CONFERENCE REPORT: ALL-IRELAND ORGANIC FOOD CONFERENCE
� Tuesday 7 November, 2006 � The Landmark Hotel, Carrick-on-Shannon, County Leitrim �
Before this begins, let me just say that the report itself was written for the attendees, so it is written in the language of the world of business ....still plenty of quirly characters and the like
Written by Oliver Moore, Irish Examiner, Green Box
General Introduction
The All-Ireland Organic Food conference was held on the 7th November in the Landmark Hotel, Carrick-on-Shannon in Leitrim. The event brought together an impressive array of delegates, with just over 200 attendees from both the organic and conventional food sectors. Participants came from every conceivable aspect of the food system, from production and distribution to policy, media, catering and consumption. The main focus of the event was to drive the organic sector forward: those already in the sector were exposed to new options and ideas from both Ireland and abroad, while those considering the organic option heard about the pitfalls, the supports, the growth areas and of course the best in a burgeoning sector.
Opening Address: Mr Brendan Smith TD, Minister of State at the Department of Agriculture and Food
The opening address was made by Minister Brendan Smith from the Department of Agriculture and Food, with special responsibility for Food and Horticulture. Minister Smith made reference to the great job Atlantic Organics, the Western Development Commission (WDC) and the Irish Central Border Area Network (ICBAN) did with regard to the conference. Because a noteworthy list of �high achievers�.producers, processors, manufacturers, distributors, retailers and restaurateurs� were all in attendance, according to the minister, �fresh industry insights, the latest practical case studies, and expert industry guidance� were all available to attendees.
The Minister made reference to the fact that the organic sector is �small in relation to agriculture as a whole�, but is showing �encouraging signs�, with a 15% increase in the land area in organic production, and an increase from 38 to 66 million in the Irish organic retail market from 2003. He also made reference to the government�s attempts to build the industry. He claimed that the recommendations from the 2002 Organic Development Committee report had been implemented; technical expertise had been brought in to help the tillage and horticulture sectors; an expanded set of organic demonstration farms had been run; a three year marketing plan, funded to the tune of �1.5 million, has been produced by Bord Bia; �37million has been paid to organic farmers through the Rural Environment Protection Scheme (REPS) since its inception; grant aid is available for on and off farm activities; a dedicated organic team, headed by Tony Reid and Jim Carew is in existence and extra inspection resources are in place for consumer reassurance. However, a particularly newsworthy revelation was the change coming in payments to organic farmers: �from next year, it will be possible for organic farmers to obtain organic support payments without being in the REP Scheme. This is designed to encourage small-scale horticultural producers to convert to organic production, and conventional tillage producers to convert part or even all of their holdings�.
The Minister also made reference to efforts being made at EU level, with regard to market information, rural development policy and the harmonisation of organic standards, and welcomed the cross border dimension of the event itself.
Lorcan Bourke, Business Analyst, Bord Bia
Lorcan made two presentations: the first was a study of those in the organic trade - the Organic Market Channel Study (OMCS); the second outlining the National Organic Marketing Plan (NOMP).
The OMCS had three aims:
1: find the most and least promising categories for development;
2: identify key import substitution possibilities;
3: estimate the market size.
To do this, 40 in-depth interviews were conducted, along with 80 qualitative phone interviews. All were with those who are involved in some aspect of the organic trade, from mainstream retailers to producers who sell at farmers� markets.
Four categories emerged; weary warriors (�a little tired of devoting their time for limited progress�); future optimists (�organic to become the norm�); commercial pragmatists (�give them what they want�); niche advocates (organic is something I work on for myself, I�ve no real demand to grow the sector).
