The Kerrygold butter brand should not be weakened by other Irish butter suppliers in international markets, the IFA president Francie Gorman has stated.
The IFA has confirmed that it has met with senior management of both Tirlán and Ornua over the past week to discuss recent developments in the US butter market and the decision by Tirlán to supply private label butter to Costco, a large US retailer.
Costco’s own brand butter retails about €6/kg cheaper than Kerrygold in the US which has raised concerns that the Tirlán move may affect sales of Kerrygold which currently stands as the second best-selling butter in the country.
The IFA president highlighted the significance of the Kerrygold brand as the number one Irish food brand which has delivered handsomely for Irish dairy farmers since its establishment in the early 1960’s.
“The priority here has to be Irish dairy farmers. The vast majority of Irish farmers supply Ornua, both Tirlán and non-Tirlán suppliers,” he said.
“The return to these farmers cannot be undermined. We cannot allow a race to the bottom that ultimately destroys the margin being returned in farmers milk cheques.”
Margin pressure
The current margin pressure that the dairy sector is facing was also pointed out by IFA dairy chair Martin McElearney.
“Irish dairy farmers are grappling with a depressed milk price, escalating costs and severe drought conditions in many parts of the country,” he stated.
“There is an onus on all stakeholders in the dairy sector to work together to maximise the financial return from dairy markets for these farmers, particularly given that many dairy farmers are now likely to be operating below the cost of production in 2026.”
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