On 6 November, Bord Bia and the Department of Agriculture, Food and the Marine embark on a trade mission to Malaysia and the Philippines, the second to the Southeast Asia region in two years. Last year, Minister Charlie McConalogue led a trade mission to Singapore and Japan, with Minister Martin Heydon leading the Vietnam leg.

This year, Minister Heydon leads a four-day trade mission to Malaysia and the Philippines. Both markets are important for dairy exports, while the Philippines is the largest market for Irish beef outside of Europe. Irish pig meat was granted access to the Malaysian market in November last year.

Southeast Asia is one the most important regions for Irish meat and dairy exports. The diverse region includes Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

In 2022, Irish food and drink exports to Southeast Asia grew by 25% in value to reach €394m. Irish exports to the region have historically been dominated by dairy, valued at €278m last year, however exports have diversified in recent years to include significant growth in pork and beef.

The region has strong potential for continued growth with Southeast Asian economies growing 5.6% in 2022, with 4.6% growth forecast this year.

Although Covid-19 was a major challenge to the food and drink trade – especially for economies reliant on tourism – a strong rebound is anticipated in 2023 as the sector recovers. Consumer incomes continue to rise and domestic meat and dairy production cannot meet local demand, strengthening prospects for Irish exports to the region.

Lisa Phelan, Bord Bia southeast Asia manager.

Malaysia

Malaysia is two separate areas of land known as Peninsular Malaysia and Malaysian Borneo. The two regions are separated by the South China Sea, by about 400 miles.

The Malaysian population is 33m people, who are broadly within three main ethnic groups, Malay (70%), Chinese (23%) and Indian (7%). This ethnic and religious diversity has resulted in a wide variety of consumption habits and cuisines.

Malaysia is heavily dependent on imports of dairy commodities, including cheese, whey, skim milk powder (SMP) and whole milk powder (WMP). Malaysia is also a net importer of meat, importing nearly 477,000t in 2022. Halal certification is essential for meat access.

Historically, the majority of Irish food and drink exports to Malaysia have been dairy products; however, last year Ireland was granted pig meat access. Beef and poultry access applications are still pending. Total Irish food and drink exports to Malaysia last year were €66m.

Malaysian dairy

Per capita dairy consumption in Malaysia is 21kg, while the dairy retail market is valued at $1.1bn. In contrast to the Philippines, Malaysia has a growing domestic dairy herd of 180,000 head, and domestic production caters for 60% of dairy consumption needs.

New Zealand is the largest supplier of dairy to Malaysia, with a 40% import market share, followed by the USA at 15% and Australia at 13%. New Zealand is the main supplier of WMP to the market.

WMP is typically used to make sweetened condensed milk, which is used in teas, coffees and baking. Imported SMP is reconstituted into consumer dairy products, or blended with domestically produced palm oil, to create fat-filled milk powder. Ireland is the fourth largest SMP supplier to Malaysia.

Irish dairy

Malaysia was the destination for a 2018 agri-food trade mission, where the focus was on increasing dairy exports to the region.

Exports have grown by over 19% since 2018 from €50m to reach €60m in 2022. Exports are dominated by SMP, at €28.3m, whey (€12.2m) and casein (€9.5m).

The volume of Irish dairy exports to Malaysia fell by 30% in 2022, which can be attributed to price sensitivity due to high priced dairy commodities.

However, there were volume increases across several categories, with butter exports increasing by 24% to 104t and casein volumes up 79% to 849t. Irish cream exports also rose dramatically in volume, albeit from a very low base of just 11t in 2021, to 143t last year.

During the trade mission, on Tuesday, 7 November, Bord Bia will host a dairy seminar and trade networking event in Kuala Lumpur, with Malaysian dairy buyers in attendance.

Pig meat in Malaysia

As many as 70% of Malaysians are Muslim and, therefore, do not consume pork. However, 23% of the Malaysians are ethnically Chinese, which helps to support demand.

In many supermarkets you’ll find dedicated non-halal sections where pork is sold. Per capita consumption of pork is 17.3kg/year, according to the Malaysian ministry.

Domestic pig meat production accounts for 90% of consumption and last year pig meat imports reached 33,500t.

The largest pig meat importer is Spain, which holds a 43% market share, followed by the Netherlands with 20% and Denmark with 18%.

Since access was granted, Bord Bia has worked closely with Irish exporters to support them in finding customers in the market.

This summer, Bord Bia invited 15 Malaysian chefs and meat buyers on a tour of Irish pig farms and processors and to Teagasc’s pig research facility, to experience Irish pig meat production first hand.

