Heydon has high hopes for Irish exports to Japan

There is great potential for Ireland to ramp up its beef, dairy and whiskey exports to Japan, according to Minister for Agriculture Martin Heydon.

Speaking to the Irish Farmers Journal in Tokyo last week during a week-long trade mission to Korea and Japan, the minister pulled on the green jersey and went into sales mode.

“From a trade perspective the Japanese market is very important to us. We gained market access for beef here back in 2013, we’ve seen a consistent rise in growth in that. The vast majority of our beef tongue is sold in Japan, it’s a delicacy here. There’s also great potential here for whiskey,” he said.

A number of whiskey distilleries joined the trade mission due to the uncertainty of the US market where 40% of Irish whiskey goes, the minister said.

“It is a sector that has seen constraints before the geopolitical uncertainty, and it is a very difficult space for many to be in at present. Many of them have paused distilling for a few months, such is the pressure, so the need to develop alternative markets and grow alternative markets is really important,” he said.

Minister Heydon said that no matter how long a country or company has been in a market they have to continue to sell themselves.

“There’s a reason companies like Coca-Cola continue to advertise – because advertising works and you don’t ever stop promoting yourself. The first thing is to gain market access and then the second thing is to grow it and expand it.

“If you take Korea for example, that was a 14-year process from start to finish. It was particularly challenging because there are sensitivities in Korea with their local farmers. They’re very proud of their Hanwoo beef, which is their local beef, but they’re not self-sufficient and they are the fourth biggest importer of beef in the world.

“It’s a long-term play for us, but it absolutely is a very important market at present. Short rib is the big demand there at the minute,” he said.

The Kildare farmer said that there is a growing understanding about grass-fed beef in Korea and Japan.

“Every market is different and when my officials sit down to agree market access, we know very clearly from industry what they want to get from that, and you try and align that with what the country ultimately is willing to offer,” he said.

“The country will determine where the gaps are and again, in Japan, there is not self-sufficiency in beef, so they do need to import.

“Every country will have a different set of terms and conditions and you have to meet the country that you’re importing into, so some will have age restrictions, others will have disease restrictions, very strict controls and reporting requirements in relation to disease and the likes. Then you’ll also have bone-in, bone-out and different countries will have different specs. But we would be very aware that in somewhere like Korea, that bone-in is what’s really important. If it was boneless, there wouldn’t be the same opportunity there because they do like their protein on the bone.”

Gaining access to new markets and growing the presence of Irish food in the existing markets is a top priority for the minister.

“Just because we have access in 180 countries around the world or 50 countries for beef, not filling each one of those markets isn’t failure. Having the range of options for our food companies, that they can then pick the best market that suits them so they get the best price, allows them to pay the best price back to the farmer so ultimately, it’s about having a critical mass of options for our food companies to sell farmers’ produce into,” he said.

Dairy opportunities

With an ageing population, demand for protein is to increase in Japan.

“I know there’s Irish companies that have very significant interests in sports nutrition out here.

“This is an ageing population in Asia and there is a very strong requirement for more protein intake the older we get, so the story of our grass-fed dairy and beef produce is one that resonates very well with an ageing population that is very health conscious.

“The health credentials of that food produce is something that resonates here and, if there is a pivot in the market from a dairy perspective and beyond, that is very much one where I see a good potential for us. We have a very good reputation.

“We maybe take it for granted at home at this stage, but the most important thing in this market is our safety credentials and we are very trusted for having the highest of standards of traceability and safety, something we should never take for granted,” he said.

“I know it’s a source of frustration for farmers at times, our regulations, but it’s only when you’re on a trade mission like this that you see why it’s so important. We export 90% of the produce we produce and we’ll never let those standards slip because it’s absolutely critical for us reaching the best value markets.”

Whiskey

If Trump’s tariff negotiations and all that’s come with that has taught us anything, no more than Brexit did, it’s never good to depend on one market, the minister points out.

“You would very much prefer not to have 40% of your produce going into one market. That’s why I met with one of the biggest purchasers of Irish whiskey and drinks in Canada. I also see great opportunity over here. In this part of Asia you have a growing middle class and with increased western lifestyle and diet and habits, premium whiskey is a key part of that.

“Telling the story of our Irish distillers and the story of Ireland is actually a key part of that. It was the same in Korea. The first thing you have to do is explain to people who don’t know where Ireland is, is [about] our green island nation.

“When you’re selling Irish beef, when you’re selling the pasture-based dairy produce, you’re also selling Ireland. There is that halo effect that happens when you get strong advocates in a local market.

“It’s not that you just sell whiskey and you just sell beef, they’re all inter-connected.”