Ireland’s Food Producers Must Extend Sustainability – Grant Thornton

The Food 4.0: The dynamics of Supply & Demand report states that businesses need to act now to capitalize on the opportunities brought about by a rapidly growing global population together with fundamental shifts in productivity, technology, supply chain efficiency and innovation.

The fact that30pcof EU citizens will be 65 or older by 2060, compared to just 12pc in the 1960s, creates challenges and opportunities for producers and consumers alike, says the report. It also notes that cereal prices worldwide have increased by 17pc in the past three months, creating new waves of food inflation and causing input cost pressure for the feed dependent poultry and pig-meat sectors.

“In a volatile and fast-changing food and beverage industry sustainability will only occur if fundamental changes in productivity, smart innovation, pricing transparency, and co-operation are agreed across the Irish food supply chain,” said Ciara Jackson, Grant Thornton’s head of food and beverage.

The report argues that fundamental changes are underway in food commodity prices, regulation and access to funding. It states that productivity improvements and technology-led innovation are challenging the production dynamic across all sectors and that this change is causing many businesses, countries and international organizations to reflect on how food is sustainably produced to secure supply to meet the needs of tomorrow’s consumer.

It concludes, however, that there is no simple or single answer to the global challenges of feeding the world’s expanding population, doubling food production and creating a secure and sustainable supply chain.

“Consumer insights are key,” said Jackson. “Understanding how core purchasing decisions are shaped by relative prices, incomes, age, preferences, and technology will be the ‘new normal’ in which clever data capture and analysis will be as important as the manufacturing process of the product itself.”

Grant Thornton said it believes that the Irish food and beverage sector is at a critical inflection point. At the moment, 85pc of Irish food and beverage output is exported, with many of Ireland’s export markets experiencing austerity.

The firm noted that today’s global consumers are eating a more varied diet; increasingly frugal and cost-conscious; living longer, with a rise in a fitter, more active older segment; interested in value, convenience, health and wellness and provenance; and using technology to change how, when and where they shop.

It said that through progressively adapting to a fast-changing farm, processor, retail and consumer environment, Ireland has a unique opportunity with its rich natural resources and deep knowledge base to be a global leader in sustainable and profitable food production./