1.
Asia Matters
Asia Ireland Food and Agritech Forum
14 July 2015
Cork Institute of Technology, Cork
@asiamatters_biz #AsiaIrlFood @asiabizweek
In Food We Trust

2.
14 July 2015
Cork Institute of Technology, Cork
The Asian Opportunity: New
Profitable Markets for Ireland’s
Most Important Indigenous Industry
David Meagher
Head of Food and Agribusiness, KPMG

3.
The Asian Opportunity:
New Profitable Markets
for Ireland’s most
Important Indigenous
Industry
David Meagher
KPMG Ireland

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4
THE CONTEXT - DRIVERS OF CHANGE IN
THE GLOBAL
AGRI-FOOD SYSTEM
Production
systems
Natural
environment
Economic
and political
environment
Market
development
s

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ECONOMIC AND POLITICAL
ENVIRONMENT
 Population growth
 Urbanisation
 Middle class expansion
 Emerging agricultural regions
 Security of supply
 Evolving government funding mechanisms
 Industry consolidation
 Multi national agribusinesses
 Professional investment in sector

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NATURAL ENVIRONMENT
 Land supply
 Future proofing for climate change
 Water scarcity
 Intensity of production systems
 Biosecurity risks and responses
 Ethical treatment of stock
 Full cost allocation of natural capital
 Environmental regulation
 Ecosystem biodiversity

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MARKET
DEVELOPMENTS
 Food safety
 Technology – Big Data
 Demand for more complex protein
 Functional foods and nutraceuticals
 Bilateral and multilateral trade agreements
 Local food trends and organics
 Synthetic proteins
 Commodity price volatility
 Food wastage

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PRODUCTION SYSTEMS
 Labour supply and capability
 Production system innovation
 Communication infrastructure
 Technological developments
 Adequacy of supply chain farm to plate
 Evolving genetics: animals and plants
 Utilisation of technology in production
 Substitution of animal for artificial proteins
 Supply chain traceability

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SO WHAT?
 Pace of change
 Complexity
 Globalisation

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THE OPPORTUNITY FOR IRELAND – CHINA
 Significant population growth
 Food exports of over €0.5 billion
 Established presence

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THE OPPORTUNITY FOR IRELAND – OTHER
S.E. ASIAN COUNTRIES
Indonesia Malaysia Singapore Philippines Vietnam Thailand
Food imports (in $bn) 12.2 13.2 12.4 5.8 6.8 9.2
Irish food exports (€m) † 18.1 34.9 31.6 14.7 15.9 13.6
Population (m) 255 30.8 5.4 103 92 68
Middle class (% by 2030) 25 80 21 22 40 21
GDP growth (%) 5.2 4.7 3.9 6.2 5.5 1.0
† Data courtesy of Bord Bia – Irish Food and Drink & ASEAN: ASEAN Market for Irish Products 2013.

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THE OPPORTUNITY FOR IRELAND IN SE ASIA
- SUMMARY
 Growth in middle classes will continue
 Different markets consume in different ways
 Significant opportunities exist
 Careful planning and support is required