Required Report - public distribution

**Date:** 10/24/2006

**GAIN Report Number:** EI6011

EI6011

**Ireland**

**Exporter Guide**

**Annual**

**2006**

**Approved by:**

![](media/image1.wmf)Besa Kotati

U.S. Embassy

**Prepared by:**

Michael Hanley

**Report Highlights:**

While the Irish food market is relatively small, it is vibrant with
affluent consumers who like quality and healthy food products. Keen to
try new foods and expand taste-buds, the Irish are prepared to pay for
quality and "new-to-the-market" food products. Opportunities exist for
U.S. exporters especially for exports of ethnic foods, sauces and
dressings, and snack foods.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

London \[UK1\]

\[EI\]

[Section 1. Market Overview 3](#__RefHeading___Toc149456548)

[General Economy 3](#__RefHeading___Toc149456549)

[Food and the Economy 3](#__RefHeading___Toc149456550)

[Advantages and Challenges facing U.S. Products in Ireland
4](#__RefHeading___Toc149456551)

[Section II. Exporter Business Tips 4](#__RefHeading___Toc149456552)

[Section III. Market Sector Structure and Trends
5](#__RefHeading___Toc149456553)

[Section IV. Best High Value Product Prospects
6](#__RefHeading___Toc149456554)

[Section V. Key Contacts and Further Information
6](#__RefHeading___Toc149456555)

[Appendix I. Statistics 8](#__RefHeading___Toc149456556)

[A. Key Trade & Demographic Information 8](#__RefHeading___Toc149456557)

[B. Consumer Food & Edible Fisheries Products
9](#__RefHeading___Toc149456558)

[C. Top 15 Suppliers of Consumer Foods and Edible Fisheries Products
10](#__RefHeading___Toc149456559)

[]{#__RefHeading___Toc149456548 .anchor}Section 1. Market Overview

[]{#__RefHeading___Toc149456549 .anchor}General Economy

Ireland is enjoying its most propitious macro-economic environment in
four years, reminiscent of the high-growth Celtic tiger period of the
1990s. According to the Irish Central Bank, real annual GDP growth in
2005 reached 5 percent and an even stronger performance is expected in
2006. Ireland is one of the world\'s most open economies, and the
country\'s robust performance in 2004 and 2005 partly reflects a global
recovery from the post-9/11 economic downturn.

In recent years, Ireland has the second highest GDP per capita in the
EU. Ireland\'s economic growth has been driven primarily by low
corporate tax at 12%, a highly-educated population, investment in
high-tech, insurance, banking, as well as in the construction industry.
Inflation in Ireland was 2.5 percent in 2005; while for 2006 inflation
is estimated at 4.2%. A number of external factors are contributing to
an increasing inflation rate and in particular rising fuel prices are
having a serious effect. Recent Government-commissioned studies show
that Ireland is the second most expensive country in the eurozone for
consumer goods and services. Unemployment, at 4.5 percent, suggests that
the economy is as close to full employment as possible.

[]{#__RefHeading___Toc149456550 .anchor}Food and the Economy

The Irish food market is relatively small, with a population of just
over 4.2 million and a per capita disposable income of approximately
\$26,110 in 2005. There has been annual growth in population since 1991.
This is mainly because of the booming economy with the resultant return
of former emigrants and an upsurge in immigration. Over one-third of the
population resides in and around the country\'s capital, Dublin. The
next major city is Cork with a population of about 150,000. While
Ireland still has a relatively large rural population compared with
other developed countries, a rapid growth in urban population (with a
decrease in the rural population) has been recorded since the mid
1960\'s.

About 53% of the Irish population is under 35 years old. However, the
population structure is changing with lower fertility rates than those
in the 1960\'s and 1970\'s being recorded in recent years. About 80
percent of Irish families own their own homes. Consumer surveys indicate
that about 98 percent of all homes have refrigerators and/or freezers
and that about 60 percent have a microwave. Nearly every home has a TV,
which makes this a useful advertising medium for food firms.

The Irish consumer is demanding more and more quality and healthy foods
when shopping for foods. While women still tend to be the dominant buyer
in rural populations, men especially in urban areas now share the weekly
food purchasing chores. Home preparation of food is still the norm but
convenience ready meals especially from the chilled cabinet are becoming
more fashionable.

