In today’s ever-evolving food landscape, where nourishing the family and making the right nutritional choices intertwine with taste and sustainability to shape consumer choices, dairy emerges as a steadfast choice. Amid the flux of shifting dietary trends and mounting environmental concerns, it maintains its stature as a symbol of tradition and innovation.

Bord Bia’s recent report, “The Future of Dairy UK,” sheds light on the enduring loyalty of UK consumers towards dairy, underscoring its pivotal role across various demographics. The report highlights dairy’s appeal in terms of taste, naturalness, and nutritional value. It reveals an impressive 76 per cent of respondents acknowledge dairy’s indispensable role in a healthy, balanced diet, while 75 per cent celebrate dairy products as an integral part of their everyday lives, emphasising the profound place dairy holds within British culture.

Embracing change

The industry’s resilience lies not only in its capacity to adapt but also in its proactive embrace of change. Four pivotal trends, as identified in Bord Bia’s report, underscore the industry’s dynamic response to evolving consumer preferences:

1. Progressive nostalgia: A fusion of tradition and innovation, this ethos resonates deeply with consumers seeking familiar comforts with a contemporary twist. Trustworthy heritage and product naturalness play pivotal roles in this dynamic. The assurance of quality and authenticity, coupled with a commitment to natural ingredients and processes, keeps dairy products firmly in the customers’ dietary repertoire. The Future of Dairy UK report reveals that 93 per cent of consumers buy dairy or dairy alternatives weekly, highlighting the enduring appeal and relevance of these offerings in today’s market.

3. Surprise and delight: In the dairy aisle, innovation drives excitement and satisfaction, offering diverse products that meet cravings and boost nutrition. Bord Bia’s research highlights the growing demand for novelty, urging stakeholders to push boundaries and adapt to evolving consumer expectations. Suppliers and retailers face the challenge of meeting these needs while addressing sustainability, health, and preferences. Collaboration to anticipate trends, introduce new flavours, and optimise distribution is crucial. Embracing this challenge fosters industry growth and enhances consumer loyalty.
4. Alive with nature: In today’s environmentally conscious era, consumers prioritise knowing the origin of their food. Initiatives like Origin Green, Ireland’s national sustainability program, ensure transparency and confidence in the dairy supply chain. Origin Green encompasses the entire supply chain from field to fork and builds upon the Sustainable Dairy Assurance Scheme, with over 96 per cent of Irish dairy farms participating. These farms work towards producing the highest quality milk while implementing practical actions for improved sustainability.

As the world’s only national sustainability program, Origin Green fosters collaboration among farmers and producers, promoting environmental stewardship and quality assurance through verified proof points. This comprehensive scheme encourages nationwide collaboration to implement sustainable practices, supporting a thriving dairy industry committed to addressing environmental concerns.

4. Intelligent living: The dairy industry plays a multifaceted role, going beyond mere sustenance to enrich lives through ongoing research and innovation. Embracing cutting-edge agricultural practices, dairy farms aim to amplify product benefits in line with consumers’ escalating focus on sustainability. Notably, Irish dairy farms have achieved a significant nine per cent reduction in CO2 emissions per unit of milk produced, propelled by innovative land management techniques.

While consumers are increasingly aware of and concerned about these factors, there remains a crucial need for further education to underscore dairy’s positive impact on sustainable agriculture and foster informed decision-making for a healthier environment.

Furthermore, consumer demographics wield considerable influence over the dairy market landscape. Older demographics, aged 44 and above, show a higher propensity to purchase dairy products, whereas younger demographics exhibit a more flexitarian approach, presenting an opportunity for the industry to re-engage younger consumers by perpetuating innovation and generating excitement around dairy offerings.

Looking ahead

As we navigate the dynamic food landscape, the resilience and adaptability of dairy stand as a testament to its enduring legacy and promise for the future. By learning from consumer feedback and remaining attuned to evolving preferences, the dairy industry can continue to carve its path towards a brighter future, ensuring that this cherished staple continues to thrive for generations to come.

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One of our key speakers and exhibitors is DFDS, which is a leading European transport and logistics company, serving customers across Europe and Turkey. “We move goods in trailers by ferry, road, and rail, across 66 logistics locations and employ more than 13,200 people,” says Tom Jackaman, DFDS Logistics business development manager.

