Map of EU with padlock

GDPR and Data transfer to or through the UK

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The General Data Protection Regulation (GDPR) came into force on 25 May 2018 and unifies data protection law throughout the EU. It gives individuals control over their personal data and requires businesses and other organisations to put in place processes that protect and safeguard that data. The regulation also addresses the transfer of personal data outside the EU and EEA.

 

Dealing with the UK, USA and other third countries

GDPR came into sharp focus this year as a result of the UK’s withdrawal from the EU. GDPR still applies in the UK, however as it is now a third country it is subject to the GDPR rules governing the transfer of data outside the EU and EEA.

 

Data transfer to/through the UK

The first thing for firms to do is to establish exactly where their data goes. Companies may not realise that their cloud storage provider is actually located in Britain or Northern Ireland. Their pension schemes, payroll, healthcare plans may all be run out of the UK and involve the regular transfer of personal data. Workplace benefits databases could also be held in Britain or Northern Ireland. Even translation services might be covered if personal data is included in the material to be translated.

Having established that data is being transferred to the UK, the next step is to decide if that needs to continue. There may be options to look for another service provider in Ireland or another EU Member State and these should be explored.

Standard Contractual Clauses

If it is not possible or if it is too difficult to take this option, there is a ready solution to hand. There is a tool that can be used to solve this problem and it is available on the Data Protection Commission website. It is known as the standard contractual clauses (SCCs). This is a set of off-the-shelf clauses developed by the European Commission and which are recognised as an appropriate safeguard to ensure that firms remain compliant with GDPR.

The SCCs are already written and only require firms to fill in the blanks with their details. They can be appended to existing contracts and come into force when both parties sign them. Once signed, this enables firms to continue transferring data to the UK in full compliance with GDPR, and people still have their rights.

The data subject is also given certain specific rights under the SCCs even though they are not party to the relevant contract. Firms are also advised to update their privacy statements to indicate that the data is transferring to the UK under the terms of the SCCs.

The SCCs will cover most situations, but there are certain more complex cases where they may not apply. These are relatively rare, but firms in doubt should consult the Data Protection Commission or seek their own legal advice  to check out their particular situation.

There are also certain situations where the data transfer is not covered by contract. These include cases where data is being transferred from a UK Controller to an Irish processor for processing and then transferred back to the Controller. This has been a relatively routine process up until now, as the data remained within the EU at all times. The best advice for firms based in Ireland who find themselves in this situation is to look at the clauses within the SCCs and insert them into the service level agreement governing the activity. This will demonstrate an intention to be GDPR compliant in the new situation.

The same will apply to Irish shared services centres carrying out global back and middle office functions for multinational parents. They should update the terms of service to UK-based affiliates to include the SCCs.

 

Data Protection Policies

Some very large organisations use what are known as Binding Corporate Rules (BCRs). These are legally binding internal codes of conduct operating within a multinational group, which applies to transfers of personal data from the group’s EEA entities to the group’s non-EEA entities. The approval of BCRs can take a significant period of time and also, given the cost and complexity of BCRs, they are not a suitable transfer tool for most Irish companies.

The only remaining questions for Irish firms transferring data to the UK concern adequacy. Certain ‘third countries’, such as Japan, have received what is known as an ‘adequacy decision’ from the European Commission. This allows a cross-border personal data transfer from the EU to that country because it has been determined to have an adequate level of data protection safeguards compared to the EU. It could take some time before the European Commission completes its negotiations with the UK Government in order to deem the UK adequate as a jurisdiction to which data can be transferred under GDPR. Therefore, companies need to explore the options available to them when transferring data to the UK.

East Africa

Silicon Savannah beckons for exporters keen to capitalise on East Africa growth

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Lisa Kallback, a trade representative for Kenya at Enterprise Ireland, describes exciting opportunities heating up for Irish exporters in East Africa.

The Rift Valley in East Africa is generally thought to be the area in which modern humans first appeared. Fast forward 200,000 years and this Cradle of Humankind has been reborn economically.

Three of the top 10 fastest-growing economies in the world in 2017 were located in East Africa. The African Development Bank (AfDB) has forecast growth of 5.9% in the region this year and 6.1% in 2019, with Djibouti, Ethiopia, Kenya, Rwanda, Tanzania and Uganda all reporting GDP growth in excess of 5%.

Why East Africa is on the radar of Irish exporters

Trade between Ireland and Africa is also on the rise, forecast to reach €24 billion by 2020. In 2018, as in every year since 2012, East Africa will be the continent’s fastest-growing region.

It is little wonder then that the region’s burgeoning middle class, estimated to comprise about 10-15% of its 430 million-strong population, is on the radar for exporters.

While agriculture is an area in which many Irish companies have enjoyed success, opportunities also abound in other high-value sectors, such as healthcare, fintech, and ICT.

Nairobi, Kenya’s capital, is at the heart of East Africa’s transformation. Indeed, its reputation as an ICT hub has earned Kenya the moniker Silicon Savanah.

 

Opportunities in the Silicon Savanah

Mobile money technology was pioneered in Kenya. The electronic wallet service – which allows users to store, send, and receive money using their mobile phone – has transformed how many Africans receive their pay and spend funds. The service is actively used by an estimated 66% of all adults in Kenya, Rwanda, Tanzania, and Uganda.

