an editorial supplement to The Grocer Big choices in a small market Producers are at the crossroads says David Shapley. Do they match up to the multiples or continue to service the republic's small retailers? The Irish enjoy their reputation for quirkiness. While internationally the fresh produce world has welcomed the concept of Five-a-Day promotions to boost consumption, the Emerald Isle, through its horticultural development board Bord Glas, prefers the slogan Four-or-More to tell schoolchildren and young adults of the benefits of eating fruit and veg. Imports can be expected to benefit from the campaign, but also Irish horticulture, particularly since the Ministry of Agriculture, Food and Rural Development is making £14m worth of aid available to enhance crop quality and environmental practice over the next six years. "It is also a response to the impact that the supermarkets' demands are having on growers," says Kevin Harrington, secretary for horticulture at the Irish Farmers' Union. In many cases it has been quite a learning curve to meet the new disciplines but the industry has responded well." He says Irish farmers have shown themselves very able at growing field vegetables and roots, and developing seasonal niche markets for soft fruit and protected salad crops. The crunch is whether these industries will continue to be able to develop to the size and format to meet retail buying programmes and price demands. There are signs of a two-tier system developing ­ some are investing in packaging and quality assurance, while others continue in the tradition of providing a service to small retailers. Harrington is a member of a new group of agricultural advisory committees set up by minister of state Noel Davoren to look into the whole question of marketing, standards, and research and development as well as the potential for the small organic range. The multiples are also more demanding in terms of category management ­ an accepted tool to strip costs out of the distribution chain. Judging by the recent outcry against Tesco's price cutting, Irish growers are facing the same situation as their UK counterparts but are disadvantaged because they operate within a much smaller market. However, the mushroom industries in the republic and in the north are already geared to handle modern retailing demands. Both support substantial export industries to the UK, where several also own a good proportion of large scale English production. Total UK imports over the last decade, according to Taylor Nelson Sofres, have doubled to 59,000 tonnes with the majority coming from across the Irish Sea. Latest figures from Bord Glas put the Irish export contribution alone in 1999 at over 44.2 million kgs valued at over IR£70m. Alex McGarel, arable secretary at the Ulster Farmers' Union, estimates this year's mushroom crop to be worth around £29m, slightly down on last year accounting for a total production of 25,000 tonnes. "The industry has even attracted more packer exporters who, similar to across the border, source their mushrooms through the use of satellite systems ­ in effect they support a highly successful cottage industry for small growers who are provided with ready composted bags and send the crop back daily to the central packhouse." This year, however, the Ulster industry is not without problems. McGarel says the sector is under pressure from the strength of sterling, which has hit export profitability, increased competition from Ireland where the punt is linked to the euro, and a drive by the Dutch mushroom industry for UK market share. Similarly the horizon for Ulster's Bramley apples in the Armagh province is not as bright as hoped. While the crop is back to a normal 25,000 tonne season, Dermot Morgan, secretary of the Northern Ireland Fruit Growers Association, says prices at around £120/tonne have hardly improved. The bulk of the crop is sold for processing as diced, pulp or juice and goes onto a world market where there is oversupply. "Irish producer prices have remained static and even fallen over the past five years," says Alan Walsh, commercial director of Walsh Mushrooms. "Growers are having to consolidate, although larger retailers still show a preference for Irish mushrooms. Today it is all about economy of scale and greater efficiency." The company, which produces some 450,000 lbs weekly, mainly in the Republic at Gorey, Athlone and Roscommon, recently took on a fourth farm in Armagh and backs up exports from its own new £1.6m production/packhouse in Evesham, Worcestershire. Walsh points out that Ireland's "tiger" economy has, for the first time, created a shortage of local labour. "And retail quality standards and service levels are rising all the time, although the balance between loose and prepacked mushrooms has altered very little," he says. "Every aspect of distribution, where fuel costs are an important element, is being monitored," he says. {{SUPPLEMENTS }}