The major investment will underpin Kerrygold’s plans to become Ireland’s first €2 billion ($21.3 billion) food brand and support the rapidly growing global demand for Kerrygold, including in the U.S. where it is the number two butter brand. 

The new development at the Mitchelstown facility was officially opened by Minister for Agriculture, Food and the Marine, Charlie McConalogue TD and Minister for Enterprise, Trade and Employment Simon Coveney TD, who was joined by Enterprise Ireland Executive Director Jenny Melia, and Ornua Co-operative Chair, Aidan O’Driscoll.  

Kerrygold Park – the Global Home of Kerrygold 

Kerrygold Park is home to a world leading butter production facility, with cutting-edge processing technology and infrastructure, including two state-of-the-art butter churns and 10 packing lines for a range of over 50 different product formats available across over 60 markets globally. The investment in the facility has seen Kerrygold Park’s total cream processing capacity grow significantly, enabling increased production of up to 80,000 tonnes of butter per year, which equates to over 1 million packs per day. 

As a result of the investment in Kerrygold Park, which has received funding support through Enterprise Ireland, Ornua has also expanded its direct employment at the facility by 20%. The 30 new jobs bring Ornua’s total Kerrygold Park workforce to 180. 

From Ireland to the World 

The opening of Kerrygold Park’s new development will support Ornua in meeting the demand for a globally revered consumer brand which continues to grow at an exceptional rate. The announcement follows the recent launch of a major new global advertising campaign which is expected to reach more than 150 million consumers around the world in the coming 12 months. 

The investment also enables Ornua to strengthen the routes to high value markets it creates for Irish dairy through the Kerrygold brand, while responding to ever-evolving consumer needs through enhanced product innovation. Ornua continues to diversify its offering and invest in growing the Kerrygold brand at home in the Irish market, where it has launched a new 100g Kerrygold Butter Stick. 

Minister for agriculture, food & the marine, Charlie McConalogue TD, said: Today’s announcement represents a very significant milestone in the long and successful Kerrygold story, and indeed, the story of Irish dairy. Irish dairy farming families work tirelessly to produce the world-class milk which makes Kerrygold a world-famous dairy brand. This strategic investment, which was part financed by the Government’s Capital Investment Scheme for the Agri Food processing sector, will help to ensure Kerrygold has the world-leading processing capabilities needed to continue to grow the brand and generate value for the community of Irish dairy farming families which it represents. I’d like to extend my congratulations to Ornua, its Member Co-operatives, and the entire team at Kerrygold Park and wish them continued future success.

Minister for enterprise, trade and employment Simon Coveney TD, said: “The global growth of the Kerrygold brand demonstrates the vitality of Ireland’s agri-food sector and dairy industry ecosystem. Critically, the brand supports the lives and livelihoods of hard-working Irish farming families throughout rural communities. Ornua’s investment in growing Kerrygold Park, which we are pleased to support through the Capital Investment Scheme, will further strengthen routes to high-value markets for Irish dairy, while directly supporting incomes that form part of our vital rural economy.”

Aidan O’Driscoll, Ornua Co-operative chair, said: “For the past 60 years, Kerrygold has proudly brought the unique taste of Irish grass-fed dairy to the world on behalf of Ornua’s Member Co-operatives and the 14,000 dairy farming families they represent. We are collectively proud of the success the brand has achieved internationally, including in major markets such as the U.S. where Kerrygold is the second largest butter brand. We are also passionate about growing the brand’s global status further and focused on safeguarding the value it returns to the Irish dairy sector through the premiumisation of Irish dairy. Our strategic development of Kerrygold Park is central to this ambition and will support the next phase of growth for Kerrygold on its journey to become Ireland’s first €2 billion food brand.”

Jenny Melia, executive director, Enterprise Ireland said; “Enterprise Ireland is committed to supporting companies like Ornua to increase their level of innovation, improve their competitiveness and expand their global footprint, with the ultimate goal of delivering export growth for Ireland. The opening of Kerrygold Park today reflects highly on the entire Irish dairy sector – pooling together innovation with best-in-class facilities. Enterprise Ireland has supported this development under the 2021 Capital Investment Scheme which aims to build the resilience of the Irish dairy and meat sectors by focusing on increasing the value added and directing new products into global markets. This state-of-the-art facility is certainly doing that and is a lighthouse to other Irish food companies looking to innovate and grow exports.”

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The pre-seed funding round, led by co-founder Toby and advisor, Gavin Youll, includes serial investor in consumer brands Adam Levene along with co-founders of Lucky Chap Entertainment, Josey McNarma and Thomas Ackerley, who produced 2023’s biggest box office hit, Barbie. The funds raised will be used for working capital as the brand enters the UK market, and to make some key additions to the brand’s fast growing team, with a number of new hires already underway.

