Southeast Asia exports
May 21, 2019

As China Markets Decline, Exports to Southeast Asia Expand

 |  By: Mike Opperman

Exports of U.S. dairy products to China have been hit hard by retaliatory tariffs, falling 43% since tariffs were imposed last summer according to the U.S. Dairy Export Council (USDEC). But as exports to China drop, sales to Southeast Asia are booming. 

The amount of U.S. dairy products sold into the region south of China, east of India, west of New Guinea and north of Australia increased 12% in 2018 from the previous year. Sales totals hit $771 million, making it the second largest export market for U.S. dairy products behind Mexico. 

Southeast Asia is one of the largest population growth areas in the world. There are now around 660 million people in the region, roughly double the U.S. population. Reports suggest that the population will grow by another 140 million over the next 30 years, increasing the demand and market potential for U.S. dairy products. 

The export growth in Southeast Asia is part of a USDEC plan to diversify the customer base for U.S. dairy products, which is critically important with the drop in sales to China. 

"Resolving the China trade dispute may take awhile," said USDEC president and CEO Tom Vilsack. "By taking a diverse geographic and product approach to marketing and promotion, we hope to provide opportunities for our member companies to pivot to alternate markets in a rapid and seamless manner."

"U.S. suppliers are already doing yeoman’s work finding alternate new homes for U.S. dairy products, and USDEC has been actively supporting those efforts in Southeast Asia and around the world."

Southeast Asia

The infographic from USDEC that shows the success of efforts to improve U.S. dairy exports into Southeast Asia.