Irish Dairy Board
Encyclopedia
The Irish Dairy Board is a state-backed
agricultural marketing cooperative in Ireland
. The firm owns the globally famous Kerrygold butter
brand.
The Board was established by an act of the Oireachtas
, the Dairy Produce Marketing Act 1961, and replaced the earlier Butter Marketing Committee. It was created to centralize the overseas marketing of Irish dairy products so as to achieve economies of scale
and greater brand recognition. And the time of the Board's creation, the European Economic Community
's market was closed to Irish butter, and the United Kingdom market limited Irish imports by an import quota
. As well, Irish agricultural products were usually treated as a commodity
and shipped in bulk to be processed and packaged by British companies and sold under British brands. This meant that all of the value added
happened outside of Ireland.
The name Kerrygold was selected to evoke "farming, naturalness, goodness and above all quality milk" as well as a sense of Irishness. In October 1962, the Board successfully test-launched the Kerrygold brand in the Winterhill area of North West England
. Since that time, the brand has been a major player in the British market, developing a reputation as a premium quality brand.
When Ireland joined the EEC
in 1973, the Board began expanding its presence to continental Europe, beginning with the North Rhine-Westphalia
state of Germany. By 1982, Kerrygold had national distribution in Germany. Today, the Board claims to be the "leading butter brand" in Germany.
Government-owned corporation
A government-owned corporation, state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, or parastatal is a legal entity created by a government to undertake commercial activities on behalf of an owner government...
agricultural marketing cooperative in Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
. The firm owns the globally famous Kerrygold butter
Butter
Butter is a dairy product made by churning fresh or fermented cream or milk. It is generally used as a spread and a condiment, as well as in cooking applications, such as baking, sauce making, and pan frying...
brand.
The Board was established by an act of the Oireachtas
Oireachtas
The Oireachtas , sometimes referred to as Oireachtas Éireann, is the "national parliament" or legislature of Ireland. The Oireachtas consists of:*The President of Ireland*The two Houses of the Oireachtas :**Dáil Éireann...
, the Dairy Produce Marketing Act 1961, and replaced the earlier Butter Marketing Committee. It was created to centralize the overseas marketing of Irish dairy products so as to achieve economies of scale
Economies of scale
Economies of scale, in microeconomics, refers to the cost advantages that an enterprise obtains due to expansion. There are factors that cause a producer’s average cost per unit to fall as the scale of output is increased. "Economies of scale" is a long run concept and refers to reductions in unit...
and greater brand recognition. And the time of the Board's creation, the European Economic Community
European Economic Community
The European Economic Community The European Economic Community (EEC) The European Economic Community (EEC) (also known as the Common Market in the English-speaking world, renamed the European Community (EC) in 1993The information in this article primarily covers the EEC's time as an independent...
's market was closed to Irish butter, and the United Kingdom market limited Irish imports by an import quota
Import quota
An import quota is a type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time....
. As well, Irish agricultural products were usually treated as a commodity
Commodification
Commodification is the transformation of goods, ideas, or other entities that may not normally be regarded as goods into a commodity....
and shipped in bulk to be processed and packaged by British companies and sold under British brands. This meant that all of the value added
Value added
In economics, the difference between the sale price and the production cost of a product is the value added per unit. Summing value added per unit over all units sold is total value added. Total value added is equivalent to Revenue less Outside Purchases...
happened outside of Ireland.
The name Kerrygold was selected to evoke "farming, naturalness, goodness and above all quality milk" as well as a sense of Irishness. In October 1962, the Board successfully test-launched the Kerrygold brand in the Winterhill area of North West England
North West England
North West England, informally known as The North West, is one of the nine official regions of England.North West England had a 2006 estimated population of 6,853,201 the third most populated region after London and the South East...
. Since that time, the brand has been a major player in the British market, developing a reputation as a premium quality brand.
When Ireland joined the EEC
European Economic Community
The European Economic Community The European Economic Community (EEC) The European Economic Community (EEC) (also known as the Common Market in the English-speaking world, renamed the European Community (EC) in 1993The information in this article primarily covers the EEC's time as an independent...
in 1973, the Board began expanding its presence to continental Europe, beginning with the North Rhine-Westphalia
North Rhine-Westphalia
North Rhine-Westphalia is the most populous state of Germany, with four of the country's ten largest cities. The state was formed in 1946 as a merger of the northern Rhineland and Westphalia, both formerly part of Prussia. Its capital is Düsseldorf. The state is currently run by a coalition of the...
state of Germany. By 1982, Kerrygold had national distribution in Germany. Today, the Board claims to be the "leading butter brand" in Germany.