Dining out continues to be popular. Restaurants serving international
foods are in abundance. The foods served are usually prepared from fresh
food sourced from Ireland or other EU countries. There has been a
growing awareness of Ireland's vast "natural" food resource and "Irish"
restaurants serving "Irish foods" are now becoming popular. The Irish
Food Board (Bord Bia) has introduced a scheme of registering restaurants
that use Irish meat products. Irish beef producers have opposed the
importation of beef especially from southern American countries; and
prominent hotels and restaurants that serve 'foreign beef' have been
publicly admonished. Legislation now requires all food service
operations to clearly label the country of source for beef sold on the
premises. There are plans to expand this to other meats. TexMex
restaurants are beginning to emerge as an alternative style of dining.
Following the surge of interest in dining Chinese and Asian, most stores
now stock a number of ranges of Chinese and Asian style sauces and
foods. A similar trend is emerging for TexMex items.

Irish consumers are prepared to pay for quality and new-to-the-market
food products. This has been evident in recent years with the increase
in sales of consumer-ready chilled and frozen food products.

[]{#__RefHeading___Toc149456551 .anchor}Advantages and Challenges facing
U.S. Products in Ireland

  ----------------------------------- -----------------------------------
  **Advantage**                       **Challenge**

  Retail market very competitive      Ensure products are priced to
                                      attract consumers attention

  Economic boom gave many consumers   Importers need to be made aware of
  higher purchasing power and greater \"new to the market\" products
  demand for quality                  

  English speaking population         Exporters must ensure that Irish
                                      tastes are not confused with
                                      English (UK) tastes

  U.S. looked on favorably in Ireland Overcome strict (EU) labeling
                                      requirements

  Familiarity with U.S. products      Competing EU products offer cheaper
                                      alternative

  U.S. foods generally considered     Overcome consumer fears on GMO and
  safe                                Food Safety
  ----------------------------------- -----------------------------------

[]{#__RefHeading___Toc149456552 .anchor}Section II. Exporter Business
Tips

The Irish retail sector watches worldwide trends in food consumption and
is very aware of new to market ideas. A high proportion of retailers and
importers/distributors attend international food shows and often use
these as the basis for finding \"new\" products.

To help promote a product at retail level, importers and retailers need
good POS material. This does give a new product an advantage on
retailers' shelves.

While we share a common language, the Irish and British consumers are
very different and exporters should note that tastes are often
different. Exporters should consult with their importers to ensure that
the product (and product taste) matches the market.

Exporters should be aware that a food safety culture is now very evident
in the EU and is growing stronger by the day in Ireland. Consumers are
demanding to know the origin and content of the food that they are
buying and eating. As a result, importers prefer to deal directly with
manufacturers, rather than through brokers, to ensure that quality
standards at all stages of production are maintained. The Food Safety
Authority of Ireland (FSAI) is the agency that has oversight of all food
safety issues in Ireland. Website: [www.fsai.ie]{.underline}

Ireland follows EU policies regarding labeling and ingredient labeling.
More information on these EU requirements can be obtained from the FAS
homepage at [www.fas.usda.gov]{.underline}. The office of the Director
of Consumer Affairs regulates general labeling requirements in Ireland
and it has a useful document located at:
[www.odca.ie/pdfs/labelling2004_leaflet.pdf]{.underline}

The Customs Branch of the Irish Revenue Commissioners is responsible for
the clearance of all goods into Ireland. U.S. exporters of food and
agricultural products should note that an import license may be required
to import food items into the country and that this is obtainable from
the Irish Department of Agriculture and Food. Importers are aware of
these requirements. In addition, imports of food products may be subject
to EU tariffs and import duties. VAT is payable at point of entry into
the state. Once again, exporters can ascertain that information on
submission of details of the product to the Revenue Commissioners.
(Website: [www.revenue.ie]{.underline})

As Ireland is a relatively small market, small shipments can add to the
cost of getting products to the consumer. Importers often consolidate
shipments from the U.S. or transship through UK ports or Rotterdam, The
Netherlands.

