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Can the Agri Food Industry contribute £5 billion to our economy?

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Enterprise Minister Arlene Foster
With farming and food now expected to play a pivotal role in leading the local economy out of recession, the Northern Ireland Institute of Agricultural Science (NIIAS) is asking the question: can the Agri Food Industry contribute £5 billion to the Northern Ireland’s economy?  Courtesy of its 2012 annual conference NIIAS has lined up three key speakers well capable of providing the answer to the aforementioned question. They are key policy makers and opinion formers within the local agri food industry, making this year’s conference a must attend event for Institute members and those with a professional interest in agri food affairs.

Arlene Foster MLA – Minister for Enterprise, Trade and Investment will provide a perspective on how the Stormont Executive will support the envisaged growth within Northern Ireland’s food sector moving forward

NIFDA Chairman Tony O’Neill - an Executive Director with Moy Park will trace the success story of this uniquely dynamic company to date and its plans for the future.



Clarke Black – Chief Executive with the Ulster Farmers’ Union will analyse the production challenges facing the farming sectors as the agri food sector tackles the ‘growth challenge’.

Please note the following for your diary:

The 2012 NIIAS Annual Conference

Theme: Can the Agri Food Industry contribute £5 billion to our economy?

Venue: AFBI Headquarters, Newforge Lane, Belfast

Date: Wednesday February 8th 2012

Starting Time: 6.00pm

Fee: (including pre conference snack)

£15 for non members

£10 for members

£5 for students

Contact: Kate Curran on (028) 92681078; secretary@niias.co.uk 



Adding value is the only show in town

David Dobbin
Dr David Dobbin and Dr Joan Moss
United dairy Farmers’ Group Chief Executive David Dobbin has indicated that world dairy markets may soften in 2012, but he remains confident that the milk sector in Northern Ireland has a bright, long term future.

Speaking at a networking breakfast hosted by the Northern Ireland Institute of Agricultural Science, prior to the commencement of this year’s Winter Fair, he added that local milk producers had no option but to become better and more efficient at what they do.

“This principle holds for every industry,” Dr Dobbin further explained.

“Farmers can take one of five options when it comes to managing their businesses. They can decide to get out, get bigger, get better, get into something new or simply stand still. But the reality is that the latter option is, de facto, a slow exit strategy.”

“By far the best option is for farmers to strive to improve their business efficiency levels and take the decisions that will make this a reality.”

Turning to the general prospects for the dairy sector, David Dobbin stressed that Northern Ireland is now a significant exporter, servicing customers in countries around the world.

“This means that we sink or swing on the strength of the returns we can secure from the marketplace. Intervention support is now merely a very poor safety net and export refunds no longer exist,” he further explained.

“There is no way of totally insulating any business from the vagaries of the marketplace. Commodity prices have been in the ascendancy for the past couple of years. However, international diary market returns may well start to move downwards over the next year in line with what is now recognised as a well defined ‘Dairy Cycle’.

“Adding value is the only way of minimising the impact of significant swings in commodity values. In the case of our processing arm Dale Farm, we have recently invested £8million in a state –of –the- art cheese plant at Dunmanbridge.

“Over the past ten years we have increased our value added sales from £20 million to £120 million.

“Another example of United’s commitment to adding value is our new whey processing plant. This cutting edge technology has allowed us to convert what was formerly a waste material into a range of high grade food products, which constitute a total of £320 of additional return per tonne of cheese manufactured.”

David Dobbin concluded:

“Global demand for dairy products is currently increasing at around 2.0% per annum. Global milk output is currently increasing by 2.7% in exporting regions. It does not take a high level of oversupply to have a significant downward impact on dairy commodity and retail prices.

“China has slowed down its purchases from Oceania over recent months. This, in turn, has led to New Zealand putting product on to the European market. Not surprisingly, this has served to take the edge off the markets which local dairy processors are supplying.

