Changing agri-food industry poised to lead economic recovery

What will Northern Ireland, especially the food and drink agri-food industry here, be like when the Covid-19 outbreak has been brought under control? It’s the question that’s been on my mind for a few weeks now, writes Michele Shirlow, Chief Executive, Food NI.

We have seen the major food processors responding quickly and effectively to consumer demand and it’s likely, therefore, that they will be in a strong position to assist economic reconstruction in the short to medium terms. The economy will continue to need their enterprise and innovation.

Most of the bigger players have also generated additional employment opportunities in response to fast moving consumer demand. It may well be that many of these new jobs will be retained after the crisis. I certainly hope so. I also hope that the supermarkets will appreciate their flexibility and responsiveness and continue to source from them in the future.

The supermarkets and other retailers should have recognised the need for shorter and more easily accessible supply chains that focus on local food and drink sources and not just for ease of supply. Local sourcing ensures greater traceability, closer contacts, speed of response and real provenance.

Northern Ireland agri-food industry

What we’ve also seen is a sharp concentration on a smaller range of products such as mince and chicken fillet breasts. Some of the meat processors have been driven by consumer demand to mince even their better cuts of beef. And processors which have been largely dependent on foodservice operations such as hotels and restaurants have been trying hurriedly to open up other channels in retail and even home delivery services.

Will they continue to focus on these services beyond the virus? I believe they will. They have recognised the perils of focusing primarily on a sole sales channel.

In Food NI, we’ve also been concerned about artisan and smaller producers. Many of these enterprises saw cash flow virtually halted by the sudden closure of markets and events up and down the country. Some retreated, choosing to hunker down until the virus disappears. Others responded positively by either going on-line or offering doorstep delivery services to telephone or e-mail orders paid by card in advance.

I applaud their enterprise and determination to generate the cash flow that will enable them to stay in business. Food NI has sought to help them by publicising and promoting their services and products on our website and through social media posts. We will continue to do so because we appreciate that going into online sales is difficult without significant spending on promotion.

Some smaller companies, especially self-employed businesses, have slipped through the cracks in the Government’s support schemes. We continue to press the Northern Ireland Executive to help these smaller businesses to survive with grant support.

Online sales post Covid-19

Companies which have invested in online sales are likely to continue to develop this channel beyond Covid-19 and this may have an impact when the food markets reopen. There are also a number of smaller companies offering doorstep delivery throughout much of Northern Ireland, a real community service.

Local retailers and delis have also been doing a marvellous job in offering delivery services using produce sourced from smaller suppliers here. Many of these services may well continue beyond the outbreak and offer an important channel for these companies.

Furthermore, the Government call for consumers to stay close to home is also breathing new life into corner grocers, butchers and farm shops and these may remain a more important outlet for smaller producers and for shoppers in the future.

Another important development has been the growing respect for our farmers and the massive contribution they are making to the ‘Feed the Nation’ campaign. Claims that the UK no longer needs its farmers and could survive on imported food are now seen – and rightly so – as utter nonsense.

Agri-food and drink, as a result, is well positioned to drive economic recovery in Northern Ireland beyond the virus outbreak. Support from the Executive will also enable it to strengthen market positions in Britain and the Irish Republic as well as to rebuild sales in key global markets.

My hope is that when the crisis passes, and it will pass, that our agri-food and drink industry continues to be valued and recognised as vital for our nation’s health and economic recovery.