[]{#__RefHeading___Toc149456553 .anchor}Section III. Market Sector
Structure and Trends

The Irish grocery market is valued at between \$10 and \$13 billion
annually, with three large players dominating the sector. Tesco is the
biggest retailer accounts for approximately 26 percent of sales. Dunnes
Stores accounts for 22 -- 23 percent and Musgrave/SuperValu chain
reportedly has a similar share of the market. Superquinn has a market
share of about eight percent. Tesco Ireland is part of the UK-based
Tesco group. Two German-owned supermarket chains - Aldi and Lidl,
commenced operations in Ireland about five years ago; and mainly site
their smaller sized stores in urban areas throughout the country. From
small beginnings they have reportedly gained a six percent market share
in that short time.

Symbol groups of retailers (Gala/Spar/Centra) are independent retailers
who source the bulk of their produce from a central buyer and operate
their stores using a common trading name, while still maintaining their
independence. As a consequence own label products (products sold under a
retailers rather than a manufacturers name) have become important.

Retailing units attached to gas stations have become more important in
the retailing sector over the past few years. They offer convenience and
longer opening hours to consumers who are either in transit or living
near the outlets. These outlets are complementing some of the
\"mom-and-pop\" stores (corner shops) at the moment and may in fact take
over this aspect of the retail sector in the future. These operations,
which are mainly independently owned, source supplies through the symbol
groups central buying facilities or cash and carry facilities.

Retailers generally use an importer to handle their imported product
requirements. Many of the multiple stores monitor developments in retail
markets in other countries and often source new product lines
themselves. The actual purchase and logistics of importing is then
handed over to known importers/distributors.

A large number of importers, many of them quite small, serve the retail
trade. These companies may also be wholesale agents for Irish produced
goods and/or be manufacturers themselves. Most importers of non-frozen
and chilled foods have in‑house distribution networks and warehousing.
The main fruit and vegetable importers and distributors have packing
facilities for pre‑packs, for which there is increasing demand.
Importers of wine and beers usually carry an extensive portfolio of
products, both from Ireland and other countries, and have distribution
arrangements to most parts of the island within the Republic of Ireland.

For more information on the retail sector please refer to the Retail
Sector Report for Ireland which can be accessed through the FAS website
at [www.fas.usda.gov]{.underline}

The Irish food industry is strong at marketing and Irish consumers tend
to purchase home produced (Irish) food items first and then purchase
imported foods on quality and value criteria.

Surveys have indicated that over 80 percent of all housewives currently
claim to buy an own label/generic product each month. These products
made rapid inroads during the 1980\'s with over 90 percent penetration.
Own label products have a relatively classless appeal and are
particularly favored by larger, younger families living in both urban
and rural areas.

[]{#__RefHeading___Toc149456554 .anchor}Section IV. Best High Value
Product Prospects

\(a\) Breakfast cereals

\(b\) Cookies - in Ireland known as biscuits

\(c\) Coffee- especially flavored

\(d\) Snack foods

\(e\) Pet Food

\(f\) Fish

\(g\) Fruit and Vegetables

\(h\) Soft drinks and fruit juices

\(i\) Wine and Beers

\(j\) Sauces and salad dressings other than mayonnaise

\(k\) Ethnic foods such as TexMex

[]{#__RefHeading___Toc149456555 .anchor}Section V. Key Contacts and
Further Information

Office of Agricultural Affairs

American Embassy

42 Elgin Road

Ballsbridge

Dublin 4

Tel: +353-1-630-6254

Fax: +353-1-668-7423

Email: <agdublin@usda.gov>

Import licenses:

Department of Agriculture and Food

Agriculture House

Kildare Street

Dublin 2

Tel: +353-1-607-2000

Fax: +353-1-661-6263

Website: [www.agriculture.gov.ie](http://www.agriculture.gov.ie/)

For information on tariffs:

Office of the Revenue Commissioners

Tariff Classification Unit

Government Building

St. Conlon's Road

Nenagh, Co. Tipperary

Tel: +353-67-33-533

Fax: +353-67-32-385

website: [www.revenue.ie](http://www.revenue.ie/)

For information on food labeling:

