CHINESE BABY BOOM GOOD NEWS FOR IRISH FOOD EXPORTERS - Figures released this morning show that food and drink exports from Ireland grew by 5% in 2007 to reach €8.62 billion.
Dairygold has been a contributor to the big increase in exports to Asia and the babyfood market in China is one target of the company. Aidan Fitzsimons, who is commercial director with Dairygold, says that Asia is both the largest and the fastest growing market for babyfood ingredients with China being the main driver of that growth.
The Chinese babyfood market is valued at about $1.3 billion and is growing at a rate of about 25% a year. This is due to population growth, with 18 million babies a year being born in China - more than western and eastern Europe, and North and South America combined - growth of people's disposal income, a significant shift into the cities which leads to an increase in formula feeding and a demand for premium quality, highly functional baby foods.
Mr Fitzsimons says the value of Dairygold's ingredients sales to China in 2006 increased by over 50%, driven by a shift in its product mix to a more premium products and a strong dairy market. He also says that the company sells a small amount of cheese to the Chinese. He says that they are not very fond of table cheese, but the rapid expansion of fast food outlets is creating an outlet for cheese in the making of burgers and pizza. Mr Fitzsimons says that while the demand for cheese is relatively small at present, he sees a very big growth potential in the future.
Bord Bia's chief executive Aidan Cotter says that the overall performance of Irish food and exports is very impressive, especially with the euro appreciating by as much as 10% against the dollar and against sterling in the last quarter of 2007.
He says 2007's growth was mainly down to the dairy sector, which accounted for 65% of the total increase in food and drink exports. Half of that growth was achieved in the Asian region while alcohol exports to the region doubled last year.
Mr Cotter says that what has emerged over the last 12 months is the strength of global food markets. These have been boosted by Asian demand and also the competing use of land for food and fuel. Drought and flooding also caused some supply concerns in different regions. He predicts the strong markets will continue into 2008.
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M&S SEES UK SALES DECLINE - Marks & Spencer today announced its first fall in UK sales in nearly two and a half years as it revealed a 2.2% drop after what it called challenging market conditions in November and December. However, it said that it had a strong start to its Christmas sales and stocks have now cleared. Marks warned that it expects trading conditions to remain tough in 2008
MORNING BRIEFS - Irish private equity firm Ion Equity is expected to announce a big acquisition in the British fuels business later today.
*** The car's future is electronic and green, using alternate fuels and slick technology in ways that protect people and the environment, according to General Motors CEO Rick Wagoner. His prediction came at the annual Consumer Electronics Show in Las Vegas. He completed his presentation by unveiling a prototype Cadillac Provoq sedan powered by hydrogen and electricity from a lithium ion battery pack.
*** One of the world's biggest fund managers has bought a €112m stake in building materials and insulation company, Kingspan, according to the Irish Times. Capital Research and Management is based in Los Angeles and its investment is some welcome news for the irish stock market after months of most international investors decided to get the hell out of here.
*** Denis O'Brien has now acquired a 15% shareholding in Independent News and Media.
*** On currency markets, the euro is trading at $1.4760 cents and 74.5 pence sterling.
