Glanbia defends launch of grass fed venture in US
GLANBIA has defended its plans to progress with the launch of its Truly Grass Fed brand in the US despite deepening tensions with Ornua, the owners of Kerrygold, over the move.
Last week Ornua CEO John Jordan raised concerns the venture would “erode value” for Irish farmers. Ornua fears Glanbia’s new venture will threaten Kerrygold’s gilded position in the US market.
In response, Glanbia said it is and will continue to be a strong supporter of Ornua, in which it holds a 25% stake.
In a statement, Glanbia said its nominees on the board of directors of Ornua have made a valuable contribution to the organisation and will continue to do so in the future. It also pointed out that Ornua has been in competition with many of its members on international markets for many years.
“Glanbia will continue to develop markets to increase the value of its products and the consequent returns to its farmers,” the statement added.
“Competition in the market place is a reality – and legal requirement – with which Ornua is already familiar.”