The chief executive of Kerry Dairy Ireland Pat Murphy has stressed the importance of adding value to Irish milk in the coming years.
The dairy division of Kerry Group officially launched an expansion of its Cheestrings plant in Charleville, Co. Cork in the past week.
This multi-million euro investment, supported by the government’s capital investment scheme for the agri-food processing sector, has increased production capacity by 50% and created 60 jobs.
Cheestrings
First launched in 1996, the Cheestrings brand is now worth over €130 million globally at retail sales value.
The popularity of the product is enduring as Pat Murphy told Agriland at the launch that the new third production line is currently operating at almost full capacity.
“There is demand for this type of product across the markets we currently serve. Our primary markets include the UK, France and Germany, and we’re also exploring opportunities in Asia and North America. These products really add value to milk,” Murphy said.
Cheestrings holds about 20% of the children’s snacking market in the UK, where it competes with other brands, such as Babybel.
Kerry Dairy Ireland
The Kerry Dairy Ireland chief executive emphasised the importance of research and innovation for the dairy sector.
“Over the next 5-10 years, as well as in the short-term, we aim to develop additional products – similar to Cheestrings – that address specific market niches,” he explained.
“While this will require investment, we’re confident that the market will yield favourable returns.”
Murphy estimated that Kerry Dairy Ireland’s latest investment in Charleville “will pay back” within three years.
The company also recently launched Smug, a hybrid product range combining dairy and oat protein, in the UK market.
“In today’s discussions around sustainability, the question arises – will consumers be willing to pay a premium for reduced carbon footprint?
“Our farmers are doing a huge amount of work on the ground around reducing carbon footprint and are engaging heavily with our Kerry Evolve Dairy Sustainability Programme,” Murphy added.
Murphy also noted that overall milk output across Ireland may have hit a limit for the next number of years.
“This focus on value added is the future of our industry in Ireland,” Murphy stated.
“Ireland currently has an eight-billion-litre milk pool; our goal is to shift a growing proportion of that into higher value products.”
He highlighted “niche products” such as confectionery ingredients produced at the Kerry Dairy Ireland plant in Listowel which are harder for global competitors to replicate.