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Dairygold already produces Jarlsberg cheese for TINE in Mogeely, Co Cork under a relationship that began back in 2004.
The new investment by TINE in Ireland will involve the construction of a separate building on the site in Mogeely, and according to a spokesperson for Dairygold, "the two buildings will work closely together".
TINE's decision to invest in Ireland comes off the back of the Norwegian government's decision to phase out export subsidies.
This decision in turn came about as a result of an agreement made in Nairobi in December 2015 by World Trade Organisation countries to abolish export subsidies for agriculture exports. Commenting on the decision at the time, EU Agriculture Commissioner Phil Hogan said it will "level the playing field for EU exporters".
TINE's decision to invest alongside Dairygold on the Mogeely site reflects a strong vote of confidence in the commitment of our farmers and staff to quality dairy production at all levels.
Export supports in Norway will therefore be phased out during 2020, a move which TINE says "will make the export of Jarlsberg from Norway unprofitable".
"TINE has considered various possibilities for export without support, and concluded that the export of Jarlsberg in the current market situation will not be profitable," a press release issued from the co-op stated.
The initial threat from the phasing out of Norwegian export subsidies to the Jarlsberg business model had previously led to fears that Irish production of the cheese could cease altogether, but it has now emerged that the policy move was beneficial to Ireland.
Cheese production
The production of cheese in the new plant in Co Cork is expected to begin in 2019. TINE exports around 10,000t of Jarlsberg annually, and the statement from the co-op said the new plant in Ireland "should at least deal with a similar amount".
Dairygold chairman James Lynch commented that the Norwegian dairy co-op's decision to invest alongside Dairygold on the Mogeely site "reflects a strong vote of confidence in the commitment of our farmers and staff to quality dairy production at all levels".
Hinting at one of the reasons why it chose Ireland as a location in which to construct its new plant, TINE said "Dairygold is a company TINE knows well through a partnership over ten years".
In a statment to the Irish Farmers Journal a spokesperson for TINE added that "the agriculture in Ireland is good and the milk quality is excellent for Jarlsberg production. The supply of milk is stable."
The cheese will continue to be manufactured in Norway for the domestic market.
Speciality Jarlsberg cheese will give Irish milk yet another welcome route to an internationally established cheese market.
Welcoming the announcement, Minister for Agriculture Michael Creed, Minister for Agriculture, Food and the Marine, said “Speciality Jarlsberg cheese will give Irish milk yet another welcome route to an internationally established cheese market. Adding value to top quality Irish milk is a key part of Ireland’s strategy for the development of the agri-food sector.
"This strategic partnership between one of Ireland’s premium farmer-owned processors and a proven international cheese manufacturer is a perfect example of the contribution that sector is making to employment creation in the rural economy, and to the brand image of Ireland on international markets.”
Jarlsberg cheese and TINE
Jarlsberg is a mild, semi-soft cow’s milk cheese of Norwegian origin which resembles Swiss Emmental cheese with distinctive, open and irregular ‘eyes’.
TINE is organised as a cooperative and is owned by more than 13,000 Norwegian dairy farmers. Each member is a shareholder in the cooperative to which they deliver 1.454bn litres of cow's milk and about 20m litres of goat's milk every year. The milk is processed into more than 200 different products which are sold under the TINE trademark.
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