Dublin-based provider Oxygen 8 offers mobile payment solutions through their Tola subsidiaries in Kenya, Mozambique, Tanzania, Uganda, and Rwanda, as well as Ghana in West Africa. Group CTO Shay Hamilton explains, “The economies in East Africa are growing quickly. Of course, some will be coming from a low base but the emerging middle class means there are more opportunities to come and sell, particularly in the digital space, due to the prevalence of tolled mobile infrastructure, coupled with the mobile payments services.”

Key advice for Small and Medium Enterprises looking to break into East African markets is to ensure you have a strong local partner.

Ruth Barnes is Director of Commercial Operations at Vitro Software, which provides medical records software to the fast-growing private health sector. She says, “We have a partner in Kenya and work very closely with them. But even when you have a partner, it’s hugely important to make the trips and be on the ground there. They are an extremely warm and affectionate people. The relationship is all important and you need to invest time in building those relationships first of all.

Pricing is another issue that Vitro has focused on. “African people are very tech savvy. They’re open to innovation but price has to be achievable because, while growth in East Africa is strong, they are still developing countries. If you’re willing to be a bit flexible in terms of your model and pricing, there are opportunities.

Peter McEntee, of telecoms software provider Nasc Technologies, draws parallels between opportunities in East Africa today and those in Ireland in the 1990s. “A lot of the telecoms software we started out doing was suited to helping telecoms companies in developing countries, and specifically, to Africa. We’ve since developed a range of software for fibre deployments as well, and there is a lot of fibre deployment happening in East Africa, similar to Ireland in the 1990s when the market opened up and new players came in.”

The modern reality of East Africa is much changed from the West’s image of the region in the late twentieth century.

Enterprise Ireland can help exporters with an eye on the savvy Silicon Savannah to identify sectors and opportunities, make introductions to potential partners and buyers, and advise on important procedures, market entry barriers and license requirements. For more information contact Lisa.Kallback@enterprise-ireland.com.

 

This article was originally published in the Sunday Independent.

Czech Republic

Central Europe: Old town, new export opportunities

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Ladislav Müller, manager for central and southeast Europe at Enterprise Ireland, describes new opportunities that are proving attractive to Irish exporters.

From Dublin, it only takes two hours on a packed plane to land in Prague. The city is a popular tourist destination and capital of the Czech Republic, one of the fastest growing economies in Central Europe. As thousands of tourists rushed to the cobbled streets of its old town, Czech Gross Domestic Product increased by 4.5% in the first quarter of 2018. Neighbouring Slovakia has shown 3.6% growth, with Hungary at 4.7%, and Romania at 4.2%.

According to EY’S Attractiveness Survey 2017, Central Europe attracted nearly half of Europe’s industrial investment projects in the period. Its strengths are its geographical links, good infrastructure, the quality of its human capital, and its productivity. The provision of EU funds is another key driver, particularly for Romania, Hungary, and the Czech Republic. The Financial Times projected an improved economic picture for the region, based on stronger-than-expected global demand, tighter labour markets, government stimulus measures, and easy financing conditions.

Irish exports to the region have also grown for the last ten years, even during the recession.

 

Irish exporting success in Central Europe

Many Irish exporters are growing sales by supplying large multinational corporations with a base in the region. Ventac, vehicle and industrial noise control specialists from county Wicklow, set up a regional sales office in the Czech Republic, while Waterford’s PPI Adhesive Products, a leading manufacturer of technical adhesive tapes, run their regional sales operations from Slovakia. Portwest, the Mayo-based designer and manufacturer of high-quality workwear, have a CEE sales headquarters in Hungary.

But Irish companies are not only targeting large multinational companies. Central European agriculture has experienced remarkable growth over the past number of years, supported by an expanding food industry, domestic investments, and EU farm subsidies. Between 2014 and 2020, CAP and EARDF subsidies will reach €26 billion in Romania, €8.3 billion in Hungary, and €7 billion in the Czech Republic. Spending is driven by pressures on efficiency and food safety, environmental and animal welfare regulations, and requirements for farm machinery upgrade or replacement.

In 2017 MooCall, producers of unique calving sensors, were awarded a Gold Medal for innovation at AnimalTech trade fair in the Czech Republic, followed by Dairymaster, who won the Grand Prix at Czech TechAgro 2018 for smart technology for their MooMonitor health and fertility monitoring system.

Enterprise Ireland runs a long-term programme called Opportunities in Agriculture in Central and Eastern Europe that helps Irish farming machinery and technology producers to enter local markets.

Many Irish companies perceive Central Europe as a source of competitive advantage on the continent. Kingspan, producer of insulation panels, celebrated twenty years for its plant in Hradec Kralove, Czech Republic in May 2018. PM Group, international providers of services in engineering, architecture, project management and construction management opened offices in the Czech Republic and Slovakia in 2010. Grafton Recruitment and CPL Jobs are market leaders in human resources management across the region, while many Irish technology companies set up in Romania to service customers.

 

A hub for business process outsourcing

Central Europe is also one of the fastest growing locations for business process outsourcing (BPO) centres and service companies in Europe. According to Outsourcing Advisors, a third of major outsourcing companies now come from Central and Eastern Europe. Ireland has a very strong offer for BPO operators, who are in turn always seeking solutions that drive efficiencies or offer cost savings.

