Ballyhoura Development Ltd 1. Food Sector. Food Strategy
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- Herbert Gibson
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1 Ballyhoura Development Ltd Food Sector Strategy Peadar Casey July 2007 Ballyhoura Development Ltd 1
2 Ballyhoura Development Company Food Sector Strategy June 2007 Contents Introduction 3 Methodology 4 Executive Summary 5 Detailed Strategy Review 10 Page Food Cluster 11 Food Heritage 13 Support Structure 14 Food Entrepreneurs 15 Development Agencies 16 Heart of Food Ireland 17 Branding 18 Ballyhoura Operator Research Meetings 19 Food Producers 20 Agriculture 22 Food Tourism 23 External Research 24 Government Agencies 25 Food Clusters & Strategies 28 Food Tourism 29 Alternative Farm Enterprises 30 Conclusions 31 Appendices 32 SWOT Analysis 33 Strategy Timeline 34 Strategy Cost Guesstimate 42 Entrepreneurial Culture 44 Ballyhoura Development Ltd 2
3 Introduction Strategic Planning is a key aspect of any organisational development, most planning processes are controlled from within the organisation. However from time to time organisations, as in this case, contract help in from outside. While the external party can facilitate the process, ultimately the strategic plan has to reflect the knowledge, desires and commitment of the individuals going to implement the strategy. The strategic plan has to reflect the core of the organisation or in this case the region and its vision. All other processes flow from a core strategy and create a clear purpose for day to day activities. Strategic plans usually cover periods from three to five years, good plans and process should allow for regular reviews and amendments where needed. Within a strategic planning process it is also common to create more detailed short term plans in line with the overall macro strategic plan. The short term initiatives have clear responsibility and time frames assigned to each element. The material in this report should be seen as the starting point of a process to develop the food sector in the Ballyhoura region, not the end of a planning process. A good strategic plan should stretch the thinking to new levels, and often bring discussions into a zone of uncomfortable debate. Within the first review of this material it is important to have a clear understanding and buy in, and questioning where required. This review will result in the production of a meaningful action plan and assignment of responsibilities and ultimately the conversion of a plan into reality. Ballyhoura Development Ltd 3
4 Methodology The starting point on this project was the collection and assimilation of all relevant data and information collected by Ballyhoura Development Ltd to date. A target list of current operators within each sector from the Ballyhoura Region was agreed between Discovery Life In Business and Ballyhoura Development Ltd. This list was complemented by a list of external information sources mainly comprising of state development agencies. Within the time constraints for the project 85% of the original target interviews were completed, some meetings were not possible due to interviewees commitments and time constraints. The meetings were conducted in an informal manner and relevant information from each meeting has been outlined in the research feedback section of the report. There was extensive desk research on regional food strategies around the world which extended to the cluster model, entrepreneurial cultures and public sector agency initiatives. The methodology within this strategy formulation has at all times been a collaborative and co creative approach between sector operators, relevant state agencies Ballyhoura Development Ltd and Discovery LifeinBusiness. Like any good strategy this is an evolutionary process and should be kept up to date at regular intervals to reflect fundamental changes in thinking or circumstances. Ballyhoura Development Ltd 4
5 Executive Summary This project was undertaken on behalf of Ballyhoura Development Company to provide a macro level strategic view on the three food sectors as currently recognised by Ballyhoura, namely Food Production, Food Tourism and Agriculture. Having visited and interviewed a select number of operators within each sector the following is a summary of the key findings across all sectors and some specific findings within each sector. General Summary The potential exists to have a more coordinated approach for food within the region. The development of a food cluster business model as used in other food regions around the world is an option for this development. Successful operators across all sectors have a very distinct entrepreneurial style and spirit. The food culture within the region needs to be refocused and nurtured over the next 3 to 5 years. Certain strengths within the food sector are being taken for granted and as a result the full commercial potential is not being realised. The rationalisation of food production and agriculture may have affected the confidence of operators and consumers within the region. Ballyhoura country has an indigenous association with food and also a relatively unspoilt landscape which when working together provide one of the best locations in Ireland for a serious food cluster which may or may not encompass a food park. A key issue within each sector is to attract individuals into the Ballyhoura Region who have expertise, knowledge and interest in the relevant sector. The full potential of Ballyhoura as a food location will only be realised with a coordinated approach from local interests in combination with the relevant national support agencies. A dedicated food enterprise manager with adequate support is required within the region to coordinate and deliver the food potential as outlined. The core values behind the food sector within Ballyhoura Country need to be clearly established. Ballyhoura should have a primary aim to foster an entrepreneurial spirit for all sectors to cultivate and attract the individuals with the vision to make it happen within the relevant food sectors. Ballyhoura Development Ltd 5
