Glanbia has issued a statement reiterating its plans to progress with the launch of its Truly Grass Fed brand in the US, in spite of Ornua’s reaction to its venture.

A spokesperson for the company said that Glanbia has noted in the media the reaction of Ornua to the launch of its Truly Grass Fed range of products.

Last week Ornua CEO John Jordan raised concerns that the venture would “erode value” for Irish farmers.

In response, Glanbia’s spokesperson said that, as its largest shareholder and supplier, Glanbia is and will continue to be a strong supporter of Ornua.

Glanbia’s nominees on the board of directors of Ornua have made a valuable contribution to Ornua and will continue to do so, the spokesperson said.

Ornua has for many years been in competition with many of its members on international markets, the representative added.

“Glanbia will continue to develop markets to increase the value of its products and the consequent returns to its farmers.

“Competition in the market place is a reality – and legal requirement – with which Ornua is already familiar.

Glanbia believes there is sufficient room in the market for its Truly Grass Fed range to thrive alongside Ornua’s offerings.

“In a country with a growing milk pool and a looming Brexit challenge, Irish dairy farmers cannot be deprived of the opportunities to grow market share in a US retail cheese market worth $15 billion.”

From an Irish perspective this will require multiple brands targeting different market segments, especially in the context of Ornua’s current 0.3% market share, the spokesperson contended.

The firm looks forward to continuing its mutually-beneficial relationship with Ornua, the representative concluded.

‘Retailing at a discount’

Last week Ornua’s CEO was critical of Glanbia’s plans, stating that the diary exporter “fundamentally disagreed” with the venture.

Jordan said: “Truly Grass Fed from Glanbia’s position has a very nice story to it – in terms of they believe there is an opportunity in the market outside of the Kerrygold brand.

“We would fundamentally disagree with that. The fact is, despite how that story is constructed, Truly Grass Fed is in the mainstream retailers.

It’s on the shelf beside Kerrygold, next to it and it is retailing at a discount to Kerrygold.

“Our concern is that that is going to erode value for the Irish dairy industry and for Irish farmers,” he said.