As large dairy importers all over the world are looking to reduce their dependence on exports, Australia and New Zealand (ANZ) exporters will have to tap new markets in smaller countries to stay afloat.
Fortunately, nations with emerging dairy markets and rising middle classes in Asia and Africa are eager to import from ANZ due to the perceived high quality of products from these countries.
New analysis from Frost & Sullivan Strategic Growth and Emerging Export Opportunities in the Australia and New Zealand (ANZ) Dairy Sector, finds that the market earned revenues of $11.60 billion in 2011 and estimates this to reach $17.2 billion in 2018.
“Exporters need to re-evaluate their marketing strategies to cater to newer customers, rather than simply concentrate on the big importers such as the United States and China,” says Frost & Sullivan chemicals, materials & food research analyst Natasha D’Costa. “This will enable the exporters to not only address the healthy markets locally but also help build global dairy demand.”
Seeing that dairy exporters are making a beeline for the thus-far sidelined emerging nations, ANZ should aim to make the most of its first-mover advantage and its geographical proximity to these markets, especially Asia.
However, international market penetration involves numerous challenges such as imposing trade barriers, fluctuating currencies, and the duplication of the regulatory and industry approval processes. Most importantly, exporters must possess cultural awareness of their export market, as most developing markets have strong religious and cultural beliefs that often affect their food choice.
It is imperative for exporters to position their products to match the requirements of the importing nations. Affordability and a basic understanding of product positioning will be crucial in gaining brand equity and loyalty in these highly price-sensitive economies.
“Finding the right mix of existing and emerging key growth export nations will ensure that the ANZ dairy market grows from strength to strength both in terms of revenue and perceived brand value,” says Natasha D’Costa.
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