Founded by two best friends from school, Thomas and Toby have created All Things Butter to showcase how great butter can elevate everyday dishes, whilst highlighting the ingredient’s versatility to consumers. They have teamed up with Brue Valley Farm in Somerset who still use traditional butter making methods – twice churning the butter for the perfect texture, and extra creaminess. Chef Thomas Straker heads up Notting Hill hotspot Straker’s, and has recently launched Flat Bread within Battersea Power Station’s Arcade Food Hall. Co-founder Toby Hopkinson, holds a wealth of experience within high growth startups, including a previous role as Head of Growth at TRIP, the fastest growing soft drinks brand in the UK.

Co-founder, Toby Hopkinson comments. “We are thrilled to introduce All Things Butter later this year and highlight the incredible versatility of our butter! With retail listings confirmed for November and some fantastic investors onboard, All Things Butter has an exciting time ahead. We have spent day and night perfecting our fresh flavour formulas and can’t wait for our product to hit the shelves and the hands of consumers. Watch this space!”

Chef Thomas Straker holds a growing social following of over 4 million, which shot to fame over lockdown through a viral social series ‘All Things Butter’, where the chef explored the unique ways to enhance recipes using the ingredient of butter. Ahead of the first four butter SKU’s launching in November through its D2C platform and a national retail supermarket listing, the brand’s Instagram account @allthingsbutter_ has already become the most followed dairy brand on social accounts.

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Maximising the economic returns from whey is an important driver in minimising environmental risks associated with its careless disposal. Whey processing has to consider the range of wheys that may be produced as by-products of cheese production. For example, the higher calcium levels and lower pH in acid whey. Recovery of whey proteins may use membrane filtration and/or ion exchange. The remaining lactose may then be refined or used as a substrate for fermentations, whether just to lactic acid or to create base materials for fine chemical production or biopolymers.

Sustainable milk production systems based on fresh forage and prohibiting silage have been called the Noble Method in Italy. Hay from local mixed grasslands is permitted. This review covers the benefits of the approach in terms of polyunsaturated fatty acid levels and enhanced micronutrients.

Dairy Chemistry

Rubber hoses are widely used in the handling of milk, from lines in milking machines to the unloading of bulk milk tankers. The rubber contains additives such as N-(1,3-dimethyl-N´-phenyl-p-phenelediamine (6PPD), which may migrate from the rubber into the milk passing through the hose. A study indicated that 6PPD migration into milk was limited to the first 10 minutes and that degradation of 6PPD was faster in high moisture liquids.

A study of six bioactive milk proteins indicated that most, except ß-casein AI, were at higher levels in milk from Jersey than Holstein cows. Most of the proteins exhibited seasonal variation and some exhibited geographical variation. Immune protein levels, eg, lactoferrin, correlated with somatic cell counts.

Organic mercury may accumulate in fat and fatty tissue and is extremely toxic. Papain-functionalised gold nanoparticles were exposed to test solutions and their aggregation in the presence of mercury led to a shift in absorption peak from 525 to 575nm. Mercury concentrations of one part per million in milk could be detected.

Membrane filtration

Pasteurised skim milk was concentrated to 20% solids by ultrafiltration then further concentrated by nanofiltration till permeate flux rate declined to 0.1 litre/m2/hour. Higher solids could be achieved by raising the process temperature from 22 to 50°C and increased further by applying hydrodynamic cavitation.

Spray drying

Acidified milk is difficult to spray dry, causing problems with build-up on the spray drier wall. Reconstituted skim milk at 25% solids was acidified with 0.5-3% lactic acid and spray dried using a two-fluid nozzle. Wall deposition increased with lactic acid level and yield increased with drying temperature difference, which also affected particle size, moisture content and water activity. Particle size could also be affected by nozzle airflow, while moisture content and water activity were also related to lactic acid content.

Frozen desserts

A comparison was made between candied orange peel (COP) and orange peel powder (OPP) as additives to a frozen yogurt (25 parts yogurt to 75 parts ice cream base). OPP at 2.5% was preferred to 8% COP and had higher levels of beta-carotene and dietary fibre than the unflavoured control.

Ice cream mixes were produced by heating the ingredients to 65°C for five or 30 minutes and under half or normal atmospheric pressure before freezing without ageing. The five-minute vacuum treatment increased viscosity but reduced overrun and air bubble size. Sensory analysis suggested that the vacuum treatments improved sweetness, milky and creamy perceptions.