“There are quite a number of downward price indicators in the market mix looking forward. However, the big unknown is the intention of Chinese buyers. If they decide to enter the market in a meaningful way, then world prices could well remain reasonably buoyant helping local farm gate prices to remain firm. We need to see what happens in January when New Zealand output starts to fall back. If New Zealand can sell out their season’s production before the EU seasonal flush we will all be in a better place” 



NIIAS celebrates its 50th Anniversary Dinner in style

Members of the Northern Ireland Institute of Agriculture Science (NIIAS) gathered for a gala dinner at Parliament Buildings, Stormont earlier this week to mark the 50th Anniversary of the organisation. NIIAS represents the professional interests of agri food graduates and diplomats working in Northern Ireland. Speaking at the event DARD Deputy Secretary Dr Mark Browne said that one of the biggest challenges society faces in the coming decades is the need to meet the growing demand for food.

He continued:

“The recently published Foresight Report on the “Future of Food and Farming”, by the Government’s Chief Scientist, Sir John Beddington, gives a comprehensive review of what it terms ‘an unprecedented confluence of pressures’ on the global food system over the next 40 years.  A key factor here is world population, which has doubled over the last 50 years since the NIIAS was founded.

“These demand side pressures will grow as global population increases from nearly 7 billion today, to 8 billion by 2030 and 9 billion by 2050.

“And production side pressures will also grow as competition for land, water and energy intensifies and the effects of climate change become increasingly apparent.

“In Europe today, agricultural productivity is still improving, but at a lower rate than in previous decades, and below that needed to match the increasing growth in demand.  In recently published research relating to 2007/08, it was found that it would take approximately 35 million hectares of additional agricultural land in Europe to make up the difference between Europe’s productivity and demand.  This is equivalent to a land area the size of Germany.

Mark Browne continued:

“The challenge we face in the future is to develop new food production models based on the principle of sustainable intensification, in other words, producing more from the same, or less and in a sustainable way. 

“Science has a key role to play in helping to achieve this and DARD is committed to ongoing investment in research and development and knowledge exchange.”

He concluded:

“Now more than ever we need a professional, outwardly focused agri‑food industry that has the capability to address challenges and the vision to seize opportunities.  This Institute and its members have a lot to offer in this regard and are ideally placed to support the development of an agri-food sector which faces an era of opportunity.  The next fifty years will bring at least as much change as the last fifty, and we all have a role and a responsibility to embrace that change and shape it where we can.”

During his address NIIAS Chairman John Thornton confirmed that agri food output in Northern Ireland currently exceeds £3 billion annually.

“But we must set challenges for the future,” he added.

“Should we, for example, be actively planning to develop an agri food sector with the inherent ability to generate an annual turnover of £5 billion? It’s not for me to be setting arbitrary targets, but given the opportunities that now exist, I firmly believe that the farming and food sectors must put the attainment of profit-led growth as its number one priority.”

The NIIAS Chairman continued:

“In order to achieve this, our young people must have access to the best possible education and training opportunities at third level.  But more than that, they must be also given the chance to cut their teeth working in those markets around the world where the potential to strengthen and expand our trading links now exists.

“Once out there they will be exposed to new ideas, and entirely new ways of thinking when it comes to doing business. And, of course, when they come back home they can play an integral part in training and motivating  the generations that follow.

John Thornton concluded:

“NIIAS members have played their part in making much of this happen over the past fifty years. And I am totally confident that the Institute will play an even stronger role when it comes to developing these themes still further during the period ahead.” 

NIIAS Annual Charity Quiz raises over £1,000

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On the 13th Oct, NIIAS will held its annual Charity Quiz at Harlequins Rugby Club and raised over £1,000 for it's chosen charity for 2011.

