Innovation and disruption in the agri-food sector is the subject of the latest agri-business report compiled by the Irish Farmers' Journal. Consumers have embraced innovation in many areas of their lives, but it has been a difficult sell in the agri-sector.
Eoin Lowry, Agri-business editor with the Farmers' Journal, said "farm to fork" innovation had been very slow, unlike innovation and disruption in other sectors of the economy. "The biggest change is in the way that we buy our food and the shift to online shopping in particular. If you look at the recent Asda-Sainsbury's deal, retailers are feeling the need to get larger. We'll see more people buying their food online in the future," he said.
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The new report points to Ireland as a good example of a country that has taken the innovation message on board. We produce enough beef and dairy goods to feed 35 million people. "The majority of food produced here is exported. That's one of the biggest challenges given the context of Brexit. Companies are seeing that as a challenge and they need to innovate more. We found the most important factor in driving business growth is innovation. 40% of companies say it's important to them. That's up from 20% three years ago," Mr Lowry said,
Among the challenges facing the agri-sector is the rising cost of fuel is an issue at a primary processing level. However, Eoin Lowry said when oil prices rise, it is generally a positive development for the industry globally.
"The majority of oil is produced in developing countries. Demand for food goes up as the oil price rises. We're one of the biggest exporters of dairy proteins to the developing world. It does well when oil prices are higher," he explained.
Brexit did not feature in the report which is global in its reach. However, it does feature among the geopolitical issues within. "Some say Brexit is an opportunity for them as they hope to strike new trading deals with the UK in the future but for Ireland it's obviously a challenge," the journalist concluded.
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