In a statement, the board of the IDB, confirmed that they have agreed to the investment “as part of its strategic investment plan to grow the Kerrygold brand, post 2015”.

The butter packing facility will be “state-of-the-art” and support the development of the Kerrygold brand in a range of packing formats on a single site.

It will be located on a dedicated site at Dairygold Co-op's Castlefarm Complex in Mitchelstown, Co Cork.

The IDB adds that it “will provide full supply chain integrity, will centralise NPD and innovation capability for Kerrygold and will be a dedicated Customer Centre of Excellence for the Irish Dairy Board.”

It’s understood further details of the investment will be announced once planning permission is granted.