6 Food Production Summary Operators have different motivators, some are lifestyle some are economic and some are a combination of both. These motivators need to be understood and design support in line with the specific needs. Two distinct sectors exist here Artisan Food Producers Food Entrepreneurs Each Sector has specific requirements a summary of which is included in the main report Market Ballyhoura Country to food entrepreneurs as the region to locate food enterprises. Food Tourism Summary This sector is very weak with a limited number of quality operators. Initiatives to promote the establishment of quality tourism outlets should be looked at, these initiatives should be targeted at both individuals within and outside the region. The current weakness of the sector may provide a clean starting point on which to build a food tourism sector based on current and future trends. The area is a natural country holiday destination which has not been exploited. In the UK the Cotswolds region has developed as a country get away destination for the city dwellers. A coordinated effort in Ballyhoura could create a similar destination for Irish city dwellers and International clients. This sector should also include food retailing which would further enhance the food experience for the prospective tourist. Food retailing should be a high quality offering across Butchers, Bread Shops, Delicatessen and other specialist food outlets. Agriculture Summary The agricultural sector is seeking direction having been through a lot of rationalisation and reorganisation. Initiatives around alternative farm enterprises would be well received but has to be recognised as a long term strategy with very few quick wins. There are selected local farmers who have established their own successful enterprises. Such enterprises have given the operators control of their own destiny outside of any EU or National agenda. An organics strategy should be established for the region. Ballyhoura Development Ltd 6
7 The Ballyhoura Region has a long history in food which has been let slip over the last number of years due to rationalisation of the agricultural sector at a national and international level. This rationalisation in combination with the Celtic Tiger economic growth being primarily driven by technological and construction based enterprises has contributed to the decline in food enterprises. With the agricultural and dairy rationalisation being at an advanced stage and an apparent slow down in the construction and technology sectors, Ireland is now looking to its indigenous industries to provide a renewed stage of growth. Growth within the indigenous sectors holds a strong attraction as it less dependant on international trends and can contribute to a more stable economy into the future. Ballyhoura Country is ideally positioned to take advantage of this renewed interest in Ireland s indigenous industries namely Agriculture, Food and Tourism. A well resourced strategy over the next five years managed as food business cluster with a cohesive branding plan should set a solid foundation for a sustainable long term food sector. The key strategic initiatives for Ballyhoura Country between 2007 and 2011 are as follows Develop and Manage an appropriate Food Cluster Model to implement and evolve the food strategy as outlined in this report. Revive, Enhance and Support the Food Heritage of the Region. Design a support structure in line with the motivations and ambitions of the operators within each sector. Provide an efficient and effective link between the food operators in the region and the relevant state development agencies. Attract Food Entrepreneurs from within and outside the Ballyhoura Region. Support the establishment of Ballyhoura as the Heart of Irish Food in conjunction with Private and Public interested parties. Brand the food sector strategy implementation using the Ballyhoura brand under the guidelines as set out by a brand committee. (A timeline of the strategic initiatives and cost guesstimates are included in the appendices) Ballyhoura Development Ltd 7
8 Detailed Strategy Analysis Ballyhoura Development Ltd 8
9 Cluster Business Model A Cluster business model is a relatively new initiative being used for regional development around the world to support economic growth and social capital initiatives. The cluster concept gives a critical mass and helps to make efficient use of resources and knowledge transfer. Historically clusters developed more by coincidence rather than design, however since the early 1990s there is more focus on the development and management of cluster initiatives around the world. In America the Harvard Business School the Institute for Strategy and Competitiveness has a cluster mapping project in place. In Europe a co-operation called CLOE (clusters linked over Europe) has been established to help the development of cluster initiatives across all member countries. CLOE has eight members, each a successful cluster