Australia Drives Dairy Exports to Southeast Asia

Australia’s dairy sector, in collaboration with Austrade (the Australian Trade and Investment Commission), is intensifying its focus on Southeast Asia—a region now accounting for approximately 87% of its dairy exports. In the fiscal year 2023–24, Southeast Asia imported over 290,000 tonnes of Australian dairy, valued at more than A$1.2 billion, with Singapore, Indonesia, and Malaysia among the top destinations .

Australia has built strong and enduring market relationships across the region over the past decade, effectively positioning its dairy products as premium, healthy, and trustworthy . Vietnam is emerging as a particularly promising market—ranking eighth in volume, with growing interest in premium products like cheese, cultured dairy items, and frozen milk concentrate, fueled in part by demand from the hospitality sector and returning students .

The demand tailwinds are supported by rising incomes, growing awareness of dairy’s nutritional benefits, and urbanisation trends across Southeast Asia, which are driving a surge in imports that local producers cannot fully satisfy . By 2030, for instance, the combined milk import deficit in ASEAN-6 countries could reach a staggering 19 billion litres, outpacing China’s projected 15 billion-litre deficit .

Industry Insights

Southeast Asia is fast becoming a cornerstone for Australian dairy exports. The region’s increasing per-capita incomes, expanding middle class, and growing health consciousness are driving demand for high-quality and safe dairy products. Australia's strong brand reputation—bolstered by its integrity and premium positioning—gives it a competitive edge in discerning markets like Singapore, Indonesia, and Vietnam .

Importers in the region value the “Manufactured in Australia” label for its trusted quality, especially in markets where adulteration is a concern. Vietnam, for example, has taken steps to clamp down on counterfeit dairy products, reinforcing Australia’s competitive advantage . Additionally, Southeast Asia’s rising demand is broader than just volume—it’s about diversified, value-added offerings. Products like cultured dairy, cheese, and premium formulations are taking hold in dynamic urban markets .

Strategically, the shift reflects Australia's adaptation from heavy reliance on traditional markets like China toward a more diversified export footprint. This transition not only spreads risk but also taps into emerging opportunities as Chinese demand stabilises . With ASEAN-6 markets projected to outpace China in import growth, Australian exporters are wisely focusing on these burgeoning opportunities .

Austrade’s on-ground support—with tailored programs, market insights, and importer connections—has been instrumental in this expansion. By collaborating closely with Dairy Australia, Austrade helps exporters navigate local regulations (e.g., halal compliance), build brand visibility, and engage with regional trade infrastructure—critical components for success in the Southeast Asian context

Source : dairynews7x7 Aug 19th 2025 Austrade