 

Untapped opportunities in Central Europe

As Brexit uncertainties continue, Central Europe offers significant export market potential, thanks to its closeness to Ireland, strong Irish presence, and concentration of multinationals and local buyers.

To support further growth, Minister of State Pat Breen led an Enterprise Ireland trade mission to Warsaw and Prague last June, targeting opportunities across the engineering, electronics, enterprise software, and medical devices sectors. Irish companies signed contracts in excess of €7.5 million during the mission.

Enterprise Ireland’s office in the Czech Republic is ready to facilitate market research visits, introductions to buyers, and searches for distributors, to help companies we support to win new opportunities in an exciting region.

Learn more on how Enterprise Ireland supports businesses to diversify at Markets & Opportunities.

This article was originally published in the Sunday Independent.

German life sciences market

Unlock the German market for your business

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Unlocking the German market requires a focus on demonstrating that your company adheres to the values the country is famous for – reliability and trustworthiness – almost as much as a keen price point. To expand in this key Eurozone market, you should also be able to challenge established supply chains.

The attractiveness of the German market to Irish business is evident in the numbers. It is the world’s fourth-largest economy and bilateral trade between the countries is worth around €39 billion annually. Germany is our third-largest tourist sector, and thanks to links in life sciences, medtech and biopharmaceuticals, Germany is our second-largest source of Foreign Direct Investment.

With a GDP growth rate of 1.6% in 2018, Germany has experienced nine years of continuous expansion of its economy and remains a stable option for companies planning to diversify markets.

Irish companies have a strong reputation in the German market

With historic trade and cultural links, breaking into the German market should not be seen as daunting, according to Deike Potzel, the German Ambassador to Ireland.

“Germany is very open to business to our friends in the European Union,” Her Excellency Ms. Potzel told delegates at Enterprise Ireland’s Ambition Germany conference. “Ireland has a really good reputation in Germany and the German market and I think Irish companies are in a very good position to take advantage of doing business in Germany.”

 

What should be your first steps, and how can you prepare for market entry?

Reliable market research is key, and Enterprise Ireland’s Market Discovery Fund has up to €150,000 available for companies to defray internal and external costs incurred when researching new markets for new or existing products and services.

As a mature market with well-established domestic and international suppliers, you will need to research it thoroughly to identify a niche. You will also need to assess competitors, both local and international.

If the German market is right for you, establishing the best route to market and understanding German business culture will help to avoid wasted sales efforts.

Working with a German distributor will get your product on the ground. But because the market is mature, your product may be competing with several similar offerings, and the largest distributors may have competing priorities for promotion.

While the price point of your product or service is important, in the German business landscape Preis-Leistungs-Verhältnis – value for money – includes demanding expectations for quality, certification and after-sales support.

“Once you have a German partner they are very loyal,” says Robert Byrne, director of Burnside Eurocyl, the Carlow-based hydraulic cylinder manufacturer, which has been supplying Germany for decades.

“But they expect you to deliver and to do what you say. Do that and you will have a customer for life.”

 

Calculate the cost of setting up in Germany

Personal contact is valued highly. While it is possible to sell online or have a virtual office, establishing an independent branch office, permanent establishment or fully fleshed-out GmbH (or limited company) will build the trust required by German partners. You can expect set-up costs to range between €1,000 to €4,000.

Germany is the world’s number one location for trade shows, and attending fairs for your sector demonstrates that you are serious about entering the market. Remaining highly visible at these events for 12-18 months is advisable.

Enterprise Ireland has supported companies to attend the world’s largest medical trade fair, Medica, last hosted in Düsseldorf and attracting 120,000 visitors, and EuroTier in Hannover, at which the theme for 2018 was digital animal farming, attracting 160,000 visitors.

“You may be surprised by how well thought of we are,” says Liam Ryan, managing director of SAP Labs Ireland, and a seasoned veteran of the German boardroom. “Germans admire our ability to get things done, our ability to recover and to pull together. This goes a long way with them.”

The German focus on attention to detail and delivery on promise can be serviced by thinking outside the box. As Byrne noted: “We don’t sell by sending a sales rep to a German customer. We sell by sending an engineer or a designer.”

Do this and you could find that, for your business, ‘Alles’ will be ‘in Ordnung.’

 

Learn more on doing business in Germany with our Going Global Germany guide.

ProDig agri machinery

ProDig invests in the future as it continues to do the heavy lifting

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As the use of digital technology to improve farming efficiency increases, it can sometimes be forgotten that advances in more traditional areas of agriculture remain as important as ever.

Machinery is the original agritech. Innovations that reduce the physical workload for farmers are as old as agriculture itself and are vital to the sector’s profitability in every market.

ProDig Attachments prides itself on doing the heavy lifting. From its base in County Carlow, the company introduced its expertise in manufacturing machine attachments for the construction sector into agriculture 10 years ago and quickly built a reputation for the quality and versatility of its machinery.

Donny Nolan, co-founder and director of ProDig, explains: “ProDig has a strong focus on multi-purpose machinery. We produce attachments that will do the job of three traditional attachments, so the farmer only has to buy one. These attachments also make the feeding process easier, faster and more economical.”

ProDig’s product range includes shear grabs, shear buckets, bale handling attachments, folding grass forks, hi-tip buckets, and bag fillers – all of which are designed and manufactured at the company’s purpose-built factory.