on its own. The pooling of experience within CLOE has produced a Cluster Management Guide, which gives a concise outline on cluster development. The CLOE guide acknowledges clusters as helping regions govern their economic growth together with encouraging communities to refocus their efforts on existing industries. The benefits from cluster development are seen as Increased Productivity Faster Innovation New Business Formation Attract National & International Players to the region CLOE outlines the management of cluster initiatives into the following five categories: Information and Communication Training, Qualification and Development Co-Operation Marketing and PR Internationalisation The CLOE guide has found that the competitiveness and economic growth of a region is not determined by single companies, but more by innovative activities of industries and branches. There is a recognition that cluster development will result in cooperation and competition the combination of these two forces is commonly referred to as coopetition. Ballyhoura Development Ltd 9
10 Cluster development is a long term initiative and requires commitment, resources and integrity to get off the ground. The most widely publicised example of a food cluster in Europe is the Austrian food cluster based in Linz this cluster is part of a broader cluster initiative undertaken by the Upper Austrian Government which also covers other industry sectors. The development of a successful cluster initiative in the Ballyhoura Region could easily be expanded to include other neighbouring regions if required. From initial research it is possible that such a food cluster would be a first for Ireland, this status should gain extra support from the government departments and agencies. This extra support should be looked for in financial aid, experienced personnel and marketing and PR. The existence of a food cluster in Ballyhoura should be a fore runner to a Food Campus initiative. Ballyhoura Development Ltd 10
11 Revive, Enhance and Support the Food Heritage of the Ballyhoura Region. Why? The food heritage of the region is slowly but noticeably being eroded. During the era of the agricultural co-op structure there was a strong focal point, which is no longer the case. The food activities are now more fragmented and have less of a common purpose. There is a need to create a focal point for food within the region Food is taken for granted within the region, what is seen as ordinary food within Ballyhoura could possibly be seen as wholesome and sought after from outside the region. Creating awareness will continue to raising the standards of food operations across all sectors. How? Evaluate the feasibility of opening a Food Experience tourist attraction. Baxters in Scotland have created a food experience which attracts a large number of tourists every year and make a sizeable profit from the venture. Document the history of food within the region and possibly within Ireland, it may be possible to publish this material in a book. Create Awareness within the region about its food history. The region has an opportunity to create an identity with wholesome food. There are a lot of Bacon & Cabbage towns and villages within the area. It may be possible to create a Foodservice Free food trail, with all ingredients sourced from within the region. It would be necessary to get a celebrity chef or well known foodie to set and monitor the standards. The simple food image would fit with Ballyhoura simply different image. Any public relations exercises should be carefully targeted at journalists with a strong interest in regional food initiatives. Ballyhoura Development Ltd 11
12 Design a Support Structure in line with the motivations and ambitions of the operators within each sector. Why? Within the food sector there are a number of different sub-sectors Food Tourism Agriculture Food Production Artisan Food Producers Food Entrepreneurs A sector for Service Providers to the food industry should also be included, which would include engineering, packaging, consultants and any other providers of services to the food industry. The key motivators and ambitions of operators within each sector are different. These motivations and needs must be recognised to ensure a long term meaningful strategy. The time taken to understand each sector will enhance the buy in by the key stakeholders, from within and outside the region. The database information will provide key guidelines to brand values and contribute to a professionally motivated strategy. How? Build an extensive database of operators, and the relevant information to access their needs and motivations. Selective information from the database should be incorporated into a Ballyhoura food internet site. Establish sub committees within each sector to agree the standard motivation and requirements for the relevant sectors. Selective information from the database should also be used to produce a food sector directory of operators and services. Match the aspirations of the operators with the relevant support from public sector agencies and or private services and investors. Ballyhoura Development Ltd 12