“DFDS Logistics offers a full-service package, including contract logistics, cold-chain transport and warehousing as well as full load, part load and groupage services, with cross-docking, blast freezing and up tempering,” he continues. “In addition, we provide customs clearance services and Port Health (SIVEP) processing; validating CHEDs and paying port taxes, to ensure the smooth flow of goods at the border.

“Specifically for UK exporters of chilled dairy products, DFDS operates three times (3x) groupage departures per week and multiple daily trailers for FTL and PTL shipments. Using our knowledge and expertise in shipping Products of Animal Origin (POAO), DFDS provides a hassle-free, in-house process from departure to delivery.

“Moving goods and people by land and sea leaves a large carbon footprint. It is therefore our responsibility to review our impact on the environment and to secure a more sustainable future for the generations to come. In Logistics, our 2030 greenhouse gas (GHG) reduction target is a 75% reduction in GHG intensity from road transport, terminals and warehousing. Various initiatives are underway to help us achieve this goal, not least the deployment of 125 Electrical Volvo Trucks, making it one of Europe’s largest heavy-duty electric truck fleets.”

Don’t miss the DFDS presentation at 11:30 on 27 June at the International Cheese & Dairy Expo stage, which is being sponsored by AB Dairy. Along with MADCAP, Wafilin, Lyras (Sycamore Process Engineering), Amcor, Bord Bia, Meurens, Masterpack, Ecolab, Infor, Kendamil and Novonesis (formerly Chr Hansen), it will be an informative day at the Expo.

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Let’s face it – the internet is great and I enjoy finding out who that actor was when I am watching a movie or television show by using the web, but it also can be source of stress, with social media. The way the world works, it is no wonder people are more concerned about what to feed themselves, and what to feed their families. It is about what one can control (food supply, hopefully) versus what one can’t (global warfare, regional conflicts, inflation). It is staring at the bark of the nearest tree and finding the beauty there, because the overall forest is quite dark and frightening.

Dairy fits into that as a solution quite well, actually. As we saw during the pandemic, dairy products provide a level of comfort that people remember from their childhoods. There is something magical in a foam-topped coffee and a pat of butter on a piece of toast. It can also be quite progressive, the surveyors found, with ideas from the vegan aisles finding their ways into the dairy segment, such as canned bubble tea and new formats for traditional flavours. A comforting area that also offers dynamic change, but in a good way. That’s where the opportunity is in dairy, and Bord Bia recognises that Irish dairy has such a good story to tell with all its grass-fed, delicious products. It recognises the anxiety and offers us all hope.

In other news, our International Cheese and Dairy Expo is also something to look forward to in 2024. Don’t miss out, as there will be cheese, and equipment, and plenty of people in this industry to talk to over the two days of the expo in Stafford.

Please contact Sam Bull about opportunities at the show: sam@bellpublishing.com.

• Suzanne Christiansen, editor, Dairy Industries International.
  Keep in touch via email: suzanne@bellpublishing.com
  Twitter: @dairyindustries or LinkedIn: Dairy Industries International magazine

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Rather unsurprisingly, the average consumer is a bit anxious about everything lately, they found. Hickey noted, “As it relates to food, the past two to three years in particular, there has been an explosion of complexity, in choosing what we eat and how we look after ourselves. There is conflict and personal anxiety and uncertainty as it relates to our everyday lives and also how consumers talk about their everyday food choices” Depending on where the consumers were in their age groups (it was a 2,000 person study in four age groups), they either worried about getting their children the best and most joyful, while still nutritious products, as well as buying the groceries at the right price and value for money. “However, the idea of food anxiety made us sit up and think,” Hickey said. In managing food anxiety, for younger consumers, it’s about themselves, while the older ones it’s about feeding families and managing the budgets.

Overall, consumers are still largely advocates of dairy, with three-quarters agreeing that dairy is a nutritious and delicious part of the diet. While 18% said that dairy farmers are contributing to the climate crisis, strong support for dairy is a cornerstone for everyday nutrition. Interestingly, the largest anti-dairy sentiment came from the idea that dairy products were boring, and this especially related to liquid milk, which has been largely commoditised, Hickey observed. “Anti-dairy sentiment is not driven by sustainability or social values, it’s boredom. It’s a request from consumers to do more and innovate more, particularly from the younger cohort of consumers. Milk is iconic and good but a little bit boring.”

