Quality Irish Producers to Benefit from Horsemeat Scandal

Consumers are seeking more information about food producers and traceability, with customers gravitating towards local businesses they can trust, according to a food industry report launched today: ‘Driving and Mobilising Growth by Leveraging Irish Food and Food Tourism’.

Produced by Good Food Ireland and Grant Thornton, the 2013 report highlights the effect the horsemeat scandal has had on the food industry in Ireland, how labeling deception is widespread across Europe, and how Good Food Ireland businesses expect to grow profitability in 2013.

Speaking at the launch at Dublin’s Merrion Hotel, Ciara Jackson, Head of Food at Grant Thornton said:

“The report shows that 97% of Good Food Ireland businesses expect higher turnover in 2013, with the horsemeat scandal to play a significant role in driving this growth. The survey also shows strong support for regulation that places renewed emphasis on traceability and provenance.

Labeling of foodstuffs is an EU wide problem. The level of complexity, particularly the number of countries horsemeat travelled through to end up in a processed beef burger, is frightening. One positive that has emerged from the horsemeat scandal is that the food labeling issue has been pushed to the top of EU policymaker’s agenda.”

Some of the reports key findings from a survey of over 600 GFI Approved Providers include:

• 97%  expect turnover to increase or remain the same in 2013 (2012: 95%)
• 88% expect an increase in earnings (profit) in 2013 (2012:81%)
• 4 out of 5 achieved earnings expectations last year  (2012: 2 out of 3)
• 71% welcome regulation that places renewed emphasis on food sustainability such as traceability and provenance
• 97% feel that local Irish food is an integral economic driver for their business
• the main business challenges faced are: costs/overheads (37%), decreases in consumer spending (16%), and access to finance (10%)

The report also highlights the importance Good Food Ireland businesses place on leveraging their ‘Irishness’ for international growth and attracting interest from tourists, with nearly all focused on their Irish heritage to market their products and services.

Margaret Jeffares, Managing Director of Good Food Ireland, said:

“Good Food Ireland businesses can expect to benefit as consumers increasingly vote with their wallets and choose to buy quality food they can trust. The specialty food market in the Republic of Ireland is valued at €450 million, and this figure is set to increase as Irish consumers are showing a heightened interest in artisan foods.

Although price is always a factor, particularly given the troubles the domestic economy faces, consumers have also become concerned with sustainability issues, traceability, provenance and organic farming.”