 This year’s chosen charity was Alpha Primary in Port Elizabeth, South Africa.  Alpha Primary is situated in a underprivileged community.  Over the past 5 years the school has become a shining light within the community with an upgraded staff room, new toilet facilities and most recently a greenhouse project to teach the children how to grow vegetables.  A very important project at the school is the providing of two remedial teachers, Mrs Wendy Nel and Mrs Bev Liss, who spend 6 hours a week with 24 kids.  This project is in its second year and the impact that it is having is phenomenal.


Tremendous turn out for NIIAS Networking Breakfast

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There was a tremendous turnout of agri/food industry leaders and young professionals for the recent NIIAS (Northern Ireland Institute of Agricultural Science) Networking Breakfast. The key speaker at the event was Devenish Nutrition’s Managing Director Owen Brennan, who confirmed that the agri food sector has a tremendous future at the very heart of the local economy.

“In fact, this was always the case,” he added.

“However, in the past this fundamental reality was never recognised. However, this perception is now changing both at the level of the general public and by decision makers at Stormont and within the EU. This is good news for the industry as a whole and for those young people committed to developing their careers within the sector.”

Owen Brennan is a past President of the Northern Ireland Grain Trade Association and a two term Chairman of the Livestock and Meat Commission.  He used his presentation at the Networking Breakfast to highlight ‘Five Points of Focus’ which, in his opinion, should form the foundation of the future successes that can be achieved by the local agri food industry and the people working within it. These are: Globalisation; Innovation, Wealth Generation; Attitude and Application.

“Here in Northern Ireland we already export 80% plus of the food we produce,” he further explained.

“The global population is set to increase by some 50% over the next twenty years. And this growth will take place mainly in the developing regions of the world such as China and India. Here in Northern Ireland we only need to secure a small part of the resulting increase in the demand for food in order to copper fasten the required growth within our own agri food industries.

“So we must think internationally and use all of the new technologies now available accordingly.”

He continued.

“It goes without saying that innovation is required to drive individual companies and entre business sectors forward. The same principle holds when we talk about wealth creation.  But people are also fundamentally important when it comes to determining the success of any business venture. Northern Ireland’s agri food sector needs young people with a positive outlook and who are prepared to work hard. But this is by no means a one way street. We all spend a vast proportion of our lives working. So it is important for young people to get a sense of enjoyment and satisfaction from their involvement within the agri food sectors.”

The Devenish MD went on to highlight Moy Park as an excellent example of what can be achieved when the aforementioned five Points of Focus are addressed in a creative manner.

The Networking Breakfast also gave Nuffield Scholar Jason Rankin an opportunity to highlight the work of the Nuffield Foundation. He encouraged the young people in the audience to actively consider applying for a Nuffield Scholarship Award.

He added:

“A Nuffield Scholarship can open doors and provides opportunities for both life-long learning and self-improvement. For many a Scholarship experience has changed their lives. It has opened their eyes, ears and their minds to the wider world, giving them the confidence to develop their management and business skills, to pursue their personal goals, as well as to become active leaders within agriculture.”

Courtesy of his presentation NIIAS Chairman John Thornton highlighted the role of the Institute in furthering the professional aims of agri food graduates and diplomats working in Northern Ireland.

“We do this by hosting seminars, industry visits, an annual conference and regular debates which help encourage discussion on the issues that reflect the core challenges facing our agri food sectors,” he commented.

“Our annual membership fee is £20 and represents an excellent investment, given the tremendous amount of opportunities it generates for those lucky to be working within the agri food industry.”

For further information on NIIAS, contact Executive Secretary Kate Curran on (028) 9268 1078 or visit the website: www.niias.co.uk   

 




NIIAS members take a tumble in the Jungle

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The NI Institute of Agricultural Science (NIIAS) summer outing and barbeque to the Focus Farm of Robert Carmichael, Moneymore, gave members the opportunity to view one of the most remarkable farm diversification projects anywhere in NI.  It also reflected attempts by NIIAS to broaden their appeal and attract new members into the organisation.

