Agriland understands that Kilkenny based dairy co-op Tirlán has agreed to supply grass-fed butter to US retailer, Costco.
It is believed that the agreement will see Tirlán supply butter for Costco's private label brand, Kirkland.
Kirkland Signature grass-fed butter has been supplied from New Zealand since it launched.
It is understood that the Tirlán deal will secure supply of grass-fed butter for the brand.
Costco Wholesale is a multi-billion dollar global retailer with membership warehouse club operations in 14 countries.
Tirlán already has a presence on the US butter market since 2019 with its 'Truly Grass Fed' brand.
It is understood that the brand has been sold in Costco outlets since last year.
In its 2025 annual report, Tirlán said that Truly Grass Fed will focus on accelerating US growth this year, "aiming to outperform current core business levels".
"Expansion within the natural foods channel will be a priority, targeting consumers with higher spending power and strong affinity for 'better for you' brands," the report added.
According to the latest data from the US Department of Agriculture (USDA), butter consumption in the US surpassed all previous records during 2024, reaching an all-time high of 6.8 pounds per person.
The per capita consumption of butter in the country has increased by more than 51% since 2000.
The top-selling butter brand in the US is Land O'Lakes, followed by Kerrygold, which is produced by Ornua, in second place.
Tirlán recorded a 10% increase in revenue to €2.94 billion in 2025.
The co-op saw sales of 415,000t of dairy ingredients to international markets, with revenue in that category up 13%.
When asked about the Costco deal by Agriland, a spokesperson for Tirlán said: "We do not comment on commercial arrangements with individual customers".