A recent Bord Bia Dairy Seminar reviewed the market opportunities for Irish dairy products in Indonesia, Vietnam and South Korea, writes Michael Hussey, Food and Beverage Division, Bord Bia – Irish Food Board.
Both trade and consumer research was presented on these markets.
The consumer research was novel in that it was carried out through an ethnographic study where Bord Bia researchers lived with families in all three markets to ascertain how they consumed and their attitude to dairy products across all age and social backgrounds.
Vietnamese dairy consumption at 14 litres per capita per annum is very low by Asian standards but is growing at 15 per cent per annum and was worth $815 in 2011.
The market is not sophisticated and this may give opportunities to Irish suppliers to get into the market early and develop strong positions. The tariffs payable are low by comparison to other Asian markets and a start to negotiations for an EU-Vietnam FTA (Free Trade Agreement) was announced on April 1st.
Indonesia is the fourth most populous country in the world at 238 million people. Indonesia imports 70 per cent of its dairy requirements and a free trade agreement has been touted with the EU, although this has not materialized yet. Indonesia is the second largest importer of SMP (Skimmed Milk Powder) in the world after Mexico and offers significant opportunities for Irish dairy suppliers of powdered dairy ingredients in particular.
South Korea is a developed country and has a sophisticated dairy market with clear segmentation in the consumer market and a large number of SKU’s at consumer level.
The country has an import requirement in that it imports 35 per cent of dairy requirements. This market may show the way the less well developed dairy markets in Vietnam and Indonesia may develop in years to come.
The ethnographic research suggests that the following opportunities exist:
There is an opportunity for cheese snacking products among pre-adolescent consumers in both Indonesia and Viet Nam.
Amongst teenage girls, in particular, an opportunity exists in Indonesia & Vietnam to market and communicate messages about dairy products that are low in fat.
For boys there is an opportunity in promoting the energy benefits of dairy protein.
Promoting product attributes in relation to skincare, bone and brain health in the over 50’s.
Bord Bia is keen to work with suppliers who wish to target these markets either at ingredient or consumer level.
Source: Argentine Beef Packers S.A.