The maker of Kerrygold butter has warned that the 20% tariff that the US has placed on EU goods will have a negative impact on the dairy farmers who supply milk for the butter brand.Ornua said that it regrets the US decision to impose additional tariffs on Kerrygold and remains hopeful that a negotiated solution can be reached between the US and the EU.
The maker of Kerrygold butter has warned that the 20% tariff that the US has placed on EU goods will have a negative impact on the dairy farmers who supply milk for the butter brand.
Ornua said that it regrets the US decision to impose additional tariffs on Kerrygold and remains hopeful that a negotiated solution can be reached between the US and the EU.
“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.
“For over 30 years, US consumers have chosen Kerrygold because of its distinct Irish grass-fed credentials. Kerrygold, made from quality assured Irish cream, is the second-biggest butter brand in the US.
“We will endeavour to ensure Kerrygold butter and cheese continues to offer US consumers a unique proposition,” the co-op said.
It said that the US will remain a very important market for Ornua and it is committed to further investing in its businesses there, while meeting the needs of US consumers who love Irish grass-fed dairy.
The Irish Farmer's Association said that the competitiveness of Irish products, such as Kerrygold, will be impacted by the tariffs.
Fallout
The European Dairy Association has called on the European Commission to shield the EU dairy sector from further fallout.
Its secretary general Alexander Anton said that using dairy as a pawn only creates problems on both sides of the Atlantic.
“This move is unjustified,” Anton said. “EU dairy exports, most notably cheese, account for less than 2% of total US domestic consumption. These cheeses serve a very unique market segment in the US, offering choice and excellence to the US consumers and therefore do not compete directly with American dairy products,” he said.
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