KERRYGOLD OWNERS HAVE said they are hopeful a “negotiated solution” can be reached between the EU and United States over new looming tariffs, as the company’s major US market is set to be impacted by the increased import charges.

On Wednesday, US President Donald Trump introduced a series of new tariffs, including a 20% duty on various EU products exported to the US. This is expected to affect approximately €4.2 billion worth of daily trade between the EU and the United States.

Practically, it means Irish dairy goods on US supermarket shelves will rise in price significantly.

Ireland is known for its dairy production – an estimated 266m tonnes of butter is produced here each year, with brands such as Kerrygold establishing loyal customer bases in the US.

Kerrygold parent company Ornua, Ireland’s largest exporter of Irish dairy products, said that they “regret” the decision by the US administration to implement these new tariffs, which they warn may impact US consumers and Irish dairy farmers.

“Our products are subject to US import duties and additional tariffs will have a negative impact on our business, on our US consumers, and on the dairy farmers who supply Kerrygold,” the company said.

A Kerrygold product tank. Alamy Stock Photo Alamy Stock Photo

Kerrygold is currently the second-biggest butter brand in the US – making it one of Ireland’s most valuable exports across the Atlantic.

“We will endeavour to ensure Kerrygold butter and cheese continues to offer US consumers a unique proposition,” Ornua said.

“The US will remain a very important market for Ornua, and we are committed to further investing in our businesses there, and meeting the needs of our wonderful US consumers who love Irish grassfed dairy.”

‘Well placed to ride this out’

Dairy makes up a significant portion of Ireland’s total food exports to the US - milk, cheese and butter exports to the United States were valued at €830 million last year.

Together with alcohol exports, estimated to be worth €900 million, these sectors represented 91% of total food and drink exports to the US.

The Irish Farmers’ Association (IFA) warned this week that the competitiveness of Irish products, including Kerrygold, are set to be impacted on the US market.

They also claimed that the differing tariffs for other countries will dimish Ireland’s competitive edge in the US market.

“The fact that New Zealand only has a 10% tariff for dairy products and the UK only has a 10% tariff on drinks, while the EU will have 20% tariffs, will leave us at a competitive disadvantage against some of our biggest competitors in these two sectors,” an IFA spokesperson said.

Speaking to RTÉ News, Irish Creamery Milk Suppliers Association president Denis Drennan said that despite the concern over US tariffs, “the underlying strength of our products and farmers should ensure that we are well placed to ride this out until the situation becomes clearer and more stable”.

“The reputation of our cheese and butter, specifically Kerrygold, stands very high among top-end US consumers and there is some confidence that premium products like Kerrygold are inelastic in terms of demand and not overly subject to price-pressure”, Drennan added.