Having access to appropriate professional skills is an increasingly important requirement as Irish food companies develop. The legal sector is one area that firms are accessing services in, as they deal with a range of issues at national and EU level and weave a path through uncharted export territories.
Irish food specialist Maree Gallagher of law firm Maples and Calder notes a significant increase in activity from clients in the food sector over the past 18-24 months as companies look to develop new export markets. “A lot of firms are scoping out markets in the Bric countries and they need advice from lawyers in those jurisdictions.” There is a lot of interest from Irish food companies in developing business in the Chinese market, she notes.
Gallagher says that the abolition of dairy quotas in 2015 means that the Irish dairy sector is the focus of a lot of activity. In addition there’s a lot of focus on new rules about traceability and concerns about security of supply. “Food companies want to know if their contracts are tight enough and if they are covered from a legal point of view,” she says.
Another key area for Irish food companies relates to European legislation and the regulations of bodies such as the European Food Safety Authority (EFSA) which, among other things, assesses claims about the nutritional benefits of foods, Gallagher says.
Shane O’Donnell, of solicitors William Fry, also notes an increased level of client activity in the food sector over the past couple of years from large established companies to small craft producers. “Food is seen as a sector that has long-term and sustainable growth potential, especially in the context of export markets in rapidly developing countries.”
He has also noted a significant increase in the level of queries in regard to the Chinese market with infant formula a focus of keen interest, for example. “Ireland has a lot of attraction from a Chinese perspective as a quality sustainable producer and Irish companies are increasingly aware of the potential and the opportunity to harness it if they go about it correctly.”
The capacity of smaller producers to scale-up to meet these enormous emerging opportunities will be crucial to whether they can succeed, he observes.