Southeast Asia has significant opportunities for dairy exports, with an aging population seeing demand for adult nutrition and aging nutrition.
The Bord Bia trade mission to Malaysia and the Philippines has had a significant focus placed on dairy products, with these countries targeted for a €15 million increase in Irish dairy exports over the coming years.
Already, dairy exports to these nations are valued at €131 million, based on figures from 2022.
Dairy products which are in significantly high demand in the Southeast Asian market include: Skimmed milk powder; whole milk powder; and fat-filled milk powder for reconstitution into beverages and for use in confectionery products.
Arrabawn
One of the Irish dairy co-ops that seeks opportunity in the Southeast Asian market is Arrabawn.
The Tipperary-based milk processor has been targeting the region, particularly Malaysia, the Philippines and Indonesia since 2018.
The cooperative said that this was aligned with substantial investments made in 2020.
A spokesperson for the co-op said this has allowed for the successful cultivation of partnerships with customers in the region, delivering functional ingredient solutions used in tailored products produced by customers in the region to match local tastes and requirements.
Arrabawn noted that while the Southeast Asia market has exhibited robust growth in recent years, it has encountered challenges in recent months due to macro-economic factors.
Despite this, the region is an integral component of Arrabawn’s future strategy.
Southeast Asia
Although there is significant demand for dairy, there is also a desire fpr quality and sustainable dairy.
Price will always have an impact, but consumers in the region also want sustainably produced dairy, with Ireland’s grass-based model fitting the criteria.
Although we do face challenges within the Irish dairy sector, due to the reduction in the Nitrates Derogation – Irish dairy is still seen as a secure source of supply.
Most of the Irish dairy co-ops have identified Southeast Asia as a market with significant opportunity, as demand for product increases in the region.