At least three Malaysian companies have already begun purchasing Irish pig meat as a result.

As of August this year, 370 tonnes of Irish pork have reached the Malaysian market.

Engagement with pig meat customers will be a strong focus of the trade mission.

Whole Milk Powder (WMP) is typically used to make sweetened condensed milk, which is used in teas, coffees and baking.

The Philippines

Located in the Pacific Ocean near the equator, the Philippines is an archipelago of around 7,640 islands – about 2,000 of which are inhabited. The Philippines has a young, growing population of over 112m people and the median age is just 25 (compared to 37 in Ireland). Total Irish food and drink exports to the Philippines were €150m in 2022.

Beef consumption habits

In 2022, the Philippines imported a total of 182,216 metric tonnes of beef, worth 35bn Philippine pesos (€580m). Filipinos consume an average of 3.4kg of beef per year and the majority of beef is purchased in supermarkets and consumed in the home. Due to the challenging logistics of transporting meat around the archipelago, there is a preference for ambient meat products, such as canned, corned beef.

In full-service restaurants, beef is usually a special occasion dish. For these occasions, it’s common for the entire extended family to be invited; premium beef cuts are ordered to be cooked and consumed around a communal grill. However, the majority of beef in food service is found in quick service restaurants and fast food chains.

Irish beef exports

The Philippines provides a significant volume market for Irish forequarter, manufacturing and offal beef. As such, it contributes to the overall carcase balance for beef exports.

Carcase balance refers to finding the best market for every component of the beef carcase. The Philippine market also provides a great alternative to other international markets, thereby adding stability in often volatile market conditions.

Ireland is the largest European supplier of beef to the Philippines and in the top five globally. Last year, the Philippines purchased over 18,000t of Irish beef and beef offal valued at €50.4m. Primary beef exports rose 3% to €44m and beef offal was valued at €6.4m in 2022, up from €3.3m. Primary Irish beef exports to the Philippines have grown from €14m in 2018, an increase of over 200% in five years.

Irish pig meat

Pig meat plays an important part in the Philippines diet and is the third most commonly enjoyed protein after seafood and poultry, with 13.3kg consumed per person annually. The country imported over 406,000 metric tonnes of pig meat in 2022.

Ireland exported over 14,000t of pig meat worth €24m to the Philippines in 2022. This is a 71.4% increase in value on 2021. Ham and pig offal were the key drivers of growth. Exports have grown from €8m in 2018, an increase of 205%.

Similar to Irish beef, the majority of exports to the Philippines are destined for further processing or used as ingredients in food service channels.

A special pork and beef seminar and networking event will be held on the final day of the trade mission, as well as a roundtable meeting with Philippine meat importers on Wednesday.

Irish dairy

Annual dairy consumption in the Philippines is 3m tonnes, with domestic dairy meeting less than 1% of dairy needs.

Per capita consumption is the second highest in Southeast Asia at 30kg (behind Singapore at 34kg).

This leaves the Philippines highly reliant on dairy imports. The USA has a 32% market share of dairy imports, followed closely by New Zealand at 30%.

Irish dairy exports were valued at €72.5m last year. Key drivers of value growth were SMP, infant food, and buttermilk. These also contributed strongly to volume growth alongside whey and butter.

Exports have grown from €19m since 2018, an increase of 283%. The volume of exports has increased 93% over five years, from 2018 to 2022.

Irish dairy exports are predominantly used as an ingredient for further processing in the food service and food manufacturing channels, for final products such as sweetened condensed milk.

In recent years, European and North American branded dairy products have grown presence in the market, creating a potential opportunity for a branded offering from Ireland that will be investigated on this mission.

During the trade mission, Bord Bia will host a dairy seminar in Manila, with over 80 local dairy buyers due to attend.

Several meetings are also scheduled with leading Philippine dairy manufacturers.

Promotion activity

A €3.2m campaign (European Dairy, Ireland working with nature) is currently running in Malaysia, the Philippines, Thailand, Vietnam and Japan.

In May 2023, Bord Bia held the first dairy seminars in the Philippines, with more than 50 local dairy buyers attending to learn about Ireland’s capability as a high quality, sustainable dairy supplier.

In June, Bord Bia hosted six Filipino dairy buyers on a week-long tour of Irish farms and dairy processors. Bord Bia will host dairy seminars in both Kuala Lumpur and Manila, as part of the EU campaign during the trade mission.