The overall trade view that emerged from the research, for Lorcan, was that a proportion of the population are motivated by the word organic, but the needs, time and energy stress of modern consumers are not catered for. Also, good organic products are good products in themselves, and organic as a bonus. He referred back to the Bord Bia 2003 report, with the consumer categories of advocates, dippers and (category) loyalists. Those in the trade feel that advocates are motivated by health, environment and the overall organic philosophy; however those interviewed also felt that both health and taste benefits of organic are difficult to prove. Overall, organic has no clear unique selling point, and Lorcan felt organic needs to be clearer in selling itself.
In strategy terms, 90-95% of interviewed traders (both mainstream retailers and those involved in farmers� markets) were optimistic with regards to the future. However, those involved in farmers� markets were more so. Interestingly, a proportion of organic traders won�t deal with the multiples on a point of principle. A SWOT analysis of both mainstream retailers and farmers� markets was conducted. Price, scale/supply and quality emerged as problems for mainstream retailers, while grey areas (certification, and the use of organic as an umbrella term) emerged as problems for farmers� markets. Surveyed representatives of the multiples estimate growth rates of 15-20%.
With regard to import substitution, lack of technical expertise, climate and demand emerged as the main barriers to reversing the trend. However dairy, red meat, vegetables, processed fish and babyfood emerged as likely to usually be produced in Ireland. The market size divided 85%-15% between indirect and direct channels, according to this research. This led Lorcan to suggest that the greatest opportunities lie in the mainstream sector, but that the OMDC have a dual strategy approach.
Lorcan then outlined �the plan�, or the three year marketing plan, whereby Bord Bia intend to spend �500,000 per annum on marketing organics in Ireland. They intend to spend this money on 12 projects under four headings: finding the organic message; PR support of the message; EU market potential; and finally other marketing initiatives.
Darina Allen, Founder, Ballymaloe Cookery School
�As a chef, you need to be a magician with mass-produced food�, so said the ever effervescent Darina Allen, of Ballymaloe cookery school. Darina spoke of her personal experiences, in particular her various �Eureka moments� from around the world. These were the moments when she discovered that there were options to both empower producers and to develop Ireland�s food culture. Encountering an Italian hullabaloo over quality fish in the 1970s made her realise that she had access to quality fish in Ireland. Likewise, she saw a farmers� market in San Fransisco and realised that we could do the same in Ireland.
She made reference to her mixed farm, and how the cookery-school students there get involved in the various day-to-day aspects of running the place. Indeed, she estimated that 40% attended the school because the school is on an organic farm.
With regards to farmers� markets, Darina made reference to the fact that people were initially horrified at the thought of �going back to selling our food on the side of the road�. But now these markets are an embedded part of the landscape, with organic being the thing most sought, and both young couples and older people seeking healthier and tastier food respectively. Consumers engage her and the other stallholders, looking for, amongst other things, hairy bacon. The esoteric is now the mainstream, with phrases like food miles being part of the general vernacular; meanwhile local, artisan and slow are the sexiest words in the sector, because �people don�t want jetlagged food�. Darina compared the Irish and Italian situations. Italy has a committed quality food sector, with the president of Italy opening the world gathering of food communities, the Terra Madre, held in Turin in late October 2006 and massive state investment in artisan food. Finally, she ended by saying �we�d be out of our minds to go GM� (genetically modified).
Brody Sweeney, Chairman, O� Brien�s Irish Sandwich Bars
Brody gave an impassioned and visionary speech. He claimed to be passionate about Irish food, spending �20 of his �120 million annual food spend on it. The main point of his speech was to promote the idea of a quality Irish food brand. He didn�t hold back, criticising farm leaders for looking to subsidies over quality, and criticising the Bord Bia announcement of a �1.5 million spend on organics over the next three years as far too little. This prompted the first spontaneous applause of the morning.
