Kerrygold maker slows its US investment on tariff war

Tariffs on agricultural products a challenge for the second-largest selling butter brand in the US

Ornua reported continued volume sales growth in the US in 2024, reaching a record number of US households, according to its results statement in April.

Kerrygold butter maker Ornua has slowed its US investment as it waits for more clarity on President Donald Trump’s trade settlement with the European Union.

“Volatility and uncertainty in the last six to 12 months has meant that we slowed down our activities, particularly in relation to investments in the US, until we get a better sense of things going forward,” Ornua chief executive Conor Galvin said on a panel in Dublin.

Tariffs on agricultural products are a challenge for the second-largest selling butter brand in the US. In April, Ornua said it had already sold most of the stockpiles it exported to the US ahead of a potential trade war.

Agriculture is a key sticking point between the EU and the US, as the two sides aim for a provisional trade agreement in the coming days, Bloomberg reported earlier.

The EU is seeking a tariff no higher than 10% on agricultural exports, something that will be key for farming in Ireland, one of the country’s most important indigenous sectors.

Ornua reported continued volume sales growth in the US in 2024, reaching a record number of US households, according to its results statement in April. However, its full-year outlook is mired in uncertainty due to tariff uncertainty.

The US is still an important market for Ornua, Galvin added, but admitted the “rules of the game have changed” and will need to diversify away from the country.

Bloomberg