U.S. Dairy Processors Must Be Versatile to Compete in Southeast Asia

By Tanner Ehmke

June 2021

Key Points

  • U.S. milk production continues to expand faster than domestic demand. The answer to abundant milk is export markets, but serving them requires strategic investment.
  • With a growing population and rising middle class, Southeast Asia is the biggest growth opportunity for U.S. dairy exporters.
  • With a diverse population, Southeast Asian consumers will demand a variety of dairy products, particularly those that use heat-stable ingredients.
  • Other major dairy exporters, specifically Oceania and the EU, face production headwinds, potentially enabling the U.S. to capture market share.
  • To successfully compete in the vast Southeast Asian market, the U.S. must work to lower trade barriers while U.S. processors must invest in manufacturing technology to adapt to diverse and evolving dairy consumer needs.

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