Brody cogently made the case for quality over quality; he claimed that we cannot compete with labour costs in a place like Poland, where they are � what they are in Ireland; he also stated, memorably, that we have �fecky little fields�. He felt that we could pitch ourselves as the top quality food producing organic, GM free island in Europe. To do this, we should brand ourselves abroad � �Green Ireland� was his current working title for this brand. Brody felt that this brand could be built whilst avoiding the supermarkets, and could promote Ireland itself abroad. One practical idea he suggested was branded internet distribution, like Sheepdrove farm in the UK, who sell 5,000 parcels of meat each week. He suggested, as an example, that Donegal Creamery could transform itself into a quality food development organisation, get the retailers� market and avoid the supermarkets altogether. He also gave Donnybrook Fair as an example; it could operate under the brand, in many major cities across Europe.
Interactive Discussion Session: Retail and producers
- (ES) Eugene Scally, Proprietor, SuperValu, Clonakilty
- (JF) Joseph Fitzmaurice, Managing Director, Blazing Salads Organic Bakery
- (AC) Andrew Cape, Irish Association of Health Stores
- (EL) Emmet Lunny, Senior Technologist, Marks and Spencer�s Ireland
- (PF) Padraig Fahy, Chairman, IOFGA (Irish Organic Farmers and Growers Association)
- (JB) John Bowman, Chair
The purpose of this panel discussion was to discuss routes to market, to cut down on the massive amount of imports in the organic sector.
ES referred to the fact that he had looked at other models, in Dublin and abroad, and felt that to be different, he needed to focus on fresh, local, small, artisan and organic. This way, the producers, SuperValu and the consumers all win.
JB: are you only organic?
ES: No, but we facilitate small producers.
JF: produced bread on a very small scale and sold it through their Deli. He then upscaled to bike deliveries, but it wasn�t cost effective. Now he supplies many outlets in Dublin and East Leinster. Joe�s main point in this discussion was that he has had far more success with the specialist stores, including independent supermarkets, than he has had in the larger stores. The main problem with the large chains, for Joe, is that the individual store managers don�t have control of their own stores - every major decision has to be cleared elsewhere. So his high end, artisan bread is sometimes located beside a lower end set of breads, but this decision is made remotely. The point-of-sales display is very important for artisan products. JB queried JF as to which chains he�d tried to work with operated in this unsubtle manner, and, surprisingly, JF referred to Superquinn.
EL: Referred to M&S as premium product sellers, not supermarkets. Only one brand is sold in M&S � their own. In the UK, organic fortnight featured organic food adverts on the TV, and in-store giveaways. Currently, they have 27 Irish suppliers, and they would like to increase that. JB asked about the conditions for the producers: EL replied that sometimes smaller producers supply bigger ones, who then supply M&S.
AC: runs two specialist shops in Donegal. In both this capacity, and as chair of the IAHS, he pointed out that health food stores are perfect places to sell organic food. They specialise in food, and are particularly supportive of local, smaller, seasonal fresh fruit and vegetable producers. Because each health food store is quite small and convivial, they like to inform people about things like seasonality. They find that health is the USP (Unique Selling Point) for organic in this channel, and that people in late middle-age and with young kids are the most committed to organic. They provide a �no junk promise�.
PF: grows 6 acres of fruit and vegetables. His business had doubled each year since 2002. Farmers� markets are the single biggest reason for this. 100,000 customers attend over 120 of these each week. �You are the best marketing tool for your business� according to Padraig. In the farmers� market context, you should reflect on your business periodically. You have the bonus of providing fresh, local food, less food miles, you get instant feedback, and cut out the middle men .There should be one in every county, according to Padraig. Some concerns farmers� markets face, however, include the differences between the behaviour of different local authorities, the inconsistencies of Environmental Health Officers, and the various issues around the public vs. private farmers� markets.
Two main issues emerged from the floor after the panel discussion. The first was the issue of the levels of organic imports in Ireland, and as a corollary, seasonality. This lead to the other main talking point: getting a fair price for producing a quality product.
