While much of the Middle East and North Africa is blessed with vast reserves of oil, that same cannot be said for fresh water and productive farmland. As a result, the region relies on food imports to feed its citizens. In fact, over 90 percent of the food consumed throughout the Middle East and North Africa - also known as the MENA countries - comes from outside its borders.
For U.S. dairy farmers and processors, this is a tremendous opportunity. In just the last decade, the U.S. has grown sales from approximately 2 percent to 13 percent market share. However, much more can be done. The European Union remains the leading supplier to the region with 50 percent market share. Additionally, the Oceania region, which includes New Zealand and Australia, accounts for nearly 25 percent of dairy product sales.
Even so, the future looks bright for U.S. dairy products, as 50 to 60 percent of the population in the MENA countries is under 30 years of age. If they become lifelong dairy consumers, the long-term sales horizon could be bright. That is why the U.S. Dairy Export Council (USDEC) hosted a U.S. Dairy Business Conference in Dubai, United Arab Emirates, this past November.
In our final video of this five-part series, Jim Reid (shown left) and Ray Prock, Jr., discuss the dairy market potential in both the Middle East and North Africa. Both are on the board of directors of the Dairy Management, Inc., (DMI) which guides the nation's dairy checkoff. Reid is a Jeddo, Mich., dairy producer, while Prock hails from Denair, Calif. They were two of four dairy farmers who represented the U.S. delegation. The delegation also included fellow DMI board members Glen Easter of Laurens, S.C., and Larry Shover of Delhi, Iowa.
Editor's note: This is the fifth article in a five-part Hoard's Dairyman Intel series discussing the growing Middle East market. Dubai is home to the world's ninth-largest shipping port. Approximately 40 to 50 percent of the imports into Dubai, the business hub of the Middle East, are food items. Next to grain and rice, dairy is the next largest food import.
Click to watch the November 11 Hoard's Dairyman Intel video: Middle East hungry for dairy products
Click to watch the November 18 Hoard's Dairyman Intel video: U.S. needs to become a steady buyer
Click to watch the November 25 Hoard's Dairyman Intel video: USDEC connects buyers and sellers
Click here to watch the December 2 Hoard's Dairyman Intel video: Chefs support dairy export sales
