Exporters fight to capture ASEAN-6 market
Dairy trade into the ASEAN-6 region (Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam) surpassed 1.6 million tonnes in 2012, equating a $5.5 billion export opportunity for producers, according to a new report from Rabobank’s Food & Agribusiness Research and Advisory team. The region is one of the few remaining dairy battlegrounds, and the current boom in demand has triggered intense competition between international producers.
However, Rabobank said outcompeting rival companies will not be enough to secure victory in this market; exporters must also conquer a number of structural challenges such as food price inflation, protectionist policy and supply chain inefficiencies. Whatever the strategy, the most important factor is for exporters to make a long-term commitment to ASEAN-6; those who do will reap the benefits of the huge commercial opportunity that exists for the dairy industry across the region.
Dairy markets in the ASEAN-6 are characterized by a mix of factors which all support growing dairy consumption: high birth rates, rising incomes, improving diets, growth in modern retailing, urbanization, and country-wide school milk programs. Read more …