Butter

Mistreated butter can suffer from oxidative rancidity and microbial contamination and some plant extracts can increase resistance to oxidation. Addition of a nano emulsion of a Ferulago angulata extract plus metabolites produced by Lactiplantibacillus plantarum subsp. plantarum was found to improve antioxidative and antimicrobial properties, leading to increased shelf life.

Cheese

Many companies have adopted digital marketing to complement their traditional approaches. A study was made of the digital marketing tools employed during the Covid-19 pandemic by companies producing Pecorino Siciliano cheese, which has a protected designation of origin. The conclusion was that the companies overall could improve their digital marketing.

Given cheddar’s large share of the UK market, monitoring of changes during maturation is of great commercial importance. Raman and mid-infrared (MIR) spectroscopy were used to investigate changes in the protein structure of cheddar cheese. MIR data were more sensitive to chemical changes than the Raman data, where the correlation could be improved by focussing on the protein-dominant regions.

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Building upon last year’s successful launch of Grass Roots Dairy Co. mild, mature and extra mature cheddars, the new organic salted butter will start appearing in specialist delis, independent retailers, and farm shops from mid-April. The new butter will also be available through selected wholesalers including specialist cheese and dairy suppliers such as The Cheese Merchant across the South of England, South West of England and Wales; Proper Good Dairy in the Midlands and Shropshire; and Mossgiel Organic in Scotland.

With a RRP of £3.75 the new 250g butter packs will deliver real standout on the dairy fixture thanks to stunning, highly evocative artwork that conveys the Grass Roots Dairy Co. brand ethos of being produced in balance with nature.

Commenting on the addition of a butter to the Grass Roots Dairy Co. range, Martyn Anthony, Omsco’s chief executive said: “Following the successful launch of our Grass Roots Dairy Co. cheddars it was a natural next step to complement them with a great tasting, traditionally made, organic butter. A butter that is made from milk produced by our free-range, organic cows who graze for an average of 235 days a year on clover and lush green grass giving the butter its gorgeous yellow colour and depth of flavour.

“Our growing Grass Roots Dairy Co. range showcases all that is great about organic dairy and the sustainable and truly regenerative farming standards that our farmers are dedicated to delivering. It taps into the concerns of an increasing number of consumers who care about the foods they eat, care about animal welfare, and care about the impact they have on the planet.”

Grass Roots Dairy Co. branded range of cheddar and now butter is made from Omsco farmers’ milk produced within the only UK farming system accredited to be free from the use of pesticides, herbicides, artificial fertilisers and GMOs – organic. Omsco’s farmers are passionate about ensuring the highest levels of health and welfare for their cows. Such attention to detail takes a huge amount of time, focus and dedication but it enables them to care for their cows to such a high level that they eliminate the need to use antibiotics.

As the brand’s name reflects, central also to the ethos of Grass Roots Dairy Co. is the commitment of Omsco’s organic dairy farmers to producing milk in a way that sustains and enhances the natural environment. By farming in a low impact, truly regenerative manner, Omsco Members promote biodiversity and by only using natural fertilisers on their land they enrich the natural goodness and fertility of their soils. In doing so, they create the nutrient rich, pesticide and herbicide free, pastures that their cows love to feed on. While by working with, not against, nature they create a haven for the natural environment to thrive including valuable habitats for wildlife including birds, bees, and butterflies.

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The milk industry organisation (BO Milch) expects Swiss butter to become scarce in autumn 2022. This second import release this year is to take place now so that trade and processing companies can sell the imported butter continuously. The additional import volume will be auctioned off as usual.

The 2,000 tons of butter correspond to the needs of half a month. On average, more than 40,000 tons of butter are in demand in Switzerland every year.

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Made from renewable, FSC-certified paper, the highly decorative butter wrap is aluminium-free and covered in highly advanced, ultra-thin natural coatings, which have excellent oxygen and water vapour barrier properties compared to standard paper, as well as superior grease resistance.

“Most butter wraps in the UK market are made of parchment paper or a grease-resistant paper which is commonly made into composite laminates with aluminium and polyethylene,” explained Wipak UK’s technical development manager, Keith Gater. “Although made from renewable resources, coated parchment papers do not promote a circular economy as they’re not easily recyclable.

“Unlike existing butter wraps on the market which are complex material structures, our consumer-friendly paper solution is fully recyclable within the kerbside paper and cardboard waste stream once it has been cleaned. What’s more, it maintains the look and feel of a traditional butter wrap, can be fully printed with brand imagery, and runs on existing butter wrap machinery.” 

