Murray Goulburn increases dairy marketing presence across Asia
Australian diary giant Murray Goulburn has announced plans to open regional offices in Singapore and Vietnam. The Cooperative says the move will grow its market presence across Asia and improve shareholder returns.
Murray Goulburn is the largest processor of milk in Australia and the nation’s largest exporter of processed food. Its international business accounts for approximately 9 per cent of world dairy trade.
In a letter to shareholders this week, Murray Goulburn’s Managing Director Gary Helou said the company will be opening a regional head office in Singapore for oversee sales, marketing and distribution functions in Southeast Asia.
Countries in the Southeast Asian region include Singapore, Hong Kong, Philippines, Thailand, Malaysia, Indonesia and Vietnam. The region represents 15 per cent of world dairy trade with imports of approximately 1.8 million tonnes valued in excess of AU$6 billion per annum.
Mr Helou said Southeast Asia is categorised by rapidly growing populations and demand for dairy is growing as real incomes rise.
“The region’s local dairy production will not meet future demand growth and consequently these markets will continue to look to key exporting countries like Australia to meet future dairy food demand,” Mr Helou said.
“The Murray Goulburn and Devondale brands already have a strong reputation in the region. The new offices will improve the effectiveness of current market channels and grow markets for Murray Goulburn products,” he added.
The Singapore office will be Murray Goulburn’s third international office along with a team based in Tokyo, Japan and its recently announced Dubai office that will service the Middle East and North Africa.
Murray Goulburn to establish Vietnam office
Mr Helou also said that Murray Goulburn will establish a Vietnam office to focus on sales growth in that market.
“Vietnam has a population in excess of 90 million people and is the world’s thirteenth most populist country. Dairy food consumption growth is forecast to be in excess of 10 per cent per annum and local milk supply will be insufficient to meet this growing demand,” Mr Helou said.
MG’s Vietnam office will represent the fourth international office for the company.