wishes for 2019.

Editor

FOLLOW ON TWITTER @IrishFoodMag FOR MORE UPDATES ON IRELAND’S AGRI-FOOD AND DRINKS INDUSTRY

VIEW AND DOWNLOAD PREVIOUS EDITIONS

OF ATwww.irishfoodmagazine.com

To subscribe to FREE digital editions of , email info@irishfoodmagazine.com

ISSUE 1 2017

SCIENCE AND RESEARCH

SUPPORT INNOVATION

IRELAND - A FOOD

FDI DESTINATION

2016 - A RECORD

YEAR FOR EXPORTS

MINISTER CREED SPEAKS AHEAD OF TRADE MISSION

MEET THE EXPORTERS AT GULFOOD 2017

MIDDLE EAST

CELEBRATING IRISH FOOD

AROUND THE WORLD

INNOVATION FOCUS

INTERVIEW: BORD BIA CEO

TARA McCARTHY

SUSTAINABILITY

AWARD-WINNING ACHIEVEMENTS AT FLAHAVAN’S

ORIGIN GREEN MEMBERS DOUBLE SUSTAINABILITY TARGETS

ISSUE 2 2017

ISSUE 3 2017SEAFOOD

BORD BIA LAUNCHES

BREXIT BAROMETER

PRIVATE LABEL FOCUS

MAINTAINING STANDARDS

IN FOOD-SAFETY

ASIA SHOWS STRONG POTENTIAL

FOR IRISH SEAFOOD EXPORTS

CASTLETOWNBERE FISHERMEN’S CO-OP

IS LEADING THE WAY IN SUSTAINABILITY

ISSUE 4 2017

BEVERAGES

MEAT TECHNOLOGY

IRELAND LAUNCHES

RECORD YEAR FOR KERRYGOLD

FOCUS – INTERNATIONAL MARKETS

WHISKEY CONTINUES TO DRIVE EXPORT SUCCESS

CRAFT BREWERS AND DISTILLERS DISCUSS ORIGIN GREEN

ISSUE 5 2017

UK MARKET

BORD BIA OUTLINES DATA-DRIVEN RESPONSE TO BREXIT

IRISH BEEF ENGAGES UK CONSUMERS

IRELAND AT SFFF AND LUNCH!

FO O D-S E N S O RY S C I E N C E

U S DA A DV E RT I S I N G A P P ROVA L

A E U RO P E A N P E RS P EC T I V E

O N I R E L A N D/U K T R A D E

ISSUE 6 2017

IRELAND AT ANUGA

SOUS VIDE OPPORTUNITIES HEAT UP

KERRYGOLD LAUNCHES NEW PRODUCTS IN GERMANY

GERMAN MARKET

I N N OVAT I O N S U P P O RTS I N I R E L A N D

AC T I V E E N GAG E M E N T O N F D I

A B P D R I V E S FO RWA R D W I T H S U STA I N A B I L I T Y

ISSUE 7 2017

DAIRY &INGREDIENTS

IRELAND AT FI EUROPEIRISH INVESTMENT IN DAIRY NUTRITION

SUSTAINABILITY SCHEME GAINS GROUND

T R A D E M I S S I O N TO JA PA N A N D S O U T H KO R E A R&D TA X C R E D I T R EG I M E

N AT I O N A L FO O D H U B L AU N C H E D

ISSUE 7 2018

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Global goalsMary Morrissey, senior dairy manager at Bord Bia (the Irish Food Board), discusses the challenges and opportunities ahead for Ireland’s dairy industry

Ireland at HiE 2018Six Irish food ingredient companies will exhibit at the Health ingredients Europe (HiE) show in Frankfurt on November 27-29

Healthy appetite for seaweedAs an island, Ireland could be well situated to take advantage of a growing demand for seaweed within the global food market

Taste of successAllinAll Ingredients invests €5 million in new facilities

Dehydration supporting market diversificationEoin Murphy, researcher in dehydration processes and powder functionality at Teagasc, explains how the Irish dairy industry can utilise dehydration technology to broaden its footprint in international markets

In conversation with Carbery's CEOIn October 2017, Jason Hawkins was named the new CEO of Carbery Group. Here he speaks with

about his first 12 months in the role and the Group’s focus for the future

News• Minister leads trade mission to Indonesia and Malaysia• €5m increase in Horticulture Investment Scheme• Bord Bia announces senior appointments• Butlers Chocolates secures contract with Emirates • Kepak launches first-ever Omega 3 enriched beef at SIAL• Kerry Group extends its partnership with Concern Worldwide6

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Ireland's €1bn milk mergerThe merger of Lakeland Dairies and LacPatrick Dairies into a single entity, straddling the Irish border, will create a €1 billion turnover business with a milk pool of 1.8 billion litres, writes Matt O’Keeffe

The power of solarA pilot programme in Kilkenny is exploring the potential of solar power on Irish dairy farms

Milk, pleaseNew research highlighting the health benefits of full-fat milk is debunking guidance to consume more low-fat dairy products

Cheddar checklistIn volume terms, cheese is Ireland’s largest dairy export. A key variety within this category is cheddar cheese, which is a key dairy product for Irish milk processors with worldwide exports of the product

The land of opportunityRoisin Hennerty, managing director of Ornua’s Global Foods Division, talks to about the importance of the US market to Ireland’s largest exporter of dairy products

Spotlight On...With Irish whiskey in demand worldwide, Irish Distillers is investing in three sites across Ireland to supports its export operations

Brexit – time for actionWith less than five months to go, time is ticking by for food businesses to put plans in place to offset the worst impacts of Brexit, writes David

Leydon, head of food and agribusiness with IFAC

ICM wins overall organic award

Wexford-based Irish Country Meats won two awards at

this year’s Bord Bia national Organic Awards

36 Leader of the packAs the industry responds to

consumer and environmental concerns, Bord Bia announced that,

in 2019, sustainable packaging will be a mandatory target area for verified members of Origin Green

@IrishFoodMag www.irishfoodmagazine.com

Michael Creed, Minister for Agriculture, Food and the Marine, led the first agri-food trade mission to Indonesia and Malaysia in October. Speaking ahead of the trade mission, Minister Creed said: “I am very pleased to lead the first agri-food trade mission to Indonesia and Malaysia, two large and growing Asian economies, which have been identified as priority markets for the further growth of Irish agri-food exports.”Indonesia has the fourth largest population in the world, at over 260 million people. Irish agri-food exports, mainly dairy products, to Indonesia last year amounted to €22 million. The Minister believes there is potential for further growth in the market.Meanwhile, Malaysia, with a population of 32 million, has close ties to Ireland, particularly in the field of education. Food exports to the market in 2017 amounted to €38 million; again, this was almost all dairy.Tara McCarthy, CEO, Bord Bia (the Irish Food Board) said: “Indonesia and Malaysia have been identified through Bord Bia’s market prioritisation study as offering high potential in the immediate future for dairy and in the medium term for meat. There is a clear opportunity to raise the profile of the Irish food industry in these import-dependent markets.

6 ISSUE 7 2018

“Our main goal on this trade mission is to raise awareness of Ireland as a source of sustainable dairy, to enhance our understanding of the meat market and to create commercial opportunities for Irish exporters through qualified introductions to the major import players in both markets.”While dairy was a major focus during the mission, there were also opportunities to discuss meat market access and seafood exports. “Market development is a key theme of our shared Food Wise 2025 strategy for the sustainable growth of the sector and increasing our share of international markets is an important response to the threat posed by Brexit,” the Minister added.The trade mission included senior officials from the Department of Agriculture, Food and the Marine, as well as representatives from State agencies including Bord Bia and Sustainable Food Systems Ireland, with participation from many of our leading food companies. “In order to succeed in Asia, it is vital to develop relationships at Government and business levels and to be guided by the best consumer and market insight available," said Minister Creed.In addition to the trade and bilateral cooperation aspects of the mission, Minister Creed also participated in the international Our Ocean conference, committing to tangible actions to ensure the future sustainability of the world’s oceans. The week included several customer engagements, with more than 150 business meetings, two Origin Green dairy seminars for local importers and Irish industry immersion in the market. Tara McCarthy said: “Bord Bia will build on this to help the dairy industry capitalise on the real commercial opportunity. This will include continuing to build awareness of Irish dairy, increasing market understanding and developing business on the ground, which is all supported by the appointment of a new trade market specialist in Bord Bia’s Singapore office.”

AGRI-FOOD TRADE MISSION

Minister leads trade mission to Indonesia and Malaysia

Tara McCarthy, CEO, Bord Bia, and Michael Creed, Minister for Agriculture, Food and the Marine, during a recent trade mission.

N E WS

IRISH

BUTTERCHICAGO

SPREAD

At Ornua, we bring something special to the table

With our creativity, our culture and our people, it’s no wonder that word of our premium, grass-fed dairy products has spread from Cork to Chicago and from Dublin to Dubai.

Be part of the team bringing the best of Irish dairy to every corner of the world. Visit ornua.com/careers today.

Ornua 210x280.indd 1 28/08/2018 12:11

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Butlers Chocolates secures contract with EmiratesDublin-based, family-owned Butlers Chocolates has secured a deal that will see the chocolate brand served to first-class customers on board all Emirates flights.The new supply deal will see an estimated 50,000 Butlers luxury chocolate bars, per month, included in the first-class cabin’s goodie baskets. The airline, which has partnered with a number of Irish brands over the past 18 months, selected a variety of flavours from the Butlers signature solid chocolate bar collection, including: Mixed Berries White Chocolate and Honeycomb Crisp Milk Chocolate.  Enda Corneille, country manager for Emirates in Ireland ,said the product's quality, excellent sustainability credentials, existing market experience of the United Arab Emirates and great taste were key factors in the decision to work with Butlers. “I’m very familiar with the Butlers brand and I think that our first-class customers, of all nationalities, will really enjoy the luxury bars as part of our award-winning, on-board food offering.”Butlers Chocolates was founded in Dublin in 1932. Today, the brand is available in more than 30 countries. Karl Marnane, sales director with Butlers Chocolates said: “This contract will mean that there is a little taste of Ireland travelling east from Dublin to almost 160 destinations, which is fantastic for the brand. The visibility this partnership affords Butlers provides a huge boost to our own global strategy. We are proud of our product and the work we have done to ensure Butlers is part of the Emirates first-class experience.”The deal followed a series of meetings at the Marketplace International trade event in Dublin, organised by Bord Bia (the Irish Food Board) in early 2018.

MAJOR AIRLINE CONTRACT SECURED

N E WSwww.irishfoodmagazine.com @IrishFoodMag

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Bord Bia (the Irish Food Board) has confirmed several senior appointments as part of its focus on identifying and building new markets for companies operating in the vital food and drink sector.

Tara McCarthy, CEO, Bord Bia, said: “We are delighted to confirm these key appointments, which bring a combination of industry experience and in-house expertise into senior strategic roles across the organisation. Food and drink exports are worth over €12 billion annually to Ireland, and the sector is facing a period of unprecedented change. Now, more than ever, it is important that the sector identifies and grows in new markets. Each appointment was made as a result of a highly competitive process and these professionals add considerably to the strength and depth of expertise at senior levels in Bord Bia, leaving us perfectly positioned to guide and advise companies through the changes ahead.”

Karen Coyle takes on the newly created role of global relationship manager. The focus of this new position will be to develop and strengthen relationships with global retail, foodservice and manufacturing companies and partners, by demonstrating the capability of the sector to meet their needs.