Having successfully passed shelf-life trials following packing on automated wrapping lines, Wipak UK’s recyclable butter wrap has also scored an A+ rating in recycling tests² carried out by the BioComposites Centre at Bangor University. “This classification is the highest possible score that can be achieved for paper recycling efficiency, whereby the pulp recovery must be a minimum of 98.5%,” continued Keith. “Our wrap is also compliant with UK-set guidelines for claiming paper recyclability, which require a minimum paper content of 85%.”  

The butter wrap format is one of several exciting new product development projects developed using Wipak UK’s state-of-the-art combi laminator – part of a recent £5 million+ machinery upgrade to significantly enhance the packaging supplier’s sustainable product offering. This significant investment is helping Wipak UK move closer to its goal of reducing its company carbon footprint and achieving carbon neutrality by 2025. 

“With growing pressure from consumers, brands and retailers need to take decisive action with disruptive sustainable packaging solutions that challenge traditional methods,” said Keith. “Solutions like Wipak UK’s butter wrap will not only have significant environmental benefits, but will help to keep brands relevant in an increasingly competitive market.”

To find out more, call the Wipak UK Sales Team on 01938 555255 or email info.uk@wipak.com. Alternatively, please visit Wipak UK on stand A94 at the Packaging Innovations Birmingham trade show between 25 – 26 May at the NEC.

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Although the butter deficit is expected to occur in the second half of the year, BO Milch is requesting a 1,000 ton increase in import quantities starting from February. With a regular flow of import butter in the Swiss market, it can thus be guaranteed that the traditional Swiss brands Floralp and Die Butter can be made with Swiss milk only year round, the organisation notes.

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Spanning organic and paid social on Facebook and Instagram, bumper ads on YouTube and influencer partnership activity, this second phase of the campaign, which runs from mid-October to the end November 2021, is expected to generate a combined digital reach of 10 million consumers. Supplementing this online activity, front of store digital six sheets will be deployed at 100 Tesco stores, driving campaign recall close to the point of purchase.

Carrying an optimised creative to further build emotional engagement and drive brand consideration among target consumers, this latest ‘Spread the Real Love’ push continues the message that ‘there is no such thing as perfect parents, only real ones’ and builds on early campaign success which saw phase one (launched in February 2021), exceed all marketing KPIs.

Commenting on the campaign, Clover’s senior brand manager, Jamie Carey, said: “We are delighted with how our ‘Spread the Real Love’campaign has performed so far and remain passionate about dispelling the ‘perfect’ lifestyle myths so often portrayed on social media today. It’s clear that our central theme of showing love through simple, genuine acts of love and kindness rather than gloss and artifice, is really resonating with consumers.

“We are confident that this next phase of our journey to ‘Spread the Real Love’ will continue to cement Clover’s place at the heart of family life, encouraging even more families to enjoy Clover’s delicious buttery taste at their sometimes-messy, sometimes-chaotic, but happy mealtimes.”

Live from 11 October across digital channels and proximity outdoor media, the campaign will run until 30 November 2021.

Saputo Dairy UK’s Clover is currently valued at £87.8m and holds a 25% volume share of the Total Spreads[1] sector.

[1] IRI SIG Outlet + Kantar Discounters & Bargain Stores 52we 4^th Sept 2021

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Trewithen Dairy’s Salted Butter is churned from cream from herds across the Cornish countryside, featuring sea salt hand-harvested from the clearest ocean waters in the South West.

The secret behind the luxuriously smooth texture, rich creamy flavour and buttercup yellow of the much-loved butter, is that Trewithen Dairy exclusively use Cornish cream.

Cornish Sea Salt, one of the few sea salt companies that harvest from open waters, uses traditional methods to harvest the goodness of the ocean. As with Trewithen Dairy milk, the geographical environment defines the taste and high mineral content, producing an exceptionally high-quality artisan sea salt.

Judges say: “Beautifully blended with a hint of Cornish sea air! Creamy melt in the mouth, a long aftertaste with a delicate soft mouthfeel. Generous with the salt but a good blend with the cream.”

“This is a beautiful butter. There is a delicious clotted cream butteriness about it. Full on flavour of summer meadows and buttercups. The salt level is perfect.”

“This is sublime – cream, full on dairy, clean and vibrant. Perfection. Even the colouring is uniform. So scrumptious.”

“A lovely deep yellow block of butter with a delicious smooth and creamy texture. The flavour had great depth and the level of salt was well judged.”

Francis Clarke, Trewithen Dairy’s managing director, says: Everyone is thrilled with this year’s success. We consider the pairing of our butter with Cornish Sea Salt an unbeatable combination. The salt has a unique, concentrated taste that enhances the overall flavour of anything it is paired with. It is this complexity of flavour that brings our rich butter to life.