Some of the more noteworthy contributions included a reference by PF to his pricing structure: Padraig pitches his own broccoli as �Irish and �5 per kilo�, whereas the imports he sells at �3.50 per kilo. This gives the consumer the option of buying the local and paying for it fairly. JF mentioned that he isn�t aiming at the standard bread market so �the price is as we set it�; Darina Allen mentioned that she asks the producers how much they need for the product, not the other way around. She also spoke of the lack of official regulation on farmers� markets in Europe, of how the regulations were coming, and of the difference between a legal requirement and a recommendation from those carrying out farmer�s market inspections.
The need for producer groups and whether being small and local were part of the organic philosophy was also mentioned briefly.
Vincent Cleary, Commercial Director, Glenisk
Vincent spoke of the export opportunities for organics, using his own company�s development as a case study. Glenisk started off with 3 suppliers, two of whom dried up at the start. Now, they have 40 suppliers, and large expansion plans. Stonyfield, a subsidiary of Danone, have bought 37% of the company. This allows for massive product development, and export opportunities into the US. The entire Stonyfield product range is now at Glenisk�s disposal. Stonyfield have c.250 products at the moment, whereas Glenisk have just 30. Likewise, Stonyfield have 4,500 pages on their website, whereas Glenisk have just 12.
Vincent also suggested that product development was vital. He pointed to the relative stagnancy of Yoplait compared to Glenisk, and indeed the desire of Glenisk to be in and remain in the centre aisles, rather than segregated off into a niche, artisan or specialist area.
The input from the floor revolved around three themes; congratulations on Glenisk�s progress so far, queries about possible direct farmer support from Glenisk, and queries about a change in a Glenisk advertising campaign.
The congratulations offered up to Glenisk came from a few quarters, including from Ruair� O Conchuir from the BurrenLIFE project and Fergus Dunne of Wild Harvest. Padriag Fahy of IOFGA mentioned that Tesco�s and Sainsbury�s in the UK directly support organic dairy farmers, but Vincent Cleary suggested that the 45c per litre they pay is enough. Stella Coffey of Ladybird Organic farm (Tipperary) and IOFGA asked about the ending of what she considered to be a good advertising campaign by Glenisk. The campaign ad suggested that a particular cow doesn�t consume various possibly harmful substances, such as GMOs and agri-chemicals, and that the consumer shouldn�t either. The ICSO complained, and the advert was changed to suggest that the particular cow eats organic food, and so should you. An attendee suggested the campaign could have questioned whether, rather than specifically stated that, the consumer shouldn�t consume those particular agri-chemical inputs and GMOs. He also pointed out that conventional (but specifically not organic) feed rations often include some GMOs. Vincent explained that the campaign was about to end anyway, so to avoid the courts, they changed the wording for the end of the campaign. Finally, in the break immediately following the discussion, Vincent was asked about providing non-homogenised milk for some consumers. He suggested that they would when the market was ready.
Sean McGloin, Project Manager, Western Organic Network (WON)
John O�Neill, Blue Sky Solutions
WON was established in 2003 for skills training for both organic horticulturalists and those with livestock. From 2003-05, their membership went from 80 to 133; from 06-07, the project will have 165 members. 417 were trained in the first period, 280 have been to date in the second period. Some processors, wholesalers, those in transition and those interested in upskilling are also involved in the network. They provide tailored, low cost (subsidised) training. Their courses include horticulture, conversion, livestock, marketing, business development, livestock finishing, bees, pigs, herbs, eggs, training the trainer, native woodlands and IT. They also conduct less formal training days, including farm walks, producer-led meetings, and �meet the producer� days. They plan to expand the network (from the North West into Cavan, Mayo, Galway and Clare) and also do some academic training, in conjunction with the Scottish Agricultural Collage in Aberdeen.
Sean also pointed out that there are issues with all of this otherwise useful service: once-off training often isn�t enough; sometimes new classes require a degree of �handholding�; training days sometimes have low numbers and are sometimes done to meet targets.
WON are also involved in establishing regional farmers� markets.
