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Cold chain challenges and infant formula drive Asian dairy demand

By Caroline Scott-Thomas, 28-Sep-2011

Related topics: Markets

A growing middle class with rising disposable income is fuelling a rapid increase in demand for dairy ingredients in China and Southeast Asia, and North American dairy cooperative Agropur is finding opportunities in some specific market sectors.

At last week’s FI Asia, sales director for functional products at Agropur Reneck Cayen told FoodNavigator-Asia that Chinese demand for milk powders for infant formula is growing at a rate of 12% year on year.

In addition, dairy demand is growing in Southeast Asia, particularly for reconstituted beverages. Cayen said this was for two main reasons: Firstly, due to demand for dairy as an easily digested protein, and secondly, because of a less reliable cold chain for milk and dairy transportation in parts of the region, meaning long shelf life takes on extra importance.