13 Attract Food Entrepreneurs from within and outside the Ballyhoura Region. Why? There is a strong entrepreneurial spirit within the successful operators across all sectors. This culture needs to be nurtured and enhanced, while also attracting more like minded individuals into the region. The region has a lot of characteristics to attract food entrepreneurs, a food heritage, lifestyle, infrastructure, experienced labour, and an entrepreneurial development company. There are very few food areas that try to get inside the head of an entrepreneur, this initiative would give the Ballyhoura Region a unique selling point. The new age a food companies is being driven by food entrepreneurs who have a marketing and modular approach to business. The outdoor lifestyle initiatives completed by Ballyhoura to date, the mountain bike trail and outdoor activity centre would appeal to the entrepreneurial mindset. How? The initiatives to attract this type of individual will need to be imaginative, interactive and fast moving. The fact that food entrepreneurs are clearly acknowledged in the strategy will attract attention from the correct type of individuals. The communication with prospective entrepreneurs will need to be short and to the point. The production of a high quality promotional DVD for the region and its offerings would give entrepreneurs a first impression for the region. A direct marketing approach should be used to target suitable individuals as entrepreneurs usually communicate through networks and personal referrals. A database of potential individuals should be built through existing contacts, government agencies, educational establishments and any other food sources. The availability of serviced sites would be more attractive to entrepreneurs rather than finished production units, this allows their own individuality to be stamped on their business. Establish a food business cluster to foster creativity and co operation, the idea of being in an area of like minded individuals is attractive to entrepreneurs. Developing a food cluster model will facilitate and enhance an entrepreneurial culture. Ballyhoura Development Ltd 13
14 Provide an efficient link between the food operators in the region and the relevant state development agencies. Why? There are a number of state agencies doing a lot of good support work for the Irish food industry. However at an operator level there is confusion as regards what agency provides what type of support. Operators will have different requirements at different stages of their development. It would not be possible for each agency to get to each operator, Ballyhoura should provide an intermediary role between the agencies and the operator. This strategy will enhance the competitiveness of the operators as they will have access to the latest trends and any financial aid available. This strategy will also provide a good networking and PR channel. The agencies will be more willing to deal with initiatives that are organised in a professional and structured manner. How? The food manager within Ballyhoura will need to be familiar with all the agency activities and structures. Create a structured approach to the agency activities within the region. The agency representatives could possibly attend relevant workshops and operator visits. It may also be possible to create tailor made support packages to suit the Ballyhoura strategic requirements. International initiatives should also be looked at, linking with other food regions in Europe or around the world is a more realistic possibility with a regional approach. Employing a cluster approach will also ensure links to other like minded regions and operators. Ballyhoura Development Ltd 14
15 Support the establishment of Ballyhoura as the Heart of Food in Ireland in conjunction with Private and Public interested parties. Why? There is no food region of Ireland which facilitates the food chain from primary production, research and finished products. Ballyhoura has this capability which can be further enhanced with a food tourism offering. Food Production, Food Tourism and Food Research are all terms which are used throughout Ireland but not in a scale which can be of national importance. The establishment of a Food Campus somewhere in Ireland would provide the focus and scale to create a national agenda. The Food Campus would be the food equivalent of the National Technology Park in Limerick. Ballyhoura Development should position the region to be the obvious choice for such campus. Active research on the project should commence which would examine similar initiatives on an international scale. The local support for such an initiative will be a key factor in making it a successful venture. How? Promote an action research initiative on the feasibility of a food campus initiative. Identify the implications of a food campus on the region and hinterland. Ballyhoura Region is underestimating the quality of life and lifestyle potential within the region. Any marketing or branding initiatives should clearly outline these lifestyle benefits. The successful community based initiatives which have been undertaken to date within the Region provide a bank of experience on such initiatives. The development of a food campus will most likely need a public private type initiative in which Ballyhoura Development Ltd should play a key role. Ballyhoura Development will be a key channel for initial funding and momentum on a Food Campus project. A substantial number of farmers have invested in property over the last number of years, could some of this investment now be channelled into food. Ballyhoura should push for local infrastructure to support and Campus like initiative. The broadband coverage, availability of land and the utilities network are all essential requirements to support the regions food strategy, local planning policy is of critical importance. The Ballyhoura initiatives will increase the attractiveness of the region for outside investment. Ballyhoura Development Ltd 15