John O� Neill spoke of the fact that organic chicken is bought-in from west Cork at the moment, so they are helping with local training to develop a local source of chicken. He also pointed out an effort to link directly with the regional hospitality sector. This involves the purchasing figures and costs of various establishments being handed over to WON and collated. This obviously helps with figuring out demand. Then, a month-by-month purchasing pattern is written up, and given to producers.
Questions from the floor asked about access to land (which wasn�t an issue for WON members, according to Sean); attendance at shows (which they intend to do more of); and their existence as an umbrella group or otherwise. Sean claimed that they weren�t, and that they could do with some help. A baker asked about specialised bakery training, which Sean said he could provide.
The co-operative model to help boost your business
� Stan McWilliams, Chairman, North West Organic
� John Brennan, Chairman, Leitrim Organic Farmers� Co-op
� Roy McCracken, Director, Emerald Organics Ltd
This session featured both co-ops and a co-op-like company. Stan suggested that togetherness of members and local PR were vital. While the cross border dimension to the project presented challenges, the direct sales option was proving to be successful. They now have a three year marketing plan in place, including a new distribution hub project. John in many ways followed on from this theme, emphasising the importance of the local, especially in the context of failing with exports and having to refocus. The development of new products and clusters of producers are both vital to the co-ops� success. Likewise, new relationships need to be developed with mainstream processors and retailers.
Roy actively addressed the isolation he felt as an organic dairy farmer by entering into partnership with 12 other producers. This partnership became a limited company with the 12 as shareholders. This allowed for reduced costs (via economies of scale), confidence in negotiations, stronger buying power, while also providing a forum to share issues and expertise. Building internal trust and accepting that total control equals total responsibility are key issues for Roy. However the provision of marketing tools and the responsiveness to consumer demand that a short chain gives, were also positives.
Short Presentation on GM and Tourism: Paddy Mathews, Manager, Environment Unit, F�ilte Ireland
Paddy gave a short presentation on interim findings from research done into tourist perceptions of GM farming in Ireland. The people surveyed were primarily tourists on a city break, and all were in Dublin. The majority surveyed found food and dining to be important for their break (73%) and were aware of GM as an issue (72%). Of these, the largest number (46%) viewed GM negatively, but 83% claimed that GM crops wouldn�t alter their image of Ireland as clean and green.
Interactive Discussion Session: Working together to raise the profile of organics in Ireland
- (GB) Gillian Buckley, CEO, WDC (Western Development Commission)
- (PG) Pascal Gillard, Certification Manager IOFGA
- (HS) Helen Scully, National Co-ordinator & Certification Manager, Organic Trust
- (HT) Helen Taylor, Director of Marketing & Corporate Relations, Soil Association
- (MOD) Michael O�Donovan, Principal Officer, Department of Agriculture and Food
- (LB) Lorcan Bourke, Business Analyst, Bord Bia
- (JB) John Bowman, chair
GB: despite being a small organisation, the WDC�s blueprint for organic food report, published in 2000, has fed into national policy. And specific tangibles have emerged from the Action plan for Organics.
PG: has seen an improvement in the profile of organics in Ireland recently. In his 5 yrs with IOFGA, 2006 was the first year that this was the case. People specifically went to the Ploughing Championships to seek out the Organic Certification Bodies, according to Pascal. He also pointed out the funding opportunities were better here than in Northern Ireland. Overall, if Organics doesn�t grow now, it�ll never grow, according to Pascal.
HS: of the Organic Trust has also seen growth in organics in her own organisation. Organics is now taken seriously, but there are problems with uncertified producers. The legislation needs to be tightened up in this regard.
HT: Gave an introductory overview to the history of the Soil Association. She pointed out that as well as being a certification body, they are also a promotional charity. They have 26,000 members and 90 demonstration farms. She pointed out that supermarkets can be a platform to direct sales, and that quality as an issue and a fact that is more pertinent today than in the past for organics (i.e. people are concerned about quality, and are getting quality in their organic food)
MOD mentioned that organic can�t be favoured over other sectors by the Department. It is seen as part of mainstream farming now �a lot of farmers are seeing it as an option�. The Department is now inspecting for cases of fraud, and their first prosecution is coming up at the end of this month. They hope to have a satisfactory conclusion to this.