ProDig agri attachment

Donny says: “Our products are pitched generally at the top end of the market. We don’t make cheap equipment. We manufacture on a quality basis and on the basis of a long lifespan for an implement, so we look at the mid to top range of the market. There are a lot of manufacturers in Eastern Europe, China and cheaper economies that we don’t really try to compete with. We look to create implements of top-end quality, innovative products.

“We distribute through importerships. We try to have one single point of importership in a region, whether that be a state in the USA or an entire country. For example, in Germany, we have one importer for the whole country and they in turn the distribute to the dealer network.

 

Strong export strategy

“We’ve got nine or 10 export markets and we also have some markets that we export to on a one-off sale. For some of our unique attachments, the likes of bag-filling units, we export to markets where we have one-off sales going direct to end-user customers. This would be to countries including India, Thailand and South Africa.”

It is a model that has served ProDig well. Consistently growing sales of its broad range of products in various export markets is testament to the quality and effectiveness of the machinery ProDig makes. Indeed, the company has big plans for further growth, spearheaded by a major investment to expand its manufacturing facilities at its Bagenalstown base in County Carlow.

Donny says: “We started an expansion plan in mid-2018 and that’s really kicking into place now. We’re expanding our existing production areas. We’re installing new capital items – new fabrication bays, new welding bays, some new machinery, some new robotic systems.

“It is quite a substantial investment. Over a three-year period, we’re looking at an investment of €1.5 million in the business.”

As with the machinery it makes, ProDig has put considerable energy into planning and preparing its expansion plans and the company is confident that the demand for their machinery is there.

Donny explains: “All our existing markets are expanding all the time, as we are. Our German market is expanding, our New Zealand market is expanding. We have several markets that we’re looking to move into over 2019-2020. We’re currently looking at increasing our presence in the USA, and we’re planning to do feasibility studies on the French and Australian markets.

“This investment will give us an increased manufacturing capacity of 40% and this will help us reach these markets.”

 

Focus on R&D drives innovation at ProDig

For ProDig’s customers, the investment and increased capacity also means enhanced innovation to improve and create new machine attachments.

“As part of our three-year investment, starting from the middle of this year, we’re running a new R&D programme to look at several new products,” Donny says.

The focus of the R&D programme will be the same for ProDig as it has been for the past 10 years: to help farmers do the basics better.

Donny explains: “To innovate within those basic tools and come up with new ideas and faster solutions for the basics – the attachments, bailers and other tools – is vital. If you make the basics better, you make the overall better.”

Doing the basics better is very much in the company DNA at ProDig, while the company’s continuing growth and expansion plans demonstrate the importance of innovating and constantly-improving machinery for farming.

 

Learn more about Enterprise Ireland’s innovation supports. enabling companies to develop new market opportunities and maximise their business performance. 

winning contracts US

Negotiating the non-negotiables: Tips for winning contracts in the US

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In a David and Goliath business encounter, David stands a better chance of success if it is obvious that he is good at what he does, said Sally Hughes, CEO of the International Association for Contract & Commercial Management (IACCM), speaking at this year’s E3 Entrepreneurship Export Exchange conference, organised by Enterprise Ireland and Global Situation Room.

 

IACCM is a not-for-profit organisation dedicated to raising the value and integrity of trading relationships worldwide, working side-by-side with both buyers and suppliers and with both mega-corporations and SMEs.

In her presentation, Hughes covered three lists:

  • the most common terms included in standard US contracts
  • the most important terms included in US contracts
  • strategies that SMEs need to adopt when dealing with major corporations.

She also described an example of an unnamed SME owner who negotiated a life-changing deal with retail giant Walmart and discussed how Irish firms could follow their example.

 

Show you’re an expert in your field

“In an environment where one side has significant buying power, as a supplier you have to demonstrate great quality and value,” she says. “More importantly, you need to present yourself as an expert in your field.

“The one area where there will inevitably be negotiation is price but it’s critical not to get dragged down in those discussions early on. In fact, in the first few meetings you don’t want to be negotiating price at all. The key to meaningful negotiation, and to the effective management of risk, is to get to know the buyer well.”

In Hughes’s Walmart example, the successful SME supplier spent 18 months getting to understand the retail giant’s needs. Notably, when the supplier was offered a contract with Walmart’s non-negotiable conditions, his lawyer warned him that the terms were ‘too risky’ and could cause the collapse of his business but the supplier continued to negotiate a deal.

 

Negotiating contracts in the US

According to Hughes, the terms most commonly negotiated in standard contracts in the US include:

  • Limitations of liability
  • Indemnification
  • Price, charges and price changes
  • Termination of contract
  • Scope and specification
  • Warranty
  • Performance guarantees and undertakings
  • Payment terms
  • Data protection, security and cyber-security
  • Liquidated damages.

Indeed, the IACCM chief said that, very often in contract negotiations, the areas that partners battle over the most are not always the most important. Hughes advised that the most important contract terms to focus on are those that will contribute most to your success, largely:

  • Scope and goals
  • Responsibilities
  • Prices, charges and price changes
  • Service levels
  • Performance, guarantees, undertakings
  • Limitation of liability
  • Payment terms
  • Warranty
  • Product specification

In the Walmart case, the SME owner believed he had to be better than the competition at accepting and managing risk. As part of his deal with the retailer, he requested access to sales data so that he could assume responsibility for ensuring that his products moved off the shelf.