Office of the Director of Consumer Affairs

4 Harcourt Road

Dublin 2

Tel: +353-1-402-5555

Fax: +353-1-402-5501

website: [www.odca.ie]{.underline}

General food market information (mainly for Irish exporters) but has an
overall view of the Irish market

Bord Bia (Irish Food Board)

Clanwilliam Court

Lr. Mount Street

Dublin 2

Tel: +353-1-668-5155

Fax: +353-1-668-7521

website: [www.bordbia.ie]{.underline}

Food Safety Issues:

Food Safety Authority of Ireland

Abbey Court

Lower Abbey Street

Dublin 1

Tel: +353-1-817-1300

Fax: +353-1-817-1301

Website: [www.fsai.ie]{.underline}

[]{#__RefHeading___Toc149456556 .anchor}Appendix I. Statistics

[]{#__RefHeading___Toc149456557 .anchor}A. Key Trade & Demographic
Information

+-------------------------------------------------------+--------------+
| Agricultural Imports from All Countries (\$Mil)/U.S.  | 4,825/6      |
| Market Share (%)                                      |              |
+-------------------------------------------------------+--------------+
| Consumer Food Imports from All Countries (\$Mil)      | 3,364/1      |
|                                                       |              |
| /U.S. Market Share (%)                                |              |
+-------------------------------------------------------+--------------+
| Edible Fishery Imports from All Countries             | 112/1        |
| (\$Mil)/U.S. Market Share (%)                         |              |
+-------------------------------------------------------+--------------+
| Total Population (Millions)/Annual Growth Rate (%)    | 4.23/2.5     |
+-------------------------------------------------------+--------------+
| Urban Population (Millions)/Annual Growth Rate (%)    | 1.6/n.a.     |
+-------------------------------------------------------+--------------+
| Number of Major Metropolitan Areas ^1/^               | 1            |
+-------------------------------------------------------+--------------+
| Size of the Middle Class (Millions)/Growth Rate (%)   | n.a.         |
+-------------------------------------------------------+--------------+
| Per Capita Gross Domestic Product (US\$)              | 48,450       |
+-------------------------------------------------------+--------------+
| Unemployment Rate (%) 2005                            | 4.4          |
+-------------------------------------------------------+--------------+
| Per Capita Food Expenditures (US\$) 2005              | 3,588        |
+-------------------------------------------------------+--------------+
| Percent of Female Population Employed ^2/^ 2005       | 46.9         |
+-------------------------------------------------------+--------------+
| Exchange Rate US\$ = Eur                              | 1.2418       |
+-------------------------------------------------------+--------------+

All data relate to 2005 unless otherwise specified

1/ Centers with population over 1,000,000

2/ Percent against total number of women (15 years old or above)

Source: Various GOI statistical releases.

[]{#__RefHeading___Toc149456558 .anchor}B. Consumer Food & Edible
Fisheries Products

  ------------------------- ----------- ---------- ---------- ----------- ---------- ---------- ---------- ---------- ----------
  **Ireland Imports**       **Imports                         **Imports                         **U.S                 
                            from the                          from the                          Market                
                            World**                           U.S.**                            Share**               

  **(In Millions of         **2002**    **2003**   **2004**   **2002**    **2003**   **2004**   **2002**   **2003**   **2004**
  Dollars)**                                                                                                          

                                                                                                                       

  **CONSUMER-ORIENTED       2,717       2,971      3,364      31          38         44         1          1          1
  AGRICULTURAL TOTAL**                                                                                                

  Snack Foods (Excl. Nuts)  323         358        418        1           1          1          0          0          0

  Breakfast Cereals &       70          67         73         1           1          1          0          0          0
  Pancake Mix                                                                                                         

  Red Meats,                103         126        180        1           1          0          0          0          0
  Fresh/Chilled/Frozen                                                                                                

  Red Meats,                152         188        225        0           1          1          0          0          1
  Prepared/Preserved                                                                                                  

  Poultry Meat              103         148        169        0           0          0          0          0          0

  Dairy Products (Excl.     168         237        290        1           1          1          0          0          0
  Cheese)                                                                                                             