Eileen Bentley is appointed senior marketing strategy manager with Bord Bia, based in their Dublin office. Eileen will lead Bord Bia’s new marketing strategy team. Over the past year, Eileen has been developing a new commercial marketing strategy development and implementation programme for Bord Bia’s client companies called Plan to Grow.

Ailish Forde has been appointed director of markets where she will implement Bord Bia’s new Plan to Grow framework across all overseas markets. 

Ciarán Gallagher takes on an expanded role as manager of Korea and South East Asia, based in Singapore. Ciaran is responsible for Bord Bia activities in Indonesia, Malaysia, Singapore, Thailand, Vietnam, the Philippines, Japan and South Korea. 

Shane Hamill has been appointed overseas trade manager. His role will be to manage Bord Bia's response to Brexit through a series of data-led projects and strategic communications. 

Henry Horkan has taken on the role of manager for North America. In his new role, Henry will be responsible for growing the North American market, identified as a priority market for seafood, dairy, beverages and prepared consumer foods in Bord Bia’s recent Prioritising Markets Report.

Kepak launches first-ever Omega 3- enriched beef at SIAL

FOOD SECTOR APPOINTMENTS

BORD BIA ANNOUNCESSENIOR APPOINTMENTS

Launching the 2019 Scheme of Investment Aid for the Development of the Commercial Horticulture Sector, Minister of State at the Department of Agriculture, Food and the Marine with special responsibility for Horticulture, Andrew Doyle said: “The annual budget for the Scheme has been increased by €1 million to €6 million for 2019, reflecting this Government's commitment to the sector especially in light of the emerging challenges and potential opportunities arising from Brexit.”The Scheme of Investment Aid for the Development of the Commercial Horticulture Sector is a competitive scheme open to all horticultural sectors – field vegetables, mushrooms, protected food crops, amenity crops, soft fruit, apples and beekeeping and will provide grant aid, at a rate of 40 per cent, for approved capital investments. “Last year Ireland’s horticulture sector contributed over €430 million to the value of output at farm-gate level and is estimated to be directly responsible for over 6,600 jobs with many more employed indirectly both upstream and downstream. The sector has strong potential for growth and Brexit may provide opportunities for some sectors within the industry, although it also presents challenges most notably for the mushroom sector given its dependence on the UK market”. 

BREXIT SUPPORT

€5m increase in Horticulture Investment Scheme

MAJOR AIRLINE CONTRACT SECURED

BEEF INNOVATION

Kepak’s Omega 3 beef innovation was produced through a three-year collaboration with Alltech and is achieved by feeding cattle with a specialised algae supplement during the finishing phase. This means the beef reaches the required level of enrichment for Omega 3 accreditation.Commenting on the Omega 3 project collaboration, Richard Dudgeon, regional manager, Alltech Northern Ireland said: “This product adds a whole new dimension to the beef industry and with several key health benefits of Omega 3s, it is sure to have positive impact in the future for both producers and consumers.”Other innovations unveiled by Kepak at the Paris-based food-fair include a Beefroot Burger, featuring grass-fed Irish beef blended with beetroot and quinoa. This product is part of Big Al’s new healthy and ecologically-sustainable blended burger range, which Kepak developed in response to the growing flexitarian and health trends, with more blends to be launched soon.Commenting on the new product innovations, John Horgan, managing director, Kepak Group, said: “The new product innovations from Kepak, particularly our Omega 3 beef and blended burger range, unveiled at SIAL are further proof of how Kepak is pioneering innovation in food. Our innovations are a direct response to market demands and are driven by emerging trends as more and more of our customers are looking to us to provide them with healthy, environmentally friendly and ecologically-sustainable food options.”

Edmond Scanlon, chief executive, Kerry Group and Anne O’Mahony, International Programme director, Concern Worldwide.

10 ISSUE 7 2018

N E WS @IrishFoodMag www.irishfoodmagazine.com

Kerry Group extends partnership with Concern WorldwideTo mark World Food Day 2018, Kerry Group has extended its relationship with Concern Worldwide through the Realigning Agriculture to Improve Nutrition (RAIN) programme. The aim of the RAIN programme is to make lasting improvements to food security, nutrition and overall livelihoods in the Tahoua Region of Niger. This second phase of the RAIN programme will be implemented over a four-year period and builds on the success of the previous Kerry funded RAIN project in Zambia. Edmond Scanlon, Kerry Group CEO said this extension of the RAIN programme is in keeping with the Group’s ambition to support better nutrition for all. “We recognise the positive impact Kerry can have on the millions of people who consume our products every day. However, many of the world’s poorest people are beyond our direct reach. The RAIN programme offers practical support to some of those most affected by hunger and malnutrition. This World Food Day, we are extremely proud to announce this second phase of the project, demonstrating Kerry’s further commitment to help make Zero Hunger a reality.”

RAIN PROGRAMME RELATIONSHIP EXTENDED

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I N T E RV I E W @IrishFoodMag www.irishfoodmagazine.comJa

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Carbery'sCEOIn conversation with

What have been the highlights of your first year for you as CEO and for Carbery?The highlights for me have been centred on the new people I have had the opportunity to meet over the last 12 months. I have had the privilege to meet with many of our passionate farmer suppliers, as well as the hardworking and dedicated Carbery Group employees around the world. People and culture are central to any successful organisation and Carbery Group is fortunate to have a family of people who share common values and a commitment to the long-term sustainable success of the business. Such success is central to the long-term viability of our farmer suppliers, to the engagement and motivation of our employees and to the broader west Cork community.

Last year, 2017, delivered strong returns and growth for the company. You predicted a tougher year in 2018, has that been the case and how is the company weathering these challenges?Carbery Group has continued to be very focused on delivering against our business plan in 2018. While there have been many challenges in the marketplace we feel confident that our 2018 performance will be in line with our own high expectations.

Looking at your three platforms, where do you foresee Carbery's greatest potential for growth in terms of products and markets?We are very fortunate to have a diversified business around dairy, nutrition and taste and we continue to see new product opportunities across each of these platforms. From a geographic perspective, we would view Asia as being a particularly attractive market and we will be focusing Group-wide resources in this area.

At the time of your results, you mentioned growth in your nutrition business was helped by new markets; where are these markets and what markets are you currently exploring for growth?When we look at the changing global demographics and the related nutritional opportunities we see many new growth areas. Particularly, we see opportunities for our specialty protein solutions across infant nutrition, sports nutrition and tailored for the ageing population. From a geographical perspective, we plan to continue to grow in Europe, while exploring new opportunities in Asia and North America.

In October 2017, Jason Hawkins was named the new CEO of Carbery Group. Here he speaks with about his first 12 months in the role

and the Group’s focus for the future

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I N T E RV I E W @IrishFoodMag www.irishfoodmagazine.com

You're attending HiE again this year, what products will you be promoting at the event?At HiE 2018, Carbery will showcase a variety of high-protein concepts with exciting flavour profiles such as speculoos, iced coffee and tiramisu. The trending flavours were especially developed for protein applications in our flavours division Synergy Flavours. Visitors will also be able to taste protein bars that contain our ingredient Optipep 4BARS, which ensures that nutritional bars remain softer over shelf-life while delivering superior eating quality. This follows a survey of protein-bar manufacturers, which confirmed that the majority have issues with bar hardening at three months and six months. This results in a protein bar that is unappetising for consumers and is a deterrent of repeat purchase. There are some ingredients on the market that provide similar benefits but many of them are not suitable for vegetarians. Optipep 4BARS is vegetarian friendly and rich in essential amino acids. Its neutral taste profile means that it is compatible with a wide variety of flavours. Based on our two-month data, we have seen a 53 per cent reduction in hardness versus a protein bar that does not contain Optipep 4BARS.We will also be launching Bifipro – a new, fermented dairy ingredient with digestive health benefits, which is suitable for use in many ambient formats including

powder and bars. To date, our in vitro results have shown a bifidogenic effect [a compound that specifically enhances the growth of bifidobacteria in either a product or in the intestines]. Bifidobacteria are considered beneficial bacteria, as they can help prevent intestinal inflammation and enhance gut health.

Are there examples on new product development within the Carbery portfolio that demonstrate the company's commitment to innovation over the past year? We have launched many new products across the globe over the past year. We have been particularly focused on natural extracts and expanding our botanicals range. Our protein division has launched new, innovative solutions for ready-to-consume products: Optipep RTD and Optipep. From our dairy solutions portfolio, we have launched an excellent new range of butter flavours ranging from cooked to creamy, which help manufacturers reduce the butter content in products without compromising on taste.

How significant has the abolition of dairy quotas been to your growth strategy and what role will the increased milk production play in the future of the business?

We have experienced approximately a 40 per cent increase in volumes post quota. As we look forward, we would expect a more modest annual increase in the low single-digit range.

Can you comment on your continued investment in the business – where is this investment being made and are there examples of how it is supporting your business globally?We will continue to actively invest in all of our business areas globally. We will be closely examining the expansion of our operations on our site in Ballineen to support our global diversification. This expansion is focused on expanding our cheese capacity as well as giving us the ability to produce more cheese product types. The expansion will also further support our nutrition strategy.

As an Origin Green verified member, can you outline what Carbery is doing to manage the sustainability agenda?For the past 50 years, Carbery has conducted its business embracing strong sustainability principles. These are evident through our focus on food safety and quality, environmental impact, energy management and nutrition innovation. Our sustainability programme continues to be focused on these areas, as well as on our employees and the community at large.

We are very fortunate to have a diversified business around dairy,

nutrition and taste and we continue to see new product opportunities

across each of these platforms. From a geographic perspective, we would view

Asia as being a particularly attractive market and we will

be focusing Group-wide resources in this area.

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FO C U S @IrishFoodMag www.irishfoodmagazine.com

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Ireland’s dairy industry landscape changed dramatically with the removal of quotas in 2015. Now, the sector is once again about to witness a new shift with Brexit on the horizon. Here, Mary Morrissey, senior dairy manager at Bord Bia

(the Irish Food Board), discusses the challenges and opportunities ahead

goalsGlobal

Investment, growth and consolidation have led to the success of the dairy industry in Ireland in recent years. As Mary Morrissey, senior dairy manager at Bord Bia explains, the abolition of quotas in 2015 was a turning point. “Until then, we were operating on a limited quota and, yet, here in Ireland, we have a natural advantage for producing dairy. There was a real need and a want from the industry to produce more because we could produce more, coming off a grass-based system.” In the run up to the removal of quotas, and since, there has been significant investment at farm level and at processing level. “We have seen an expansion around our average herd size, which is now 80 cows coming off the back of an average of about 56 cows," explains Mary. "We have 17,500 dairy farmers and, while we have seen consolidation, the average farmer has 80 cows. The industry predominantly comprises family farms, passed from generation to generation. Farmers are more equipped now to increase their output and, correspondingly, the co-ops are investing to processing that additional milk.”

Going forwardThis period now, Mary stresses, is really about reflection following that expansion. “We need to decide what it is that we want from that expansion. How do we get the value out of what

has gone in in terms of investment, so it is not just going into increasing our commodity play? Because dairy is predominantly a commodity market, it takes a lot of hard work, research and strategy to move that dial up slightly where you are talking about more value add. And the challenge for the industry is that we are very much a grass-based system and we produce at a peak, so how do you get the value out of that peak?”