LB spoke of Bord Bia�s home and abroad remit, and spoke of the need to get product to market. He mentioned again the need for the bigger producers to supply multiples.
It�s fair to say that it was at this point that the first animated discussion occurred. The three main topics discussed were the lack of adequate government funding for organics, the lack of vegetable growers� support, and the threat posed to organics by GM.
From the floor, Stella Coffey (Ladybird Organics and IOFGA) suggested that the �1.5million for organics over the next 3 years was �pathetic�. MOD made reference to the figures for organic farmer funding in the Minister�s speech that morning. A grower who also had cattle suggested that his vegetable growing is more labour intensive and time consuming than his cattle business, and that it pays less. He also intimated that IOFGA were not focused enough on vegetable growers. He suggested that vegetable growers need to be better rewarded for their work.
Michael O�Callaghan, of GM-free Ireland, queried the Department and the Food Safety Authority of Ireland�s policy of co-existence. He suggested that Spanish organic farmers� crops were contaminated, that GM rice has contaminated 40% of US rice, and that, as a consequence, Irish organic farmers should stand up for their rights.
MOD pointed out that there are two jurisdictions on the island, and that there were some regulations coming from the EU commission on the issue. What he described as adventitious (i.e. accidental) contamination would most likely be tolerated at the same level as conventional, which is 0.9%. Oliver Moore (Irish Examiner) suggested that if some GM contamination is inevitable, it�s hardly right to claim it�s adventitious. Stella Coffey pointed out that it was Irish public servants in the EU that changed the EU approach to GM, including EU commissioner David Byrne. HT from the Soil Association pointed out that 1/3 of the Soil Association�s money goes on fighting GM, and that their preferred option is for a 0.1% threshold. A representative of the FSAI suggested that GM is considered safe, until proven otherwise. Various people queried this, with some suggesting that it may be too late by then.
Panel Session: How restaurants and producers can work together for mutual benefit
� Neven Maguire, Chef-Proprietor, MacNean Bistro, Blacklion
� Noel McMeel, Executive Head Chef of Castle Leslie Estate
� Colin Keogh Processing Inspector, Organic Trust
Neven suggested that he is only as good as his produce and the seasons. He puts all his suppliers on the menu, so people can see who he is buying from. He sometimes engages in barter with his producers, swapping meals for produce. He suggested exposing kids to farmers� markets, farms and the like. He also mentioned that he wants to open a cookery school in Blacklion.
Noel runs a cookery school, while also trying to promote Irish produce abroad. He encourages chefs to communicate with producers.
Colin mentioned that the Organic Trust inspects and certifies restaurants, and has the Strawberry Tree in BrookLodge (Macreddin Village, Co. Wicklow) certified organic for 2 years.
The discussion revolved around price for producers, getting bigger farmers and growers to start producing organic, and childhood health and obesity. A discussion emerged over the gentleman farmer; are they a help or a hindrance? A suggestion was made from the floor that one of Neven�s suppliers, who was paid in family meals at his restaurant, should be paid in cash. Neven suggested that he pays what his producers want, and that�s what the producer (Ernest) wants. Ernest suggested that it wasn�t just about the money, but was also about the �mission� and the excitement in producing something great, with a great chef. Colin mentioned that individual dishes can also be certified organic. Aoife Carrigy (Food and Wine magazine) suggested that chefs go for organic because of quality, not health or environment, and that going direct to a restaurant can be an alternative to going to a farmers� market, for producers.
It was suggested that more �Philip Dreapers� were needed (i.e. large scale organic vegetable producers); this was followed by a suggestion that more high end products were needed, for producers to get a good price. An attendee commented that the Minister�s speech from the morning had already made at least some provision for including more organic vegetable growers, by setting aside the REPS requirement for small growers.
