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Bord Bia

An ASEAN Snapshot

28 November 2019

Eve Heffernan, Global Graduate, International Markets, Bord Bia - The Irish Food Board

 

 

Bord Bia recently welcomed a delegation of London-based Ambassadors of the Association of Southeast Asian Nations (ASEAN) to Bord Bia’s HQ, where the story of Bord Bia and Ireland’s incredible food and drink was told.

 

 

This article will provide a snapshot into the ASEAN countries, detailing Ireland’s exports, market access and latest trends for each member.

 

 

The ASEAN was established in 1967 and is currently made up of 10 countries – Indonesia, Singapore, Malaysia, Myanmar, Brunei Darussalam, Vietnam, Thailand, the Philippines, Laos Peoples Democratic Republic and Cambodia. The objectives of the Association are as follows:

 

  • To accelerate the economic growth, social progress and cultural development in the region through joint endeavors in the spirit of equality and partnership in order to strengthen the foundation for a prosperous and peaceful community of Southeast Asian nations
  • To promote regional peace and stability through abiding respect for justice and the rule of law in the relationship among countries in the region and adherence to the principles of the UN Charter.

 

 

Ireland’s exports to the ASEAN countries are ever increasing, with the total volume of exports totaling 102,000 tonnes in 2018, a significant increase of 66,000 tonnes since 2013. In terms of value, exports increased by 43% to €203 million in 2018. Ireland’s exports to the ASEAN countries in the first six months of this year compared to last year have increased by 13% in value.

 

 

 

A further analysis of Ireland’s exports to the ASEAN countries proves that dairy is indeed the largest export product, responsible for €98 million (almost half of the overall exports to the ASEAN countries). Prepared foods is also a largely important export product to these markets, mainly made up of dairy by-products such as FFMP, totaling €45 million in 2018.

 

 

Out of the ASEAN countries, the Philippines is the largest destination for Ireland’s exports, but there are also considerable exports to Indonesia, Thailand, Singapore, Malaysia and Vietnam. Insights into these countries and Ireland’s relations with them are provided below.

 

 

Exports to Myanmar, Brunei Darussalam, Cambodia and Laos Peoples Democratic Republic are minimal at the moment but are likely to offer great opportunities in the future.

                                                                    

 

The Philippines

Irish Exports 2018: €37 million. Beef offal is Ireland’s largest export to the Philippines, coming in at 11,000 tonnes in 2018. Pigmeat, beef and dairy are all key export products and have increased significantly over the last number of years.

 

Market Access: Ireland has market access for beef, pigmeat and sheepmeat in the Philippines.

 

The Philippines is Ireland’s largest market out of the ASEAN countries. Like the other ASEAN markets, the Philippines is a significant market for dairy, but what’s different is that Ireland has full market access for beef, pigmeat and sheepmeat.

 

 

Trend alert: Rise of a modern retail channel - Filipino consumers have traditionally made most of their grocery purchases from market stalls and sari-sari stores (small kiosks run from the proprietor’s home). However, modern retail formats, such as convenience stores, supermarkets and hypermarkets, are gradually replacing these options, providing a more viable channel for distributing cheese.

 

 

Population: approx. 108.6 million

 

 

Malaysia 

Irish Exports in 2018: €28 million. Dairy and prepared foods are leading the way in Malaysia, with an increase of 127% in volume of dairy exports (now 16,000 tonnes) and 446% in prepared foods exports (now 12,000 tonnes) since 2013.

 

 

Market Access: In terms of market access for Malaysia, there is currently an application in place for Irish pigmeat exports.

 

 

Trend alert: Dairy disruptor - Holstein Milk, which owns the largest dairy cow herd in Malaysia, has turned fresh pasteurised cow's milk into the preferred milk choice for Malaysians. The company also started the kurma milk trend in the local dairy market. Kurma milk is made from palm dates and fresh milk and is rich in iron to aid the development of healthy red blood cells - the ultimate booster for pregnant and breastfeeding mothers.

 

Population: approx. 32.6 million

 

 

Singapore

Irish Exports in 2018: €12 million – An increase of 87% since 2013. Ireland’s dairy export volume to Singapore has increased by approximately 260% since 2013, and is now at a volume close to 8,000 tonnes.

 

 

Market access: Ireland currently has market access for pigmeat, beef and sheepmeat in Singapore.

 

 

Trend alert: The bubble tea craze in Singapore continues. Teabrary tea studio opened recently at Esplanade Xchange, while Taiwan-based Daboba opened its first outlet in Singapore on 4th October. The latter is one of several Taiwanese brands that have expanded into Singapore in the last few years, including Milksha, Partea, Xing Fu Tang and The Alley.

 

Population: approx. 5.8 million

 

 

Thailand

Irish Exports 2018: €10 million. The volume of dairy exports to Thailand have increased by approximately 3,000 tonnes since 2013. Prepared foods is also a valuable export, increasing by approximately 3,500 tonnes in the last five years.

 

Market Access: There are ambitions for Irish sheepmeat and pigmeat in Thailand, and there is an application in place for beef access.

 

Trend alert: From an almond milk vegan shake to almond yoghurt, Crossmax Retail is spearheading protein-based food innovation in Thailand. Some recent product releases include Almond (Your-Gurt) Yoghurt, Organic Roasted Almond & Hazelnut Milk Drink and Almond milk vegan shake with soy.

 

Population: approx. 69.5 million

 

Indonesia

Irish Exports in 2018: €8 million – An increase of 35% since 2013. Dairy is the largest export product to Indonesia, increasing by over 1,500 tonnes from 2013 to 2018.

 

 

Market Access: The beef market was opened in 2009/2010 for selected Irish producers, although there has been no beef traded between Ireland and Indonesia for commercial reasons.

 

Trend alert: In the years to come, brands operating in Indonesia are more likely to find success in targeting a wide audience with affordable, nutritious products. Stunting and anemia are some of the most common health issues in Indonesia, particularly among children and women. Approximately 37% of Indonesian children (i.e. 9 million) under the age of five are stunted.

 

Population: approx. 270 million

 

 

Vietnam

Irish Exports in 2018: €6 million. Ireland’s largest export product to Vietnam is dairy and these volumes have varied from year to year due to infant formula, but seafood exports are continuing to grow.

 

 

Market Access: In terms of market access, the application for beef access is underway.

 

 

Trend alert: Innovation in milk and yogurt products is an ongoing effort in Vietnam. Brands centre around nutritious, delicious and convenient claims. They aim to tailor products to individual preferences and specific health-based needs. Some of the latest product releases focus on the beauty-conscious and offer yoghurts for firm and younger-looking skin.

Population: approx. 96.5 million

 

 

 

References