Green credentialsIreland, Mary says, is known for its green image and with Origin Green and the Sustainable Dairy Assurance Scheme (SDAS) for dairy farmers, this allows us to quantify what sustainability means in our dairy industry. “We can differentiate ourselves, but it also creates more questions in terms of how we are improving our sustainability

credentials. The need to talk about the sustainability of Irish dairy is becoming more and more important, we hear that from the industry itself…the importance of having an ‘Ireland Inc’ story and having Origin Green as a national system. “Whenever we bring a buyer or a journalist into Ireland, they are always blown away by the fact that you have the industry, farmers and Government all working together on a national standard. And then, when you bring

them onto a farm and show it to them first-hand, they can see

how unique this is – no one else is doing this.

“The big thing now for us is to be able to start using all the data that is collected in SDAS – it’s about that defensible position when it comes to sustainability and,

in due course, being able to show the improvements.”

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Market diversificationPrioritising markets and investing in them are also high on the agenda, Mary continues. “We have developed markets like the EU, which are really important, and then there are the international markets, which we are very focused on as regards understanding them more, doing market research on the ground and developing relationships here. We have opened more offices and put more people into those markets – you can never underestimate the role of that. “We have been in a real commodity market, but you can’t just sell ingredients, you have to understand the end application so that you can add more value.”With Brexit coming down the line, diversification will become even more important. “It has been well documented how important the UK market is to our cheddar industry, based on the fact that they eat cheddar the way we eat cheddar and that the market is so close – it is what our cheddar processing industry has been based on. What we are hearing from the industry is that, yes, it is a huge issue and there is real uncertainty, but it is not the number-one issue… the number-one issue is around sustainability. Brexit will be a shock, but it is also a catalyst to develop new export markets and new applications for our dairy for those international markets. It has made Bord Bia and the industry look at international marketing in a much more strategic way as the increase in dairy consumption will come from these regions.”

MARKET PRIORITISATIONIn 2018, Bord Bia published reports on market prioritisation for various food export categories. These reports highlighted five markets, outside of Europe, in which Bord Bia has identified opportunities for growth. For the dairy industry, these five markets are: China, Japan, Nigeria, Saudi Arabia and Vietnam.

is already Ireland’s second-largest market for dairy exports. However, as a dairy-deficient country, with a

growing population, expanding middle class and greater urbanisation, it is a key market for global dairy trade. As well as being the world’s biggest importer of whol- milk powder at 416,000mt, it is also a significant cheddar importer having increased demand by 65 per cent over the past five years to 8,000mt. China is also Asia’s largest mozzarella market accounting for 40,000mt and growing.

is another dairy-deficient market and the 10th largest whole-milk powder importer in the world.

Ireland does not currently supply whole-milk powder to the market, however, Bord Bia’s report identified it as a large sector with customers in the local dairy and food processing sectors. Mozzarella was also highlighted as an opportunity within the foodservice industry as well as for local snack production. An important element for trade with Vietnam is the EU-Vietnam Free Trade Agreement (EVFTA), which will also open opportunities in the market from 2019. The tariff on cheese exports will be reduced in six equal annual stages, becoming zero-rated after this. Similarly, the tariff on whole-milk powder imports will be reduced in four equal annual stages, becoming zero-rated after this.

is the world’s largest importer of full-fat milk powder at 91,000mt, having increased demand by more than

25 per cent over five years. Irish exports currently account for 31 per cent of Nigeria’s full-fat milk powder market, along with 8 per cent of its whole-milk powder market. Demographic growth continues apace, with the current population of 190.9 million forecast to reach 264.1 million in 2030, with further growth making it the third largest country in the world before 2050. Given that the country is 30 per cent self-sufficient in milk production, with virtually no local product industrially processed, the report suggests the continued growth in demographics will drive demand for import and presents an opportunity for Ireland to grow its current footprint in the market.

is a very significant dairy importer and is the fifth-largest importer of cheddar,

eighth-largest importer of whole milk powder and ninth-largest importer of butter. Ireland has a history of connections with the local dairy industry and has been strongly developing its cheddar supply into the market and this is seen as an area for continued growth. Butter has been a minor Irish business to date but, given the market demand, it is also considered an area with clear growth potential.

is a substantial importer of dairy products. It is the second-largest importer of cheddar, the third-largest

market in Asia for mozzarella and the fourth-largest importer of whey protein concentrates. EU suppliers are expected to achieve preferential access for cheese under the Japan-EU Economic Partnership Agreement, expected in early 2019. Ireland currently supplies a limited volume to the market but, the report sees much from for growth.

Nigeria

Japan

Saudi Arabia

Vietnam

China

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Bio-marine Ingredients Ireland: P70Bio-marine Ingredients Ireland (BII) is a marine bio-tech company located in Co. Monaghan, just one hour from Dublin Airport. BII is a joint venture between Irish fishing vessel owners and Norwegian partners who are experts in marine ingredients. BII produces high-quality marine ingredients, utilising the vast quantities of blue whiting located proximate to the Irish coast. The combination of an integrated supply chain and state-of-the-art production facilities enables BII to supply marine protein hydrolysates, lipids and calcium to the international marketplace. BII is an Origin Green verified member.

Atlantia Food Clinical Trials Ltd: Q135Atlantia Food Clinical Trials is a dynamic company providing clinical studies expertise for the food, beverage and supplements sector. It delivers comprehensive end-to-end solutions for human intervention studies in functional ingredients in foods and beverages, nutraceuticals, medical foods, dietary supplements and infant formula. The Atlantia headquarters also provides extensive clinical trials, with nine clinic rooms, offices, phlebotomy rooms, interview rooms and a central lab. It has two clinic sites in Cork. Its acute facility can run short feed trials and collect volunteers' blood, saliva or urine samples for parameter analysis. Its new facility has phlebotomy, interview, food preparation, serving and relaxation areas, as well as offices, storage and a small laboratory. Atlantia works with leading European scientists across various partner institutions and provides clients with a range of options based on their needs. It manages all aspects of trials from protocol design through recruitment, execution, data analysis and report/dossier preparation. It can also provide the specific elements of a trial. Atlantia has a highly flexible structure, with capabilities across the spectrum of functional food and beverage categories, such as dairy, probiotics, proteins, infant-specific foods, vitamins/minerals and medical foods.

Six Irish food ingredient companies will exhibit at this year’s Health ingredients Europe (HiE) show in

Frankfurt on November 27-29. The six companies offer a variety of products, derived from Ireland’s

bountiful raw-ingredients portfolio. The Irish companies can be found in

Hall 8 at this year’s show

Irel

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Kerry: L40 Kerry is a global leader in taste and nutrition, providing food ingredients and solutions to the global food and beverage industry, as well as being a leading supplier of added-value brands and customer-branded foods to the Irish, UK and selected international markets.   The company has offices in 30 countries, 135 manufacturing facilities and employs 25,000 people worldwide, including over 900 food scientists. With its strong food heritage, foundational technologies, proprietary global insight tools, marketplace knowledge, culinary and applications expertise, global footprint and route to market, Kerry provides unique solutions that meet consumers’ needs for more clean-label and authentic products.

Carbery: G43Based in Ireland, Carbery Group is a leading international manufacturer of nutritional ingredients, flavours and cheese. Carbery says its nutrition business pioneers, manufactures and markets a comprehensive range of advanced whey proteins. Although primarily destined for use in infant, performance and clinical nutrition, these proteins are also suitable for protein supplementation in mainstream foods and beverages. Carbery is dedicated to advancing scientific research and innovation, in conjunction with key institutes and universities, enabling the delivery of products with real consumer benefits to the marketplace. At HiE 2018, Carbery will showcase a variety of high-protein concepts, which it says, have exciting flavour profiles such as speculoos, iced coffee and tiramisu. The trending flavours were especially developed for protein applications by their sister company Synergy Flavours. Visitors will also be able to taste protein bars that contain Optipep 4BARS, which help bars remain softer over shelf-life while delivering a superior eating quality.

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Vita Actives: C92Vita Actives is a manufacturer, supplier and distributor of bulk nutraceuticals and food-grade ingredients for dietary supplements, functional foods, vitamins, minerals and herbal products markets. Vita Actives was founded in 2006 with the expressed goal of providing a premium ingredient supply service at the best available cost to customers. The company says it achieves this with a streamlined supplier and distribution network, coupled with an ongoing commitment to ingredient research and development, as well as optimised administration and logistics.

Marigot Ltd: G91Established in 1992, Marigot Ltd is a provider of bioactive marine ingredients. Its range of marine-derived minerals includes Aquamin and Aquamin Mg. Aquamin is derived from one unique raw material, the red algae Lithothamnion species. According to Marigot, aquamin is an all-natural, allergen-free material, which includes calcium, magnesium and 72 trace-minerals, and can be easily used in food, drinks, and dietary supplements where it is proven to positively impact bone, joint and digestive health. Marigot has researched the material extensively through independent clinical trials, which are published in international peer-reviewed journals. Aquamin Mg is an excellent source of magnesium, which is derived from the clean ocean waters around the Irish coast. The company has several manufacturing facilities, with a growing international network of exclusive distribution partners serving the needs of local markets. Marigot ensures that the sustainability of its raw material is at the forefront of its activities, harvesting only mature forms, calcified seaweed, and leaving ‘live’, young seaweed untouched. Consumer interest in the product continues to grow, widening the knowledge base for marine-minerals in nutritional applications. The company has developed its own consumer product offering, marketed as Osean 74.

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In 2016, about 31 million tonnes of seaweeds and other algae were harvested globally for direct consumption or further processing, according to a report from the Food and Agriculture Organization (FAO) of the United Nations (UN) – 2018 The State of World Fisheries and Aquaculture, Meeting the Sustainable Development Goals. The report noted that there is a growing interest in the nutritional value of several seaweed species, because of their high content of vitamins, minerals and plant-based protein. That composition of seaweeds

is highly variable, depending on species, collection time and habitat. However, the report notes that the nutritional contribution of seaweeds consists mainly of micronutrient minerals (e.g. iron, calcium, iodine, potassium, selenium) and vitamins, particularly A, C and B-12. Furthermore, seaweed is also one of the only non-fish sources of natural omega-3 long-chain fatty acids.

New product launchesThe main markets for seaweed food products are Asia and the Pacific, where there are strong traditions of using seaweed as a food. However, research is showing a growing interest in seaweed products in Europe and North America. In fact, interest in the sector has been such that, according to market research firm Mintel, the number of food launches containing seaweed in western markets has increased three-fold over the past five years. Furthermore, over this time there has been a marked shift in the types of food products that seaweed is appearing in. According to Mintel, five years ago, seaweed was most popularly used as a seasoning or condiment, and meals and soups accounted for 22 per cent of all launches. In the 12 months to April 2017 this has changed, with seaweed now

A consumer focus on health and wellness, which includes

an interest in natural and functional ingredients, is

driving demand for innovative food solutions that deliver on

quality, taste and functionality. Given the nutritional profile of

seaweed, it has been identified as an area of potential growth within the global food market

and Ireland, as an island, could be well-situated to take

advantage of this opportunity

seaweedplaying more of a starring role at meal times, with meals and soups accounting for nearly half (47 per cent) of all seaweed food launches. There has also been growth in launches of seaweed sold as a standalone vegetable or salad.

