'There's Irish dairy powder promise in Indonesia' - Bord Bia
As the fourth most populous country in the world – with a 245m population – Bord Bia (the Irish Food Board) noted that Indonesia was posting 6% GDP growth per year, with dairy consumption growing strongly, “albeit from a low base”.
According to Bord Bia: “Consumption in 2010 was 11kg per capita, and this is the lowest in Asia. Local farmers supply 40% of the total dairy requirement, which means that 60% has to be imported.”
“For Irish dairy exporters there are opportunities in this market as [research consultancy] Gira forecasts that the dairy powder market will continue to grow at 6% per annum. Local supply will grow, but not by enough to meet growing local demand,” Bord Bia added.
The Irish Food Board said that powdered milk comprised 39% of Indonesian consumption, with sweetened condensed milk at 35% and ready to drink milk accounting for 26%.
Indonesia was a major importer of dairy powder, the board said, with total powder imports (whole milk powder, skim milk powder and whey) growing at 10% per annum and totaling 230,000 tonnes.
SMP was the largest import sector – used in reconstituted milk for babies and 1-6 year olds, and in supply terms the US had a 31% market share in 2010, followed by the EU at 29%, New Zealand for 25% and Australia at 13%, Bord Bia said.
