April 25, 2016

 

Ireland's food industry on trade mission to Iran

 

 

Ireland's Bord Bia, the Department of Agriculture, Food and the Marine and 17 Irish food companies, begun a three-day trade mission to Iran this month, the first from the country since international sanctions on Iran were lifted earlier in 2016.

 

Department of Agriculture officials will also visit Ankara for discussions with their Turkish counterparts on developing trade between both countries. A departmental delegation is also in Morocco and Algeria next week to discuss bilateral trade, including the opening of those markets for live cattle from Ireland.

 

With a well-educated population of 80 million people, some 40% of whom are under 25 and an economy anticipated to expand by over 2% annually in the coming years, the lifting of sanctions will offer new trading opportunities in Iran for Irish food exporters to increase their share of a market which returned EUR4 million (US$4.5 million) in 2015.

 

Speaking ahead of the visit, Aidan Cotter, chief executive of Bord Bia, said: "The lifting of international sanctions on Iran opens the way for Irish food exporters to explore trading opportunities in the second largest economy in the Middle East. As the economy grows and demand for premium food products outstrips domestic supply, Iran is looking to countries like Ireland to supply high quality, safe and sustainably produced food".

 

Commenting on the visit, Minister Simon Coveney said, "Trade missions are an important element of our agri-food strategy as we seek to diversify the number of available markets for Irish exporters of food and agri-services. This mission will be key to re-introducing Irish companies to the Iranian market and buyers and will no doubt pave the way for greater collaboration with Irish exporters. Officials from my department will also take the opportunity to visit Ankara for discussions with Turkish counterparts where we are seeking to advance the market access approval for live exports of Irish cattle amongst other things".

 

Although food did not form part of the international sanctions, issues surrounding financial transactions, dwindling foreign currency reserves and a drop in consumer sentiment as the economy contracted during that period made for a difficult trading environment in Iran.

                                                                       

Cotter continued: "While challenges still exist for Irish companies supplying into the market, we will work with them during this visit to explore new openings and ensure that as impediments to trade recede, Irish exporters can access the market early, build fruitful relationships and grow their businesses in tandem with economic growth.  While the main focus of this visit will be on the dairy and prepared foods, where the most immediate opportunities are perceived to exist, I expect it will pave the way for future direct engagement across other sectors." 

 

Programme of Events

 

Bord Bia's programme of events aims to familiarise companies with the Iranian business environment and provide them with opportunities to engage directly with targeted potential customers.

 

At the information seminar, companies will receive expert advice from Iranian food industry, financial and legal experts on optimising business opportunities and ensuring due diligence exercises are comprehensive before embarking on business ventures. 

 

In addition, expert-led visits to retail, production and processing facilities will provide first-hand experience of the Iranian food supply chain and point to where the principal opportunities may lie. Most importantly, Bord Bia will facilitate one-to-one meetings between the 100 targeted Iranian food buyers and Irish exporters as the next step in building new trading relationships.

 

Meeting with Ministry of Agriculture

 

Senior officials from the Department of Agriculture Food and the Marine, along with Sustainable Food Systems Ireland (SFSI) and Bord Bia will meet with senior representatives of the Ministry for Agriculture for discussions on areas of mutual interest, particularly trade in Irish beef, sheep meat and dairy. These meetings will also include discussions on areas of future collaboration between the agri-food sectors in both countries.

 

Trade with Iran

 

Ireland's food and beverage exports to Iran in 2015 amounted to EUR3.6 million (US$4.05 million) consisting mainly of juices, butter and prepared foods. While exports of dairy produce including infant formula were a feature in the past, this trade has suffered in recent years. Access for Irish beef was secured in April 2012 and Irish Department of Agriculture has been engaged in bilateral contact with Iranian authorities for some time to finalise the arrangements which will allow for the opening of the sheep meat trade.

 

- Origin Green Ireland