Irish potential In 2017, Ireland exported approximately 64,000 tonnes of seaweed, valued at €39 million. The sector is currently dominated by producers of biopharma and plant bio-stimulants; with a smaller network of sea vegetable producers. However, this sector has been identified as an area of potential growth within Ireland’s booming agri-food industry. Food Wise 2025 – the food and beverage industry-led strategy for growth – recommended giving a renewed priority to research into seafood-based new product development, and that this research should include both harvested wild and farmed seaweeds and their by-products.Ireland has a coastline of 3,171km, with a marine environment that is one of the largest in the European Union (EU) and almost 10 times that of our land area. According to Ireland’s Environmental Protection Agency (EPA), Ireland’s location in the Atlantic Ocean on the edge of the European continent has meant that its marine environment has remained relatively unpolluted. The temperate waters surrounding the island are highly productive and rich in marine life, including hundreds of species of invertebrates and fish, as well as seaweeds.

Healthy appetite for

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Since AllinAll Ingredients was founded 25 years ago, its physical footprint has increased almost 10-fold. It began operations in 4,500ft2 factory in 1993. In 2018, it moved to a 40,000ft2 facility, which includes research and development (R&D) facilities, several blending rooms with flexible capacity, a pilot plant, demonstration kitchens, presentation area, offices and warehousing.While the company is on an upward trajectory and expanding its reach, Daniel Hickey, CEO of AllinAll Ingredients, says it still benefits from being small enough to remain nimble and flexible. “We are fast and reactive. If you look at the bigger ingredient companies, they are quite bureaucratic in their decision-making process.”

Dynamic developmentsThe recent €5 million investment in the company’s physical capabilities, Daniel notes, brings a new dynamic to the business. “The new dynamic means we have the marketing intel side involved from the beginning of the process. They are looking at consumer trends and can debrief for concept development for the customer. We can invite the customer to come here and develop the prototype with us.“With the new facility here, the fantastic thing that we can offer customers is a pilot plant, which allows us to upscale the prototype sample to a large-scale trial.“We are able to offer a pilot plant that replicates what happens in a larger production line and record the findings and data. It’s a much smaller level than a full-scale production line, but much greater and more authentic than the laboratory prototype.”Daniel says this helps to speed up the process because customers no longer need to schedule in down time in their own production facilities to test run a product. “You can test the product here in the morning, run it during the normal working hours and leave here having signed off on a product that’s ready for production. They can do it all under one roof and if we need to go back to the prototype development on the same day to make changes, we can do it relatively fast. It’s a much more efficient model.”Located close to Dublin airport is another

In June 2018, Taoiseach (prime minister) Leo Varadkar officially opened the expanded facilities of AllinAll Ingredients in Dublin. Daniel Hickey, CEO of AllinAll

Ingredients, talks to Irishfood about the expansion and its role in the continued growth of the business

The taste of success

21ISSUE 7 2018

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advantage for the internationally focused business. “Within Europe, our R&D pilot plant is one of the only plants of this scale. We see it as quite influential for growth here and it is a huge vantage point for us. We are also 15 minutes from an airport that has phenomenal connections throughout Europe.”

Core competenciesDaniel notes that, along with the investment in technology and equipment, the recent expansion has also enabled AllinAll Ingredients to invest in its people. “It’s the people who make the company successful at the end of the day, so the competency here has been significantly increased from the point of view of the academic resource that we have brought on board.”AllinAll Ingredients has particular expertise in the meat industry, which is where it had its beginnings. Over the years, however, it has broadened its scope to include bakery – with a focus on gluten-free solutions – as well as other miscellaneous categories including snacking or pet food. Daniel says, whatever the category, AllinAll Ingredients can provide bespoke products for clients in response to their customer or consumer demands.“People come to us because they have a particular need: that might be, for example,

a demand from the supermarket to clean up a product label, to reduce the number of ingredients that go in because people like short ingredient decks rather than longer decks.“That is our reactive side of the R&D model, which works on the day-to-day briefs that we get from international and domestic customers. But it is also very important to provide a proactive wing to that model, so we are not sitting here waiting for the customer to ring us with a new brief in 12 or 18 months. We are looking to drive the car ourselves in terms of delivering growth. We have a whole stream of different projects underway, which are being carried out by our proactive wing, so we have an artillery of offerings to bring to customers in a year or two years’ time.”The proactive arm of the business is led by its insights team, which keeps abreast of changing consumer trends. “The biggest focus for us is listening to consumers and the biggest trends coming from the consumer market are health and wellness solutions.

Changing trendsDaniel says health and wellness are trends that are very much in focus for the consumer. This, he explains, is impacting food manufacturers in a variety of ways. “The reduction of salt in terms of functional

solutions has been on the cards for a lot of industries over the last 10 years. It’s nothing new, but we are looking at alternative means of applying those formulations. Some firms do it by just using less salt, but salt serves two purposes: one is that it is a flavour enhancer and the other is that it helps shelf life. If you’re not careful, removing salt will affect the flavour and shelf life of your product. The skill that we bring to the table means the customer can maintain the same shelf life on the product and it’s nice to eat. We take the salt out but use more friendly ingredients that deliver the same product.” There has also been a move towards more natural flavours and ingredients and, Daniel says, AllinAll Ingredients has the capabilities to refine ingredient decks without compromising on the final product.Sugar is the latest bastion within the industry. “There is a massive media campaign around diabetes, in young children too, and the elderly. We have reviewed at a lot of research on that and looked at turning a problem into a solution. We have come up with different functional ingredients, with one that lends itself well to a 30 per cent reduction in sugar compared to standard sugar. We incorporate that into composite mixes that form the basis for a new dry ingredient or marinade glaze.”The move towards vegetarianism and veganism is also driving demand for innovative solutions from the AllinAll Ingredients team. “Again, it goes to that health and wellbeing trends. A lot of the meat processors are looking for solutions on vegetarian and flexitarian products, which have reduced meat volumes. We have a tremendous skillset on that, which we began developing earlier on.”

Global footprintCurrently the UK is AllinAll Ingredient’s main export market, with several large clients in the region. However, following Brexit, the business is looking to broaden its base. “We have a sales manager in Dubai, who has been there for about a year, who is looking after the Middle East. We also have a distributor in Poland and we have set up a new distribution agreement with an Italian distributor, which is in the early stages. We are also going to invest in a European sales manager.“We have been cautious because of Brexit but we plan to maintain UK customers and drive growth there. We will also be putting a lot of energy into setting up European partnerships with distributors that suit our capabilities.”

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22 ISSUE 7 2018

A key element of Ireland’s success in global dairy markets is dehydration technology. Eoin Murphy, researcher in dehydration processes and powder functionality at Teagasc, explains how the Irish dairy industry can utilise this technology to broaden its footprint in international markets

Dehydrationsupportingmarketdiversification

Irish dairy-based products account for the largest proportion of agri-food and drink exports. In 2017, the value of dairy products and ingredients increased by 19 per cent to €4 billion, with dairy-based enriched powders rising 10 per cent to €730 million. Teagasc, the semi-State authority in the Republic of Ireland responsible for research and development, training and advisory services in the agri-food sector, has ongoing research into the best methods for dehydration and rehydration of dairy products. With Brexit on the horizon, the Irish food industry is exploring markets beyond Europe as potential customers of Irish exports. Eoin believes dehydration will play an important role in the success of Irish dairy exports into long-distance destinations.

Experienced industryThe main dehydrated dairy exports from Ireland include dairy ingredients such as skim-milk powder, whey powder, demineralised whey, whey protein concentrates, milk protein concentrates, caseins/caseinates, dairy protein hydrolysates, permeates and lactose. “These ingredients end up in many types of products, with added-value products such as infant, sports and nutritional beverages being a popular destination.”Producing around 10 per cent of

global infant formula, Ireland is also an important player in this market, as well as producing follow-on formula. “Many of the dairy ingredients mentioned above are incorporated into these products which are exported globally, especially to the Far East and China in recent years.”

Value offeringEoin explains that a large quantity of Irish milk is processed into cheese. “This has increased shelf life compared to pasteurised liquid milk, which, on account of Ireland’s relatively small population, is the destination of less than 10 per cent of total milk produced. Butter, also utilises a significant proportion of milk solids. However, the remaining quantity of Irish milk solids must also be preserved for sale. In addition, cheese manufacturing produces a large quantity of whey as a co-product, which has excellent nutritional value for use in sports and infant nutrition. Typically, milk, whey-and other dairy derivatives are preserved by spray drying. This removes over 99 per cent of water from milk, which results in typical shelf-life of one to two years. As such, dehydration is a key enabler for Ireland’s island economy as it allows us to valorise our surplus milk in faraway markets.”Eoin says this is important now, more than ever before, because of the abolishment of European-wide milk quotas, which had

Food StructureFormation, Functionality & the FutureWed, 21st November | Teagasc, Moorepark | 9am

At this unique event hear the latest developments in food structure research and design and see how food material science can be applied to the production of high-quality products and contribute to a competitive advantage for the Irish food industry.

Get the opportunity to hear from an exciting line-up of speakers from academia and industry who will cover areas such as processing, digestion, nutrition, analytical techniques, image analysis and much more.

In addition, experience our technologies � rst hand with two fully interactive areas showcasing the latest analytics employed by Teagasc.

Programme

Interfacial Properties and Impact on Functionality in Spray-dried EmulsionsProfessor Stephan Drusch, Technical University of Berlin

Understanding Food Oral Processing to Guide Food Structure DesignDr. Christopher Hartmann, Nestlé Research, Lausanne

What is the impact of food matrix on nutrient bioaccessibility and their metabolic responses?Professor Sylvie Turgeon, Laval University, Quebec

The ARC Dairy Innovation Hub: an Australian PerspectiveProfessor Sally Glass, University of Melbourne Applications of Spectroscopic Techniques in the Agri-Food SectorDr. Alessandro Ferragina, University of Padova

Food Material Research - 3D Imaging and the World of Virtual Reality (VR)Dr. Tamara Manuelian, arivis, Rostock

For further information:Email: gateways@teagasc.ie Phone: Niamh O'Brien at 025 42313

Register your place today atwww.teagasc.ie/gateways

Irish Food Gateways Nov 2018 210x280 plus 5.indd 1 08/11/2018 16:40:59

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24 ISSUE 7 2018

limited Irish production for 30 years. “In 2017, annual milk production is estimated to have increased by 9 per cent, far outstripping Ireland’s population growth of approximately 1 per cent. We are now producing more milk than ever, and it is vital for the dairy sector’s continued growth that we design dehydration processes that are both efficient and provide premium dairy products in an increasingly competitive global marketplace.”With the continued uncertainty surrounding the impact of Brexit on the future stability of established product routes, such as cheddar cheese in the UK, Eoin says dehydration will be an important tool for the Irish industry in terms of market diversification. “In the most basic scenario, milk solids traditionally used in products under threat from Brexit can be dehydrated and used in other applications. This approach is reactive and is dependent on processors having the capacity to dry extra milk and, also, on the demand that exists in the market for milk commodities. To fully mitigate against these threats, processors must look to new technologies and processes that will give them the capacity to launch exciting new product formats.” Eoin explains that Teagasc is working with technology that enables the gentle dehydration of whole foods and structured dairy products to produce dehydrated foodstuffs i.e. solid or thick dairy products such as cheese, yoghurt or non-dairy foods such as vegetables. The aim is to develop technology which goes beyond typical spray drying of liquid feeds into powder and provide novel dehydrated products and snacks of high nutritional quality.

