Kerrygold gains foothold in China

A PRESENCE has been secured in China for the Kerrygold brand, the Irish Dairy Board disclosed yesterday when announcing that overall group turnover last year exceeded €2.1bn, a 2% increase.

The IDB, which exports Irish dairy products globally, said efforts are underway to provide the Kerrygold food service range in China in advance of the Beijing Olympics.

The dairy board launched the brand in Russia last year, with distribution initially centred in Moscow.

Plans are in place to extend this to other major Russian cities and to launch Kerrygold cheeses there later this year.

The Kerrygold brand grew by 1.8% in 2007 across all international markets. Share growth in key markets was again secured.

In Germany, the brand performed well and maintained a volume share growth of 0.5%, retaining its clear leadership position.

IDB operating surplus came in at €35.5m, with revenue reserves reaching €344m and members’ funds increasing to €396m. It predicted that the fundamentals underpinning the strong global demand for dairy products in 2007 should continue over the long run.

However, the record prices experienced in 2007 have had a negative effect on consumer demand in many markets, and have also encouraged increases in milk supply both in Europe and the US.

“This has resulted in a significant correction in dairy markets which we are currently experiencing,” the IDB stated.

Board chief executive Noel Coakley said the removal of EU export refunds means Ireland is no longer insulated from the vagaries of international dairy markets and must respond accordingly.