The Irish Dairy Board has secured a contract worth €20m with Tesco for the supply of packet butter for 2012 and 2013.
The deal will see the board supplying own brand butter to Tesco's European shops in Poland, the Czech Republic, Slovakia and Hungary.
Poland is the fourth biggest butter market in the EU and combined, these four markets consume 22 times the amount of butter consumed in Ireland.
The Irish Dairy Board is responsible for just under €1 billion worth of dairy products exports from Ireland a year. It owns the internationally famous Kerrygold brand along with other brands such as Pilgrims Choice and Beo.
Meanwhile, the European Commission has approved over €400,000 for Ireland to promote dairy products in the European Union.
The promotion programme will be run by the National Dairy Council. The Commission's Steffen Schulz said the money will be spent on marketing Irish dairy produce in a number of ways.