16 Branding Branding in conjunction with the cluster model will ensure the strategy is coordinated in a professionally ensuring a successful outcome. The Brand Values associated with the Ballyhoura brand need to be clearly understood and communicated. Once the values are understood there will need to be a strict criterion established around which the brand is available to be used. A brand monitoring committee should have ultimate control and the power to grant permission and rescind permission. It would be advisable to have at least one member of this committee from outside the region. Brand Awareness and a PR campaign needs to be planned firstly for the region and then expanded to include Ireland and selected International markets. The target audience for the Ballyhoura region will appreciate some or all of the following: Countryside Outdoor Activities A natural environment Easy going attitude Tourism without being over commercialised Quality service Blending in with the local culture rather than meeting other tourists Food An initiative to build a database of people born in the Region and now living outside the region should be undertaken. These people are likely to still have an interest in the area and could be possible future visitors or investors in the region, both time and money. Journalists with a real interest in the area and/or the activities should be sought out and given a behind the scenes tour of the region. This type of exercise usually has a much higher impact at the initial stages than standard advertising. The advertising campaign in selected media should complement the initial PR campaign. A detailed web strategy should also be planned as this is where a lot of individuals now source tourism products. If the database initiative proves successful it may be possible to create an active web community. Web links should be established in all suitable web sites to gain maximum coverage. The possibility to establish Ireland s first virtual food village should be investigated. The Ballyhoura brand should appear in all qualifying outlets, i.e. meeting the brand criterion, in the food sector covering tourism, retail, agriculture and food production. Ballyhoura Development Ltd 16
17 Research Meetings Feedback Ballyhoura Development Ltd 17
18 Food Producers The Ballyhoura region covers the Golden Vale which was once seen as the primary food producing region of Ireland. The two main towns within the region Charleville and Mitchelstown have both seen a large rationalisation of their respective food industries. There are a small number of food producers within the region, however in a survey of small food producers undertaken in 2002, 35% of the respondents were based in County Cork and 65% of all respondents were based in Munster. The food enterprises operating within the region fit within two distinct categories. Artisan Food Producers Food Entrepreneurs Artisan Food Producers The operators within this category have their ambitions set on being a producer of niche goods which are of high quality. The owners motivations are usually around lifestyle and a passion for food more than the growth of the business. These operators are usually of a regional nature and have a select customer base where they have personal interaction. Food Entrepreneurs The operators in this category while having a strong interest in food have a primary interest in running a successful business which can be passed to the next generation or sold. The customer base of these enterprises would at least be at a National Level and possibly have a number of export customers. The frustrations of growing a business were much more evident within this category that within the Artisan Food category. Ballyhoura Development Ltd 18
19 Research Feedback - Food Producers Various degrees of ambition within the food operators Lack of Broadband How to get to the next stage of Development, what ever that is? Does the government really have an interest in the SME within the food sector? A certain lack of business acumen, know what they don t know but find it difficult to find the solutions. Looking for practical solutions rather than theory based solutions Training initiatives which encompassed a day on their premises worked well. Multi Lingual training to facilitate the growing non national workforce, this would also encompass language training Moving from local supplier to regional supplier to national supplier, and all the associated headaches. The need for a food champion within Ballyhoura Development or other such organisation. Where and how do the agencies fit together, Ballyhoura, Bord Bia, Teagasc, Enterprise Boards? Grant application process can be prohibitive. Support in the form of knowledge and experience is valued as much and possibly more than the financial grants. Ballyhoura Development Ltd 19