They did look at plant based and discovered that the majority purchased dairy (78%), while 21% purchased both plant and dairy milk products, and 1% bought only plant based drinks.

In cheese, they found that cheese overall is a positive thing: People love cheese and it is not seen as boring. “Equally, it is not seen as nutritional. This is a yum category for flavours and intensity, and there is opportunity for upgrading and quality.” Butter, meanwhile, has seen a resurgence in the spreads category. “It is back in people’s fridges, and cooking with butter has overcome all the negativity, and is claiming back the right to win on taste,” she observed. In this segment, branded products were winning out. It is capturing people’s imagination, also being something new with a traditional base. In yogurt, Greek yogurt has completely reinvented the category, and winning with a combination of momentum and penetration. It is used to make treats and in savoury cooking, and is both modern and progressive. Vegan yogurts have not had the same impact, she stated.

Runeland said this survey was a snapshot of the present of dairy, and how it can give the discrete future worlds for dairy, and be used to develop emotional territories where we think the future of dairy is going. Four ideas resonated with the consumers: whole human care, progressive nostalgia, kinder connection, and alive with life. “Yogurt, with its particular strength in the idea of alive with life, gives us an anchor point,” he stated.

With food packaging, both agreed that adding the details of biodynamics, feeding practices and other farming-related issues such as regenerative practices require education for consumers. “You can’t just put it on the packaging and expect consumers to come along at this stage,” Hickey said.

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It’s not a bad idea. Get the kids while they’re gaming, and you’ll have a lifetime customer who associates your product with the happy times they had shouting and giggling on their consoles with other children. I often throw dairy products at the child while he is involved in whatever pursuit is going on, on the tv. Handier ones would be welcome. Things like yogurts and some cheeses can get sticky when in play.

Meanwhile, companies such as Nestlé continue to invest in research and development accelerator programmes, to find the next big thing, whether it is in dairy, or non-dairy, products. The dairy giant has opened up a new site in Lausanne, Switzerland recently.

These schemes are very popular. Food Works Ireland is a cooperation between three government agencies in the country to find more new products using Irish ingredients, and is now looking for ten new participants for the next tranche. Over 100 companies that have already completed the programme since it began in 2012. “The programme aims to support and assist rising stars to achieve their ambitions in domestic and international markets, all the time working toward enhancing the global positioning of Ireland’s food and drink sector,” says Tara McCarthy, CEO of Bord Bia, one of the agencies involved.

Indeed, I see cooperation increasing between these programmes worldwide, especially as most of the big accelerators like the ability to scale up to export. It’s enough to get a dairy person all pog. But then again, as my son reminds me, that’s cringe when your mother says things like that. Totally mank.

(Pog – play of the game, cool, used to convey enthusiasm or excitement. Cringe – when someone acts so embarrassing or awkward, it makes you feel embarrassed/awkward. Mank – horrible.)

Visit: usdairy.com/research-resources/new-product-competition, FoodWorksIreland.ie, rdaccelerator.nestle.com

• Suzanne Christiansen, editor, Dairy Industries International.
  Keep in touch via email: suzanne@bellpublishing.com
  Twitter: @dairyindustries or LinkedIn: Dairy Industries International magazine.

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The food and drink entrepreneurship programme runs annually over 10 months from March to December. It includes workshops with national and international industry experts across various disciplines such as strategy, finance, product development, marketing and other areas. Start-ups also receive customised support from business advisors, facilitated peer-to-peer learning and networking opportunities across the industry, at home and abroad.

Tara McCarthy, the CEO of Bord Bia describes the ideal candidates for the next programme as being ambitious and innovative, with the ability to scale and the potential to export. “Food Works has been feeding ambition and innovation among Ireland’s food and drink entrepreneurs for almost 10 years, with proven success in supporting Irish start-ups to succeed. The programme aims to support and assist rising stars to achieve their ambitions in domestic and international markets, all the time working toward enhancing the global positioning of Ireland’s food and drink sector.

“Irish food products are enjoying a growing reputation internationally coupled with strong demand. Last year, despite significant disruption to normal market operation, Irish food, drink, and horticulture exports were valued at over €13bn,” she adds.

