Southeast Asia Offers Opportunity for US Dairy

Southeast Asia, with its expanding population and rising middle class, represents the biggest growth opportunity for U.S. dairy exporters, according to a new CoBank analysis.  However, U.S. dairy companies will need to invest in new production technology to meet the product needs of an ethnically and economically diverse consumer base.

“With much of Southeast Asia lacking a refrigerated supply chain and consumable products frequently sold via outdoor vending machines, products containing dairy must be heat stable,” says Tanner Ehmke, CoBank’s Lead Dairy Economist.

Ehmke emphasizes that powdered ingredients must also be completely soluble so solids don’t settle in the container over time.  U.S. processors will need to ensure they are versatile enough to meet these needs to fully capitalize on opportunities in the Southeast Asia market.

The U.S. Dairy Export Council is well aware of the growing market potential in Southeast Asia.  That’s why the group opened up a U.S. Center for Dairy Excellence in Singapore last September.  The facility is a hub for marketing and sales and education in Vietnam, the Philippines, Indonesia, Malaysia, Myanmar, Laos and Cambodia.

Editor's Take

After traveling to China on several occasions years ago with the intent to establish a “Model Dairy Farm” in Sichuan Province, this article raises memories of some very similar issues we encountered back then.  Today, technology and markets have changed in such a manner that would more likely allow for successful expansion into some of the markets mentioned.  As stated many times in previous issues of the AIR, expanding market opportunities will benefit both consumers in the importing nations and U.S. dairy producers simultaneously.  As always, we support efforts to increase market access and sales.