Dairygold is to market a range of cheeses in the US under its Pastureland brand, the co-operative has confirmed to the Irish Farmers Journal.

The move brings the Cork-based dairy processor into direct competition with Ornua, of which it is a major shareholder.

Ornua has developed a lucrative share of North America’s premium dairy market through its Kerrygold and Pilgrims Choice butter and cheese brands.

The Dairygold initiative is an extension of its association with the Norwegian dairy co-operative TINE SA.

Dairygold plans to manufacture Jarlsberg cheese on TINE’s behalf at its Mogeely facility in Cork, and will use the Norwegian dairy processor’s US distribution channel, Norseland, to market its Pastureland range in North America.

“To take advantage of the increasing demand in the US for naturally sourced dairy products, Norseland will offer a range of Irish cheeses in its US distribution channels,” a statement from Dairygold confirmed.

“Given the long-standing relationship between Dairygold and TINE, Norseland plans to debut a range of premium Irish cheddar cheeses under the Pastureland brand.”

Norseland already distributes a range of Norwegian and other imported cheeses on the US market.

The Pastureland cheese range is certified to the Bord Bia grass-fed standard and it is understood that the packaging will feature the grass-fed logo.

While the Dairygold statement claimed that “the Pastureland lineup will complement existing Irish dairy products in the US market”, the co-op’s move into the US market has the potential to provoke tensions within Ornua.

Glanbia’s decision to launch its Truly Grass Fed dairy range in the US in 2018 provoked serious differences at board level in Ornua.

The US remains a crucial outlet for Irish dairy exports. Last year the market took close to 60,000t of product, with total sales valued at €360m.