Prannie Rhatigan (public health doctor) suggested that edible school gardens, such as those run by Alice Waters, were a positive example of how to begin to deal with the looming obesity crises. She mentioned that there was possible funding for this under Agenda 21. Lorcan Bourke from Bord Bia mentioned the Food Dudes school programme, originally from Bangor in Wales, and hoped that this would be rolled out. This involves blind tastings, free fruit and vegetables, videos etc.
Rex Humphrey, Chairman and Managing Director, United Irish Organics Ltd
Rex is the managing director of a successful large marketing company, who have been responsible for a massive increase in the availability of organic milk in Northern Ireland. They converted in 1999 and now employ 8 full-time staff, while supplying 8 million litres of milk per annum. Rex outlined in detail the various costs and issues with each of the areas United Irish Organics are involved in. The coming ending of the feed derogation, weeds, and the failure for him of the co-op structure were three. There are now three shareholders in the company. They market with Emerald Organics, and supply ASDA and M&S. Not only do they see expansion in the quantity of organic milk going forward, they also have farms under land management agreements. Under this system, farmers are paid a salary and land rental fee.
Jane Kearney, Research Director, Am�rach Consulting
Am�rach Consulting carried out an on-line survey of 520 consumers, partly or wholly responsible for the food shop. She found that �the occasion of food� was of increasing importance in modern Ireland, with food becoming more of a pleasurable event in a busy life. Most of those surveyed shopped in Tesco�s (although meat was more often purchased in a butcher�s). Average grocery spend was �51-100. Most saw organic as being free from pesticides and chemicals, while 80% claim to buy organic at least once a month. Those who buy organic claim that they do so because it is healthier, free from chemicals and pesticides, a more traditional type of farming and free from additives and colourings (in that order). Interestingly, chicken emerged as the meat product most respondents claimed to purchase by quite a distance (72% of consumers); carrots, potatoes, tomatoes, apples and bananas topped the list for vegetables and fruits respectively. Most respondents who buy organic spend �10-30 on it. Those who don�t purchase organic claim that it is too expensive, or not different to conventional (in that order).
In a very brief Q&A session, the differences between this research and Bord Bia�s, along with the aspirational nature of (on-line) surveys were posited.
Open Surgery Discussion: Finding support for your new organic business
� Isobel Fletcher, Small Food Business Co-ordinator, Irish LEADER Network
Their current programme is ending, but there is a new funding programme in-train for 2007 � 2013. Food production is an increasing priority for the programme. Specifically, their focus will be on farmers� markets; local food networks (a la Fuschia); tourism and increasing small business and artisan food producers� profiles at various key events. Early contact is advisable, because feasibility funding can sometimes be available.
� Eddie O�Neill, Artisan Food Specialist, Teagasc
Teagasc has recently appointed three food and packaging specialists. They provide a range of advisory and training services, in consultation with industry. With specific reference to packaging, they pointed out that packaging is a key component of product: it protects, preserves, informs; presents an image of quality (or otherwise!); can be costly for small businesses; and finally must be compatible with your product.
Both groups pointed out that they work together through consultation and co-operation with the SME sector.
With thanks to Bernadette Phelan, Western Development Commission for contribution to notes in the Open Surgery session.