“The awards testament to the hard work which goes into making our high-quality products, right from the local farmers who supply our milk, to our drivers who help to deliver it, and everyone in between. Great Taste Awards are renowned for their experienced and knowledgeable judges, as well as the high calibre of entrants, so to receive the award with such complimentary feedback is high-praise indeed.”

The Great Taste 2 star award-winning Salted Butter by Trewithen Dairy is available from Ocado, SPAR and Morrisons.

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Amit Vyas, managing director of Amul Dairy notes, “After installing the GEA separator, we were able to dramatically reduce our fat losses – from 2% down to 0.3% in the serum part – while increasing ghee production capacity by almost 30%. We achieved our ROI in less than a year, with the added benefit of improved safety, hygiene and energy efficiency.”

The GEA team worked with Amul Dairy to understand the nature of the entire process. Thomas Veer, product manager sales, separation and flow technologies division at GEA notes,  “Amul’s previous ghee production unit had a conventional pre-stratification setup, which resulted in high-fat losses on the order of 2%. With thousands of litres of butter melted every day, the 2% fat loss was significantly impacting its bottom line. The traditional setup also posed operational challenges and was problematic with regard to safety, hygiene and energy consumption.”

GEA developed its serum separator based on Amul Dairy’s requirements for the local market. With a capacity of 3,000 litres per hour, the separator allows Amul to bypass the conventional pre-stratification setup and scale up its production to generate an additional volume of six metric tons per day with no additional equipment or investment in the plant.

Amul Dairy’s new installation has reduced the load on its effluent treatment plant (ETP), resulting in large savings in overall power and fuel consumption and benefiting Amul Dairy’s sustainability initiatives. The separator also helps reduce the turnaround time of the production process.

India produces around five million metric tons of ghee every year and it is the second-largest milk-based product consumed in India after curd. Although ghee is largely produced in the unorganised sector, the market penetration of the organised sector is increasing gradually. The Covid-19 pandemic has further boosted the demand for packaged food products, including packaged ghee.

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In February, this commission submitted its first application for butter imports of 1,500 tons, which was approved by the Federal Office for Agriculture. At the end of April, the commission submitted an application for a further 1,000 tons. However, the farmers’ representatives in the commission are against the latter import application.

“The quantity situation in the entire industry is decisive for the producers. For the milk producers, the current time for a further approval is therefore a bit premature, especially since a bottleneck can only be forecast in late summes,” notes the organisation for Swiss milk producers.

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Ornua exports to over 110 countries and is the proud owner of the iconic €1 billion Kerrygold brand which experienced 13% volume growth in 2020, selling over 10 million packets of butter and cheese a week.

2020 Operational Highlights 

• Over €1 billion (366,000MT) in purchases of premium Irish dairy products providing a critical global route to market for Ireland’s milk suppliers during a period of unprecedented challenges.
• Ornua delivered a 54% year-on-year increase in the brand premium and bonuses paid to co-op members with a record €68.7m Ornua Value Payment.
• Kerrygold sales volume up 13%, with 10 million packets of butter and cheese sold each week.
• Robust response to Covid-19 keeping Ornua’s people safe and ensuring continuity of supply to key customers facing sudden surges in demand globally.
• New fit-for-purpose governance structure embedded to drive future international growth.
• Launch of Growth for Good 2025, Ornua’s ambitious new five-year growth strategy.
• Expansion of Ornua Ingredients North America facility, unlocking 30% growth capacity.
• 25% decrease in absolute emissions and 38% decrease in carbon intensity per tonne of product since 2016, demonstrating commitment to growing sustainably.

Commenting on the robust performance delivered in 2020, John Jordan, CEO Ornua said: “Ornua had a unique performance in a unique year, and we are pleased to report a record profit with Operating Profit of +69%. The strong fundamentals of our business – great people and great products – came to the fore allowing us to maximise the opportunity presented with the change in consumer behaviour, doubling down on driving profitable value growth against the backdrop of the global pandemic. This performance delivers on our commitment to maximise returns to our member co-operatives and the 14,000 farmers who supply them.

“Ornua’s 60 years of experience navigating global trade stood to us in 2020, as did our balanced product portfolio, geographical spread across 110 markets, and strong financial foundations. Our branded and own-label portfolio benefitted from the change in consumer behaviour which saw Kerrygold volumes grow by 13%, which coupled with our Ingredient’s business delivering positive year-on-year growth, enabled us to pay €68.7million to our Member co-ops through the Ornua Value Payment.

