The Irish Dairy Board (IDB) plans to double its presence in the Chinese mass market by 2015 in line with its strategy to tap milk deficit regions.
The cooperative has been making attempts to expand internationally in order to find markets for its additional milk production after the quotas are removed in April 2015.
The restrictions imposed by the European Union on the quantities of milk production will expire next year, allowing the farmers to increase their production.
IDB has recently invested in its in-market infrastructure in China with marketing teams in Beijing, Shanghai and Shenzhen.
According to IDB, the Chinese liquid milk market is estimated to be worth €18bn growing every year at a rate of 10%. Over 11 billion litres of liquid milk is consumed in China each year, compared with 670 million litres in Ireland.
In a major step towards its expansion plan, IDB has launched the premium Kerrygold Whole Milk in China.
Introduced under the brand name Jin Kai Li, Kerrygold will be marketed as a premium imported product, targeting an estimated 186 million Chinese households. The premium segment of the milk market forms 28% of milk volume and 45% of the value of the market.
Jin Kai Li was unveiled by Ireland Minister for Agriculture, Food & the Marine Simon Coveney who was visiting China.
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.
"IDB's investment in China and the entry of Kerrygold Whole Milk into the Chinese mass market opens up considerable market opportunities for the additional milk we are expecting post 2015."
Kerrygold Whole Milk will be sold through major Chinese retailers, regional shopping networks and e-commerce retailers.
IDB spokesperson Jeanne Kelly said: "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."
In addition to China, IDB is expanding operations in the UK, Spain, Germany, America, Africa, and the Middle East in preparation of the 2015 production liberalization.
Image: Ireland Minister for Agriculture, Food & the Marine Simon Coveney launching KerryGold Whole Milk in China. Photo: courtesy of Irish Dairy Board.
