The dairy market is expected to grow in Southeast Asia

Consumption of dairy products is expected to increase in Southeast Asia due to rapid and steady economic growth, increasing urbanization and noticeable changes in dietary habits. According to a market study, the dairy and egg segment in Southeast Asia may grow by 28.69% (2022-2025), increasing the market volume by $1,655 million in 2025.

Among the members of the Association of Southeast Asian Nations (ASEAN), Cambodia has a tiny dairy sector and imported dairy and other similar products worth $59.1 million. dollars in 2021, according to United Nations ComTrade data on international trade.

Interestingly, in 2020, Cambodia exported milk worth $39,000, making it the 104th largest milk exporter in the world, with the main destination being Germany. In the same year, Cambodia imported milk worth $56.3 million, mainly from Thailand ($50.8 million), Australia ($1.55 million), Poland ($972,000 dollars), France ($738,000) and New Zealand ($694,000).

To meet the growing demand, many dairy products must be imported due to the region’s limitations in producing milk and other factors. Cream, ice cream, butter, fermented milk, powdered milk, yogurt, cheese, pastry cream and casein are common dairy products.

Asian countries like Singapore, Malaysia and Vietnam are also among the milk exporters, with China being the second largest milk exporter in Asia.

In 2021, Thailand shipped milk worth $33.1 billion, crushing many notions, accelerating value by 16.8% for all milk exporting countries over the 5-year period starting in 2017 , when global milk sales were $28.4 billion. As in most ASEAN countries, milk and dairy products were barely consumed in Thailand until several decades ago when a Danish company set up a dairy farm and started selling milk and other dairy products.

For all dairy products, Thailand is the leading producer and exporter among the 10 countries of the Association of Southeast Asian Nations (ASEAN). In all of Asia, however, India is the biggest milk producer, but not the biggest exporter.

Cambodia’s annual milk consumption is very low compared to fellow ASEAN members Thailand and Vietnam, but is expected to increase with the rest of its Southeast Asian neighbors.

Meanwhile, the value of milk exported globally year-over-year increased 9.7%, from $30.2 billion in 2020. Today, the top 5 milk suppliers in the global markets ranked by dollar value are New Zealand, Germany, the United States, the Netherlands and France. Together, they accounted for 54.9% of global milk sales in 2021.

Of this total, European suppliers accounted for 51.8% of global milk sales, Oceanian countries 27.8%, North America 9% and Asian milk exporters 6.9%.

In 2021, the 15 countries that exported the highest dollar value of milk were New Zealand $7.8 billion (23.6% of total milk exports), Germany $3.2 billion (9.6%), USA $2.8 billion (8.5%), Netherlands $2.4 billion (7.1%), France $2 billion (6%) , Belgium $1.96 billion (5.9%), Australia $1.4 billion (4.2%), Poland $1 billion (3.1%), Ireland $878 million (2.7 %), Belarus $726.1 million (2.2 percent), United Kingdom $706.5 million (2.1 percent), Argentina $529.1 million (1.6 percent) percent), Denmark $504 million (1.5 percent), Spain $497 million (1.5 percent) and the Czech Republic $495.5 million (1.5 percent),

By value, these 15 countries exported more than 81.1% of the world’s milk in 2021. Demand for dairy products in Southeast Asia is expected to increase over the next decade, creating opportunities for major dairy exporting regions. dairy companies, including Australia, said agribusiness specialist Rabobank in its report. recent global research. The combined dairy import deficit of ASEAN-6 countries is one of the largest in the world and continues to grow.

About Thomas B. Countryman

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