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Project Green. A Business Development Strategy for rural Ireland. Why do we need Project Green ?. The days of high paid jobs from multi-nationals are numbered
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Project Green A Business Development Strategy for rural Ireland
Why do we need Project Green ? • The days of high paid jobs from multi-nationals are numbered • The amount of foreign direct investment into Ireland fell again in 2004. FDI was down from over €20 billion in 2003 to almost €9 billion last year. • Economy based on Foreign Exports • Small scale agriculture and food production in decline – rural Ireland in trouble • Can’t be lowest cost producers • Government policy favours “Knowledge” economy, may ignore traditional industries
Small Scale Farming • Small Farms are the norm • Euro/world drive to commodities, mass production • Doubtful future for small farmers • Off farm rural jobs limited • Lifestyle choices less available • Rural communities in decline • Rapid expansion of towns and cities
Food Processing • Scale and muscle are essential for survival • Market controlled by supermarkets and multi-nationals • Specialists have gone or are going • Local Abattoirs, Bakers, Butchers, Dairies, Greengrocers etc. • Middle Class reaction is gathering pace: • Higher values being placed on ethical production, organics, GMO free, craft, nature products.
Small Scale Tourism • Reputation for being expensive • Weather • Reality doesn’t match the ads. • Dublin focussed • Budget Hotels • Mixed marketing messages • Fishing ?, Golf ?, Rural Life ?, Dublin ?
So what can we do ? • Keep our Foreign Investment and High Tech jobs • Keep our commodity farming and food production but • Put more effort into traditional industries • Small scale farming • Small scale food production • Small Scale Tourism • Ethical, higher added value production
The Opportunity • European Consumers • Cash rich – Time Poor • Rise of health consciousness • Ethically prepared foods • Free range, GMO free, Additive Free, Organic, Traceable • Supply still fragmented • No one country identified • Ireland The Food Island is well placed to capitalize
Ireland – The Food Island • Market opportunity for Ireland to be the benchmark for quality, natural foods and Tourism • Market opportunity could be exploited by building a collective brand • That develops a wide range of Irish food products • That avoids the supermarket channel • That gives small producers and farmers a big brand through which to market • That markets a tourism “experience”
What is “Ireland – The Food Island” • A brand that defines a resource, a source, a location from which good things come • Green and unspoilt, the unpolluted part of Europe • Ireland = “real” food - like France for Wine, Holland for Flowers, Scotland for Whisky • Environmentally friendly • Concerned about healthy eating • A place for relaxing with family
What could a brand do for us? • Agricultural policy • Fits well with CAP reforms • Sweat the Farm Asset – investment cash available • Willing farmers encouraged • Additive Free, Free range, GMO free, Ethically farmed, Organic • Higher price achieved • Capable farms could extend to tourism • e.g. Italian Agri-Turismo model • Live the brand experience
Project Green Developing a new international collective brand through franchised routes to market
The Collective Brand • Small producers need to achieve “critical mass” – lack of capital prevents this. Branded route to market is limited for most. • Franchisee protocols set mandatories for Irish-sourced content, brand growth.
New Routes to Market • On-line brand plus geographical supply areas franchised under the master brand. • Retail outlets under the franchised brand given geographical exclusivity. • Branded Farmers Markets • Agri-Tourism experience
Project Green • Small scale food processors and growers get security under the collective brand • Identify products for building through the brand • cheeses, jams, yoghurts, ready meals, bakeries, fresh meat, game, country butter, vegetables • Grant aid start-ups / expansion in rural towns
Project Green So many routes to market, from Ireland The Food Island
Branded Farmers Markets • Licence granted to national operators • Licensees negotiate with local authorities and local operators • Bord Bia provides central resource to market new brand
Branded internet distribution • Model: • Order Monday - Pick/Pack Tuesday - Deliver Wednesday/Thursday • Territories Mapped • E.g. Greater Dublin, Manchester, Leeds etc/ • Regional franchisees take responsibility for sourcing, pricing and fulfilment • Bord Bia provides central resource to market new brand • Bord Bia to develop and own website
Branded Tourism Experience • Marketed as • Upmarket short break destination • Natural, traditonal idyll, family values etc. • New Product – Family Farming Holidays • Programme like sail training programme for families • Families take part in day to day running of farm • Villages / Towns take pride in their production • E.g. “Midleton – Proud home of Ballymaloe Relish” • Gourmet tourism – visits to local food producers
Irish branded Retail Outlet • Tender among premium Irish retailers for U.K. and Irish franchise rights • E.g. Donnybrook Fare / Avoca / Meadows & Byrne • Grant support to develop franchise model • Bord Bia provides central resource to market new brand
An Irish Collective Brand: an urgent necessity • This is the only way to secure survival and growth of small producers and to encourage higher value-added farming • Essential that Bord Bia involved – private collective has too many difficulties • This is a long term strategy • It does not impinge on the fast-lane activities • It’s not an either or • It is realistic – it will work