Reporting from Indonesia
Indonesia was named in the top five markets for both meat and dairy products in Bord Bia’s prioritising markets study. This is why Bord Bia is this week holding a Trade Mission to Indonesia and Malaysia, which began today.
The country has a population of 264 million people – 50% of the population are under the age of 34.
At present, Indonesia is 40% sufficient in dairy products.
In 2016, dairy imports to the country came to a total of 380,000t in skimmed-milk powder, whole-milk powder and other ingredients.
A limited amount of whole-milk powder and mozzarella are produced in the region, while there is no cheddar produced.
Indonesia imported 51,000t of whole milk powder in 2016; making it the twelfth-highest importer of the product in the world.
The country imported 12,000t of cheddar; making it the fifteenth-highest importer of the product worldwide.
- 160,000t of skimmed-milk powder;
- 116,000t of whey;
- 50,000t of butter;
- 24,000t of cheese.
Tariffs
Australia and New Zealand have tariff-free access to the Indonesian market. However, importers from the EU face a tariff of just 5%.
At present, New Zealand is the biggest importer of dairy products to Indonesia.
Away from dairy products, Indonesia also imports a large amount of beef – 145,000t annually.
Irish imports to Indonesia at present
A total of €15.8 million worth of Irish food and drinks products were exported to Indonesia in 2017. This figure is 25.8% greater than it was in 2010.
Of that €15.8 million a total of €15 million is made up of dairy exports – casein accounts for a significant proportion of these exports.
- Casein – €4.3 million;
- Buttermilk – €3.3 million;
- Whey – €3.1 million.
Product opportunities in the region
Bord Bia outlined whole-milk powder, cheddar and mozzarella cheese as the main products targeted at the market.
Shipping time to the region would take approximately 38 days, via the Mediterranean, Suez Canal and the Indian Ocean.