  Cheese                    86          121        119        1           1          1          0          0          0

  Eggs & Products           14          17         16         1           1          1          5          3          7

  Fresh Fruit               167         187        202        2           4          4          1          2          2

  Fresh Vegetables          125         151        152        1           1          1          0          0          0

  Processed Fruit &         208         245        260        3           3          4          2          1          1
  Vegetables                                                                                                          

  Fruit & Vegetable Juices  75          96         98         1           1          1          1          1          1

  Tree Nuts                 6           7          9          1           1          1          7          6          8

  Wine & Beer               399         379        462        18          21         22         4          5          5

  Nursery Products & Cut    61          63         79         1           1          1          0          0          0
  Flowers                                                                                                             

  Pet Foods (Dog & Cat      38          36         39         1           1          1          0          0          1
  Food)                                                                                                               

  Other Consumer-Oriented   620         545        573        6           7          9          1          1          2
  Products                                                                                                            

                                                                                                                      

  **FISH & SEAFOOD          112         106        125        1           1          2          1          1          1
  PRODUCTS**                                                                                                          

  Salmon                    10          11         14         1           1          2          8          8          12

  Surimi                    1           1          1          0           0          0          0          0          0

  Crustaceans               22          21         27         1           1          1          0          0          0

  Groundfish & Flatfish     18          21         35         0           0          1          0          0          0

  Molluscs                  2           2          3          1           0          1          0          0          1

  Other Fishery Products    60          50         46         1           1          0          0          0          0

                                                                                                                      

  **AGRICULTURAL PRODUCTS   3,897       4,315      4,825      250         256        305        6          6          6
  TOTAL**                                                                                                             

  **AGRICULTURAL, FISH &    4,490       5,084      5,756      282         288        342        6          6          6
  FORESTRY TOTAL**                                                                                                    

                                                                                                                      

  Source: FAS\' Global                                                                                                
  Agricultural Trade System                                                                                           
  using data from the                                                                                                 
  United Nations                                                                                                      
  Statistical Office                                                                                                  
  ------------------------- ----------- ---------- ---------- ----------- ---------- ---------- ---------- ---------- ----------

[]{#__RefHeading___Toc149456559 .anchor}C. Top 15 Suppliers of Consumer
Foods and Edible Fisheries Products

  --------------------- ---------- ---------- ---------- ------- ------------- ---------- ---------- ----------
  **Ireland - Top 15                                                                                 
  Suppliers**                                                                                        

  **CONSUMER-ORIENTED                                            **FISH &                            
  AGRICULTURAL TOTAL**                                           SEAFOOD                             
                                                                 PRODUCTS**                          

  (\$1,000)             **2002**   **2003**   **2004**           (\$1,000)     **2002**   **2003**   **2004**

  U.K.                  1517083    1595468    1804466            U.K.          69465      80144      90065

  Netherlands           239860     293708     304061             Free Zones    1544       1350       5446

  France                169043     200559     217669             Germany       4029       5170       4989

  Germany               153599     185778     182210             Denmark       6932       4810       4964

  Free Zones            73748      47829      100387             Iceland       1326       738        2993

  Belgium               76901      90872      98677              Netherlands   6376       2606       2358

  Spain                 83239      85567      91168              Canada        1306       2268       1886

  Australia             39616      48348      70001              United States 864        965        1647

  Italy                 46545      57562      67919              Thailand      813        636        1407

  Chile                 33459      36751      49947              France        610        1055       1162

  Brazil                35615      44262      49712              India         72         897        1068

  United States         31329      37886      43961              New Zealand   15         0          940

  Denmark               25383      30277      43649              Colombia      504        357        623

  South Africa          25638      32109      40643              Spain         70         178        458

  Costa Rica            22761      19274      21129              Sweden        274        334        428

  Other                 143159     164890     178416             Other         17374      4707       4293

  World                 2717023    2971181    3364047            World         111568     106213     124742

                                                                                                     

  Source: United                                                 Source:                             
  Nations Statistics                                             United                              
  Division                                                       Nations                             
                                                                 Statistics                          
                                                                 Division                            
  --------------------- ---------- ---------- ---------- ------- ------------- ---------- ---------- ----------