Snacking China is Ireland’s second largest market for dairy exports, particularly Irish infant formula, which performs well in the super premium category. “The Asian market may also be a good destination for novel structured dehydrated products designed to meet the requirements of a population that, until quite recently, had relatively little exposure to dairy products. The recent popularity of protein bars in Europe and the US is also encouraging, particularly for dehydrated dairy snacks based on cheese or yoghurt matrices, which are rich in dairy proteins.”Dehydration can also play a part in healthy snacking, especially for cheese or yoghurt-based dairy snacks, which, when dehydrated, no longer require refrigeration and can, therefore, be consumed on the go.    Eoin also see opportunities in life-stage nutrition where dehydrated products are widely used as a means of providing fortified nutritional products that are shelf stable. “In addition to nutritional quality, we see an increased demand on rehydration properties of these products – people don’t want to wait around for the powder to dissolve, or see insoluble particles in their beverage. In some cases, this can be quite challenging, particularly in specialised fat-filled powders where sometimes the ingredients and processes used do not lend themselves to making a soluble powder. Novel processes are required to better encapsulate fat, which will result in better retention of fat-filled nutrients as well as better rehydration properties.”

Research supportIreland has a strong track record in food and dairy processing. Eoin says dairy industry is supported through institutions, such as Teagasc, as well as sustainability programmes such as Origin Green, while also benefiting from many excellent academic courses provided by our higher institutions. “We have many internationally recognised food and dairy companies with histories of innovation in development of novel products/markets. In terms of dehydration, we have excellent infrastructure for spray drying, which has allowed us to become a major player on the international scale despite our modest size as a nation. However, we need a stronger focus on development of novel dehydration technologies to capitalise on the skills and advantages we already have in place.” Another natural benefit Irish dairy has is our pasture-fed system, says Eoin. “It is a safe and secure supply of milk. It is a feeding system that imparts nutritional characteristics to finished Irish products, especially in the lipid phase. Currently, work is underway at Teagasc under the supervision of Dr Tom O’Callaghan and Dr Noel McCarthy to further elucidate the nutritional and functional benefits of pasture-fed systems. In addition, Dr Donagh Berry of Teagasc recently launched VistaMilk, a €40 million, Science Foundation Ireland-funded centre, which, over the coming years, will look to further understand the interdependencies within Irish milk production systems, all the way from animal diet and genetics through to production of dairy products.”

focus

25

DAIRY

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The land ofopportunity

As Ireland’s largest exporter of dairy products, Ornua announced record revenues earlier this year on the back of a strong performance in the US market, where the

Kerrygold butter brand recorded double-digit volume growth and the co-operative’s ingredients division grew substantially, Here, we talk to R is n Hennerty, managing

director of Ornua’s Global Foods Division, about the importance of the US market

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Hennerty, managing director of Ornua’s Global Foods Division

When Ornua unveiled its 2017 figures in March of this year, the stand-out ‘good news’ story was its huge lift in operating profit, up almost a third on the previous year at €35 million. Success in the US market was a large part of this growth, with Kerrygold now positioned as the number-two butter brand in the US and dairy ingredients enjoying record sales in the market.

Hennerty, managing director of Ornua’s Global Foods Division, works with cross-functional teams in Ornua’s markets across the world to strategise the growth of the Kerrygold brand and the co-operative’s portfolio of consumer brands, including Dubliner, Pilgrims Choice, Forto and BEO milk powders.“Ornua exports the best of grass-fed Irish dairy to over 110 markets across the world, and these markets are served by production facilities and in-market sales and marketing teams in Africa, Asia, Germany, Ireland, the UK, the rest of Europe, the Middle East and the US. We have responsibility for developing marketing strategies that provide a platform upon which our brands can grow. Kerrygold is a globally loved brand and we understand the importance of developing compelling reasons for consumers to buy our products.”

stresses that the US market is key for continued growth: “The US is one of Ornua’s most important markets. Having launched there over 20 years ago, the Kerrygold brand has established a committed following and, today, ranks as the number-two butter brand in the country. In 2017, Kerrygold sales hit record levels and are on track to sustain this performance in 2018. For more than five years, this market has been delivering double-digit growth for the Kerrygold brand, which is driving real value for Irish dairy.”

StrategyAccording to , the success of Kerrygold in this market pivots on the compelling story of Irish dairy: our grass-fed, family-farming system that enable Irish products to stand out among competitors and demand a premium on

shelf. “There have been enormous changes in food trends in recent years: while some are short-lived, the desire for natural, sustainably produced products continues to strengthen. The provenance of the food is extremely important to consumers today. Kerrygold is rooted in honest, transparent origins and tradition and so is perfectly positioned to take advantage of this growing trend.”Kerrygold is distributed nationally in the US, with larger customers including Costco, Walmart, Kroger, Trader Joes, Sams Club, Whole Foods and Publix. When the brand first launched in the market, the marketing strategy focused on targeting the food consumer with a limited product range.For Ornua, this target market was spread evenly across males and females who were early adopters of food trends associated with natural origins, while also being early adopters in technology. It was for this reason,

explains, that Kerrygold’s strategy in the early 2000s was digitally-focused looking to reach this audience who would later become influencers. “In recent years, we’ve moved the brand to a dairy brand and are targeting a broad base of the market. We want to deepen our penetration levels and increase levels of repeat purchase. Today’s Kerrygold consumers are discerning and care deeply about where their food comes from. The authentic story of Kerrygold resonates deeply with this market.”

GrowthAs part of its growth strategy, plans are in place to focus on extending Kerrygold’s footprint beyond butter and cheese and into other dairy categories. “Consumer tastes are constantly evolving and, naturally, innovation is an extremely important component of Ornua’s

strategy for growth. Our innovation teams monitor trends and consumer insights that help drive our product pipeline, which meets the demands of consumers in markets all over the world. “In 2017 alone, we launched 34 new product innovations into the market. Our presence in Germany perfectly showcases what is possible in terms of brand diversification. On the shelves of a German supermarket today you will see a wide variety of Kerrygold products including butter and spreadables, Kerrygold natural and fruit yogurts, and a wide range of Kerrygold cheese products.”In the US, Ornua recently added the dairy cheese category (shreds and slices) to its portfolio. Up to now, it sold only within the deli cheese category. “This is a new era for the Kerrygold brand as we will not just be in the specialty cheese section of the store where we are the number one cheddar; we will be sitting alongside and competing with the bigger brands nationally. This new offering serves a category with higher footfall and targets a range of consumers who want convenience but do not want to compromise on taste or quality. Offering a Kerrygold natural grass-fed alternative with a superior flavour profile is a strategy that also allows us reach and encourage trial with new consumers.”

Consumer focusAs is the case in any market, as the brand grows, in-market competitive pressure increases. For Ornua, keeping the consumer at the heart of all strategic decisions is key to remaining competitive. “A consumer-led brand strategy where we tell the story of Kerrygold in a creative and engaging way is crucial in order to protect and maintain our premium-brand position. More than ever before, consumers script the rules of engagement and decide how brands should interact with them. We pride ourselves on the global presence we have built for Irish dairy and we closely monitor the evolution of attitudes and behaviours surrounding both Kerrygold and Irish dairy. This helps us to maintain meaning and relevance, and means we can meet the needs of our consumers at every life-stage.”

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€1bnIreland's

milk merger

Shareholders of dairy processing co-operatives Lakeland Dairies and LacPatrick Dairies recently voted resoundingly in favour of the merger of both societies. While the rationale for the dairy merger had little to do with the possibility of a withdrawal by the UK from the European Union, there are serious implications for the Irish and British agri-food sectors from such an event actually happening.

Worldwide exportsThe new dairy manufacturing entity, to be known as Lakeland Dairies, will process milk from 3,200 suppliers and will become the second largest dairy processor on the island of Ireland. Since Irish dairy processors export, on average, over 85 per cent of their output, scale is important. The newly-minted Lakeland Dairies will have a turnover in excess of €1 billion, with sales spanning the island of Ireland, the UK, Europe and worldwide.The current CEO of Lakeland Dairies, Michael Hanley, will head up the new co-operative venture, which will include processing plants and milk suppliers based on both sides of the Irish border. Fromthe original Lakelands Dairies perspective, the fact that LacPatrick has spare milk-processing capacity was an added benefit of the merger. Lakeland suppliers have expanded their output considerably in recent years since the abolition of milk quotas and farmer surveys indicate that more expansion is being actively considered on dairy farms

in the greater border region serviced by the co-operatives. Michael Hanley summed up the rationale for the merger: “The economies of scale achievable by combining both societies will create a larger, more efficient, diversified, farmer-controlled, global dairy food group with a broad portfolio of value-added products and brands. It will continue to ensure market access to the UK, Europe and the world.”The latter sentiments are important because, should Brexit result in border controls, and impediments in terms of logistics, regulations and tariffs, the fact that the new entity will have considerable cross-border businesses already in place will be of real benefit to continued, unimpeded trading.

A sensitive merger agreementCo-operative mergers can be sensitive endeavours for everyone concerned. To make this new merger as frictionless as possible, a transitional board is being established comprised of 15 Lakeland Dairies board members and eight LacPatrick Dairies board members. The original Lakeland Dairies board will provide the first chairman and there will be two vice-chairmen, one from each of the two merging entities. The merger agreement reflects the respective sizes of the businesses in terms of turnover and supplier numbers with 73 per cent of the shareholding held by Lakeland Co-op and 27 per cent in the hands of LacPatrick. The relative asset base and profit figures were

additional guidelines in determining the shareholding allocations. Each shareholding member in the pre-merged co-ops will receive additional shares through share splits, bonuses and new shares to maintain the valuation differential between the merging entities at individual shareholder level.

Cross-border milk flowReflecting the complex nature of a milk-processing business with operations in two different states, all milk suppliers in the Republic will receive the same milk price while all suppliers in Northern Ireland will also receive the same milk price. Both Lakeland and LacPatrick would have been originally supplied with milk from suppliers on both sides of the Irish border. Post Brexit, this pricing arrangement may well show up significant disparities. LacPatrick itself is the outcome of a relatively recent merger between two medium-sized milk-processing co-operatives, Ballyrashane and Town of Monaghan, back in 2015. It has three manufacturing sites, at Monaghan, Ballyrashane and Artigarvan. The co-op has a strong liquid-milk division, as well as a milk-powder manufacturing site and butter, yoghurt and dessert making facilities. Regatto cheese is a rather

The merger of Lakeland Dairies and LacPatrick Dairies into a single entity, straddling the Irish border, will create a €1 billion turnover business with a milk pool of 1.8 billion litres. At a time when Brexit is exercising the minds of most people in the Irish dairy industry, this latest development highlights the close ties between agri-businesses on both sides of the border, writes Matt O’Keeffe

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unique complement to LacPatrick’s dairy manufacturing portfolio. Recent heavy investment may have been an element in LacPatrick’s desire to merge with a complementary partner. The Artigarvan plant contains three dryers with drying capacity of 12 tonner per hour, including a new €40 million dryer, commissioned last year. There is significant excess capacity available at this milk-powder facility.Meanwhile ‘old’ Lakeland, which was formed 28 years ago through the merger of Killeshandra and Lough Eigish co-ops, has a milk supply base extending across 15 counties, including in Northern Ireland, with manufacturing sites at Bailieboro, Killeshandra, Lough Egish, Newtownards and Banbridge. Its 2,500 milk suppliers deliver 1.2 billion litres to those sites every year. Profits last year ran to €33 million.

A Brexit-proofed businessThe new Lakeland Dairies will have capacity to process extra milk volumes without additional investment. It will have a wide product portfolio to exploit market opportunities as they arise and the flexibility to optimise production as dairy product prices fluctuate. With four manufacturing sites on both sides of the Irish border, some of them duplicating each other, there may be opportunities to rationalise the new business in order to maximise profitability and efficiencies. Meanwhile, the new business offers the opportunity for at least some ‘Brexitproofing’, if necessary.

