In taking a more detailed look at the product proposition for Marks and Spencer, a key differentiation in order for us to compare ourselves with competitors is that cold chain products predominate our product mix, representing 70% of our overall business. We are market leaders with regard to our strength within the ready-meal sector. In terms of creating top quality convenience foods, they are about saving preparation time at home for the consumer.
We also pride ourselves in terms of the quality and range we offer within the more staple lines, such as poultry and meats, dairy, salads, vegetables and fruit. Everything we sell is own-brand or own-label unique to us and supplied by a dedicated supply base. This provides us with complete trust and quality in our products throughout the production process, from the farm gate to the consumer's plate. As a result, we have a unique competitive advantage as the importance of food traceability becomes higher on the consumer's agenda. This is evident in how consumers turn to us during times of concern, as was demonstrated during the recent salmonella egg and salmon health scares when our sales increased. We have some of the best animal traceability in the industry and fresh meat and poultry come from select Irish farms in the North and South of Ireland.
To achieve this level of product development, we need a highly dedicated supply base prepared to work to the exacting standards our customers demand and with the confidence to invest with us for the future. We have had great success achieving these objectives in the Republic of Ireland and combining our demanding standards with the expertise of the local agri-food sector. The clearest sign of this successful partnership is that many of our suppliers have been working with Marks and Spencer for over 25 years, with the volume of product purchased from the island of Ireland ever increasing.
Currently, we have 20 local suppliers, island-wide, supplying us with over 250 products. Supplier relationships are a key value in our business and many of them have grown considerably as we have grown. Some 50% of our local suppliers are based in the Republic of Ireland, namely Glenpatrick Spring Water, Slaney Foods, Monaghan Mushrooms, Dunnes Seafood, Kerry Foods, Cooley Distillery, Horgans cheese, Cuisine de France and Dublin-Meath Growers. All of these supply our Ireland-wide, and sometimes UK-wide, business. This is in addition to our Northern Ireland suppliers, such as O'Kane Poultry, Ormeau breads, Avondale, Wilson's potatoes — who derive much of their crop from the Republic — Dromona dairy, Grampion Foods, Lynn's county farm and St. Brendan's. In addition to these direct suppliers, we have an ever-increasing number of key growers in the Republic who indirectly supply our island of Ireland business. For example, Keeling's Fruit Farm supplier became the sole soft fruit provider to the island of Ireland business and has now enabled us to offer, for example, strawberries, raspberries and blueberries to our 17 stores here.
Sales of locally-supplied products have increased by over 50% in the past two years and will continue to grow. This has not only been as a result of new store openings but also of new product development and exporting contracts to our UK business. In fact, 60% of our suppliers have benefited from exporting contracts to our UK business and are now a substantial provider of drinks, meats, poultry, salads and vegetable to our near 400 stores in the UK. Our relationship with Glenpatrick Spring Water is a visible prime example of how this has benefited a local supplier in the Republic of Ireland. Marks and Spencer has led the way in terms of product innovation and development of a range of still, sparking and flavoured waters and cordials with a catalogue of over 50 lines. As a result of this growth and innovation, Glenpatrick Spring Water is now exporting this range of water and soft drinks, worth tens of millions of euro each year, to the Marks and Spencer business, UK and Ireland-wide.
Last year, total spend with local food suppliers for our island of Ireland business was in excess of €100 million at retail value. Within key market products, such as poultry, meats and dairy, the percentage to total of locally-supplied products to our Irish stores is far greater. For example, 100% of meat and poultry is locally sourced, 95% of ambient drinks and 70% of dairy products.
However, it is worth noting that specialising as we do in ready-meal solutions brings with it challenges in balancing the percentage of food sourced locally with economies of scales and logistics requirements of production and distribution of these types of products. We have had recent successes with technological innovation which has allowed us use Irish beef within key ready-meals allowing us to reintroduce ranges back to the Irish consumer. As a result of this success we will be pursuing additional lines.
Marks and Spencer also spends in excess of €50 million on 150 other local service providers in the Republic of Ireland. One of the largest of these is our logistics provider, TDG, which has been working with us since our first store opened here 25 years ago. It has also benefited from our continued growth, both in transporting goods from the UK and also in providing logistics solutions more locally and providing that service to local stores.
The committee has asked us to touch on the price of groceries here versus the price of those offered in the UK. There is no doubt the competitive environment of the marketplace is in itself one of the most significant developments of the past five years, particularly here in the Irish markets. The convenience sector within which we trade here has also become one of the most competitive. Unlike the UK shopping environment, it is dominated by more local, smaller convenience stores that represent a larger percentage of the consumers' shop, which we know is approximately 20% of their overall expenditure.
We work hard to ensure the Irish consumer is getting the best possible value from Marks and Spencer. We are constantly reviewing our prices. We have lowered in price over 65% of our catalogue, which represents over 1,800 lines, over the past 12 months. As we have grown, economies of scale have enabled us to reinvest in price reductions for the consumer. We have taken a local decision here to ensure some of the staple grocery lines are among the best value on the high street. For example, products such as milk, tea, coffee, bananas, eggs and cheese are at the same or lower in price and compare with products on the high street with retailers such as Dunnes or Tesco. The press has also focused heavily on the rip-off Ireland campaign. In every article to date we have scored very favourably in terms of price comparisons with our UK products. In commenting on the prices of our products quotes from the press in 2004 include from The Irish Times, “Prices at Marks and Spencer, however, were virtually the same in both jurisdictions”; the Irish Independent noted: “The rip offs are not uniform as Marks and Spencer charge almost identical prices in Ireland and the UK”; The Sun stated that “Marks and Spencer Irish prices were marginally cheaper than in the UK”; the Kildare Times wrote encouragingly, “Marks and Spencer prices are virtually identical in both countries so there is no obvious reason for this rip off”; and The Sunday Business Post stated, “Marks and Spencer has a more equitable pricing structure in Britain and Ireland, according to a sample survey that we conducted last week.” These articles demonstrate in themselves the approach we have taken in ensuring that our products represent great value for the Irish consumer today.
