Building on a rich dairy history, Ireland-based Tirlán Ingredients has shifted gears from an expansion mindset to assessing market opportunities in functional and emerging dairy ingredients. True to form, the company relies on grass-based farming and the best animal welfare to ensure the quality of its dairy.

“Partly because we’ve had to invest in dealing with exponential growth since 2014 because of the milk quotas disappearing, Tirlán grew by 65% in five years, which meant we had to build new factories to deal with that milk growth,” Darren Barcoe, head of global sales, Tirlán Ingredients, tells Nutrition Insight.

“We’ve invested in modern stainless steel (vats), and the type of processing we have is what we would describe as gentle processing. We use a lot of filtration techniques and filtration technologies. This physical separation of the different components in dairy is important to delivering high-quality ingredients instead of chemically induced separation or harvesting of protein.”

The company uses “low impact processing” to maintain the quality and integrity of the protein and fats, carried through in storage and collection methods. Tirlán’s foundation approach works with the natural advantages of the land, seasonal fluctuations, the generational knowledge imparted by the farmers in their cooperative network, and natural grassland management.

Functional and emerging ingredients
As milk volumes decline, Tirlán will switch focus from volume growth to prioritizing value-added ingredients in the future.

“We must forget about volume growth and focus more on value growth. The two key pillars for us would be the natural functionality of our ingredients and the nutrient density of dairy. Dairy is well-positioned to meet the macro trends we see — what the consumers are looking for, like natural functionality,” Barcoe outlines.

“Regarding the nutritional density, much has been made about plant-based and dairy alternatives growth. Plant-based and dairy alternatives are also important growth spaces for us. We have a strong and growing oats ingredients business.

“Consumers will be looking for options to personalize their diets, and both dairy and plant have a role to play. We see many of the more advanced nutritional customers we work with starting to move in that direction, offering both plant and dairy options to consumers.”

Tirlán has adapted its focus from being an Irish company exporting globally to having people on the ground worldwide to improve their knowledge base and expertise. The company has invested in building strong in-market and technical capabilities to understand customer needs better and deliver against those needs.

“We’re also looking at emerging technologies and emerging ingredients. We’re continuously assessing and looking at the external environments and reacting to it. We have an investment fund and stand ready to invest in the right type of business, be it an ingredient or technology business, that can be complementary and add value to our core dairy and grain portfolio,” Barcoe explains.

Regarding the proliferation of precision fermentation, probiotics and dairy alternatives in the market, the company will invest when it is satisfied with the criteria for business. Tirlán has invested in best-in-class technologies for natural fermentation and is using microfiltration and nanofiltration to harvest protein and fats — whey and casein — which go into its protein milks.

Animal welfare
Maintaining excellent animal care is essential to delivering high-quality ingredients. The grass-based farming that is prevalent in Ireland is what makes Tirlán stand out from other dairy processors. Animal welfare is also important to Tirlán as the milk is the starting point for high-quality ingredients.

“Here, animal welfare is important. Animal care programs are critical. We’ve got our dedicated vet quality programs at the farm level. The quality of the milk has to be good coming into the factory in the first place. We have the natural climate for grass-based dairy, and our cows graze grass at least 250 days a year, and quite often, they graze more than 300 days yearly,” says Barcoe.

The average farm size is about 94 hectares, about 232 acres and a typical fifth-generation family farm has an average herd size of 121 cows, which amounts to about 2 acres per cow.

“That’s a different concept than corporate farms in different territories wher you’ve got hired labor, and it’s high-intensity production. Because you’ve got the family farms in Ireland, the farmers care very strongly about their animals and know each cow individually. The cows have names,” Barcoe explains.

The cows are milked twice daily. They typically walk three kilometers daily from the grassland to the milking area, then back to the grassland. This amount of walking ensures the cows do not suffer any lameness, which many cows in other territories that live in small scratch spaces and do minimal walking may suffer from.

“Because the grasslands are heavily managed by the farmers, and you have low-intensity farming, you can let the land recover. We have a paddock system on all of our farms, so the cattle are not wandering over vast areas, and they’re inside the paddock for a couple of days,” he notes.

The cattle are moved to another paddock after a few days, allowing farmers to measure grass growth in various paddocks. This will enable them to cut silage and improve the quality of the grass.

Exporting expertise
Tirlán produces enough food to supply around 60 million consumers, wheras the island only has five million inhabitants. Hence, about 90% of the company’s produce is exported today. This provides a marked advantage nurtured over decades with service providers globally.

These partnerships came in handy in 2022–23 during the supply chain difficulties that arose from multiple crises and during many market shocks and challenges that have tested the company’s resilience.

“Over the years, we’ve formed good partnerships. We saw significant congestion in China a few years back, and we saw that many containers would catch up with the congestion. As a result, the availability of containers was somewhat constrained. That put pressure on all dairy companies and food companies around the world.

“We had long-standing contracts and relationships with some of the service providers. We were able to work with them and at the same time work with our customers in the market. Through these relationships, we managed the rescheduling and deliveries to ensure the product reached our customers. In other cases, we could offer customers alternative ingredients; in some cases, it was about managing customers on stocks. But we work very hard to ensure we can get the product our customers need when they need it.”

Tirlán has weathered several market storms mainly because it has developed its supply chain infrastructure, which has been important, as a large proportion of its business depends on exports.

“You have to have one eye on the rainy day, and you will always face challenges when exporting to that level. You will face challenges from time to time — one day it’s geopolitical, the next day it’s something like a canal being blocked by a ship,” says Barcoe.

“Whatever it is, we deal with it, but we deal with it through the relationships we’ve built up for decades with our customers. When you have an open, transparent relationship, there’s a lot you can work on together to manage the situation. I think authenticity and honesty still go a long way in business,” Barcoe concludes.