3 Mar 2011

Why 45% of Food Producers in Dublin Area have Failed in the Past Year.

The Dublin Food Chain Launch and survey findings reveals why 45% of food producers in Dublin area have failed in the past year


LtoR;  Karl Heffernan, General Manager, AIB Bank Centre, John Whelan, Chief Executive, IEA
Lord Mayor, Councillor Gerry Breen, Michael Johnson, Chief Executive, Dun Laoighre CEB 
sampling some of the Dublin Food presented at the launch last Friday at AIB Bank 
Centre, Ballsbridge.

The Dublin Food Chain was launched by Lord Mayor of Dublin Gerry Breen. The Dublin Food Chain is an initiative of the Irish Exporters Association, the four Dublin and City County Enterprise Boards and is supported by AIB Bank and Bord Bia. The initiative is in response to the rapid decline of food producers in the Dublin region, who have lost out due to the rapid decline of hotel and restaurants, the replacement of local produce with imports on supermarket shelves, and the low level of brand development necessary for export entry. A survey carried out amongst food producers, distributors and retailers (the Dublin Food Chain) in the Dublin area was released at the launch and revealed:
  • 45% of businesses saw sales fall last year (2010), with 20% stating sales static, and 35% with sales increase.
  • Labour costs stated to be main problem for business by 56% of respondents. This the organiser’s state points to the need for the minimum wage reduction to be maintained.
  • Raw material costs the second major concern (54% of respondents), followed by major concerns because of Local Government charges (51% of respondents).
  • Energy was in fourth cause of business difficulty, with inflation concerns in 5th place.Surprisingly, bank access and interest rates were rated as the 6 the cause of business concern.

The Dublin Food Chain was created to research and pinpoint the key challenges facing the small producers, distributors and retailers in the food sector in the Dublin region and to develop a support network where the various players can work together to develop a sustainable local economy, and build capacity to export . 

About the Project:
Who is involved in this Network Project? 
The project is a joint initiative of The Irish Exporters Association, the four County and City Enterprise Boards in the Dublin Region - Dublin City, Dun Laoghaire Rathdown, Fingal and South Dublin , AIB Bank and Bord Bia.

Industry needs that the establishment of this network could satisfy:

  • Networking and knowledge sharing
  • Coaching on business skills
  • Facilitated discussions on industry challenges
  • How to trade with large supermarket chains
  • Category Management
  • Statistical information / Market analysis data
  • Best practice models
  • Funding and Grants information
  • Training & Mentoring

Perceived benefits of the network
  • Greater influence and identity as a part of a group:
  • Group buying power
  • Establish lobby group
  • Collaborations and synergies
  • Joint marketing and promotion initiatives
  • Logistics and distribution channels
  • IEA and City & County Enterprise Boards influence government channels
  • Group Attendance at International Food Fairs

For further information contact;

Sinead Branigan, 
Irish Exporters Association
Email: SineadBranigan@irishexporters.org  
Tel: 01 661 2182

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