The three state agencies, Bord Bia, Enterprise Ireland and Teagasc, work jointly to deliver the Food Works programme. Bord Bia provides strategic insight and support, assisting participating companies in their understanding of consumers, competitors, trends, opportunities and both domestic and international markets. Enterprise Ireland is responsible for the development and growth of Irish enterprises in global markets. Its Food Division focuses on supporting high potential food and drink companies on developing their export sales. Meanwhile, Teagasc provides integrated research, technical advice, and training services. Its state-of-the-art food centres in Dublin and Cork provide participants with access to facilities, equipment, and specialist expertise.

The closing date for applications for the 2022 programme is 3 December 2021. Full details and an application form are available at FoodWorksIreland.ie

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Dairy continues to be the largest export segment for Ireland. It is the second year that exports have been worth more than €5bn and occurred despite commodity price reductions for elements of the export mix including butter.

Key powders and butter contributed to the rise, Bord Bia says. Butter itself was worth €960m in exports, and volumes improved by 12% to 290,000 tonnes, despite a US tariff that has been passed directly to consumers.

Bord Bia notes that dairy is the most diversified of all food categories for destinations, with 49% of all dairy exports destined for outside the UK or EU27. Dairy exports to Asia increased by 4% to €874m, those to Africa increased 22% to €662m and the Middle East saw increases of 15% to €339m.

Exports from Ireland have increase by 16% in value since 2016, the year the UK voted to leave the European Union. The majority of that has been to EU27 markets or further afield, but exports to the UK have incfreased to €4.3bn for food and drink in total for Ireland.

Of key markets in 2020, the US export market for Ireland saw a steep decline of 10% year on year, the UK saw a drop of 5% in export value, while the EU27 also saw a 3% decline. Meanwhile, exports to Africa increased by 27% and to the Middle East by 12%.

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As Adrian O’Neill, the Irish Ambassador to Great Britain and Northern Ireland (pictured) says, “There is the commitment of the Irish government to enhance our relationship across the sea, and to sustain warm and friendly relations with our neighbours. We have shared history, shared cultures and proximate geography.” Ireland is both a top exporter of agricultural products to the UK and a top importer of British products, and as such has spent the last few years planning for Brexit.

Which is good, because sometimes I don’t think the UK has been as proactive as Ireland’s government and companies on this matter. Kind of like making a cake and leaving the kitchen in a right state for someone else to clear up.

That being said, the rest of the world can’t sit there and wait. Ireland’s agri-business has been prepping for every eventuality since 2016. An estimated €1 billion of its dairy exports to the UK are at stake, as part of the total exports of €4.4 billion. The good news for Ireland is most British consumers see Irish food as the most trusted in origin outside of the UK, according to Bord Bia (the Irish food and drink agency).

Bord Bia has run readiness radars, collecting data from British companies and has found their top concerns are: UK economic performance, living with Covid-19 and Brexit. They have also been getting their domestic companies ready for the changes in regulations.

Further, US President-elect Joe Biden, whose Secret Service codename is Celtic, is moving into the White House in January. He has already been put on record as saying the Good Friday deal must stand and that hard borders between Northern Ireland and the Republic are not an option.

I think the brash politics of the last few years will give way to more sensible options, both inside and outside the UK. The calm voices that we are now hearing are acting like a balm on many people’s psyches, including mine. While the future remains unsettled, we will need them to get us through the next few months and years, and across the border from Northern Ireland to the Republic of Ireland.

• Suzanne Christiansen, editor, Dairy Industries International.
  Keep in touch via email: suzanne@bellpublishing.com
  Twitter: @dairyindustries or LinkedIn: Dairy Industries International magazine.

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The headline figure, which has risen from 74% since the 2018 report, highlights the mutual importance of the relationship between the two long-standing trade partners, as businesses prepare for a number of possible Brexit scenarios.

Despite the impending deadline, the research revealed 57% of respondents reported an increase in sales to the UK and a further 29% reported stable revenues, with 8 out of 10 Irish companies planning to maintain or grow sales in the UK over the coming year.

However, the report also revealed that Irish firms are becoming increasingly concerned by the cost implications of customs compliance and stockholding; potential challenges around logistics; and, consequently, many have halted investment plans due to the continued uncertainty of the evolving Brexit landscape.

