The controversy over Glanbia’s “Truly Grass Fed” cheese range came to the fore at the ICMSA AGM in Limerick.

Farmers asked Ornua CEO John Jordan if the company had become complacent and missed a marketing opportunity by allowing Glanbia to snatch an opportunity in the US.

The CEO pointed out that Kerrygold butter remained the second top-selling butter in the US, and said that “Kerrygold isn’t just a butter brand, it’s a dairy brand”.

We mutually agreed not to proceed under the one umbrella

However, farmers pressed their concerns home and raised issues with Ornua board make-up which currently contains a number of Glanbia members – highlighting that the two were now in direct competition with each other in the US market.

It also came to light that Ornua and Glanbia had discussed the idea of the Truly Grass Fed range over a year ago.

In a letter to Glanbia suppliers seen by the Irish Farmers Journal, the processor says that it approached Ornua with the suggestion of the Truly Grass Fed range but Ornua "declined the opportunity".

“Glanbia and ourselves started those conversations about 14 months ago,” John Jordan said, adding that at the time he'd been part of the meetings.

“We mutually agreed not to proceed under the one umbrella.”

“In terms of Glanbia’s strategy and what they’ve done since – for the consumer that’s an overlap.

“Ultimately the consumer in the US will decide,” Jordan said.

Conflict of interest

In relation to Glanbia’s future relationship with Ornua, he said there were two issues at hand.

The first was a board governance issue, and he said that the board “are very clear about their remit which is to govern Ornua”.

Any issue managing a conflict of interest between Ornua and Glanbia would be determined by the board of Ornua.

He said the second issue involved the fact that Glanbia had now become a competitor to Ornua.

“The launch of Truly Grass Fed is just the launch of another competitor for us in the US market,” Jordan said.

It’ll affect the man or woman who’s getting up to milk cows

“We’re absolutely confident that Kerrygold will continue to grow in the US.”

However, farmers pointed out that they had invested heavily over the years in the Ornua brand and they did not want to see the market share in the US or other countries split by rival dairy processors.

“There’s only one way to compete in the market and that’s to cut your margin,” farmer Ger Quain said.

“It won’t affect John Jordan’s income but it’ll affect the man or woman who’s getting up to milk cows in the morning.”

“It’s a race to the bottom that needs to stopped.”

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