“Looking ahead, we are cautiously optimistic about the gradual re-opening of economies as the global vaccine rollout gathers pace; we have clarity on Brexit, and we welcome strong signals from the US on improved US/EU trade relations. This, coupled with Ornua’s clear and ambitious new 5-year strategy focussed on driving profitable growth in priority global markets, will ensure we continue to deliver value for the 14,000 Irish farming families we represent.”

Financial Performance

Ornua delivered a strong performance in 2020 with Group turnover of €2.3 billion, EBITDA* of €107.4 million, up 49.6% year-on-year, and Operating Profits* of €83.1 million, up 69.2%. This unique trading performance is a result of Ornua’s agility in maximising on the opportunity arising from the sharp change in consumer behaviour due to global lockdowns. This financial performance is unlikely to be repeated as the retail and foodservice global landscape re-adjusts to the re-opening of economies post-pandemic.

Ornua’s purpose is to create value for Irish farming families by providing guaranteed routes to market and maximising the price paid back to co-ops and farmers for Irish dairy produce. In 2020, Ornua purchased over 366,000MT of Irish dairy products at a value in excess of €1 billion, reaffirming its position as the largest buyer of Irish dairy products globally. In addition, Ornua paid Member co-ops an additional €68.7 million, up 54%, in premiums and bonuses through the Ornua Value Payment in proportion to the product supplied to Ornua.

Business Performance

In 2020, Ornua’s branded and own label portfolio benefitted from the change in consumer behaviour which saw people all over the world gravitate towards brands they trust.  Kerrygold sales volume grew by 13% with over 10 million packets of butter and cheese sold weekly. In the US, Kerrygold has become the preferred dairy brand for 10% of US consumers, establishing it firmly as the No. 2 butter brand. Kerrygold butter continues to be the fastest-selling brand on supermarket shelves in Germany, with brand strength supporting the launch of additional cheddar products in 2020. In the UK, Pilgrims Choice outperformed the cheddar category with 29% growth year-on-year, securing its position as the No. 2 cheddar brand in the UK market.

Ornua Ingredients delivered positive year-on-year growth despite being particularly exposed to the impact of largescale and prolonged restaurant closures globally. 2020 was a year of sustained investment, with Ornua Ingredients North America expanding its facility in Wisconsin, unlocking a further 30% growth capacity. Ornua Ingredients Europe implemented Evolve, a business transformation project, in two of its UK manufacturing facilities enhancing its ways of working and supporting the business with world-class technology to drive maximum production capabilities and efficiencies.

Market Outlook

Dairy markets proved resilient throughout the pandemic, aided by retail sales and strong demand for milk powders from China, Southeast Asia, and Africa. Product balance within commodity markets supported milk price stability with Irish milk price averaging above 30 cents per litre. Looking to 2021, the outlook is largely positive with the market underpinned by foodservice recovery and strong export demand. Global milk output is likely to continue growing in 2021, with a projected growth of +1.3%.

Looking Ahead

The strong fundamentals of the Ornua business were evident in 2020 and remain key as the global economy looks set for a staggered re-awakening in 2021. Ornua’s market-leading product portfolio and diversified global reach will underpin the business’s long-term sustainability into next year and beyond. While the global trading environment continues to pose challenges, there is cautious optimism in the clarity around Brexit, the suspension of US trade tariffs and the re-opening of global economies in line with the vaccine roll-out. Ornua believes its co-operative ethos ensured a compelling sense of purpose across the organisation in 2020. Looking to 2021 and the pursuit of the new success stories for Irish dairy, Ornua says it will continue to focus on its people, serving its customers, and returning value for Irish farming families.

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The investment will transform the Hokitika-plant’s capability from being largely a producer of bulk commodity butter to one that has a vastly increased capacity to produce goods for the high-value global consumer market, the company says.

Since acquiring Westland in 2019, Yili has fully integrated the company into its global network, giving Westland access to extensive resources, market channels, technology and funding. The investment from Yili’s Goldrush project transforms Westland’s production, packaging and warehousing systems and will increase annual consumer butter production capacity to 42,000 tons.

More than 95% of Westland’s milk is sourced solely from natural grass-fed cows, grazing in the pastures of one of the world’s most unique dairy catchments. This area boasts a high annual rainfall and is regarded as a pristine dairy farming environment. Grass-fed milk is known to be rich in omega-3 polyunsaturated fatty acids, conjugated linoleic acid and other nutrients.

Westgold’s salted and unsalted butter have been awarded the gold medals at the annual New Zealand Champions of Cheese Awards three times, most recently in 2021. Westgold and Westland-produced butter is currently sold in more than 20 countries including China, the United States, Japan, Australia and New Zealand.

