Dairy Australia leads Taiwan trade expedition

Home of the tapioca-and-milk bubble tea, Taiwan is presenting a $100 million opportunity for Australian dairy. Here’s why.

Known as the home of milk-infused bubble tea, Taiwan is fast becoming one of Australia’s leading dairy markets.

Leaders from five Australian food export groups, including Dairy Australia boss David Nation, are in Taiwan this week to strengthen trade ties with the economic powerhouse off China’s southeastern coast.

Dr Nation told The Weekly Times from the Taiwanese capital Taipei on Monday that the nation is worth more than A$100 million to the Australian dairy sector.

“There’s huge growth potential for Australian dairy in Taiwan. There’s a population here of more than 23 million, nearly the size of Australia but consumption levels are not at the same level, so there’s room for growth,” he said.

Australia’s top three dairy exports for the 2023-24 financial year were condensed milk at 9887 tonnes and a financial return of $42 million, followed by cheese at 3267 tonnes generating $24 million followed by milk at 1887 tonnes at $4 million.

Other products shipped from Australia to Taiwan include whey powder, skim milk powder and butter.

Dr Nation said the exported dairy were sent in bulk as ingredients for food serviced manufacturing and bakery products.

“Much of the condensed milk goes into baked goods like cheesecakes, dairy-based flavoured drinks. Natural cheddar style cheese and cream cheese, goes into baked goods like cakes and slices — cheesecake is growing in popularity across a number of Asian markets.”

Along with DA, the Australia Food and Wine Collaboration Group also involved Meat and Livestock Australia, Hort Innovation, Wine Australia and Seafood Innovation Australia.

Dr Nation said another part of the visit was recognition of a quarter century of a dairy-related scholarship program between Taiwan and Australia, with more than 40 Taiwanese scholars studying in Australia over the past 25 years.