Strong demand for Australian dairy in Asia

Demand for Australian dairy products is expected to remain strong throughout key Asian export markets despite commodity prices increasing during the past 12 months.

Recent research, undertaken by Dairy Australia, has found that with the exception of Japan, demand for dairy in key Asian markets is unlikely to be significantly impacted by price increases.

“What we have seen in the past 12 months is the creation of new demand for dairy commodities which we expect will continue over the long term,” said Dairy Australia’s industry analyst, Norman Repacholi.

Repacholi suggests that this increased demand is fuelled by population growth, increases in personal income and western-style influences on the Asian diet. Australian products showed to be held in high regard because of their quality, functionality and the rigorous food safety assurance standards applies to exports. “This is good news for Australian dairy farmers and should give the industry increased confidence to move forward with future investment,” he said.

“It seems that dairy is generally considered a superior protein source to soy- or vegetable-based proteins, and in some cases it was also considered a healthier and safer source of protein than meat. As a result, retail price increases of up to 15% have been passed through in most markets with no significant consumer impacts. “Most of our respondents were confident that demand for dairy was sufficiently robust to withstand increasing dairy prices, with steady economic growth in the region expected to underpin demand and help reduce the impact of ongoing prices rises.”

For further information, visit Dairy Australia.