20 Agriculture The agriculture sector in this region is dependent to a large extent on the national agenda and initiatives. However any developments in the Food Producers sector could create a demand for primary raw materials which would create opportunities for small sections of the Agricultural Community. There are selective farm operators in Ballyhoura who have developed farm enterprises that give them control of the own destiny outside of National or EU initiatives. This business model is very effective and could be replicated in other farm related enterprises. The model connects the farmer to the ultimate consumer, a principle which is being strongly advocated in the National Development Plan. The Organic College in Drumcollogher is an asset in the Region which could be utilised to further develop alternative farm enterprises, together with enhancing the Organic image of the area. Research Feedback - Agriculture What is the next stage of development within agriculture? What is the alternative to the co op structure? Special interest groups, with a commercial agenda, e.g. Aberdeen Angus The food heritage needs to be cultivated. The agriculture sector may be a little lost. Farmers need to develop enterprises which put them in control of their own destiny, outside of EU directives. The current planning process often prohibits the development of a successful farm enterprise. Ballyhoura Development Ltd 20
21 Food Tourism Ballyhoura Region is currently low on the list of food tourism destinations within Ireland. What is the national agenda on food tourism? There is a notable lack of the term food tourism on the web sites of both Is it possible to tap into an International theme for food tourism? What incentives are possible to attract foodies to the area? High quality innovative food destinations are often by individuals who have taken early retirement and wishing to put lifestyle before money, while still making a living. These types of individuals should be targeted with a view to setting up a food tourism destination in Ballyhoura. Such individuals normally reside in the large Irish or International cities. There is a notable lack of Farm Tourism given that the area has a large history in Agriculture. This is an area that should be investigated further. Research Feedback - Food Tourism A natural country living destination Lifestyle and Food A half way stop over between Dublin and the South West or half way between the South East and the South West. Tourism is changing, may have lost some of the quality offerings, can this region establish a quality offering. Can Ballyhoura become the farmhouse region of Ireland, or even Munster to start with? A more active web presence Lack of quality operations in the region Ballyhoura Development Ltd 21
22 External Research Ballyhoura Development Ltd 22
23 Public Sector Agencies & Interested Parties The most effective and efficient way to establish Ballyhoura Country as the Food destination is to channel and accommodate where possible the strategies and activities of the relevant state agencies which have a relevance to food production, agriculture or tourism. National Development Plan The National Development Plan launched in January 2007 was titled Transforming Ireland - A Better Quality of Life for All The plan contains clearly identifiable plans for :- Regional Development Development of Rural Economy Enterprise, Science & Innovation Priority Includes detailed plans on Tourism and Agriculture & Food Development Department of Agriculture The Department of Agriculture has a mission statement which is "Our mission is to lead the sustainable development of a competitive, consumer focussed agri-food sector and to contribute to a vibrant rural economy and society. Department of Rural The Government is committed to implementing a strategy for rural development on the basis of an inclusive approach to sustainable development, the integration of policies, a regional dimension and partnership with the rural community. Enterprise Ireland Has a specific emphasis on export companies, high potential start ups and knowledge based enterprises. Bord Bia Bord Bia has a dedicated section to SME food enterprises. Bord Bia has an extensive market knowledge library both for Ireland and International markets. Ballyhoura Development Ltd 23
24 Teagasc Teagasc provides training and advisory services to promote and sustain a broad range of enterprise development in rural areas. A team of specialist advisers provide start-up training for those establishing new enterprises and continued training and advisory service for those who are up and running. Failte Ireland Fáilte Ireland has an allocation of 137 million under the National Development Plan to stimulate investment in tourism development projects. As part of the process of designing new guidelines for elements of the capital grant programmes which we will be administering, we invited submissions last month (June 2007) outlining new product ideas. We have received close on 700 expressions of interest, a huge response and a very encouraging indicator of the degree of community interest in investing in the tourism industry. We are currently analysing these submissions, and all those who submitted will, prior to the end of the month, be informed of proposed next steps with regard to their particular idea or project concepts. This text from the Failte Ireland web site indicates an ongoing investment programme in tourism projects. Ballyhoura Development Ltd OUR VISION Ballyhoura Country: driven by a proactive, future focused inclusive society, eager to preserve heritage and culture, embrace change and exploit new opportunities. OUR MISSION To create and enhance opportunities in Ballyhoura Country by working in partnership and fostering participation, thereby making possible the enjoyment of quality of life chances and economic security which at least meets the minimum expectations of society. Thus, Ballyhoura Country will become a sought after location to live and work in and will be a favoured destination for visitors and returning emigrants. Development, both planned and organic, will impact positively on the natural environment and on community life. The current Ballyhoura web site has limited information on food tourism, agriculture or food production. The finalised food strategy should have food activities clearly identified on the web site or possibly a dedicated web site. Regional Development agencies with strong food strategies have all dedicated web sites to their food sector, samples of which are included in the appendices. Ballyhoura Development Ltd 24
