December 18, 2014

Dairy consumption in the ASEAN bloc, including Indonesia, Philippines, Malaysia, Thailand, Singapore, and Vietnam continues to outstrip supply, and Indonesia, with its population of 253 million represents a significant opportunity for growth for the industry. Currently diary consumption in the country is near the lowest in Southeast Asia at only 8 kilograms per capita, compared to 14 kilograms in the Philippines, 51 kilograms in Malaysia, and 22.1 kilograms in Thailand. Rising incomes, urbanization, and a large population with an emerging health-conscious middle class, combined with low per capita consumption indicate a vast opportunity for dairy growth. Between 2000 and 2011 Indonesia’s self-sufficiency in dairy has fallen by 10% and imports have climbed by 4.5% over the same time period – a trend that is forecast to intensify over the next five years as dairy consumption rates are expected to grow at an average of 4% per year. There are challenges to consider in Indonesia in terms of production however. The industry suffers from problems of scale and poor practices, and the country’s hot, humid climate is not naturally conducive to dairy farming.

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