Australia's chief dairy state looks to enter Indian market

 

 

Victoria, Australia's leading dairy state that is responsible for 80 percent of the country's dairy exports, is keen to enter the Indian market and is currently looking for business partnership opportunities.

 

To uncover the business potential in India, the Victorian Dairy Trade Mission visited India during November 22-27, 2009, with six companies being part of the delegation. The six companies were Bemco Australia, Longwarry Food Park, Tatura Milk Industries, Fresh Cheese Company and Ballantyne Foods.

 

The delegation had discussions with the Indian dairy sectors at Bangalore, Hyderabad, Mumbai and New Delhi, including dairy cooperatives and private dairy firms.

 

The key objective of the visit is to promote Victoria's dairy products and to transfer high standard technology and share the expertise for world class dairy products, said Peter Myers, manager, Victorian Department of Primary Industries, International Market Development- Emerging Markets

 

This collaboration will boost India-Australia trade ties and enable Indian dairy companies to have easy access to Australian dairy products, he said.

 

The delegation is looking at taking their range of value-added products to the Indian retail space, and also wants to tap the niche segment to enhance the quality of dairy products, Myers added.

 

The Victoria Dairy Trade Mission chose to explore India because it is an important hub for global dairy markets aside from being the world's top milk producer. India's milk demand is also on the rise due to growth in population and wealth. Dairy technology transfers can also benefit the Indian dairy sector.

 

Myers said the biggest challenge in the Indian market is the 30 percent tariff on dairy products, and the lack of a cold chain support is an issue as value-added specialty products are sensitive to temperature.

 

However, there are alternative technologies for perishables which the delegation is looking at once Victoria gets a chance to export milk products to India, he said.

 

Victoria has so far entered into the emerging markets of Indonesia, Vietnam and other Southeast Asian countries.