Southeast Asia Emerges as a Dairy Demand Powerhouse, Reshaping Global Markets

Despite low per capita dairy consumption in countries like Singapore, Malaysia, Vietnam, and the Philippines, the region is fueling significant increases in global dairy demand. Fuess emphasized the shift toward Western-style diets rich in dairy, driven by economic growth and rising GDP in Southeast Asian nations.

While traditionally key dairy-exporting regions include the US, the European Union, New Zealand, and Australia, Fuess highlighted New Zealand's strategic position to meet the escalating demand. However, he cautioned against overlooking other global players.

The US, which experienced a record year for dairy exports in 2022, faced challenges in 2023 due to reduced demand from Southeast Asia. Fuess underscored the region's pivotal role, emphasizing its impact on global dairy trade flows, particularly concerning US exports of cheese, nonfat dry milk, and skim milk powder.

Highlighting the collective impact of the region around China, Fuess emphasized the substantial growth in global dairy demand. As dairy demand continues its upward trajectory, the Southeast Asia region is poised to play an increasingly significant role in shaping global dairy markets in the years ahead.