1. REFORM CAP - FOOD INDUSTRY
Decoupled Farm Subsidies
Single Payment –x--- Production 1.
Market Required Food Products
Environmental Quality
Food Safety
Animal + Plant Diseases/Health 2.
Rural Development Fund
(€1.2B/annum - Post 2005)
Food Safety + Quality
Animal Welfare (Diseases)
Essential
Knowledge Driven Agri-Food Sector

2. Food
Industry

3. ECONOMIC ENVIRONMENT Sustained International Competitiveness
More Liberal - Global Markets
Higher Levels of Food Regulation
Substantially Greater Requirements
Assured Food Safety, Consistent Quality
Nutritional Attributes, Animal Diseases/Welfare
Quality of the Environment
Increased Corporate Alliances
Suppliers + Manufacturers + Retailers
Rapidly Changing Lifestyles
Population Becoming Older
Shrinking Household Size
Women in the Workforce
Two Income Families
LESS Time Shopping + Cooking
More Leisure Demands

4. IMPACTS - FOOD INDUSTRY
Market Developments
Convenience - Easy to Prepare Meals
- 30 Minute Dinners
Functional Foods
- Neutraceuticals
Food Service Sector  Supermarkets
Requirements
Accelerated Innovations in Agri-Food Sector
Ubiquitous Application of IT + Biotech!!
Knowledge Driven Agri-Food Sector

6. Dairy Product Portfolio - Direction of Change
Functional and
organic foods
15% 5%
Consumer
products
20%
20%
Value added
ingredients
30%
65% Base Products
45% Base Products
Current product portfolio mix
2015 product portfolio mix
Promar International

7. Economic Performance Comparison
Ireland Denmark Netherland
Economic Value Added
(EVA)
Relative milk Price

8. Current Beef Grading/Quality Systems
Depends on human judgement
Difficult to demonstrate objectivity
Producers lack confidence
Difficult to agree quality based payments

9. New Instrument Grading Systems
Already some adoption by industry in US and EU
Recent regulations by USDA and EU likely to increase
the rate of uptake
Potential for further developments and improvements -
fat class (EU), palatability
Familiarity with benefits of VIA (objectivity, consistency,
MIS) - lead to greater adoption

10. NEXT STRATEGIC STEP Step Change - Food Innovation +
Serious + Sustained €M - R&D
+ +
Technological Absorptive Capacity
Food Companies - SMEs +
Business Partnerships
Public Research Organisations
Universities + Applied Research Organisations
Market-Led Innovative Food Products + Processes
__________
Japan Functional Foods R&D Personal/Company
Finland - Tekes €50m R&D Program
Functional Foods, Food Chemistry + Biotechnology

11. New Food Product Development High Costs + High Risks
+ 90% Failure - 1 Year Market
Imperative - Reduce Risks
Understanding + Quantification
Issues 
Farming Consumers Attitudes to Food Products
Denmark MAPP Institute
Food Related Lifestyle Consumer Model
Applied Ireland

13. FUNCTIONAL FOODS FOOD PRODUCTS
Specific Health + Nutritional Attributes
especially
Infants, Adolescents + the Elderly
Functional Foods
PROBIOTICS
NEUTRACEUTICALS
(Life Organisms)
Lactose Intolerance
Diarrhea
Disease Resistance
Healthy Gut
(Chemical Ingredients)
Osteoporosis
Hearth Disease
Cancer
Dental Caries

14. Functional Foods: Potential Health Attributes of Food
Ingredient
Potential Heal Attributes
Calcium
Prevention of Osteoporosis
Promotes healthy bones and teeth
Protective against hypertension
Folic Acid
Protective against neural tube defects
Vitamin E
Protective against Heart Disease
Protective against Cancer
Iodine
Protective against Goitre
Immuno-peptides
Casein Phosphopeptides
Promotion of Calcium Absorption
Lactoperoxidase
Prevention of dental caries
Lactoferrin
Prevention of gastro-intestinal infection
Leukaemia therapy
Modified β _
Lactoglobulin
Prevents milk protein allergies
Lactic Acid Bacteria
Promote a healthy gut
Immunoglobulins
Lowering of Cholesterol
Functional Foods: Potential Health Attributes of Food

15. Functional Foods and Their Potential Market Scale
Small
Potential Market Scale
Large
Large Small
Feasibility/Approvability

16. SOME MARKET PROJECTIONS
All Functional Foods
Global Market
$6.6 Billion
~ 50% = Japan
$17 Billion
Longer Term $ 87 Billion
Probiotic Dairy Products
- Most Active Area
- 65% European Functional Food Market (1997)
$889 Million
>250 Million Kg
UK, FD, Sp, B, Nl, DK, F, S
Longer Term ~ $30 Billion

17. Microbiological Contaminents
FOOD SAFETY
Chemical Residues 
Microbiological Contaminents
(Pathogens)
BSC - Prions
Mycotocins - Fungi
Viruses