While the U.S. is a relative newcomer on the global dairy stage, the Middle East is heavily dependent on food imports, as the region purchases nearly 90 percent of its food. Next to China, the Middle East and North Africa - also known as the MENA countries -are the world's second-largest dairy importing region. In 2011 alone, the collective group of countries imported 1.2 million metric tons of dairy products.
Just how big a newcomer are U.S. dairy processors and co-ops to the region?
In addition to the video, which can be viewed above, here are some insights to that question:
In 2000, the U.S. only held a 2.3 percent market share in cheese sales. However, as America has ramped up its marketing partnerships and steadied its export skill, it has grown market share in cheese to 13 percent. However, with its strong ties to the region, the European Union still holds a 52 percent share and Oceania, 25 percent.
"All we need is a little more collaboration," Nina Bakht Halal told the U.S. delegation to the United States Dairy Export Council's Middle East Trade Mission. "Everything is personal in this region. It's about face time," said Halal who has served as director of the U.S. Dairy Export Council's Middle East/North Africa region for 15 years. "Your (U.S.) competitors are on the ground more than ever before," she explained prior to the first-ever U.S. Dairy Business Conference held in Dubai, United Arab Emirates.
While the U.S. also enjoys a 10 percent market share in whey exports after starting from nearly scratch a decade ago, dairy processors have to take the next step and make products tailored to the needs of the MENA countries. "If you make it happen, you are a friend for life," she went on to explain, noting that family-owned businesses dominate the region and that many want small runs to test new products at the onset.
This article will be the first in an ongoing series in Hoard's Dairyman Intel discussing the growing Middle East market. Dubai is home to the world's ninth-largest port. Approximately 40 to 50 percent of the imports into Dubai, the business hub of the Middle East, are food. Next to grain and rice, dairy is the second-largest food import. The opportunities are boundless as the U.S. enjoys lower shipping costs than Oceania countries.
