Kerry Dairy Ireland CEO highlights strategic focus on value-added dairy products

United Kingdom (UK) 19.06.2024

Source: The DairyNews

Pat Murphy, Chief Executive of Kerry Dairy Ireland, underscored the critical importance of adding value to Irish milk in the coming years. This announcement coincided with the recent expansion of Kerry Group's Cheestrings plant in Charleville, Co. Cork, a project supported by the government’s capital investment scheme for the agri-food processing sector. The multi-million euro investment has boosted production capacity by 50% and generated 60 new jobs.

Kerry Dairy Ireland CEO highlights strategic focus on value-added dairy products

Cheestrings Brand Expansion

Launched in 1996, the Cheestrings brand has grown to be worth over €130 million globally in retail sales. Murphy noted that the newly added third production line is nearly operating at full capacity, reflecting strong demand across key markets such as the UK, France, and Germany, with potential growth in Asia and North America.

"Cheestrings hold about 20% of the children's snacking market in the UK, competing with brands like Babybel," Murphy stated.

Research and Innovation

Murphy emphasized the importance of ongoing research and innovation within the dairy sector. Over the next 5-10 years, Kerry Dairy Ireland aims to develop additional products targeting specific market niches, akin to Cheestrings. This strategy, while requiring significant investment, is expected to yield favorable returns.

The recent expansion in Charleville is projected to pay off within three years. Additionally, the company has introduced Smug, a hybrid product range combining dairy and oat protein, to the UK market.

Sustainability and Future Growth

Murphy highlighted the growing importance of sustainability in consumer choices and praised the efforts of Irish farmers involved in the Kerry Evolve Dairy Sustainability Programme.

“Our farmers are significantly reducing their carbon footprint, which is increasingly important as consumers might be willing to pay a premium for sustainability,” he added.

Murphy also observed that Ireland's milk output might have reached its limit for the foreseeable future. Therefore, focusing on value-added products is essential for the industry's growth.

“Ireland has an eight-billion-litre milk pool, and our goal is to convert a growing proportion of that into higher-value products,” Murphy concluded, pointing to niche products like confectionery ingredients from the Listowel plant as examples of items that are challenging for global competitors to replicate.

This strategic shift underscores Kerry Dairy Ireland's commitment to innovation and sustainability, positioning itself for continued success in the competitive global dairy market.

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