Ornua, the owner of the billion-euro Kerrygold brand, is confronting an internal supply chain conflict in the United States as supplier Tírlan strikes a private-label deal with retail giant Costco.
Tírlan Secures Costco Private-Label Agreement
Tírlan, one of Ornua’s primary dairy suppliers, has finalized an agreement with Costco to supply butter under the retailer’s Kirkland private label.
Did you know? Kerrygold made history as the first Irish food brand to eclipse €1 billion in annual sales, largely driven by its strong performance in the United States market.
Agri Industry Reactions and Pricing Concerns
The retail arrangement has generated substantial concern across Irish agricultural circles. Farm representatives have publicly warned that the dual strategies pursued by major domestic co-operatives could trigger damaging pricing pressure abroad.
Irish Creamery Milk Suppliers’ Association president John Drennan stated that dairy farmers’ initial reaction is one of astonishment. According to Drennan, the appearance of two major Irish co-operatives following conflicting international strategies risks undermining farm gate milk prices over both the short and long term.
A History of Strategic Clashes in the US Market
This development marks the latest friction point between Ornua and its largest supplier. In 2018, Tírlan—then operating as Glanbia Co-op—launched its own “Truly Grass Fed” dairy brand in the US. That rollout coincided with legal disputes involving Ornua regarding official grass-fed product marketing credentials.
Ornua operates at the top of a complex dairy sector structure, functioning primarily to market and export Irish dairy produce on behalf of leading domestic co-ops. Despite reporting a 5 percent increase in operating profits for the previous year, Ornua leadership has characterized the US trading environment as highly challenging due to persistent food price inflation and tariff uncertainties.
Ornua chief executive Conor Galvin has publicly warned that potential tariff policies proposed by Donald Trump could impose costs of up to €50 million annually on the group.
Frequently Asked Questions
What is the relationship between Ornua and Tírlan?
Ornua acts as the international marketing and selling arm for leading Irish dairy co-operatives, of which Tírlan is the largest supplier and beneficiary.
How much will the competing Kirkland butter cost?
Tírlan’s butter supplied under the Costco private label is priced at approximately $6 (€5) per kilogram, undercutting standard Kerrygold equivalents.
What previous challenges has Ornua faced in the US?
Ornua previously navigated legal disputes regarding grass-fed credentials around the same time Tírlan launched its competing “Truly Grass Fed” brand in 2018.
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