The good news continues on exports

(December 3, 2007) The U.S. Dairy Export Council (USDEC) reports that, over the last five years, Indonesia has increased the value of its U.S. dairy purchases more than any other Asian nation, including China and Japan .

Speaking in Monday’s “DMI Update,” the USDEC’s Vice President of Communications and membership, Margaret Speich, reported that Indonesia is on track to be a $138 million market for U.S. dairy products this year. That’s more than an eight-fold increase from just five years ago, she said, and, at this pace, it will become the number 5 global buyer of U.S. dairy products by the end of 2007.

A growing population with increased nutritional awareness is a strong contributing factor to Indonesia ’s dairy market growth, according to Speich, who said that Indonesia is a politically stable market of more than 220 million people, with a local economy projected to grow significantly over the next five years.

“This growing population is becoming more nutritionally aware each month,” Speich said, “And Indonesian’s incomes are on the rise, and as their incomes grow, their diets shift to include higher protein, including dairy.”

Indonesia is the world’s third-largest importer of skim milk powder and ranks in the top 10 for imports of dry whey, lactose and whole milk powder. The natural progression of this export market means we should begin to see greater consumption of higher value products, such as cheese, she said.

“Helping further to solidify the United States as a valued dairy producer, U.S. suppliers and the U.S. Dairy Export Council have instituted programs to educate Indonesian food and dairy industries,” Speich said, “Promoting the use of products including U.S. dairy ingredients.”

Global conditions have benefited U.S. dairy exports to Indonesia , but U.S. efforts to build the market have made even greater headway, according to Speich. “Growing overseas markets benefits U.S. dairy producers by tightening the domestic supply and firming prices,” she concluded.