“Success depends on the quality of the information flow from buyer to seller,” said Hughes. “Transparency is key and is in both parties’ best interest. This is about a partnership, no matter what your relative side.”

 

Winning business in the US

If you want to win business from bigger customers than you have ever had before in the United States, Hughes advised following these strategies:

  • Be better than your competition at accepting and managing risk
  • Demonstrate your expertise and educate your buyer – before discussing price
  • Get the buyer emotionally involved in your product or service
  • Demand quality information flows between you and your customer
  • You might not be able to negotiate ‘boilerplate’ – the standard terms and conditions listed at the end of most contracts – but you can ensure you implement good governance through communication protocols and problem-solving techniques
  • Even if it seems like a David and Goliath scenario, it is about a partnership. Big buying power doesn’t have to mean big negotiation power – that is down to you.

“Selling in the US market takes planning and it takes persistence,” added Hughes. “You need to understand who you are selling to, what rules and procedures they’ll be following, how will they measure value and what weightings they’ll apply to selection criteria.

“You’ll also need to have developed a negotiation strategy, how you will convince them that you are a reliable supplier committed to the market, that you are an expert in your field, that you are passionate about your product or service and that you understand fully the nature of your competition. You need to educate your buyer.”

 

Read more on doing business in the US market.

Irish exporters to Germany

How we got the German market to work for us

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As German businesses demand detailed certainty, not just now but long-term, after-sales, support and clear future planning are key to building more than just a foray into the market to deliver a sustained successful expansion for Irish firms.

While the German cultural and business identity centred on convention, conservatism and future-proofing may at first appear quite different from the Irish propensity for dynamism, innovation and can-do delivery, many Irish firms have made successful entries to this biggest market in Europe.

At the Ambition Germany event organised by Enterprise Ireland, Irish firms already active in the market shared why and how they chose Germany, and insights into their success.

 

Major opportunities and significant challenges in the German market

The opportunities are huge, given the size of the world’s fourth-largest economy but the challenges can also be substantial. It is a mature market with long-established supply chains and a preference for supplier loyalty.

Robert Byrne, director of Burnside Eurocyl, the Carlow-based hydraulic cylinder manufacturer, ventured into Germany in the early 1980s: “A combination of a weak pound and strong Deutsche Mark made our product very competitive so we set up a sales office in Germany. That was vital. You need constant feet on the ground. You simply have to have a presence in the market you intend to sell into.”

German deals must be taken seriously. Negotiations can take a long time and Germans dislike ambiguity.

“This is why, when we sell, we don’t send a sales rep but an engineer. The client can see the solution we are offering – and get the detail clearly explained. They very much appreciate that,” added Byrne.

Since taking advice from Enterprise Ireland on exploring a new market, Paul O’Sullivan, managing director of Irelands Eye Knitwear, said exports now comprise 55% of all sales with Germany being its biggest overseas market.

He told delegates: “We were encouraged to get into Germany by Enterprise Ireland but we found customers very loyal to their supply base. It’s hard to get a meeting but if you do, you’re halfway there. They will do a lot of research on you before agreeing to meet, so to get that point is a very good sign. But if you want to get to the next level you’re going to have have people on the ground, so we needed sales agents in Germany to get to there.”

Cold-calling is frowned upon in Germany and privacy is highly valued – and regulated – so do not squander a meeting or bombard with marketing material. Pat Ward, managing director of Western Automation, electrical safety specialists, said establishing the firm’s credibility and its reputation for long-term delivery was key.

“Establish your credibility to supply them with a solution for their needs. Your credibility is vested in you, not your product, and that comes from your ability to supply as promised, deliver on technical support. When dealing with German firms, be credible, be believable, and always do it in person.”

Initial successes for Burnside Eurocyl came from the firm’s dynamic approach. “We grew because we were fast and flexible and that’s what made us competitive in the German market. But we did make some mistakes. We went for sales before we had capacity and we lost customers because of that. If you give a lead-in time, stick to it.”

Expansion for Western Automation was boosted by attending one of many trade shows – Germany is one the world’s leading venues for trade shows.

Enterprise Ireland can advise on which trade shows are most beneficial for your company to attend. Recently, 34 Irish companies were supported to showcase their solutions at the world-renowned Medica and EuroTier trade fairs, leading events for medtech and agritech respectively. More than 250,000 people attended the events.

“We bit the bullet and did a trade fair in Hannover. It showed we were a company of substance. Before we went to Hannover, we had one German customer. After Hannover, we had 5.

“It’s not a cost, it’s an investment,” said Ward.

 

For more insights on doing business in Germany visit our German Market Insights pages.

 

 

 

 

 

Appetite for growth in Asia will serve food and drink exporters well

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Asia’s appetite is growing, and its 4.5 billion inhabitants are increasingly turning to imported food for satisfaction.

While far from an untapped market, Asia remains full of potential for Irish food and drink exporters, who can innovate and supply nutritionally healthy and sustainable produce for its growing market of increasingly affluent consumers.

A marked rise in the proportion of Irish food and drink exports going to international markets outside Europe has been a prominent trend in recent years.