Andrew McConkey, chairman, LacPatrick Dairies, Michael Hanley, CEO, Lakeland Dairies and Alo Duffy, chairman, Lakeland Dairies.

solar

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The power of

A pilot programme in Kilkenny is exploring the potential of solar power on Irish dairy farms and represents new thinking in our approach to sustainability on farms

The concept of converting solar power into electrical energy is not a new concept. The technology was developed initially by NASA (the National Aeronautics and Space Agency in the US), many decades ago. However, innovation and mass production have made solar power in the form of electrical energy a commercial reality. A pilot programme on converting solar energy into electricity is ongoing on a Kilkenny farm. The farmer in question, Cathal Moran, has agreed with Elgin Energy to install a set of photovoltaic (PV) panels on his farm with a view to establishing their electrical conversion efficiency and the role that PV cells can play in providing electrical power on a dairy farm. Cathal outlines his initial experience: “These are ground-mounted panels, though they can be installed as roof-mounted units. The overall scale is relatively small and the fact that they are on the ground made their installation very simple and straightforward. The intention is that farmers will use the electricity produced to power their energy requirements in their dairy operations. There are two main electrical peaks on a dairy farm, coinciding

with morning and evening milkings. Solar energy production runs through the daylight hours, so it misses out on providing electrical power for one portion of the peak usage. The idea is to match, as far as possible, the demand and the output, allowing for the divergent peaks of use. At the moment, there is a lot of monitoring of energy production in the pilot project so that the most efficient means of using the energy can be established. It strikes me that, to maximise usage, there may have to be battery back-up.”

Return on investment Currently, there is no means of being recompensed for solar energy produced, over and above what is used on the farm. Surplus production goes back into the national electricity grid without any payment. That is set to change in the future as the ESB (the Electricity Supply Board – Ireland’s State-owned electricity company) is transitioning from carbon-based electricity production to renewable energy production by 2030.The understanding is that surplus energy production from micro-production units

will be bought by the utility. This developing scenario may take some time to become the norm but there is every likelihood that the concept of the farm as an energy producer, supplying surplus energy to the grid for a fee, is nearer reality than many realise.

The science behind solarMichael Moore, project manager with Elgin Energy, explains the science behind solar electrical power: “There are two types of solar energy production, one is solar thermal, and the other is solar photovoltaic, which converts solar energy into electrical power. The thermal models use tubes to heat water while the PV units use the energy from the sun and convert it into electrons which turn into electricity.”

Bright future Michael is very positive about the emerging solar energy production sector: “The Swiss and Germans have been using PV technology since the 1970s. In the intervening time, it has spread across the world and has been brought to China where mass production of PV cells has made solar a very commercial

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If battery storage technology develops sufficiently in theshort-to-medium term then solar and other renewable powersources will become the norm, casting aside, at last, ourdependence on finite fossil fuels to power the planet.

and viable energy source. Since 2010, the cost of PV panels has dropped by well over 80 per cent. It’s on that basis that it is now economically viable to deploy solar PV in climates like Ireland, the UK and northern Germany. There has been a huge roll-out of solar PV in Germany over the past few years. That is primarily down to the reduced cost of producing these PV cells.”

Commercial scaleWhile the pilot project on Cathal Moran’s farm is a small-scale, experimental unit, there are already large-scale units developed by Elgin and other energy companies in operation. Michael Moore highlights the intention of increasing the number of projects in the years ahead.Over the last few years, Michael says, there have been government-supported schemes for the installation and operation of solar PVs in other countries. That, he insists, is similar to all new technologies that require ‘kickstarting’: “There has been a guaranteed price for that electricity. Currently, in Ireland, there is no means by which electricity from PV can be sold back to the grid. But for the likes of Cathal and others, there is a longer-term

view. This is a 20 to 30-year timescale. The cost of the electricity that is being produced on the Moran farm, for instance, will be the same cost in 20 to 30 years’ time. Historically, energy costs have increased over time, with fluctuations up and down during any given period. That upward trend is due to the vagaries of fossil-fuel prices, production and availability. It would be great if there were to be Government support and incentives, but we see that over the coming years solar-produced electricity will be a viable proposition.”

Rapid developmentsThis is technology that is constantly developing and improving as the Elgin Energy representative outlines: “There are two aspects to this. One is the cost and how those costs have reduced in recent years. The expectation is that those costs will reduce further. A standard panel previously would have been 160 watts. In the next two years, that standard panel will be 300-400 watts. That means there will be more power for every square metre, while still erecting the same number of panels. So, the unit cost of power, along with the labour required to set it up, is set to fall significantly.”

The recent heatwave in Ireland meant that Elgin’s expectations of electricity productionon the Moran farm were vastly exceeded. There is a need for daylight for solar energyproduction. However, strong sunlight is not a necessity: “Our aim with the solar project on Cathal Moran’s farm is to look in greater depth at the electrical requirements in the dairy industry, particularly in the peak milk production period running from April through to October. That’s when the energy requirement is greatest. That also coincides with the longest daylight hours.”

Battery technology As an aside, Michael notes that battery power is developing apace with solar and wind power: “New types of battery have at least the potential to be game-changers in the storage of surplus energy from renewable energy sources.” If battery storage technology develops sufficiently in the short-to-medium term, then solar and other renewable power sources will become the norm, casting aside, at last, our dependence on finite fossil fuels to power the planet.

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pleaseMilk,Full-fat milk is good for your heart. That’s the conclusion of a major study undertaken in Canada, involving over 136,000 people aged between 35 and 70 years, from 21 countries. Many people believe that consuming milk that’s low-fat or excluding dairy from your diet is better for your health than opting for whole-fat dairy varieties. However, this study has concluded that including full-fat dairy in your diet can actually be beneficial for the wellbeing of your heart. The research, carried out at McMaster University in Canada was published in The Lancet medical journal recently.

Dairy in the dietThe participants were assessed over the course of nine years, during which their daily dairy intake and overall health were recorded. They were split into four categories: those who ate no dairy at all; those who had less than one serving a day; those who had one or two servings a day; and those who ate more than two servings a day. Furthermore, the type of milk that they consumed, whether they had whole-fat or low-fat dairy, was also taken into account. Those who had around three portions of dairy a day were found to have lower rates of mortality and reduced risk of cardiovascular disease or stroke than those who had no dairy at all. On top of that, the people who consumed three servings of whole-fat dairy a day were reported as being less likely to experience heart disease than those who only had half a serving of whole-fat dairy a day.

Previous advice misguidedThe research analysis shows that previous advice to consume low-fat dairy products was misguided. Lead author Dr Mahshid

Dehghan explains: “Focusing on low-fat is predominantly based on the assumption that saturated fat increases low-density lipoproteins (LDL) cholesterol. But dairy contains many other components, including amino acids, vitamin K, calcium, and magnesium. They can be fermented and have probiotics. We should not focus on a single nutrient.”The study goes further than just dismissing much of the misinformation around dairy consumption and indicates the need for regular dairy consumption. The findings, according to Dr Dehghan, support the view that consumption of dairy products might be beneficial for mortality and cardiovascular disease, especially in low-income and middle-income countries where dairy consumption is much lower than in North America or Europe.

Heart healthThe good nutritional news around dairy does not stop there, according to new research by The University of Texas Health Science Center at Houston (UTHealth). The study, published in the American Journal of Clinical Nutrition, found no significant link between dairy fats and cause of death or, more specifically, heart disease and stroke. These are two of that country’s biggest killers, often associated with a diet high in saturated fat. In fact, certain types of dairy fat may help guardagainst having a severe stroke, the researchers reported: “Our findings not only support, but also significantly strengthen, the growing body of evidence which suggests that dairy fat, contrary to popular belief, does not increase risk of heart disease or overall mortality in older adults. In addition to not contributing to death, the results suggest that one fatty acid present in dairy may lower risk of death from cardiovascular disease,

New research highlighting the health benefits of full-fat milk is debunking guidance to consume more low-fat dairy products

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particularly from stroke,” said Marcia Otto, PhD, the study’s first and corresponding author and assistant professor in the Department of Epidemiology, Human Genetics and Environmental Sciences at UTHealth School of Public Health. The study was funded by the National Institutes of Health and Dariush Mozaffarian, MD, of the Friedman School of Nutrition Science and Policy at Tufts University, was senior author.

The science behind the researchThe study evaluated how multiple biomarkers of fatty acids present in dairy fat related to heart disease and all-cause mortality over a 22-year period. This measurement methodology, as opposed to the more commonly used self-reported consumption, gave greater and more objective insight into the impact of long-term exposure to these fatty acids, according to the report. Nearly 3,000 adults, aged 65 years and older, were included in the study, which measured plasma levels of three different fatty acids found in dairy products at the beginning in 1992 and again at six and 13 years later. None of the fatty acid types were significantly associated with total mortality. In fact, one type was linked to lower cardiovascular disease deaths. People with higher fatty acid levels, suggesting higher consumption of whole-fat dairy products, had a 42 per cent lower risk of dying from stroke. The 2015-2020 Dietary Guidelines for Americans currently recommends serving fat-free or low-fat dairy, including milk, cheese, yoghurt, and/or fortified soy beverages. But, Marcia Otto pointed out that low-fat dairy foods such as low-fat yoghurt and chocolate milk often include high amounts of added sugars, which may lead to poor cardiovascular and metabolic health. “Consistent with previous findings, our results highlight the need to revisit current dietary guidance on whole-fat dairy foods, which are rich sources of nutrients such as calcium and potassium. These are essential for health, not only during childhood but throughout life, particularly in later years when undernourishment and conditions like osteoporosis are more common,” Otto said, adding that evidence-based research is key to educating people about nutrition: “Consumers have been exposed to so much different and conflicting information about diet, particularly in relation to fats. It’s therefore important to have robust studies, so people can make more balanced and informed choices based on scientific fact rather than hearsay.” The research was

supported by the National Heart, Lung, and Blood Institute.

Asthma and respiratory issuesAnother recent study has found no evidence that milk consumption should be avoided by people with a respiratory illness. The study, carried out by Ian Balfour-Lynn from the Department of Paediatric Respiratory Medicine, Royal Brompton Hospital, London, showed that the texture of milk can, however, make some people feel their mucus and saliva is thicker and harder to swallow. The research explains that this is because milk is an emulsion of fat in water. Emulsions mix with saliva leaving saliva feeling thicker when milk is consumed. According to the researchers, this may explain why so many people think there is more mucus produced when, in fact, it is the particles of milk emulsion that they are aware of lingering in their mouth and throat. The conclusions of the study state that: “Milk is an important source of calories, calcium and vitamins for children. The milk-mucus myth needs to be rebutted firmly by healthcare workers.”

Cheddar lowers cholesterolCloser to home, Irish researchers into the positive attributes of dairy consumption had some very interesting findings published recently on the benefits of eating cheddar. A trial conducted by Food for Health Ireland (FHI) scientists at University College Dublin has found that when Irish full-fat cheddar cheese was consumed by a group of individuals for six weeks, it did not raise blood cholesterol levels. A total of 127 participants, all with elevated cholesterol levels, participated in the human intervention trial.The individuals were divided into three groups, with each group consuming dairy fat in different forms throughout the six-week period. Group A consumed full-fat cheddar cheese, which naturally includes protein and calcium. Group B consumed reduced-fat cheddar cheese, plus butter – equalling the amount of fat found in full-fat cheddar cheese. Group C consumed butter plus separate sources of protein and calcium in equivalent amounts to that found in cheddar cheese. The results were identified by comparing the findings of the groups, with all three consuming the same amount of fat. According to the findings, Group A had a significantly greater drop in total cholesterol compared to Group C, while Group B’s results fell in between the two groups.

