15 March 2012

2 minute read

“Demand growth in Asia is expected to soar over the next decade as incomes rise and demand for animal protein increases,” the Hoogwegt Horizons newsletter reports.

Markets in Viet Nam and Korea are especially attractive for dairy because both countries are expected to experience significant growth in dairy consumption over the next decade. Per capita dairy consumption is currently much lower in Asia than the United States and other Western countries, but it's expected to grow drastically as the region’s large population base begins to gain a taste for foods like pizza.

Throughout Asia, the new and growing demand for milk and milk products will need to be fulfilled by imported products because many countries can't meet domestic production needs. The newsletter notes that 78 per cent of Vietnam’s milk needs are met by imports, along with 37 per cent for Korea and 75 per cent for Indonesia.

It warns, however, that the expected large increase in demand is unlikely to be sustained without significant increases in the volume of imports from dairy producers in the United States and a few other countries.

"The United States is uniquely positioned to supply this growing demand. We have the infrastructure to efficiently produce and process dairy products, and we have the ability to grow significantly to meet increasing global demand," said Jerry Slominski, International Dairy Foods Association (IDFA) senior vice president of legislative affairs and economic policy.

"But Republicans Collin Peterson’s milk supply management proposal would limit our industry's growth, curtail exports and hinder job creation. IDFA opposes any form of supply management, especially at a time of great market opportunity for our members and the entire US dairy industry."

TheCattleSite News Desk