United Arab Emirates enters Australian dairy export top ten

New nations are seeking Australian dairy produce, as the sector looks to diversify from a dominant China.

Known for its searing heat and soaring skyscrapers, the United Arab Emirates is fast becoming a new market for Australian dairy.

The UAE has rocketed into the latest top 10 dairy export destinations in the most recently surveyed financial year, released by Dairy Australia, spending $174 million on produce to sit number six on the charts.

Dairy Australia trade and industry strategy manager Charles McElhone said while the UAE’s entrance into the export lists would be welcomed by the industry, the Middle East economic up-and-comer remained long behind first place-getter China.

Nearly $1.4 billion was spent by China on Australian dairy in 2022-23, a figure which includes Hong Kong and Macau, former British and Portuguese colonies now controlled by Beijing.

“China’s self-sufficency in dairy is growing, that’s no secret, and increasingly it’s looking inward rather than outward to fulfil its dairy demand,” Mr McElhone said.

“That’s been notable with the flatness in international dairy trade over the past six to 12 months. This isn’t an issue that Australia alone has had to contend with, all other dairy exporting nations have experienced either direct or indirect challenges as a result of China’s growing dairy industry.”

At Dairy Australia’s situation and outlook function last month, DairyTrade Australia managing director Andy Williams warned China’s growth in dairy meant many markets were scrambling to sell their milk elsewhere.

He told the annual gathering that Australia was not alone in seeking new markets to replace the once-receptive Chinese market.

“Since 2019 to 2023, 10 billion litres of milk has been created in China in four years,” Mr Williams said.

In the dairy export league table, Japan came a distant second to China, spending $442 million on Australian dairy

Third-placed Indonesia, with a $303 million spend in 2022-23, promised to grow in the coming years, Mr McElhone said.

“The new Indonesian president, Prabowo Subianto, pledged ahead of the presidential elections there to provide free milk to school children,” he said.

“We’re talking huge numbers here and a massive task ahead for the Indonesian government that presents opportunities for Australian dairy.”

Last year, a delegation from the Indonesian Government visited Australia to audit halal certifying bodies.

The delegation met with representatives from Australia’s Department of Foreign Affairs and Trade and visited eight companies in Melbourne, Sydney and Brisbane.