The potential for dairy products in Southeast Asia is significant, according to Minister of State at the Department of Agriculture, Food and the Marine (DAFM), Martin Heydon, speaking to Agriland in Kuala Lumpur.
Changing demands within the local population along with an aging population, has seen a increase in demand for sustainable dairy products.
The minister noted that the changes in demand from the market now mean that our focus must move away from infant formula.
Dairy exports to the Southeast Asian market are quite significant to Malaysia and to the Philippines.
Dairy accounted for €63 million of exports to Malaysia, while for the Philippines dairy exports were valued at €72.5 million in 2022.
Bord Bia hopes to increase dairy exports to these countries by a further €15 million, which Minister Heydon told Agriland he believes are very achievable.
Dairy production
Although growth opportunities for dairy exports are significant, regulation changes could result in a reduction in the national herd and thus a reduction in milk volumes.
Asked by Agriland, if the changes to the nitrates derogation could impact on the volume of dairy we may export in the future, due to a fall in cow numbers, the minister said that everything we are doing is aimed at continuing to produce a top quality, safe nutritious food – while reducing the emission profiles of these products.
“We are in the lead as a country that produces food really sustainably, but we are not complacent about that and we have our target to achieve,” Heydon said.
“All the meetings we have, sustainability is very high up the list and practically, in the higher value markets, will give the best returns to farmers.”
The minister believes that Ireland can continue to produce the same volume of dairy products, but farmers will have to adapt.
“We are an evolution of change, and I don’t underestimate how hard that is, particularly in a year like we have had with lower commodity prices and weather challenges that farmers have faced,” he continued.
“In a medium-term view, yes we can, yes we have our derogation farmers, about 3,000 farmers that will be impacted, they know what the maps are now and have clarity on that.
“Farmers will have to tailor solutions that will best suit them to hit that 220kg target, whether that is exporting slurry, changes, to the amount of land they have or changes to their stocking rates.”
Minister Heydon explained that he believes that Ireland can continue to produce the same volumes of food, albeit more sustainably in the future.
“When we look at sustainability, it is not just the environmental, it needs to be the economic as well – farmers have to have the economic return and industry needs that economic return.
“That is why we are out here looking to get those higher value markets, to grow our market share, in what is a growing market,” the minister concluded.