Artisan / Speciality Food

1
Artisan / Speciality Food The Way Forward?
2
Artisan / Speciality Food

• Artisan Food - Unique
• -Traditional
• - Identity
• - Superior taste
• - Craft
• Eg Wicklow Cheese, Woodcock Smokery, Glen Ilen
  Butter, Aines Chocolates

3
Artisan / Speciality Food

• Speciality Food -Premium product
• -Premium Price
• -Unique
• -Regional
• -Broader than Artisan
• Eg Mileeven Honey, Wicklow Fine Foods, Butlers
  Chocolates

4
Artisan / Speciality Food

• Over 320 Speciality Food Producers in Ireland
• Employing gt3,000
• Worth almost 0.5bn
• 70 Artisan Food Producers
• Source Bord Bia

5
Artisan / Speciality Food

• Over 2000 Speciality Food Producers in NZ
• Employing gt33,000
• Worth almost 7bn
• Ireland lt 60 Cheese Producers
• Holland gt100
• Source WTA

6
Artisan / Speciality Food

• Quality vs Commodity
• Commodity One Size Fits All
• Farmer, Field, Place have become redundant
• Clean and Green Image

7
Artisan / Speciality Food

• What are our farmers Saying?
• 58 want to Diversify
• They want to work for themselves
• They want an excellent mainstream enterprise
• Plus
• Another on-farm venture to supplement income

8
Artisan / Speciality Food

• Do you need to supplement your Income?
• Is Food an Option for you?
• Do you have a business which requires expansion?
• Can you give added value to materials being
  produced already?
• Artisan Food Training Program

9
Artisan / Speciality Food

• Agri-food sector exports gt7bn
• Food Imports gt4bn
• Import substitution is a growth area which can
  lead to development of Indigenous food companies

10
Artisan / Speciality Food

• Areas of Opportunity - Beverages
• - Breads/Cakes
• - Chocolate
• - Confectionery
• - Dairy products
• - Jams/Preserves
• - Meats
• - Oils/Vinaigrettes
• - Pastas
• - Sauces
• - Prepared Foods
• - Seafood

11
Artisan / Speciality Food - Cheese
Farmhouse cheese Milk Pump Cheese
vat Moulds Cheese press Ripening
Room Packaging/Refrigeration
12
Farmhouse Cheese - Margins
Vat Size 500L 1000L 2000L Yield 50kgs 100kgs
200kgs 3day/wk 150/wk 300/wk 600/wk 45wks 6.75
t 13.5t 27.0t _at_12/kg 81k 162k 324k Costs
40cent/l excluding labour 27k 54k 108k Gro
ss 54k 108k 216k Labour 1unit 1.5units 2.
5units
13
Farmhouse Cheese Equipment Costs
Vat Size 500L 1000L 2000L Cost of
vat 16k 20k 40k Press 5k 7k 10k Pump 2k
2k 2k Moulds 1k 2k 5K Past. 0k 0k 25k Misc
1k 2k 5K Total 25k 33k 87k
14
Equipment Costs
Tractor 75k 4Wd 50k Car 35k
15
Market Information

• Lets make cheese !
• What type?
• 500 varieties and thousands of variations.
• I like cheddar, doesnt everyone?
• Confusion????

16
Market Information

• We need market information
• Specific to each food product
• Concept to Completion
• Idea generation-Business Plan-Product
  Development-
• Marketing-Distribution-Sales
• Fail to Plan Plan to Fail

17
Retailing / Distribution

• Contribution of Retailers
• URRU
• Sheridans
• Specialist Quality Food Emporia
• Distributors
• Pallas / Horgans

18
Farmers Markets - Distribution
2
2
1
1
1
3
1
1
2
2
5
24
6
2
6
1
5
1
4
3
3
5
6
11
21
19
Artisan/Speciality Food Localisation

• Buy Local - Spend Local
• UK Survey in Cornwall
• Every 10 spent on local food 25 to local area
• Every 10 spent in supermarket 14 in local
  area

20
The Way Forward

• Artisan food represents a significant opportunity
  for diversification.
• It has a competitive advantage in terms of
  superior price differentiation compared to
  commodity food products
• CAP reform, environmental challenges can be the
  catalyst needed to propel this sector forward.
• Small food companies represent a realistic
  alternative to low lost commodity production.

21
The Way Forward

• The rate of market growth is far outstripping
  Irelands ability to supply, we need to start
  playing catch up.
• Superior taste can be achieved by artisan food
  making skills
• Irish Artisan Food currently commands an
  international reputation at the premium end of
  the market
• The reputation needs to be developed and nurtured
  if we are to benefit from an ever increasing
  market

22
Conclusion

We believe that one of the greatest
opportunities for farmers to add value and retain
a bigger slice of the retail price is to build on
the publics enthusiasm for locally produced food
or food with a clear regional provenance we
expect that local food will enter the mainstream
in the next few years Future of Farming and
Food 2002
23
Artisan/Speciality Food The Way Forward

• Mr Edward ONeill
• Artisan Food Specialist
• Teagasc
• Moorepark
• Fermoy
• Co. Cork
• Email eddie.oneill_at_teagasc.ie
• Ph 00-353-25-42234
• Mob [phone]