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The partnership, first launched in February 2019 and now in its third year, includes an exclusive ‘2 for 1 entry’ offer across promotional packs of Country Life, granting shoppers a free entry with the purchase of a full price adult or senior ticket to eligible English Heritage & Cadw sites across England and Wales.

With Covid-19 related government guidance having forced many English Heritage and Cadw sites to close for extended periods in 2020 and early 2021, the on-pack promotion, originally due to end in March 2021, has been extended for a further six months. All ‘2 for 1’ vouchers are now valid until 30 September 2021.

In an exciting new addition to the partnership, Country Life will also be the official supporter of English Heritage Members’ Week, taking place in the week beginning 12 April 2021. In this exceptional year, Members’ Week will involve a mix of ticketed on-site and online events to reward Members for their loyalty. Country Life branding and messaging will feature as part of event communications to English Heritage Members, with an online article dedicated to the history of butter also available exclusively for Members.

Emilie Grundy, marketing controller, comments: “Our partnership with English Heritage and Cadw has been hugely successful over the past two years and we’re delighted to not only extend our offer to shoppers, but to be the official supporter of English Heritage Members’ Week.

“The past year has been incredibly tough in ways we could never have imagined, and one of the impacts of restrictions has been the loss of freedom to visit wonderful sites and attractions such as those managed by English Heritage and Cadw. With ongoing uncertainty around overseas travel, UK-based tourism and sightseeing are expected to be top of mind for many Brits this year, so we want to give our loyal customers every opportunity to make the most of our ‘2 for 1′ offer.

“By sponsoring English Heritage Members’ Week we hope to connect and engage with loyal Country Life consumers but also with new audiences, many of whom have embraced a return to scratch cooking and home baking during the pandemic. Indeed, 2020 has seen a reversal of long-term sales decline in the butters and spreads category, which is now enjoying sustained double-digit growth. With our aligned brand values centring on British Heritage, we’re confident that the partnership will continue to drive interest on-shelf and across our partners’ marketing platforms.”

Refreshed promotional packs of Country Life, including 250g Salted and Unsalted blocks, 500g and 750g tubs of Country Life Spreadable and 500g tubs of Country Life Spreadable Lighter, have started landing in stores.

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The main reason for the reduced surplus was an increase in the trade deficit for yogurt, she notes. Fewer exports of butter and whole milk powder (WMP) were other factors behind the drop in the trade surplus. Higher imports of yogurt, combined with a drop in exports resulted in the trade deficit increasing by 51,000 tonnes to reach 235,000 tonnes. This compares to a deficit of 184,000 tonnes in 2019.

Meanwhile, the cheese trade balance, saw the largest improvement compared to 2019, while remaining in deficit. Exports of cheese were 15,000 tonnes lower (7%), but this was offset by an 8% drop in imports, equal to 41,000 tonnes. This is a result of fewer shipments from Ireland, which were down 12% on the year. The reduced foodservice demand resulting from Covid-19 likely reduced import demand.

In value terms, the trade deficit increased by 6% to £1.16 billion (€1.35bn) for 2020, amounting to a drop of £62 million (€72.2m) from last year. While the value of imports across all categories fell by 5%, the total value of exports dropped by 11%.

All key product categories, with the exception of cream and powders, recorded a value trade deficit in 2020. Cheese, butter, yogurt and concentrated milk were already running trade deficits, which grew in 2020. For milk powders, the value trade surplus was reduced, Magee notes.

For further information visit www.ahdb.org.uk.

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Building on the success of the brand’s 2020 ‘Spread the Love’ campaign, which reached over 10 million consumers and exceeded all marketing KPIs, the 2021 campaign continues to manifest the love, care and nurturing that comes from giving one’s family the very best. Using a heart-warming, emotional creative to hold up a mirror to at-home scenarios that bring real happiness, the campaign encourages Clover parents to break free from today’s social pressure to be perfect, and instead simply ‘Spread the Real Love’.

With more than three quarters of mums claiming to feel ‘mum guilt’ as a result of perceived pressure to be perfect[2] and 6 out of 10 parents claiming to feel pressure to portray a perfect life on social media[3], the campaign creative seeks to ‘bust the myth’ and contrast the ‘artificial’ nature of social media bragging with a reassuringly ‘imperfect’ showcase of real home scenarios.

Jamie Carey, Clover senior brand manager, comments: “There’s no simpler way of showing we care than by sharing real, honest goodness with the people we care about… without artificiality or pressure to conform to today’s social norms, which demand perfection.

“Amidst modern day pressure on parents to deliver more and to be more perfect than ever, both at home and on social media, (with now, the added expectations of juggling home working, home schooling and worries about the future!), we know that our Clover audience harbours regular feelings of ‘guilt’ around nurturing a happy, healthy family.