25 Local Socio-Economic Plans A number of local socio economic plans would have identified the needs of rural development, food heritage and the need to develop sustainable enterprises. The Western Development Tourism Programme The True Ireland is an interesting initiative by the western development tourism programme and twelve leader groups. The challenge for Ballyhoura is to accommodate and channel the activities of these agencies as efficiently as possible. Matching the relevant operator with the most suitable support is a key attribute to achieve this efficiency. The Ballyhoura strategy should have a strong focus on attracting in as well as promoting from within. The Mitchelstown Socio-Economic study clearly identifies Mitchelstown and its hinterland as the home of good food The feedback from all the agencies has a common theme of looking for some imaginative projects that have a solid background. There are mixed feelings regarding the success of food projects elsewhere in the country. There does not seem to be one project which stands out and some have struggled or failed. Obviously there is a lot to be learned from these projects, while the time available on this initial strategy plan did not allow for such investigation. Any further development of the food sector within Ballyhoura should contain a review of such projects. While SME food businesses are addressed by all agencies the focus can be diluted by the other activities within the agency, e.g. Enterprise Ireland will deal with food enterprises but only as part of a much wider portfolio. This shortcoming within some of the agencies can be overcome by the Ballyhoura food sector strategy having a dedicated focus on its own food sector operators. Also Ballyhoura should integrate their activities with the relevant local educational institutions, UCC, UL, Tipp Institute and any other institution with food related research and education. Ballyhoura Development Ltd 25
26 Food Strategies & Clusters The resources available on this project have not allowed for an in depth analysis of case studies, the following list contain food based projects which should be investigated at the next stage of the strategy. Ireland West Cork Fuscia Brand Leitrim Eco Triangle Tipperary - Leader Lough Egish Food Park Limerick Food Centre International Food Clusters UK Carmarthenshire Yorkshire New Zealand Sweden South Auckland Food Cluster Skane Food Cluster Austria Upper Austria Food Cluster Ballyhoura Development Ltd 26
27 Food Tourism Initiatives Ireland True Ireland International Australia Food Trail Tours Food Fun Wine Scotland Scottish Enterprise This link provides details of a joint initiative between tourism and food experts which was launched in Scotland in Dec 2006 Alternative Farm Enterprises Ireland Teagasc BMW Region USA California Organic Initiatives University of Florida Ballyhoura Development Ltd 27
28 Conclusions The Ballyhoura Region has a very strong food heritage which has been fragmented over the last decade due to consolidation and rationalisation of agriculture and the associated food industry. The region is one of the few remaining areas in Ireland that has retained its natural country environment. This country environment is now complemented by a growing outdoor leisure industry in the area, again taking advantage of the natural unspoilt countryside. Ireland s economic activities have historically been based around our natural resources and tourism. Over the last decade the economic activity has changed to one based predominantly around Technology, Construction and Foreign Direct Investment. Ireland is now facing new challenges with its economic growth into the future, there are strong signs that the construction sector is slowing down and our technology industry together with Foreign Direct Investment is under pressure from the newer economics in Eastern Europe and China. The changes in the economic environment have focused the attention back to our indigenous industries, namely agriculture, food production and tourism. The rationalisation of the primary food processing industries is at an advanced stage. The newly successful food companies are no longer based around agriculture or the co-op structure. The new age of successful food companies is about food entrepreneurs, marketing, authenticity and more local than global. Within the growing food sectors such as organics, authentic food and artisan the operators are widely dispersed throughout Ireland with no obvious focal point. Ballyhoura Region is one of a few regions within Ireland with the potential to establish it self as the The Heart of Food Ireland it has the food heritage, unspoilt countryside, market towns with very strong food history, geographically located with a strong road, rail and air infrastructure and convenient to world class food research and food education facilities. The establishment of a food cluster within the region as forerunner to a food park plus the creation of a strong food tourism destination will bring Ballyhoura to the top of the food agenda in Ireland. If Ireland is ever going to have a recognised food region Ballyhoura has a lot of the characteristics to achieve this status, if it so wishes. Ballyhoura Development Ltd 28