NIIAS is currently chaired by John Thornton of Alltech.  Thornton is an effervescent and outgoing character, and he is the driving force behind a campaign to bring new people into the organisation.

NIIAS exists to serve the interests of graduates working within agriculture in NI, and this year celebrates 50 years in existence.  But like many similar organisations it must work hard to remain relevant and must continually adapt to the needs of members.

Diversification

‘The Jungle’ is not what you would typically expect from a farm diversification project.  Nor is it what you envisage when driving past the site on the road from Moneymore to Desertmartin.

Robert Carmichael started in 2005 with 30 paintball guns – he was the first in Northern Ireland.  Lack of profitability and farm debt were the main factors in him looking for an alternative income from the family farm.

He now runs an outdoor activity centre that offers paintballing, archery, clay pigeon shooting, zorbing and various team building activities.  The most recent addition is a new tree-top adventure rope course, built at a cost of over £175,000.  Future plans include go-karting and the opening of a second site south of Dublin.

The family farm remains active, but now mainly with drystock as opposed to dairy cows.

Carmichael admits that the recession has meant that 2011 has been a slightly more difficult year than previously.  But he is still attracting over 300 visitors per week during the summer months.  He also has an eye for other opportunities and is an agent for log cabins and has a growing outdoor mobile advertising business.

The main source of income at ‘The Jungle’ has traditionally come from ‘stag parties’, but Carmichael has also targeted large companies for team building days and is seeing increasing numbers of youth groups and community organisations.

Zorbing, which involves rolling down a hill in a giant inflatable ball, has also attracted a few notable visitors, including Gary Lineker and Stephen Nolan.  Personal experience dictates the importance of having the barbeque after the zorbing and not before.



John Thornton - New NIIAS Chairman

John Thornton and Gavin McQuaid
NIIAS Chairman John Thornton and Vice Chairman Gavin McQuaid
John Thornton is the chairman of the Northern Ireland Institute of Agricultural Science (NIIAS) for 2011/12. He was elected unopposed at the organisation’s recent AGM. The Institute represents the professional interests of all agriculture and food science graduates working in Northern Ireland

A Master’s Graduate from Stellenbosch University in South Africa, John is Managing Director of Alltech Ireland. His responsibilities include the co-ordination of the company’s European Headquarters in Dunboyne, Co Meath. John also acts as regional manager across 15 European Countries for the international animal health company.

John has set a number of key targets, which will be actively addressed over the coming twelve months. These include the forging of strong working partnerships with other professional bodies and an active membership drive, with a clear focus on young graduates.

“NIIAS has played an important role in providing networking and career shaping opportunities for agri food graduates over many years,” John confirmed.

“We now want to build on this for the future.”

The Institute’s new Vice Chairman is Gavin McQuaid. An agricultural economist with a Master’s Degree is Electronics and Multi Media, Gavin is Farm Information Manager with CAFRE (College of Agriculture, Food and Rural Enterprise). He is based at the College’s Greenmount campus

 The full NIIAS Committee for 2011/12 is below:

President: Joan Moss: Chairman: John Thornton; Vice Chairman: Gavin McQuaid; Executive Secretary; Lorna Whiteside; PRO: Richard Halleron

Executive Committee members: Ian McCluggage, David Wright, George Starrett; George Gregg; Frank Foster, Cormac McKervey, Keith Agnew and Marian Scott. For further information, contact Richard Halleron on 07845 194727


NIIAS visits Fane Valley Feeds

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The new £18 million FaneValley feed mill near Omagh was the venue for the recent Spring Visit enjoyed by members of the Northern Ireland Institute of Agricultural Science (NIIAS). The Institute represents the professional interests of agriculture and food science graduates working in Northern Ireland. Fane Valley Feeds’ managing director Robin Irvine was the host for the event, which included a tour of the new facility.

