Bord Bia has targeted Malaysia and the Philippines for a €15 million increase in Irish dairy exports over the coming years.
Already dairy product exports to these nations is valued at €131 million, based on figures from 2022.
This growth in demand for dairy products is due to some cultural changes – but also due to the aging populations in these countries.
Speaking to Agriland at a trade mission to Malaysia this week, Margaret Butler, dairy ingredients manager with Bord Bia, said that the main message they are trying to get across to potential customers is that Ireland is a secure source of supply.
Speaking about the customer base in Southeast Asia region, she said: “They want consistency of supply and consistency of quality supply.
“We are trying to understand what products they are looking for, as is industry, so that we can be well placed to supply them in the future.”
Irish dairy
Highlighting the Irish grass-based model was a major focus of the seminar held by Bord Bia in Kuala Lumpur.
Although price will always likely be the most significant factor, Butler said that the interest in a sustainably produced product and the grass-based dairy system is definitely coming up the consumer consideration list.
Butler said there is a definite concerted move all over the world that consumers want to know how their product is made, where it comes from, and that it is produced as sustainably as possible.
Speaking about the trends within the Southeast Asian market, Butler said: “We are seeing a lot of trends towards adult nutrition and aging nutrition, which tends to be on the premium side of the market.
“There does seem to be potential for growth in many categories, we heard in our seminar today about growth for skimmed milk powder (SMP) in markets like Indonesia, the fourth largest market in the world, with the Philippines being the 13th largest market, based on population size – which would indicate opportunities for growth there.”
Some of the other dairy products in the most significant demand within the Southeast Asian market according to Butler are: SMP; whole milk powder; and fat-filled milk powder for reconstitution into beverages and use in confectionery products.
But she also noted that there is growth opportunities for other products such as functional cheeses or slice-on-slice for use on burgers.