Bord Bia’s 2019 Brexit Barometer is the third in a series of annual studies that provide a comprehensive measure of Brexit readiness across Ireland’s food and drink sector with findings from 130 companies. It is the basis and risk diagnostic tool from which Bord Bia offers a tailor-made suite of supports to Ireland’s largest indigenous industry which is uniquely impacted by Brexit. The UK accounted for 37% (+2%) of all Irish food and drink exports last year, amounting to trade worth €4.5 billion.

Launching the report, the Minister for Agriculture, Food and the Marine, Michael Creed, said: “Amidst the continuing uncertainty around Brexit, this report highlights the true value of preparedness. My Department, working with Bord Bia, has dedicated considerable resources to ensuring that the unique position of the Irish food and drink industry in all Brexit scenarios is firmly understood. The coming months will bring another Brexit deadline, but it is encouraging to see that our industry is doing all it can to prioritise what it can control in facing these challenges.”

Presenting the findings of the 2019 Brexit Barometer, Tara McCarthy, CEO of Bord Bia, said that it points to a year of emphatic progress as Ireland’s largest indigenous industry prepares for one of its most significant challenges ever.

“With 93% of food and drinks companies that responded to the Barometer, representing 72% of all UK exports, makings plans and taking action, we have witnessed transformative levels of engagement due to two interlinked factors: firstly, the expectation for much of 2018 that a negotiated agreement was finally in sight and, secondly, the return to prominence of a ‘cliff edge’ no deal Brexit which remains a looming threat. This experience left Irish exporters in no doubt that their future trading relationship with UK customers should be managed as a priority.”

Key findings from the full report:

Brexit readiness: 93% have made progress but 68% still uncertain about impact:

• 86% of respondents are clear that Brexit will have an impact on their business but 68% (are still uncertain about what that impact will be.

Customer relationships: stockholding and customs top of agenda for UK customers

• Irish food and drink firms are now highly engaged with their customers on Brexit planning.  79% have spoken to their customers about Brexit in the past month, rising to 96% in the past 3 months, while many large food and drink firms cite daily conversations with key buyers. Key discussion topics are stockholding (58%), customs duties (47%) and the sharing of general Brexit updates (42%).
• In the past year, 57% of respondents reported an increase in sales to the UK and a further 29% reported stable revenues.
• That said, Irish companies are taking a more measured approach to growth projections for the UK due to the continuing uncertainty that prevails. 8 in 10 companies are planning to maintain (36%) or grow (41%) sales in the UK.

Supply chain: companies fear UK supply chain partners aren’t prepared

• The number of Irish firms who have actively mapped their supply chain has increased significantly to 89% (62% in 2018). However, there are clear levels of discomfort amongst respondents about how prepared some supply chain partners are.
• 70% of companies have developed contingency options for holding stock in response to Brexit, with 85% of companies activating those plans.  Stockholding adds a layer of unrecoverable cost for companies and it is important that this is incorporated into financial planning.
• Over half (52%) of respondents are holding up to 3 weeks of stock outside of Ireland.  In the lead up to the October Brexit deadline, stockholding will become far more complex due to storage being at full capacity in preparation for busy Christmas trading.

Customs and controls: A doubling in firms now counting the cost of customs

• The number of Irish companies expressing high or slight confidence in managing customs compliance in the 2019 Brexit Barometer has increased four-fold to 83%, up from 28% last year, and highlights the extensive customs training resources Bord Bia has deployed across the food and drink industry.
• Food and drink firms are taking many of the practical steps required to be customs ready, evidenced by the 85% of respondents who have applied to the Irish Revenue Commissioners for an EORI number bucking the trend nationally in other sectors, but there is still more to do ahead of the next Brexit deadline.
• 51% of respondents have now calculated the cost of customs processes and compliance, a doubling on the 25% in 2018.