Helen Browning, Founder, Eastbrook Farm and Food & Farming Director, Soil Association
Helen Browning gave a very honest and entertaining talk through the trials and tribulations she�s had with the love of her life - pigs. Helen has always maintained an animal welfare ethic in her business, despite the various degrees of scale she has had over the years. 26 years ago she took over a 1,300 acre farm, which comprises pigs, calves and poultry. Helen�s first words of wisdom were �do what you are good at�, which she learned the hard way, by not succeeding at an early mail order business. Her second and third words of wisdom were �keep reviewing your business� and �don�t be blinded by turnover to the detriment of profit�. Once, when she reduced her business by 60%, she increased profit by 2000%. She claimed that she was initially too opinionated to work with the multiples and that her quirky branding wasn�t liked by her PR people � �get good advice but don�t always listen�, as Helen said herself. Various other challenges emerged, like foot and mouth. She was impressed by her fellow producers and staff behaviour (the staff actually took a pay cut at the time), which suggests that treating people well can come back to you. She now operates a mobile butcher (for festivals sports� events etc) and will soon open a pub. In part, this is in keeping with her ideas on the overall need for localisation of food in the context of the food miles debate. Overall, this refreshing organic pioneer suggested that being fair, zany, true to your values, adaptable and not too serious about yourself is how to approach business.
From the floor, she was asked about her pig and veal keeping systems. In both cases, animal welfare was to the fore. No castrations, clippings or vaccinations occurred with the pigs, while the veal calves stayed with older dairy cows till slaughter, spending most of their time outdoors. Such was the impression Helen made, John Brennan of Leitrim Organic Farmers� Co-op asked her about the accessibility of the expertise of the Soil Association, whom Helen was also representing. Helen suggested that there was ample opportunity to work together.
Panel Discussion: Organic Businesses in Practice
� Ulrik Bagge-Hansen, Managing Director, Chill Baby
� Joe Fitzmaurice, Managing Director, Blazing Salads Organic Bakery
� Mark O�Connor Managing Director, The Gourmet Mushroom Company
� John McCormick, Helen�s Bay Organic Gardens
Mark started the last panel discussion. His mushroom company took over an organic mushroom company that had gone bust, Haymes farm. They radically improved the quality of the product, running of the business and working conditions of the staff. They also quadrupled yield, selling through a combination of multiples and the Riverford organic box scheme.
Ulrik also took over from a liquidated company, when upscaling his babyfood business. And, like Blazing Salads� artisan bread, he finds that standalone displays (in his case fridges) and product segregation (fridges in the babyfood area, not the chilled foods area) work well for him. The fact that theirs is a fresh babyfood makes it a unique product, and taste tests in retail outlets have gone very well. While the babyfood has a short shelf life, there is still some export potential.
Joe was as refreshing as he was when he spoke earlier in the day. He spoke of his holistic and healthful childhood, the difficulties he had in getting bankloans, his need for 4 kg of rosemary a week, and the fact that he wants to stay at the size he�s at, rather than keep growing. As an example: some of his breads are seasonal, because he doesn�t want to use sulphurated apricots. So, despite the complaints from his fruity fans, he stops producing it. As he put it himself �they get over it: it�s only fruit loaf!�
John spoke primarily of maintaining a likeable small scale for his enterprise, and the value of quality TV exposure. He also spoke of bringing organic values to the marketplace. His growing area is 10 acres, from which he operates a small box scheme, delivering 350 boxes a week. His business has grown by 60% a year.
Conclusion
� There is definite growth potential in the market. Consumer purchasing is up, and trader confidence in the sector is solid.
� Good products are good products, whether organic or not.
� Proper planning, research, business self-reflection and adaptability are needed to keep, in business terms, �fresh�.
� There is more support available for organics than ever before.
� Some food categories have more potential than others. Dairy in particular seems to be a thriving sector in organics in Ireland at the moment, and still has growth potential.
� With organic products, small businesses need product segregation (e.g. Blazing Salads bread, Chill Baby babyfood), big ones often prefer the centre aisles (e.g. Glenisk).
� GM is a major worry for organic producers.
� Various types of co-operation are possible and beneficial in the sector. This includes more than just co-ops themselves, it also includes producer groups and producer-owned companies.
� While the multiples dominate the sector, small organic businesses are often wary of them, despite their dominance. As a corollary, not all organic businesses want to grow to a massive scale.
� Profit is more important than turnover!
� It�s not all about profit � there is still a place for ethics in organics�especially if you can make a profit from telling your customers about it�.
