The US has undoubtedly become a crucial hub for the Irish dairy industry, with exports reaching €681 million in 2023 – a doubling of value from 2019 figures.
This growth has contributed significantly to Ireland’s overall expansion in dairy exports.
During the four years between 2019 and 2023, the US accounted for nearly 26% of total Irish dairy export growth. In 2023, 24% of all Irish butter exports found their way to American households, alongside 6.5% of cheese exports.
The US market also accounts for approximately 20% of Ireland’s exports of casein, the highly valued dairy ingredient used for a variety of applications including medicine and dietary supplements.
US dairy consumption
The US is one of the world’s largest consumers of dairy with the average US citizen consuming approximately 295kg of dairy/annum, according to the United States Department of Agriculture (USDA).
This position looks to be cementing as 2023 consumption figures released by the USDA saw an increase across several categories, with particular interest in the consumption growth of both butter and cheese, two important categories for Irish dairy products in the US.
Indeed, the US plays a significant role in the global supply of milk. Of the six main milk producing regions, the US accounted for 34% of total milk production in 2023.
Fluctuation in US dairy production, export volumes and trade policies can have an impact on the global dairy market.
Proving grass-fed status
Growing consumer demand for ‘natural’ products has led to increased interest in grass fed dairy and products claiming to be grass-fed, often without any real proof.
The ‘Bord Bia Grass-fed standard,’ is the first national programme that verifies that products carrying it have been produced from milk from cows with at least 95% of their diet from grass (fresh weight).
Sustainable sourcing
Part of Bord Bia’s remit in the US is to regularly meet with influential trade customers to build preference for Ireland as a preferred dairy supplier.
These customers are placing increased significance on environmental sustainability in their procurement strategies.
On a recent government led trade mission to the US, meetings were held with several important retail and foodservice customers.
Notably, these buyers commended the Irish dairy sector for its commitment to a more sustainable supply chain, from on-farm through to processor level.
The Kerrygold story
The Kerrygold brand is Ireland’s most successful food export and the only Irish made and owned food brand to reach over €1 billion in sales globally.
In the US, Kerrygold holds the number two position for branded butter and number one for imported butter.
Having first launched in the US in 1990 with Kerrygold cheese, the very first pallet of Kerrygold butter arrived to US shores nine years later.
Since then, Kerrygold has grown from strength to strength, underpinned by Ornua’s investment in the brand and focus on building strong connections with US consumers.
Ireland’s grass-based farming system distinguishes Kerrygold from other dairy products available in the market.
Kerrygold lovers value the premium quality and great taste owing to the grass-fed difference, along with the strong sustainability credentials of Irish dairy.
Communicating this ‘green advantage’ and Ireland’s reputation as a sustainable producer of dairy, is supported by a programme of engagement with key buyers and influencers from global markets, including the US.
Farm visits
This involves bringing buyers to visit farms and meet the families that work tirelessly to produce the world-class milk that makes Kerrygold a world-famous butter.
Farm visits also provide an unrivalled opportunity to showcase the deep-rooted commitment of Ireland’s dairy farmers to consistently enhance sustainable practices, supported through programmes like the SDAS.
Kerrygold has built a large consumer following in the US, yet there is significant scope for further growth.
Building towards future growth will be supported through the recent doubling in production capacity of Ornua’s flagship butter production facility, Kerrygold Park in Mitchelstown, Co. Cork.
This major investment underpins Kerrygold’s plans to become Ireland’s first €2 billion food brand.
The development of the facility, which can now produce up to one million retail packs of Kerrygold butter each day, responds to the continued growth in demand for Kerrygold in major international markets like the US.
The brand is well-placed to meet that demand and reach more dinner tables across the US, supported by the continued confidence retailers and consumers have in the quality of the product and the high standards of sustainability through which it is produced.
