Irish Dairy Board opens US cheese plant

The Irish Dairy Board yesterday opened a new $12m (€8.8m) cheese-making facility in the US which will increase its production capacity by 40%.

The board’s new facility in Wisconsin is part of its Thiel cheese and ingredients subsidiary and marks the final stage of an $80m expansion in the US Food Ingredients business.

Chief executive Kevin Lane said that the cheese-making plant will facilitate greater levels of innovation in the industry.

“Today marks the completion of a very significant investment programme by the Irish Dairy Board into the US food ingredients market and is in line with our growth strategy to invest in high growth dairy businesses that deliver strong returns to our members.

“The focus of this investment is on innovation as much as production, with our new facility enhancing our ability to create innovative food solutions that meet the evolving needs of our US customer base and their brand,” he said.

The board acquired Thiel in 2011, three years after its entry to the US food market.

Agriculture Minister Simon Coveney, who officially opened the facility, said the investment will benefit Irish dairy farmers and help the agri-sector fulfil its potential.

“This new facility will further strengthen the positioning of Ireland and the Irish agri-business expertise in the United States as well as supporting the economic wellbeing of Irish dairy farmers.

“We are entering an exciting time for the Irish dairy sector as milk quotas are abolished from next April and today’s opening represents the kind of investment which will help the sector realise its true potential.”

The board has sales in the region of $2bn and employs 3,100 people worldwide, with facilities in Germany, the UK and the Middle East.

Among the brands in its portfolio are Kerrygold, Dubliner cheese and Pilgrims Choice.

Minister Coveney met earlier in the week with representatives of east coast retailer Wegmans, ahead of the likely introduction of Irish beef to the US.

“Laying the ground work for the anticipated opening of the US market for Irish beef later this year will be a priority but, of course, relationship building with an organisation regarded as key influencer of consumer tastes along the east coast of the US is critical,” the minister said.