“The launch of the Fane Valley Feeds business and the opening of the Bankmore mill facility represents a vote of confidence in local agriculture by Fane Valley Coop, one of the provinces leading agri businesses,” Robin told NIIAS members.

“Fane Valley Feeds has been formed as a distinct division within the co operative, bringing the Society’s two feed mills together under a single management. And now with modern and efficient production facilities in both the East and the West of the province, the business is well placed to develop.

He added:

“Fane Valley Feeds sits alongside Fane Valley Dairies and Fane Valley Stores as core activities of the group. Our new image has been rolled out over recent weeks, with lorry livery and a new bag design giving a fresh and modern look to the business.”

Robin Irvine then outlined the background to the development state of the new facility at Omagh.

“Supply of farm inputs has been a key element of the FaneValley business right back to its formation over 100 years ago,” he commented.

“The purchase of the Robert Sands mill in Newry in the early 80’s was the first step into feed compounding and the acquisition of the Scott’s business in Omagh about 10 years ago gave us a significant stake in the Irish feed industry.

The Fane Valley Feeds managing director continued:

“With the combination of these investments and subsequent organic growth at both sites over the last 10 years or so FaneValley has succeeded in its goal of becoming a major player within the animal feed sector

“From around 2004  it was obvious that the growth  could not be sustained within our existing facilities. Significant investment in additional capacity was the only way for the business to deliver its potential.

“With two town centre locations, and the limitations that imposes - the obvious answer seemed to be to start afresh on a green field site.

“And that’s what we did. The result is a significant increase in our capacity. The new site at Bankmore extends to 10 acres. So we have plenty of space to allow us grow for the future. And it is the future, and all the promise it entails, which was the motivation behind the decision to develop the new mill.

“Everyone associated with FaneValley has a fundamental belief in the future of the agriculture and food sectors on the island of Ireland. But the success and development of the industry will not be brought about by chance: it will only be delivered by the vision, and commitment, and investment of businesses right along the food chain.”

Robin Irvine went on to confirm that consumers want food that is wholesome and safe. The entire Agrifood sector must therefore deliver on the issues of safety, traceability and provenance. And it is in this context that FaneValley’s investment at Omagh must be considered.

“We are a key link in a £900 million chain, which demands the highest standards at every level,” he further explained.

“Our new mill at Omagh represents a major advance in feed quality standards and is essential in terms of FaneValley bringing the agri food sector up to the next level in terms of food safety and security.

“Competitiveness is the key. The new mill will be driven forward on the back of the efficiencies it can deliver. The scale of the operation and the much more efficient use of energy within the mill are just two examples of how this will be achieved.            

“The success notched up to date by the FaneValley mills in Newry and Omagh has been reflected across all the animal species: ruminant, pigs and poultry  in equal measure.  I am happy to confirm that our commitment to all elements of the livestock industry in Northern Ireland and beyond will be fully maintained as we move our business forward.

“The significance of the investment undertaken here Omagh for our farmer customers and the agri/food sectors as a whole is immense. At Fane valley we firmly believe that agriculture can look forward to a vibrant future. And what you see today demonstrates our commitment to make this a reality.”

Commenting on the current state of the world’s commodity markets, Robin Irvine pointed out that compound feed prices had risen by approximately £60 per tonne over the past six months.

“This is purely a reflection of the trends that have unfolded across all of the feed input markets during this time,” he commented.

“And, of course, this has led to a significant increase in food production costs. On farm production costs for finished pigs have risen by approximately 30 pence per kilo. The equivalent figure for an intensively reared beef animal is 40 pence while production costs on dairy farms have risen by 2.5 pence per litre since last autumn. Poultry and egg production costs have also risen accordingly.

Robin Irvine concluded:

“It is imperative for retail food prices to rise in line with the increased pressure on farmers’ production costs. If this is not allowed to happen then the entire food production and retail chain will break down. Farmers must be allowed to make a living.!”



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Northern Ireland Institute of Agricultural Science