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CheddarchecklistIn volume terms, cheese is Ireland’s largest dairy export. A key variety within this category is cheddar cheese, which is a key dairy product for Irish milk processors with worldwide exports of the product. Our main customer, by far, is the UK which imports up to 100,000 tonnes of Irish cheddar every year, worth an estimated €260 million

Cheddar is a pale-yellow, medium-hard cheese made from cow’s milk and is available in several varieties. Occasionally you may also find orange varieties of the cheese due to the use of the natural food colouring annatto. The cheese originated in the town of Cheddar, a small town in Somerset, England. It is one of the oldest kinds of cheese and is now made across the globe. The earliest records that mention cheddar cheese as a commercial dairy product go back to the 12th century. The first reference to cheddar sales comes from an English financial record dated 1170 showing King Henry II purchasing 4,640kg of the cheese!

A versatile productThe taste and texture of cheddar can vary a lot depending on the length of ageing. Typically, cheddar undergoes a fermentation process that lasts anywhere between three and 24 months. A shorter ageing time will produce a mild, creamy cheese with a soft texture.

This is the reason why cheeses like camembert and brie are only fermented for some weeks to produce a very soft texture. On the other hand, longer-aged cheese will display sharp, tangy and pungent flavours. These well-aged cheeses will also have a crumbly and crunchy texture. Rare, artisan cheddar cheese may be aged for anywhere up to five or even 10 years.

Cheddar classificationDepending on the ageing process, there are different names to classify cheddar cheese.

TYPE OF CHEDDAR

MINIMUM LENGTH OF AGEING

Mild 3 months

Medium 5-6 months

Mature 9 months

Extra mature 15 months

Vintage 18+ months

An energy powerpackCheddar cheeses, in general, are relatively high in energy and also a great source of protein, providing 24.9 grams per 100g, a similar amount to meat and fish. Most of this protein is casein. Protein is the single most important macro-nutrient in our diet. Additionally, a higher protein intake brings other advantages. Increasing our protein consumption is clinically proven to improve satiety and reduce food cravings and higher protein intakes correspond to increased lean body mass. Increasing protein intake helps to preserve lean mass during weight loss. Protein is also extremely important for elderly people, since the amount of protein we can absorb falls as we age. This is because the rate of muscle-protein synthesis declines with age.

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A readily available source of calcium

A 100-gram portion of cheddar provides 72 per cent of the RDA (Recommended Daily Allowance) for calcium, and this works out at about 20 per cent RDA per ounce (28 grams) of cheese. Calcium is an essential mineral responsible for the optimal functioning of our skeletal and muscular system. Our primary sources of calcium include dairy, where every product from milk to cheese and yoghurt are significant sources, and many plant foods including leafy greens, beans and lentils. However, the bio-availability of calcium differs widely depending on the source. Plant foods, for instance, contain compounds, such as oxalate, phytate and uronic acids, that can inhibit the digestion of calcium. In contrast, dairy products such as cheese contain no compounds that can hinder calcium’s absorption. For this reason, dairy products are guaranteed to deliver an optimal rate of calcium absorption.

Vitamin-rich cheddarAs well as being rich in calcium and protein, cheddar and other cheeses also contain significant amounts of phosphorous and selenium, which are critical for good health and bone structure. Cheddar is also an ideal source of a range of micro-nutrients. Per 100 grams, cheddar contains 365mg of Omega 3 and 577mg of Omega 6. In addition, cheddar is an abundant resource for the body’s vitamin needs, especially Vitamin B2, Vitamin A and Vitamin B12, three of the key vitamins that promote human health. B2 helps break down protein, fats and carbohydrates and plays a vital role in maintaining the body’s energy supply. B12 a nutrient that has a major role in keeping nerve and blood cells healthy and helps make DNA. Vitamin B12 also helps prevent a type of anemia. Vitamin A is essential for preserving good eyesight and protects against night-blindness and age-related vision decline. It may also help to lower the risk of certain cancers.

A probiotic boosterAs an aged fermented cheese, cheddar is full of probiotics. Studies show that these bacteria survive the lengthy cheese-making and ageing process. The potentially positive effects of these gut bacteria are the subject of ongoing research. However, initial studies do suggest there could be some promising benefits including helping to protect against harmful bacteria in the gut and improving overall colonic health.

Making cheddar cheeseThe main ingredients for cheddar cheese production include fresh, unpasteurised milk, bacterial starter culture, salt and rennet, which helps separate the curds and whey. While cheddar can be made unpasteurised, most cheddar on the shop shelves is pasteurised. In a typical production process, the cheesemakers will start by heating the milk to a temperature high enough to kill any bacteria. Then the starter cultures (bacteria) are added to the

milk alongside rennet, which helps the milk to curdle. The remaining liquid (whey) can then be removed from the cheese. Previously an almost worthless by-product, whey is now a very important ingredient in the sports nutrition sector.After the cheese has set, the cheesemakers cut the curds into small pieces to make salting easier. In addition to helping the flavour, salt also acts as a natural preservative and helps to ensure the fermentation process goes smoothly. Adequate salt ensures that no pathogenic bacteria develop. Once the cheddar curds have been salted, they are pressed into large, solid slabs of cheese weighing upward of 20kg. These moulds of cheese are then vacuum packed and stored in boxes to ferment/mature. This fermentation process can last anywhere from three months to over 18 months, or even longer. Depending on the customer requirements, the cheddar blocks are matured to the desired age, then cut to size, repackaged and delivered to the market.

Dairy products suchas cheese contain no

compounds that can hindercalcium’s absorption.For this reason, dairy

products are guaranteedto deliver an optimal rate

of calcium absorption

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In 2018, packaging was at the forefront of the minds of consumers and businesses alike. As the industry responds to consumer and environmental concerns, Bord Bia (the Irish Food Board) announced that, in 2019, sustainable packaging will be a mandatory target area for verified members of Origin Green – the national sustainability programme for the Irish food and drink industry

Leader of the pack

To help the industry prepare for the changes ahead, Bord Bia, in partnership with Repak – a business-led compliance scheme that funds the recovery and recycling of packaging – recently held a Sustainable Packaging Seminar to discuss the issues at hand.

The ‘Blue Planet effect’Less than 12 months have passed since consumer consciousness was captured by the final episode of the BBC’s Blue Planet Two series in which Sir David Attenborough highlighted the issue of plastic pollution across the world. The episode had a profound impact, leading many consumers to demand changes from producers, manufacturers and retailers; imploring them to reduce plastic packaging and to offer more sustainable alternatives.Speaking at the recent seminar, Shane Colgan, Resource Efficiency Unit, Environmental Protection Agency (EPA), described these changes as the ‘Blue Planet effect’ and warned attendees that legislators are moving fast in line with this consumer sentiment. With the European Commission seeking to introduce EU-wide targets, Shane advised the industry to get ahead of the legislation by reviewing these proposals to see how they will be impacted and to implement change now.

Mandatory targetsComing ahead of these legislative changes, the introduction of sustainable packaging as a mandatory target for Origin Green members is timely. Speaking at the recent conference, Bord Bia CEO Tara McCarthy said: “When we launched Origin Green back in 2012, we made action around sourcing, resource efficiency and social sustainability a priority for our members. These are targets that naturally intersect with the debate around packaging and, over the last six years, they have been a catalyst for a lot of new thinking among verified members. It’s a process that has brought many members ahead of the curve in terms of lighter, smarter and more sustainable packaging design.”Tara added that, as the debate around packaging evolves, Origin Green will continue to respond.

Creating optionsJohn Curran, head of sustainability at Irish food wholesaler Musgrave Group Ltd, said he had never seen an issue rise so high in the consumer consciousness and have the staying power that packaging has had. “It tends to be more prevalent in certain categories than in others,” he explained. “For instance, very few people write to us to complain about the packaging on their

cornflakes because the packaging helps them to store the product.” However, John noted, one area that really aggravates consumers is fruit and vegetable packaging. He explained that packaging is very important in this space, playing a role in containing allergens, portion control and food-waste prevention. “We need to give them choice, help them to understand what that packaging is for. Like cucumber, why does cucumber need a shrink wrap? Well, if you put shrink wrap on it, you add five or six days to its shelf life.” With that said, John added that the Musgrave Group is seeking to address this consumer concern by helping consumers reduce the volume of packaging they take home from its stores. “We are trying to set out criteria for suppliers so that they know the ground rules about packaging, setting out what we do and don’t want; a decision tree effectively. We are not there yet. Our suppliers will understand what our limitations are in terms packaging or what restrictions we have, but we also have to understand what their limitations and restrictions are, so it’s an iterative approach.”

Keeping it simpleAlex Hetherington, senior packaging consultant, 3Keel, advised attendees of the seminar to keep their packaging design simple. She advocated for designs

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that eliminate, where possible, the need for separate elements, such as detachable lids, and for clear instructions to consumers on how to dispose of products. She noted that consumers are confused by labelling and where packaging involves several elements, there is a lack of clarity on how each piece should be correctly disposed of. She also made the point that consumers are further frustrated by the packaging issue because some packaging is not recyclable in their communities and markets. An example of clear and simple packaging was presented to attendees by Camille Thai. The Irish take-away and home-delivery business is in the process of introducing new, biodegradable take-away packaging. In designing the new packs, several factors had to be considered: it needed to be robust, withstand heat but keep food warm, be leak-proof, and deliver on the Camille Thai branding. The packaging includes a colourful design and Camille Thai branding, with a single, simple instruction to consumers that the packaging is fully compostable.

A role to playAll the speakers at the seminar acknowledged the important functions of food packaging from food safety and convenience, to communicating with consumers and portraying brand values. However, it was agreed that there may be a lack of understanding at consumer level about the various roles packaging plays in a safe and reliable food supply chain, in part because the consumer relationship with packaging can be very short – they buy a product, unpack it, and bin the packaging. It was agreed that changes need to be made and that the industry needs to consider the long-term implications those changes will have, from a logistics, food safety and branding perspective.

LIDL CHANGES MAKE A DIFFERENCEWithin a week of the packaging seminar, Lidl Ireland, a verified member of Origin Green’s retail and foodservice charter, confirmed it is removing black plastic packaging from its entire fruit and vegetable range across all 195 Ireland and Northern Ireland stores before Christmas. The packaging, which cannot be recycled, will be scrapped from fresh fish products by February 2019, followed by fresh meat, poultry and cured meat ranges before August. This move will remove 65 tonnes of black plastic waste from fruit and vegetables alone.

Lidl said it has also scrapped the sale of single-use plastic items including drinking straws, disposable plates, cups and cutlery, with plastic-stemmed cotton buds next on the list in the coming months. The single-use plastic items are being replaced with biodegradable alternatives.

The move is one of many steps that the retailer is taking as part of its plastic-reduction strategy. Already this year, the company confirmed it had achieved ‘zero waste to landfill’ and announced a ban on microbeads in all cosmetic and household ranges.

It also published several ambitious plastic reduction targets, including using 20 per cent less plastic packaging by 2022 and having 100 per cent recyclable own-brand packaging by 2025.

J.P. Scally, Lidl Ireland and Northern Ireland managing director stated: “Sustainability is core to our business and we are proud to continue leading the retail sector in implementing ambitious measures which will deliver real and lasting benefits for everyone.”

