Kerrygold has announced a major expansion into the lucrative Chinese market with the launch of new whole milk product.
The move, which comes in advance of the ending of milk quotas next year, was announced by the Minister for Agriculture Simon Coveney at a ceremony in Beijing today during the Irish trade mission to China.
The expansion forms a key part of Kerrygold's strategy to develop premium dairy products for markets in milk deficit regions, particularly in Asia.
The new milk product, under the Chinese trade mark “Jin Kai Li” , will be sold through Chinese retailers, regional shopping networks and e-commerce retailers and will be supported by a marketing campaign that focuses on “craftsmanship”, the company said.
"Extensive consumer insight research found that Chinese shoppers responded positively to the image of Ireland as a pure, green island, with clean family farms, where the tradition of craftsmanship is married with the modern technology required to ensure high standards of safety and quality production," the company added.
Kerrygold said China will be an immediate route to market for additional milk Irish farmers will produce when milk quotas are removed in April 2015.
“We are entering an exciting time for the Irish dairy sector as milk quotas are abolished from next April,” Minister Coveney said.
"The development of premium dairy products and the building of routes to markets, in particular in emerging dairy markets like China, are essential if we are to deliver on our objectives under Food Harvest 2020."
In preparation for the removal of milk quotas, the Irish Dairy Board, which trades under the Kerrygold brand, has expanded operations in the UK, Spain, Germany, America, Africa, the Middle East and now China.
Spokeswoman Jeanne Kelly said: "Today marks IDB's entry into the Chinese mass market. We plan to make Kerrygold Whole Milk as widely available as possible by building a sustainable business with national, regional and e-commerce retailers."
“ There are few more significant countries than China in terms of opportunity for dairy growth and we see considerable potential to develop our business, not only in liquid milk, but also in cheese and butter.”
