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Interview with the chairman of the Galicia Food & Drink Cluster (Clusaga), Juan José de la Cerda López
“The food industry plays a key role in Galicia's future, compelling confidence and investment”
Committed to fostering the participation of SMEs in initiatives related to the ecological transition and circular economy, the Galicia Food & Drink Cluster (Clusaga) has designed a “specific service” that promotes the design and implementation of circularity and sustainability plans for its partners. Its chairman, Juan José de la Cerda López, considers the Next Generation to be “an opportunity to transform the industry” towards innovation and digitalisation, which is “necessary” to guarantee its competitiveness in the Galician food sector.
According to data provided by the Cluster, the food industry in Galicia generates a turnover of €10 billion and over 32,000 jobs in the region. This provides good reason to invest in Galicia.
Certainly, the food industry is strategic in Galicia, both due to its size and its socio-economic importance. In fact, in 2018 it generated a Gross Value Added (GVA) of around €4 billion, 7.2% of GDP and 103,000 jobs (9.2% of total employment). Moreover, the evolution of GVA reflects the greater resilience of the food industry in periods of economic crisis. This capacity is more obvious in the performance of the food industry in relation both to the manufacturing industry and to the economy as a whole. Thus, it plays a key role in the future of Galicia, compelling confidence and investment.
Clusaga supports digital transformation in the Galician food industry in collaboration with the Xunta through the Igape programme for Industry 4.0 projects, which has been awarded in 2021 for the fourth year in a row. How are SMEs in the sector responding to digitalisation?
Every year, we see a process of evolution and transformation in which SMEs are increasingly involved. It must be noted that becoming a digital company demands changes that go beyond investing in the latest technology. Digital transformation implies a business transformation to update the functional areas that make up a company, the processes, the strategies, the business models, the operations, the products, the marketing approach, the goals, etc. through switching to digital technologies. This helps accelerate sales, increase business growth, and improve profitability. Therefore, at Clusaga, we have incorporated it to our strategy for the period 2021-2025 as an axis that includes specific measures to accelerate the digital transformation of the food industry.
Another of Clusaga’s aims is to incorporate cluster companies into the circular economy and bioeconomy strategy to promote the transition towards a more sustainable model. What is the response from your hundred or so partners?
Indeed, we have included in our strategy for the 2021-2025 period an axis to foster sustainability and the integration of companies into this green transition. In order to do so, we have designed a specific service to promote the design and implementation of circularity and sustainability plans for our partners. The response is very positive and the demand is high. Besides, in this particular area, we’d like to make visible the good practices of some of our companies that can be a model for the rest, as well as to support the participation of SMEs in initiatives related to green transition and circular economy strategies.
Energy transition is precisely one of the major commitments of the European recovery funds. How can the food industry in Galicia make the most of the Next Generation?
EU’s Next Generation is a unique opportunity to come back stronger from the pandemic, to transform the industry, and to create opportunities for innovation and ecological and digital transition, which are necessary and urgent to remain competitive. To this end, we have planned, in collaboration with the Xunta, the launch of a Next Generation Technical Office specialised in the food industry in Galicia to channel information on all the opportunities that are being generated and to respond to the demands of companies by identifying synergies that facilitate and help design high-impact clustered projects to drive the transformation of the sector.
Thus, by pooling the resources and skills of the main agents in the value chain of food and drink in Galicia, laying the foundation for clustered projects, and exploiting the potential of the industry, we will be able to achieve a significant impact.
The Law for Administrative Simplification and Support for the Economic Recovery of Galicia responds to the necessary mobilisation of funds, streamlines the management and review of procedures, and helps attracting and retaining talent. Do you think it will contribute to the implementation of new business projects and initiatives in Galicia?
For sure, administrative streamlining is vital to remove barriers to the implementation of food industry projects and to attract investment. Therefore, all initiatives that make management easier, update procedures, and simplify processes are necessary to provide security to strategic projects and investments.