The Irish Farmers Journal was on a Department of Agriculture and Bord Bia-led trade mission to the United Arab Emirates (UAE) and Saudi Arabia this week.

As well as opening new markets for Irish beef and sheepmeat in the region, the trade mission took part in visits to retail outlets to ascertain the prominence and market penetration of Irish food produce.

In 2016, Ireland shipped €136m worth of food to Saud Arabia and €58m to UAE. Dairy is the biggest exporter through powders and cheeses. There has been growth in the butter market too.

Just 1,100t of beef was exported to Saudi in 2015, while beef exports to Dubai are small in volume and targeted at the higher end of the retail and food service sectors.

Both countries have an accepted dependence on imported food. The two states are 90% dependent on food produced outside of their country.

Saudi Arabia

The super wealthy and ultra-conservative Saudi Arabia has a retailer market made up mainly of enormous hypermarket chains such as Panda and Danube.

Powders

Powders are the big Irish export product to Saudi, accounting for 90% of all Irish food shipped there.

Abbott Nutrition in Cootehill, Co Cavan, uses LacPatrick powder and the Similac formula brand is one of the most popular in the region.

A 900g tub costs 29 Saudi Arabian riyal (€7.20) and larger 1.7kg tub costs 64 riyal (€16). A government decree limits the prices for all powder manufacturers to 29 and 64 riyal.

Cheese

Cheese is the growth area for Irish food into Saudi.

In the Danube store, Glanbia’s Wexford brand has pride of place. Each kg of yellow cheddar sets back the Saudi consumer 49.95 riyal (€12.54) while the Wexford white cheddar is 46.95 (€11.78).

Beef and sheep

Despite receiving improved access to Saudi for beef and full access for sheepmeat, there is nothing of a presence in Saudi for those Irish products.

Beef exports to Saudi peaked in 2015 when 1,100t (€3.5m) were shipped. Cheaper beef from Brazil and Australia make up the majority of Saudi’s beef imports.

Consumer trends

Saudis, despite a downturn in the economy because of oil prices, are big grocery spenders. Half of every shopping basket in the Danube outlet is worth at least €200 (796 riyal).

The country is introducing a 5% VAT rate from next year and the government is cutting back on subsidies to its citizens as a way of protecting the economy. It remains to be seen what impact this will have on food.

According to Bord Bia, Saudi Arabia imports 90% to 95% of its food requirements, so security of supply is of paramount importance to them.

United Arab Emirates

The trade mission also toured the UAE states of Dubai and Abu Dhabi. Similar to Saudi, these city states are super wealthy with a high discretionary income spent on food and shopping.

Ireland shipped €58m worth of food to the UAE. Again, dairy is the big item there with €39m worth of product sent last year.

Irish food is found in retailers such as Spinneys, Waitrose, LuLu and Choithram.

Dairy

Of the €39m in dairy exports to the UAE lalst year, €19m was in the form of nutritional powders with another €6m in exports coming in the way of butter and cheese.

The Kerrygold and Glenstal brands are the big drivers of butter and cheese exports to the UAE.

A 200g pack of Kerrygold butter in Waitrose in the Dubai Mall costs, on average, between eight and nine Emirati Dirham which is between €2.05 and €2.30.

On the cheese side, 200g of Kerrygold ranges from 14.50 Dirham (€3.71) from yellow and red cheddar to 17 Dirham (€4.35) for mature cheddar, 18.50 Dirham (€4.74) for vintage cheddar to 21 Dirham (€5.38) for extra mature cheddar.

Beef and sheepmeat

Similar to Saudi, there are only small volumes of beef going to Dubai. The John Stone company, which has a partnership with Kepak, exports prime beef cuts to some of the world’s best restaurants in Dubai.

Food distributor Fresh Express imports small volumes of Halal beef from Kettyle in Fermanagh. The beef is slaughtered in Ashbourne Meats.

The beef is sold in high-end retailers and restaurants for 55.80 dirham (€14.30) for a 360g portion.

Pork

Pork is forbidden as part of the Muslim religion. However, brands such as Clonakilty Black Pudding and Oliver Carty are sold in specially designated sections of some stores such as Spinney’s and the Dubai Duty Free.

A 200g pack of Clonakilty rashers cost 17.75 dirham (€4.55) while the pudding costs up to 32 dirham (€8.20). Sausages cost 28.75 dirham (€7.37).

Oliver Carty’s 575g loin of bacon costs 29.50 dirham (€7.56).

The Clonakilty range has only recently made its way to Irish shelves and the company’s chief executive, Colette Twomey, was part of the trade mission. You can listen to her below.

Listen to "Selling Clonakilty pudding in Dubai" on Spreaker.

Colette Twomey

Others

Here are a few other Irish favourites for sale in the Spinney's chain in Dubai. Barry's Tea, Flahavan's and Glenisk all feature.

Consumer trends

As one person on the trade mission put it, “it looks like mating season for cranes in Dubai”. There is no sense of a slowdown in the economy in Dubai like there is in Saudi. Some 90,000 extra hotel rooms will be built by 2020 and consumers like to dine out.

The average annual income is €40,000 (tax free) and the average person spends €300/week on eating out. The target for exporters is this restaurant market.

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Full coverage: Gulf states trade mission