 

Impressive export growth to Asia

Asia accounts for one third of Irish food and drink exports, compared to less than 20% just 10 years ago. Exports to China alone have trebled in the last five years, from just over €450 million to €1.4 billion. Population growth and an emerging middle class with increased spending power are driving this growth, especially through dairy and for formula-based products. 

 However, Mary Ledman, Global Dairy Strategist for Rabobank, explains: “The gap between dairy production and imports in Asia will rise to about 20 million tonnes by 2025, and somebody has got to fill that gap.

“Chinese cheese imports topped 100,000 tonnes for the first time in 2017. The Asian Five – the Philippines, Indonesia, Malaysia, Thailand and Vietnam – also hit the 100,000 tonnes of cheese targets. Japan and Korea together account for 340,000 tonnes.

“Asian Five demand is increasing at about 10% annually, China’s by about 20%, and Japan and Korea being more mature markets are growing by 2%.

“China’s dairy imports from Ireland have grown 31% over the past five years – three times faster than China’s total dairy imports. Infant formula exports from Ireland to China have been key to this growth. Last year, Ireland’s market share in China for infant formula was 13%, compared to 5% in 2012. 

“The role of dairy since the abolition of quotas in 2015 has magnified the potential for Ireland going forward. There are ambitions to grow dairy sector exports to Asian markets by 30% to 2020, and Ireland is well positioned to do so.”

 

Ireland’s vibrant food and drink sector

Ireland’s food and drink industry is indeed vibrant. Eight years of consecutive growth have increased the value of global exports 60% to €12.6 billion. Bord Bia has identified 15 markets globally with the greatest potential for significant growth for Irish food and drink industry. Within dairy, seven of those 15 markets are in Asia. Within meat, eight of them are in Asia. Within seafood, seven are in Asia. No matter what way we look at it, Asia offers significant potential for the Irish food and drink industry.

Owen Brennan, chairman of Devenish Nutrition, which manufactures and exports innovative nutritional products and solutions for the feed industry, believes that the trend towards increased sustainability will continue to grow in importance.

 Brennan said: “Focusing on the future of food and agriculture, it’s pretty obvious to say that it must be sustainable if there is to be a future – and innovation is key to developing that sustainable position.

“Looking at the trends as they apply in Asia, there also has to be integrity. Products need to say precisely what they do. They need to do precisely what they say.

“There’s huge interest in the role good quality food plays in promoting good health in these markets, some of which are very sophisticated.”

 A strong focus on health, nutrition, innovation and sustainability are a recipe for success for Irish food and drink exporters looking to capitalise on growing opportunities in Asia.

 

Learn how Enterprise Ireland supports companies to enter the Asian market: China, Singapore, Vietnam, Japan, Hong Kong, South Korea and Malaysia.

Irish farmer

How Irish agritech is fostering a culture of innovation

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Progress in agriculture has always been driven by innovation. The old adage about necessity being the mother of invention is as evident in farming now as it ever was.

Ireland has a vibrant agritech ecosystem where individual companies, universities, institutes of technology and other stakeholders challenge and disrupt conventional farming methods by working together to devise new solutions and applications for better, more efficient farming.

Keenan Systems has pioneered innovation in feed efficiency technology for more than 35 years. More recently, the company has combined machinery with data through its InTouch support service, which provides real-time information to farmers on animal nutrition and health.

Michael Carbery, Engineering and Innovation Manager, believes that Keenan benefits from a positive environment in Irish agriculture. He says: “There is a strong culture of innovation in Ireland and it’s becoming stronger. There is a willingness among academia and business to get together and try to create a better product or solution for farmers.

“Many Irish companies export most of their products. We’re not trying to develop purely for the Irish market, so we have to take a global view of agriculture. I think that gives Irish companies like Keenan a strong advantage in the overall level of innovation.”

 

Relationship between industry and research at the heart of Irish agritech innovation

Relationships between industry and academia are often at the heart of innovation. By placing R&D at the heart of its operation, Dairymaster has won multiple awards and built a global reputation for innovative dairy equipment manufacturing across milking, feeding, manure scrapers, milk cooling tanks, and health and fertility monitoring systems.

Earlier this year, Dairymaster formed a €2 million research and development partnership with Institute of Technology Tralee and the Science Foundation Ireland research centre Lero on using artificial intelligence and autonomous systems to improve efficiency on dairy farms.

Dairymaster Research and Innovation Manager, Dr. John Daly explains: “Our equipment and technology is constantly changing and improving because of our commitment to innovation. Everything we do is driven by performance and how it saves farmers time and makes their business more efficient and profitable.”

 

Inspiring the next generation of innovators

Herdwatch CEO Fabien Peyaud believes the example of companies such as Dairymaster and Keenan provides inspiration for a new generation of disruptive Irish innovators.

Mr Peyaud says: “Ireland is very much one of the leading agritech countries in the world. We have beacons such as Dairymaster and Keenan Systems, who constantly innovate for farmers and that’s really where our inspiration came from.

“Herdwatch is now the number one farm software provider in Ireland and the UK and hopefully what we’re doing is inspiring the next generation of innovators out there to take it to the next level.”

“You also have Enterprise Ireland and other agencies nurturing this kind of constant innovation and entrepreneurship. I think these are all reasons why so many new, innovative companies are in Ireland.”