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AWA R D S

Riversfield Organic Farm

Irish Country Meats

Highbank Organic Orchards and Distillery

Accepting the awards, Joe Hyland, managing director, ICM said: “We are absolutely thrilled to receive these award. We take great pride in being the leading innovators and organic ambassadors in the lamb space in Europe but to be recognised in the home market in this way means a lot to us.”Joe said the product was developed and marketed to meet with a new dynamic opportunity driven by consumer demand for an organic option. Joe added that organic demand is niche, accounting for approximately 1 per cent of total Irish sheepmeat production. Nevertheless, he said, there are some significant global players and certainly significant opportunities. “It’s clearly very important and we are working closely with all of the interest groups to promote organic and we are doing that to good effect in the Irish market, but also in many export markets where we have a presence in most of the significant retailers and foodservice players in key export markets.”

Joe continued: “It’s incumbent on Irish Country Meats, like all other processors of scale, to identify and promote this type of product in the marketplace and we are very actively doing that. Our Group has an organic interface with Good Herdsman and we are working very closely with John Purcell and his people in Good Herdsman to tap into markets that already exist under the Good Herdsman brand, both here in the Irish market and, also, in export markets. Together, I think the project is to present a protein package of beef and lamb of the highest standard, packaged to a high standard and very heavily promoting its Irish and organic provenance.”

Market focusSpeaking at the awards, Minister of State for the Department of Agriculture, Food and the Marine, Andrew Doyle noted the quality of Ireland’s organic producers and their contribution to the country’s strategy for growth. “The quality of Irish organic produce

ICM wins overallorganicaward

Wexford-based Irish Country Meats (ICM) won two awards at this year’s Bord Bia (the Irish Food Board) National Organic Awards. The lamb processor’s Good Herdsmen Organic Half Leg of Lamb

claimed the Overall Award at the biennial event, as well as taking home the Retail Award

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AWA R D S

Beechlawn Organic Farm

Sli Eile Housing Community Organic Farm

Irish Country Meats

entered for these awards highlights once again that Irish organic food is of a high quality and can readily compete on the world stage. This is a celebration of the achievements of these individual companies and Irish organic food and drink, as a whole. It’s a sector with a bright future and before the end of this year we will be publishing the strategy for its future development to the year 2025.”Established by the National Organic Plan under the auspices of the Department of Agriculture, Food and the Marine in collaboration with Bord Bia, the objective of the National Organic Awards is to recognise the achievements and raise the profile of Irish organic food and drink manufacturers and growers. Now in their ninth year, Tara McCarthy, CEO Board Bia, said. “It’s very exciting to see such a broad variety of producers and products represented

at this year’s National Organic Awards. It demonstrates why Irish consumers are increasingly choosing to include organic in their weekly shop. Bord Bia is committed to supporting Irish organic producers to reach their potential and strengthen their trade both at home, and in key export markets.”

Export awardRecognising the importance of international markets, a partnership between The Little Milk Company – based in Dungarvan, Co. Waterford – and a company producing Ireland’s best-loved farmhouse cheese, Cashel Blue – based in Tipperary – led to success in the Export Award category. Since they joined forces the company has been successfully selling the new organic Cashel Blue to leading retailers and hoteliers across the world.

OTHER WINNERSINCLUDED• Riversfield Organic Farm, in

Callan Co. Kilkenny – winner of the Chef’s Choice Award for its cherry tomato mix

• Highbank Organic Orchards and Distillery, from Cuffesgrange, Kilkenny – winner of the Direct Selling Award for its fortified apple wine, Sack No. 3 Pommeau vintage 2016.

• Beechlawn Organic Farm Ballinasloe, Co. Galway – winner of the New and Innovative Product Award for its curly kale in compostable bio bag.

• Eile Housing Community Organic Farm, Mallow, Co. Cork – winner of the new Business in the Community Award.

B U S I N E S S @IrishFoodMag www.irishfoodmagazine.com

40 ISSUE 7 2018

In IFAC we’re very conscious that it’s a challenge for many SMEs to allocate time to an issue which, up to now, many believed might go away. Nobody can rely on this ‘hope’ anymore and it’s time for action.The first step is appointing a Brexit team leader – that could be the CEO in a small organisation or the financial controller in a bigger organisation. It’s not this person’s job to do the work, but they are responsible for bringing together the cross-functional team to work out the Brexit to-do list. This list of actions that the team come up with must be monitored monthly at a minimum.Some of the items that should be top of the to-do list:• Conducting a supply-chain audit and

working out where you are vulnerable to transport delays, tariffs, or VAT at point of entry;

• Bridging skillset challenges in your organisation, around tariffs for example;

• Engaging a good customs agent who is well connected internationally;

• Applying for the Be Prepared grant if you are an Enterprise Ireland client to cover the cost of bringing in a consultant who can help deal with the implications of Brexit for your business;

• It’s late in the day to start diversifying but, nonetheless, it is better to start this process

now. As we all know, market diversification takes time and significant effort.

• Review your currency exposure – if you deal in significant amounts of sterling, now is the time to review your hedging policy and hedging know-how;

• Review upcoming contracts in the UK and ask whether you should enter them and take on extra headcount, for example, given the risks that Brexit brings;

• Spend time with your financial controller or professional services partner modelling a range of financial scenarios – particularly the increased costs the business will incur from Brexit (eg. weakened sterling, transport costs, product development costs to lengthen shelf-life etc.);

• In addition, make sure you are well capitalised going into 2019 and review the range of loans available from the Strategic Banking Corporation of Ireland (SBCI). Speak to your bank now if you are interested in the future growth scheme announced in the 2018 budget where loans up to 10 years will be available;

• Start work on obtaining Authorised Economic Operator (AEO) status. This will help Irish food businesses streamline their export processes in a post-Brexit environment. Companies that obtain AEO status or Trusted Trader status are

regarded worldwide as reputable traders due to their high levels of safety, security and compliance. There are many benefits to this, among them: lower inspection costs, fewer delayed shipments and priority treatment if selected for checks. The first step is to register with Revenue and its Economic Operators' Registration and Identification (EORI) system; and

• Finally, tariffs are complex – get help to ensure you are putting the right tariff on your product. Here’s just some of the various tariffs on a range of foodstuffs (see Tariff Checked on intertradeireland.com). The increase in cost will be borne by the importer, which will severely challenge the competitiveness of many businesses. See Table 1 for a selection of tariffs and the various rates that relate to them.

Brexit– time for action

For businesses who have not fully engaged with Brexit now is the time to change this. With less than five months to go, time is ticking by for food businesses to put plans in place to offset

the worst impacts of Brexit, writes David Leydon, head of food and agribusiness with IFAC, the professional services firm focused on farming, food and agribusiness

B U S I N E S Swww.irishfoodmagazine.com @IrishFoodMag

Selection of sample tariffs

Code Category Description % Tariff

200390 FoodstuffsMushrooms and truffles, prepared or preserved otherwise than by vinegar or acetic acid (excl. mushrooms of the genus ‘Agaricus’)

14.4

200410 Foodstuffs Potatoes, prepared or preserved otherwise than by vinegar or acetic acid, frozen 7.6

200490 Foodstuffs

Vegetables and mixtures of vegetables, prepared or preserved otherwise than by vinegar or acetic acid, frozen (excl. preserved by sugar, and tomatoes, mushrooms, truffles and potatoes, unmixed)

5.1

200510 FoodstuffsHomogenised vegetables put up for retail sale as infant food or for dietetic purposes, in containers of <= 250 g

17.6

41ISSUE 7 2018

In summary, ensure someone is responsible for making sure the organisation is focused on Brexit mitigation actions; strengthen skillsets where you acknowledge gaps; and, finally, make sure you are well capitalised going into 2019 so you can react to changing circumstances.

The first step isappointing a Brexit

team leader – they are responsible for

bringing togetherthe cross-functional

team to workout the to-do

list in the eventof a hard or

no-deal Brexit.

See more on intertradeireland.com/brexit/brexit-practical-help/tariff-checker/

42 ISSUE 7 2018

@IrishFoodMag www.irishfoodmagazine.comS P OT L I G H T O N

Irish Distillers, producer of Ireland’s most successful Irish whiskey – Jameson, has announced investment of over €150 million in its Cork and Dublin sites. Nearly €130 million will be spent expanding and upgrading its distillery in Midleton and maturation site in Dungourney, Co. Cork. Meanwhile, over €20 million will be invested in upgrades to Irish Distillers’ Fox and Geese bottling site in Dublin, including extensions to the main operating bottling hall and storage warehouses. Irish Distillers said the investment is a response to demand for its products as the Irish whiskey renaissance continues apace, which has resulted in Jameson achieving double or triple-digit growth in more than 80 markets across the world.  Commenting on the investment, Conor McQuaid, chairman and CEO said: “This

€150 million investment in Midleton, Dungourney and Fox and Geese reflects the growing international success of Irish Distillers’ whiskey portfolio. With a tradition dating back to 1780, we have been distilling in the Midleton Distillery since 1975 and we are delighted to confirm our commitment to this tradition and, at the same time, continue to embrace progress, delivering new and innovative expressions of Irish whiskey. We look forward to building upon our success story by continuing to bring innovative Irish whiskeys to the market.“Irish whiskey is the fastest-growing premium spirit in the world, with sales now accounting for more than one third of all Irish beverage exports. This investment will help to allow this growth to continue for years to come. The company is proud to play its role in the Irish drinks industry, which is a hugely important part of the Irish economy.”

The investment will see the construction of eight new maturation warehouses, each holding 16,800 casks, with further land to be purchased to support the next phase of development in Dungourney, Co. Cork. The company has also added an additional mechanical vapour recompression evaporator to its Midleton Distillery in east Cork. The addition allows the distillery to further expand its capacity. A third mash filter and new fermenters are also to be installed in the distillery to meet the increasing demand for its portfolio of whiskeys. The distillery will also complete construction of a new office building in July 2019.Investment in Irish Distillers’ bottling site in Fox and Geese will see extensions to the main operating bottling hall, storage warehouses, laboratory, and office spaces and additional upgrades to bottling and packing equipment.

With Irish whiskey in demand worldwide, Irish Distillers is investing in three sites across Ireland to supports its export operations

Irish Distillers to invest €150m in Cork and Dublin

Whether you’re looking to access funding, export to new markets or seize on a new opportunity – our approach means that we have the expertise and access to independent solutions at every stage.

Find out how our national team of advisors can help your food business to plan for the future. Call our Head of Food & AgriBusiness - David Leydon

@ Ifac_FoodAgri

(087) 9908227

davidleydon@ifac.ie

A C C O U N T A N C Y | P L A N N I N G | A D V I C E

IFOOD 210x280.indd 1 07/06/2018 15:48

Origin Green, Ireland’s national food and drink sustainability programme is our commitment to a safe, secure food supply far into the future. Central to Origin Green, is the Sustainable Dairy Assurance Scheme (SDAS), the fi rst national dairy sustainability scheme of its kind, an independently audited and internationally accredited programme. Ireland’s temperate climate, abundant rainfall and tradition of family farming have resulted in a grass-fed system with cows grazing outdoors for the majority of the year. Ireland’s dairy farmers participate in the SDAS programme, where consistent audits and continuous improvement ensure a sustainable supply of quality milk. So make sustainability key to a reliable dairy supply for your business. Visit OriginGreen.com/Dairy to learn more.

The world’s fi rst national food sustainability programme

Ireland’s dairy industry. Your sustainable source.

Bird Bia 210x280.indd 1 16/11/2018 09:26