‘Indonesia has the scale but Malaysia has the wealth’

Trade mission to south-east Asia looking to expand Irish interest in growing mar-

BREXIT has added a sense of urgency to an ongoing trade mission to south-east Asia, Bord Bia CEO Tara McCarthy has said.

Ms McCarthy is taking part in the five-day trade mission to Indonesia and Malaysia, which is being led by Agriculture Minister, Michael Creed.

The mission aims to raise awareness of Ireland as a source of dairy and beef exports and give Irish firms an understanding of the growing market.

In 2017 Ireland exported €15.8m worth of food and drink to Indonesia, with dairy accounting for €15m, while €37.3m of food and drink products were exported to Malaysia last year, including €15.4m worth of dairy.

Ms McCarthy told the Farming Independent that uncertainty around Brexit means increasing trade with the growing south-east Asian markets is more urgent than ever.

She added, however, that the trade mission would have happened regardless of Brexit.

“The more markets we have the better it is for our industry.

“When you’re looking at the products in South-east Asia, we’re not seeing this as a cheddar opportunity, but you are looking at a very expanding dairy industry — and that dairy industry is looking at new markets,” she said.

Indonesia is 40pc selfsufficient in dairy, while Malaysia is only 5pc selfsufficient.

Both countries are significant importers of skimmed milk powder, cheese and butter, mostly from Australia, New Zealand and the US.

Ms McCarthy explained that the biggest challenge to competing in this market is enhancing awareness of Ireland in the food industry.

“Awareness of Ireland is very low,” she said.

“During a market seminar we are hosting on Wednesday we will explain what we are about, which will build trust in to Ireland as a supply base and then it will be grafting toward meeting business people, building their awareness of us as a supply base and with the aim of finding an exchange that’s worthwhile for both parties.”

Restriction

Other barriers to trade include the Indonesian government’s restriction on meat exports in an effort to become self-sufficient, and the requirement for most dairy and meat products to have Halal certification (slaughtered according to Muslim guidelines).

However, Ms McCarthy is confident that all of these issues can be overcome.

The Department is working on getting access for Irish poultry exports to Indonesia, which could take up to t wo years. Ms McCarthy added that unlike previous trade missions she doesn’t expect deals to be done on this tour.

“I don’t expect a lot of signings to be done because normally there’s a lot of contact before making a deal,” she said.

“Nobody walks up and signs straight away on the dotted line, so I wouldn’t expect announcements straight away. but I would within the next 18 months.”

While Indonesia and Malaysia are neighbours, Ms McCarthy pointed out that Bord Bia is viewing them as separate markets, both with something different to offer.

“They’re two very different markets. Indonesia has the scale but Malaysia has the wealth,” she said.

“It’s a first time visit for me to both countries. Malaysia is probably a front runner but you can’t ignore Indonesia because of the sheer scale of it.”