But is there a risk that farmers will become overburdened by technology?

Mr Peyaud says: “We believe that at some point there will be a need for convergence because farmers will demand it. We’re looking at tying together all the apps that farmers have to interact with on one platform so they can get the actionable information they need.

“Herdwatch wants to be that platform because we believe it will allow us to help combat some of the big issues facing farming – such as the fight against antimicrobial resistance or reducing carbon footprints.”

Moocall’s approach to innovation has been to effectively connect cows to their farmer through the use of wearable technology such as calving sensors and heat monitors.

Paul Kenny, International Sales Manager for Moocall, says: “We’re using sensor technology and the power of the mobile network to connect the animal to the farmer. So with the calving sensor, the cow is basically texting the farmer, and it is also emailing the farm office, and then there’s a Moo Moo app alert that anybody can download. So you’ve three forms of alert coming from the cow calving that are replacing labour units on the farm.”

 

How collaboration drives innovation

Abbey Machinery has been one of Ireland’s largest agricultural manufacturers for more than 70 years and acutely recognises that innovation is vital to remaining relevant in a global market.

Michael O’Grady, Business Development Manager at Abbey Machinery, says: “Innovation is the most important thing we do to improve our feeding, slurry and grassland management machines and make them affordable for the farmer.

“Some of our suppliers we’ve been partnering with on innovation for 30 or 40 years, and we’ve a new group of partners which we’re partnering with for new technologies.

“Enterprise Ireland is brilliant at bringing it all together, connecting research and development partners, encouraging collaboration, identifying markets and opportunities, nurturing and providing advice to help us make a difference for farmers.”

 

Learn more about Enterprise Ireland’s Innovation supports here.

NIVA – simplifying the Common Agricultural Policy claims process

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“Horizon 2020 is an ideal funding stream as it enables cross-border collaboration and ensures that technology developed will be fit for purpose on a pan European basis.”

David Hearne, Walton Institute, NIVA Horizon 2020 project

Key Takeouts:

  • Walton Institute (formerly TSSG), part of the Waterford Institute of Technology, is involved in a project that aims to develop and implement a range of digital innovations to improve the administration of the Common Agricultural Policy (CAP).
  • The NIVA project has received €10.5m in funding from the European Union’s Horizon 2020 research and innovation programme.
  • Walton Institute is focused on developing a geo-tagged photo app to help simplify the CAP claims process for farmers and paying agencies.

H2020 Case Study: NIVA

    The European Union’s Common Agricultural Policy (CAP) supports farmers, safeguards agri-food supplies and encourages sustainable management of land resources. Administering and controlling payments to farmers under CAP is done through the integrated administration and control system (IACS), which is the subject of the Horizon 2020 project, NIVA (New IACS Vision in Action).

    The three-year project, led by The Netherlands’ Wageningen University & Research and involving 27 partners, aims to modernise IACS by delivering a suite of digital solutions, e-tools and good practices for e-governance. These will ultimately produce more transparent, simpler processes that will reduce the administrative burden on farmers, paying agencies and other stakeholders.

    In Ireland, a multi-disciplinary team made up of The Walton Institute (formerly TSSG) – a centre of excellence for ICT research and innovation – the Waterford Institute of Technology (WIT), Teagasc – the Agriculture and Food Development Authority – and led by the Department of Agriculture, Food and the Marine is tasked with developing a geo-tagged photo app.

    The app will be used to resolve claim queries by enabling farmers to send digital photos of their land parcels directly to the paying agency, which will reduce the need for inspections and accelerate claim processing.

    “Our app is one of nine innovations in this project with different countries working on each,” explains David Hearne of Walton Institute’s Creative Design Unit. “Other areas include decision support systems, machine data and a solution for simplifying payments, but in the end they will all come together in one ecosystem, which will be used by paying agencies across Europe.”

    Although it won’t be the first geo-tagged photo app on the market, Hearne explains that what sets this one apart is the user-centric, multi-actor design.

    “We take the approach that we don’t know what the users want; we can’t decide what’s best for a farmer in the west of Ireland who needs to send a photo to the Dept of Agriculture. So the project started by gathering data about the needs of all stakeholders, not just in Ireland but across Europe. It’s an iterative process, so when we’d developed the first version of the app, it was tested by users across Europe and their feedback informed the next iteration and so on.

    “The fact that farmers and other stakeholders have been involved from the beginning gives them a sense of ownership, and that should result in a higher adoption rate at the end,” adds Hearne.

     

    Horizon benefits  

    Horizon 2020 has provided €10.5m in funding for the project, but beyond the financial investment the programme offers multiple other benefits.

    “Horizon 2020 is an ideal funding stream as it enables cross-border collaboration and ensures that technology developed will be fit for purpose on a pan European basis,” says Hearne

    “Currently, our app is being tested across nine EU countries with over 200 users, and other solutions being developed under NIVA will likewise be tested across different countries, so there’s a lot of interaction, integration and learning across the project.”

    Monthly work package meetings and bi-monthly project meetings, all virtual at the minute, keep the project on course and ensure that innovation is shared across the partners.

    On a personal and professional level, Hearne believes his involvement in Horizon 2020 projects has been highly advantageous.

    “It’s great to focus on these large projects with so many moving parts. You learn so much, for example, the various technologies used in different countries, how they are implemented and what the issues are.

