The National Irish Food Board Bord Bia actively promotes Irish food and beverage exports to South East Asia at the moment after internal research had identified the region as having the biggest development potential.
According to Bord Bia South East Asia Market Specialist Malcolm Leoi, Ireland exported EUR535 million (US$528.6 million) worth of food and beverage exports to ASEAN last year alone, which was a 20% year-over-year growth even amidst the pandemic. This growth was clearly led by dairy, which shows even greater potential for the sector.
The majority of dairy products consumed in the region, including condensed and evaporated milk, already contain Irish dairy; however, because a lot of this is still in the B2B stage, consumers might not be aware of this just yet. In fact, Singapore and Malaysia are our main hubs for dairy processing.
We do think there is room for expansion since Ireland, through its Origin Green program, the first and only national sustainability initiative for the whole agri-food sector, is currently able to provide a degree of sustainability and quality assurance that no other nation can.
“We definitely see this as crucial for future growth, with more and more younger consumers today seeking for more sustainable alternatives when making purchasing decisions,” the statement continued.
Leoi further emphasized how the quality of the region’s dairy and meat has already been tried and tested there as not just favoured but also held in high respect due to the farming practices used to produce them.
“All of our cows and sheep are grass-fed, which makes a tremendous difference, for Irish dairy and meat, for example. The Origin Green program also provides long-standing quality, food safety, and sustainability credentials,” he said.
As a small island nation, Ireland has a climate that is ideal for growing grass, which contributes to the grass-fed quality. In addition, because most of the farms in the area have been in operation for many generations, there is much to be said for the understanding and connection that can be made at this level as opposed to factory farms.
We already know that this quality is highly valued in the area since, despite the fact that we have only introduced one consumer-facing dairy brand thus far, Kerrygold butter, which enables better performance and a richer flavour, it has quickly risen to the top spot in several marketplaces.
Ireland’s food exports to ASEAN and East Asia are expected to reach EUR900 million (US$889.3 million) by 2025, almost doubling the EUR535 million (US$528.6 million) export value from 2021. This goal demonstrates Bord Bia’s ambitious plans for the region.
Brexit is a factor.
In contrast to Northern Ireland, which is now a part of the United Kingdom but is no longer a member of the EU, Bord Bia represents the Republic of Ireland, the southernmost region of Ireland and the region that will continue to be a part of the EU even after Brexit.
Leoi stated that the internal market analysis was carried out in anticipation of Brexit and its potential effects on Ireland’s food and beverage economy.
“Whether Brexit happened or not, the population in ASEAN is still expected to grow, leading to a rise in protein demand as well. Additionally, there are a number of markets, including Singapore and Brunei, that are either less able to produce their own food supply or are dependent on imports for meat and dairy, so this is a demand we want to capitalize on, Brexit or not.”
Singapore is a significant market.
Ireland, in particular, views Singapore as a market with enormous possibilities given the country’s strong emphasis on food security.
No government is more acutely aware of this than Singapore, as seen by its 30 by 30 target, said Leoi. “As populations in Asia rise, output actually has to double, making sustainability and food security a priority not just for consumers but also for governments.”
“Ireland actually understands this very well because, as everyone is aware, food security has taken on significant importance in this country and because supply systems there are no longer as reliable as they once were. For instance, Singapore is searching for reliable partners to diversify its supply chains.
We also know that 25% of Singaporean consumers give safety, health, and sustainability in food an increasing amount of importance. The EU already has a reputation for these qualities, but today’s consumers want concrete evidence. Ireland has this differentiated value proposition in the form of Origin Green, which can provide the data and proof points, verified annually, to give consumers that assurance.
Even emerging and middle-income markets like Malaysia, Vietnam, and the Philippines have affluent consumers who share this same taste. As countries become more urbanized, these foods will resonate more with them, so eventually there will be a diffusion of these ideas and values – and we are looking at the long run here. However, Singapore is currently the market that is leading the way for this.