29 Appendices Ballyhoura Development Ltd 29
30 SWOT Analysis Strengths - Food Heritage of the Area - Ballyhoura has a strong local Development Company - Ballyhoura Development Ltd has an entrepreneurial culture - Strong Food Skills Base - Relatively Unspoilt Countryside - Strong Agricultural Base - Geographical Location, the heart of Munster - Good Infrastructure, Road, Rail, Sea & Air - Work / Life Balance Region - Availability of Food production skills - Food Distribution Networks - Proximity to world class food research and food education facilities. Weaknesses - Lack of strong entrepreneurial culture - Reduced Confidence in the Food Sector at a local level - Limited Food Tourism or Food Retailing - Commuter Zone for Limerick and Cork could reduce availability of workforce - The Region underestimates its potential - The Food expertise has been in large scale production. Opportunities - Re-emergence of the food sector, post Celtic Tiger - Lack of strong food region in Ireland - Small / Medium Food Enterprise Sector - The potential to stand out in the Food Sector - Establish a food cluster - The age for food enterprises - Green Image - Food Miles / Green Miles National Supply - Niche Food and Agricultural sectors - Agri-Tourism is underdeveloped. Threats - Lack of Funding - Alternative Food Regions e.g. Border Counties - Food Miles / Green Miles - Export Supply - Ability to change and make the transition. - How to make niche sectors work. Ballyhoura Development Ltd 30
31 Strategy TimeLine The following pages contain a detailed timeline on each key element of the strategy. The details on the timeline at the moment are provisional and will need to be finalised with the custodian of the Food Sector strategy in Ballyhoura Development Ltd. A key element of the strategic process will be to keep this timeline updated to reflect changes in thinking or circumstances. Strategy Cost Guesstimate The brief on this project didn t include a strategy costing requirement; however the following is a guesstimate of costs based on the resultant strategy proposal. These figures are a broad based macro level approach to give a cost indication of following such a strategy, further detailed costing could show significant variation. The execution of this strategy in its totality is similar to running any business where the strategy has to have an ownership and accountability. The guesstimates include a management structure to manage and deliver the strategy in its totality. Some elements of the strategy will have benefits beyond the food agenda, for example the promotional video could have use across the tourism sector in total. The concept needs to be sold at all levels and a clear willingness to make the strategy happen be established at a local and national level. Entrepreneurial Culture A key element of the proposed Food Strategy within the Ballyhoura Region is to foster and nurture an entrepreneurial culture across the three sectors, Food Producers, Agriculture and Food Tourism. There are good examples within each sector of very successful businesses built and run from an entrepreneurial base. In recent years the entrepreneurial culture was mostly associated with dotcom, telecommunications and the property industry. There has been an emergence of food entrepreneurs over the last decade which has been over shadowed by the more publicised technology and property success stories. One of the best publicised success stories of food entrepreneurs is Innocent the UK based fruit smoothie business. In Ireland there have been equally successful businesses. Examples would be Mr Crumb, Freshways Sandwiches, Dew Valley. Ballyhoura Development Ltd 31
32 Irelands food processing industry is historically based around the processing of agricultural produce. These industries are now at an advanced stage of rationalisation which leaves a bank of available food experience at all levels of employment and associated services. Silicon Valley is one of the best examples of the benefits of the development of an entrepreneurial culture. This type of culture brings with it some very distinct characteristics, a search of the internet under entrepreneurial culture found 1.25m results the first of which was from the Ewing Marion Kauffman Foundation in Kansas City US and a summary of its text are as following. What Makes a Culture Entrepreneurial? in an entrepreneurial culture, work is more than a job, it s a lifestyle. Treat people with respect Help employees stay healthy Open doors to communication Build Camaraderie Maintaining Entrepreneurial Culture Let the team build itself Participate without controlling Don t forget the little things Food businesses with and entrepreneurial culture are the types of enterprise that should be encouraged to establish themselves in Ballyhoura. The work to date in the Ballyhoura region on tourism and outdoor pursuits provide a solid foundation for an entrepreneurial culture. The geographical location which has all the infrastructural requirements of transport, education and research further enhances the likely success for a commercially viable enterprise. The Food Cluster Business Model will support and enhance the development of an Entrepreneurial culture. The cluster business model has been used through out the world to develop various industries. Ballyhoura Development Ltd 32
33 Ballyhoura Development Ltd 33
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