    Hearne confirms “The opportunity to collaborate with researchers in other countries is also invaluable. You build up a huge contact base, which gives you the opportunity to collaborate on more projects.”

    To others who have not yet dipped their toe in the Horizon water, Hearne simply says “Do it”.

    “It’s a great opportunity to be involved in projects that can actually change people’s lives. With NIVA we’re reducing the burden on farmers, so we’re making a difference. My advice would be to focus on something that you’re really passionate about.”

    His other advice is to seek out the right partners at the start and use the supports that are available to help with putting the proposal together.

    “I was involved in writing sections of the NIVA proposal. It was a new experience for me because I come from a very technical background, but I had the support of people in WIT to guide me in how to approach it. And the more you do it the easier it gets.

    “We’re also in close contact with Enterprise Ireland, who have a real interest in the project, and we know that they’re there to help us if we need it.”

    For advice or further information about applying for Horizon 2020 support please contact HorizonSupport@enterprise-ireland.com or consult www.horizoneurope.ie

    H2020 success stories banner link

     

    Languages Connect logo

    The importance of multilingualism

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    The drive for new markets shines a light on the importance of multilingualism. Julie Sinnamon, CEO Enterprise Ireland outlines why language matters.

    Ireland’s small, open economy depends heavily on being able to trade internationally. The global dominance of the English language has worked to our advantage but with Irish companies looking to export into even more diverse markets, the need to acquire more languages has never been more important.

    Recognising the cultural value of communicating in the buyer’s local language and developing a workforce with foreign language expertise can improve relationships and increase efficiency when entering new markets.

    Learn how Enterprise Ireland can support your business with the Market Discovery Fund

     

    Channel sales

    Channelling Success with Channel Strategy

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    Máire P. Walsh, SVP Digital Technologies at Enterprise Ireland’s Silicon Valley office, explains how an effective channel sales strategy can give Irish companies a wide international reach.

    The business plans of start-up companies often focus on direct sales, aiming to sell as many products and solutions to as many consumers and end users as possible. The right channel sales strategy can, however, give Irish companies of all sizes and stages of maturity a wider reach, helping them to grow more quickly than a business plan that relies on direct sales alone. A successful channel strategy enables Irish exporters with unique technologies to harness sales opportunities at scale, driving business results in the US market and beyond.

    Enterprise Ireland recently held a Sales and Channel Strategy Seminar in Dublin, which featured US industry thought leaders and senior executives, and was designed to advise and guide high performing Irish start-ups to expand into the US through the channel ecosystem. World-class experts on sales planning and channel strategy shared tips and success stories, while the event showcased a number of Irish companies that are already capitalising on the potential of the channel ecosystem to drive rapid growth.

    Irish companies can apply insights shared by the event’s global speakers to use a smart channel sales strategy to quickly grow their business.

    A “Best Practices in Channel” panel featured Kevin Morata, Global Channel Strategy at Dell EMC, Gerard Sheridan, Global OEM Sales Director at DataStax, and Kurt Hoppe, Global Head of Innovation at GM. The panel discussed how true collaboration is key to building successful relationships with channel partners. Companies should be aware that not all channel partners are created equal. With 20% of partners driving 80% of sales, Irish companies should allocate more time and resources to partners that will help to maximize business results. One tip for building trust is to feed leads to new channel partners at the beginning. That will allow them to gain experience in selling your product while developing a strong understanding of your value proposition.

    Tiffany Wagner, Global Head of Sales Planning at SAP, described how a successful strategy must focus on your value proposition, rather than on the features and functions of your solution. At SAP, design thinking is key to well-orchestrated enterprise sales planning programs. All enterprise sales require a “3 x 3” influence model – three decision makers and three influencers must contribute to the process.

    Insights were shared by Irish companies, including AltoCloud, Channel Mechanics and PlanNet21 Communications, that have scaled by partnering with the channel ecosystem. Kenneth Fox, Channel Mechanics CEO, described the three points of the channel triangle:  vendors, distributors and partners. The Channel Mechanics solution sits at the centre of the triangle, providing automation that runs the entire ecosystem.

    Barry O’Sullivan, AltoCloud CEO, described how his company was formed with the channel in mind. Leveraging the business and personal relationships of partners has allowed AltoCloud to build a strong partner channel. One tip for Irish exporters is to have a ‘corporate vendor resources’ presence in the US and not attempt to drive it from Ireland.

    When launching as an ambitious company almost 20 years ago, PlanNet21 Communications convinced partners to accept them into their channel program. The strategy has delivered revenues close to €50m, with the company on a mission to hit €100m within the next two years. Denise Tormey, co-founder of PlanNet21 Communications, described the strategy that drove their success, “Trust is hard won. We manage communication face-to-face, over the phone and by mail, to build those interpersonal relationships. We listen. We respond in a timely manner. We ask ‘Why?’ We care. We are true partners.”

    The insight echoed the guidance of many of the day’s Irish and US speakers. A foundation of trust must be established to build effective relationships. Otherwise channel partner alliances are destined to fall flat and fail to deliver the growth promised. For channel strategy support, contact Enterprise Ireland’s Strategic Marketing Review program, which acts as a mechanism to review and develop your market development strategy overseas.

    This article was originally published in the Sunday Independent.