'There's Irish dairy powder promise in Indonesia' - Bord Bia

By Ben Bouckley

- Last updated on GMT

Indonesia
Indonesia
With strong dairy consumption growth and low per capita consumption, Indonesia offers good opportunities for Irish dairy sector, according to Bord Bia, particularly in dairy powders.

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.

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