Page 24 - Food&Drink Business magazine October 2022

DAIRY BUSINESS
Dairy export opportunities abound for Australian manufacturers.
producers are well positioned to continue to grow and diversify in the region over the next decade.
The Australian Trade and Investment Commission (Austrade) has a network of market experts in Australia and South-East Asia providing advice on export regulations and connecting Australian companies with new opportunities.
HALAL CERTIFICATION OPENS OPPORTUNITY With more than 240 million Muslims in South-East Asia, halal certification is an important element for dairy exports to the region. Many South-East Asian markets, including Malaysia and Indonesia, require halal certification on all dairy imports.
Halal certification has implications for the entire supply chain of a consumer product, including dairy items. A certifying body will review the product, premises, and supply chain to check there has been no cross contamination with alcohol or pork products, with all needing to adhere to Islamic practices if the end-product is to be certified as halal.
Halal certification is an investment that can open, help grow and diversify international business opportunities. Not only does it meet import regulations set by governments, it also ensures Australian products are competitive against other producers targeting Muslim markets.
Halal-certified dairy exports are overseen by both Australian government regulators and the halal regulators of the importing country.
In Australia, there are several different halal certification bodies that are recognised with certification authorities in halal markets.
The size and growth of the dairy market across South-East Asia is an opportunity for Australian producers to expand into over the next decade.
Australia’s reputation for premium foods and its strong trading relationships set a solid foundation for companies to build on. Understanding the market, targeting investment, and getting your export plan right is the key to success.
South-East Asia: A booming market for Aussie dairy farmers
South-East Asia is shaping up as a top market for Australia’s dairy exporters looking to expand and diversify. Austrade senior trade and investment commissioner Paul Sanda looks at the opportunities.
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DAIRY SNAPSHOT
FROM powdered and fresh milk to yogurt and ready-to-drink beverages, Australian companies like Bulla, Pauls, and Bubs Australia are finding new opportunities that cater to the region’s demand for dairy, which is set to surge over the coming decade.
Rising per-capita incomes, matched with increased consumer preferences for healthier diets and awareness of the benefits of dairy for child development and senior health, are driving increases in consumption that local producers cannot keep up with.
According to Rabobank, the combined markets of Indonesia, Malaysia, Singapore, the Philippines, Thailand, and Vietnam are having one of the largest growths in dairy demand in the world.
By 2030, forecasts indicate the combined annual demand for milk across the six South-East Asian markets will reach close to 19 billion litres (liquid milk equivalent) – up from an estimated 12.9 billion litres in 2020. This rapid growth surpasses that of China, where the annual milk deficit is forecast to reach
15 billion litres in 2030 from an estimated 10.2 billion in 2020.
For example, in 2020 Malaysia imported 196,000 tonnes of milk and cream. Australia is a key dairy exporter thanks to strong bilateral trade relationships. Australian dairy products are considered to be of high quality and sustainable. They attract a 20-25 per cent higher premium than locally produced products.
With a strong reputation for premium products and vibrant trading relations, Australian dairy
SOUTH-EAST ASIA DAIRY MARKET
• Robust demand and growth in yoghurt products, fresh milk and ready-to-drink beverages
• A focus on expanding premium and speciality offerings (such as organic and childhood nutrition)
• More modest growth in mainstream categories, such as condensed milk and retail milk powders
• Increasing household consumption of table butter and fresh cheese (albeit from a low base), and
• Increased demand for dairy products from the bakery and quick-service restaurant sectors.
24 | Food&Drink business | October 2022 | www.foodanddrinkbusiness.com.au