The IFA is seeking an urgent meeting with the chair of Tirlán following a briefing of the IFA national council on Tirlán’s plans to supply a US retail brand with Irish grass-fed butter for its private label butter brand.

It comes as the Irish Farmers Journal understands that Tirlán has agreed a substantial deal to supply American supermarket chain Costco with grass-fed butter for the retailer’s own-brand, Kirkland.

The Kirkland brand retails at around $15/kg (€13.20/kg), while Kerrygold in Costco is priced at close to $21/kg (€18.50).

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IFA president Francie Gorman said there was huge concern expressed at IFA national council about the implications of this move for the Kerrygold brand and Ornua.

Consequences

“We understand that it is already having significant consequences for the Kerrygold brand in the US,” he said

“I have contacted the Chair of Tirlán looking for an urgent meeting and I hope this will take place shortly.”

IFA’s nominee to the Ornua board, Martin McElearney, wrote to the Ornua chair on Monday informing him that it was his intention to brief the IFA dairy committee and national council on developments in the US butter market.

“I fully understand my fiduciary duties to Ornua, but I believe that farmers needed to be made aware of what is going on. Ultimately, Ornua is owned by co-ops who are owned by farmers and it is farmers that will pay for any undermining of our product in the US market,” McElearney said.