“Social media brings us many positive things, but it’s also to blame for sharing unrealistic images of other people’s lives. That’s why we decided to focus this year’s campaign on the simple truth that sits at both the heart of our Clover brand and of a happy home – a focus on the real.”

Carey continues: “Made with absolutely no artificial ingredients, ‘realness’ is inherent to our Clover product truth. At Clover we believe that there’s no such thing as a perfect parent or a perfect home – only real ones. We hope that our campaign, showcasing simple acts of genuine love and kindness, without gloss or artifice, will bring families together in solidarity around this.

“Having achieved exceptional reach with last year’s campaign, we’re confident that ‘Spread the Real Love’, will secure Clover’s place at the heart of family life, supporting our ambition for the brand to be enjoyed by even more families.”

Now live across social channels, including bumper ads on YouTube, paid and organic activity on Facebook and Instagram and influencer partnerships, the campaign will run until 4 April 2021.

The UK’s number 1 Spread brand valued at £96.3m, Clover has continued to outperform the Spreads sector in the 52 weeks to 26 December 2020, driving +9% volume growth and gaining 1.2% volume share.

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Dairy continues to be the largest export segment for Ireland. It is the second year that exports have been worth more than €5bn and occurred despite commodity price reductions for elements of the export mix including butter.

Key powders and butter contributed to the rise, Bord Bia says. Butter itself was worth €960m in exports, and volumes improved by 12% to 290,000 tonnes, despite a US tariff that has been passed directly to consumers.

Bord Bia notes that dairy is the most diversified of all food categories for destinations, with 49% of all dairy exports destined for outside the UK or EU27. Dairy exports to Asia increased by 4% to €874m, those to Africa increased 22% to €662m and the Middle East saw increases of 15% to €339m.

Exports from Ireland have increase by 16% in value since 2016, the year the UK voted to leave the European Union. The majority of that has been to EU27 markets or further afield, but exports to the UK have incfreased to €4.3bn for food and drink in total for Ireland.

Of key markets in 2020, the US export market for Ireland saw a steep decline of 10% year on year, the UK saw a drop of 5% in export value, while the EU27 also saw a 3% decline. Meanwhile, exports to Africa increased by 27% and to the Middle East by 12%.

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A working group set up by the BO Milch therefore decided to apply to the Federal Council for the further tranche of 500 tonnes.

The additional tonnagens is intended to ensure the availability of butter in Switzerland for the Christmas season. The assessment, that further imports are necessary, was shared by a large majority of the working group.

The industry assumed until September that Swiss production, together with the imports made, would be sufficient for the rest of the year. In the meantime, however, it has been shown that this assessment was too optimistic.

On the one hand, butter sales are stable at a high level and, on the other hand, market experts expect increasing domestic sales volumes in the coming months due to the Covid-19 situation.

This is because catering at home is increasing and shopping tourism is decreasing. Both of these lead to significantly higher domestic butter sales, as the figures from spring have shown.

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Jean Graham, director, Graham’s The Family Graham said: “Many years ago, Grandma Isabella Graham used to spend hours in the kitchen making the naturally fresh Scottish milk into rich, creamy butter. The butter was churned for just the right length of time to give a taste and flavour no other butter could match. We use the same recipe today with natural, unrefined Isle of Skye Sea Salt for an extra special taste experience. Ideal for cooking or spreading on a freshly baked loaf of bread”.

Chris and Meena Watts, directors, Isle of Skye Sea Salt Co, said: “We are thrilled to work with the Graham’s family and Scotland’s number one Scottish Food Brand to produce Graham’s Scottish Butter with Isle of Skye Sea Salt. Our pure eco-friendly sea salt resonates so well with the natural beauty of Skye as a brand. Our many awards reinforce the fact that adopting an eco-friendly ethos across all our activities – from loch to larder – has allowed us to produce a top-quality Scottish product loved by chefs and food lovers across the country. We are very excited that that Graham’s latest butter now includes our sea salt. We are proud to be part of the Scottish Food and Drink Industry and feel that Grandma Isabella would approve of this match”.

The Graham’s butter range has won several awards, including the Overall Dairy Champion and Gold Award at the Royal Highland Show. The dairy’s Organic slightly salted and unsalted butter, slightly salted and unsalted Scottish butter and Organic spreadable butter have all won prestigious Great Taste Awards. All awards are presented for the taste and texture of a product.

Graham’s Isle of Skye Sea Salt Butter is now available in SPAR stores across Scotland, and in Tesco from 26 October, with the aim to roll out across the rest of the UK.

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