Financial resilience: half of companies expect Brexit hit of up to 10% on EBITDA

• Two thirds (62%) of food and drink firms outlined that Brexit is having an impact on their investment plans, compared to one year ago when half (50%) said that Brexit was having no impact on their plans. The passing of two Brexit deadlines in March and April is likely to have crystalized Brexit as material risk to which firms responded by tightening future investment.
• 29% of respondents have put investments on hold while 20% have delayed or put operational spend on hold.
• Brexit costs relating to logistics and supply chain and customs compliance are having the biggest impact on companies’ cost base. Estimating the financial impact of Brexit is challenging due to uncertainty around the outcome. However, almost half (45%) of respondent companies expect Brexit to cost them in the region of 1-10% of their profitability.

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Commencing in Tokyo, the Minister engaged in a round of meetings with key political figures. He also hosted a number of promotional events to facilitate engagement between Irish food companies and potential customers. The delegation travelled to Seoul in South Korea on Wednesday for a similar round of engagements.

Speaking in advance of the visit, Minister Creed stressed the importance of building ties in South Korea and Japan: “Trade missions play a crucial role in raising the profile of Ireland. They help to build the kind of political, official and commercial relationships that can make a real difference to Irish food and drink exporters. This work is critically important against the background of Brexit.

“This is a really opportune time to bring a delegation of Ireland’s food leaders to this part of the world, given that the EU has concluded Free Trade Agreements with Japan and South Korea in recent times. I want to develop Ireland’s profile as a producer of safe, high quality food. To do this effectively, you need to be in the market place, developing positive relationships with Japanese and South Korean buyers, regulators and political counterparts.

“The last trade mission to Japan in December 2013 was extremely helpful in securing beef access to the Japanese market. We are now deeply  involved in negotiations to gain beef access to the market in South Korea and I hope that we can make some progress on this while we are there.”

Ireland is already a significant exporter of dairy, pigmeat, fish and beverages to Japan and Korea. Japan is also one of the largest importers of beef in the world. The World Beef and Cattle Analysis puts Japan third in the world for quantity of beef imported, behind the US and China, and predicts that Japan will import 815 million tonnes of beef in 2018. The Japanese beef market opened to Irish beef in late 2013, and there is now an established trade in beef offal being exported to Japan. Ireland does not have access to the Japanese sheepmeat market, and one of the priorities of this trade mission is to begin the process of negotiation to open the sheepmeat market.

Similarly, the Minister will be seeking to progress beef access in South Korea, following a visit to Ireland by a Korean veterinary delegation earlier this year.

Minister Creed concludes, “Japan and Korea have been identified by our market prioritisation project as key markets for beef, pigmeat and sheepmeat. We want to raise the profile of the Irish industry for those sectors that already have access to these markets, and make progress in negotiating access for others.”

Bord Bia CEO Tara McCarthy, adds, “We know from experience, before entering any market, it is vital for companies to develop trade relationships, learn the market dynamics and to be guided by the best consumer and market insight. With this in mind, Bord Bia, in conjunction with the Department of Agriculture, Food and the Marine and the local embassies, have been working to devise multifaceted, research-led itineraries and events for the week ahead. This will allow the delegation to immerse themselves in two high potential export markets. This week, we are specifically focusing on getting our companies best positioned to capitalise on any opportunity these markets will present into the future.”

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The Bord Bia report also notes that prices for global products should remain supported as the Asian market continues to increase demand for safe dairy products. Add that to the recent issues New Zealand’s Fonterra has had with its supply ­ E. Coli scares and so forth, and you have the stage set for an interesting year, where predicted supply may not always materialise. Whatever 2014 has in store, I do not think it will be a dull year for dairy.

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For Ireland, the strongest performing categories were butter, cheese, infant formula, milk and cream, WMP and whey.  Cheese accounts for almost a quarter of the total value at €725 million. However, infant formula exports increased to Asia, but overall volume for the products remained static. The UK is still a key market for exports, at 37% of total dairy output and accounting for €1.1 billion, with butter and cheese top products.

Continental EU market expanded by more than a quarter to make up 29% of total dairy exports, or €875 million, with the best growth to Belgium, France, Germany, Italy and the Netherlands.

Market increases were seen in exports to China and parts of southeast Asia, which offset reduced exports to the US, Saudi Arabia and South Africa. Further growth in Irish output is predicted as producers get ready for the end of quotas in 2015. “The prospects for Irish dairy exports in 2014 remain broadly positive with global demand likely to help clear any increase in output to keep prices well ahead of hstorial averages,” the report notes.

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