|
(Last updated: 13 Jul 2007)
Trends and opportunities
The market
In 2004, Australia exported A$9 million worth of dairy products to New Caledonia (including milk, powdered milk, cream, butter, soft and hard cheese and ice cream).
Consumption of dairy products is fairly constant with a tendency to decrease during the summer holiday period in January and February when many local residents are absent overseas.
Imports of ice cream are forbidden from June to September, and limited, for the rest of the year, to 11 tonnes for countries that are not member of the European Union.
Imports of yoghurts are forbidden. As a result of the BSE (mad cow) disease, New Caledonia banned all imports of cheeses made from the raw milk of Europe.
In New Caledonia, the consumption pattern is 20 per cent of UHT milk versus 80 per cent powdered milk – both of which are imported. Europeans living in Noumea usually purchase UHT milk while Melanesians and ethnic minorities, especially those living outside the capital or with large families, prefer powdered milk. The consumption pattern for UHT milk is 30 per cent full fat milk and 70 per cent skimmed (or semi-skimmed) milk.
Opportunities
With competitive pricing, the best opportunities for Australian exporters are:
- UHT milk
- powdered milk
- soft and hard cheese
- unsalted butter
Competitive environment
Five major farms are responsible for local milk production; three of those farms only produce milk, while the other two integrate milk production with the transformation of dairy products.
There are three main dairy product manufacturers in New Caledonia and these businesses are also involved in importing dairy products. Locally manufactured products include some Yoplait and Nestlé branded dairy products, yoghurts, cottage cheese, soft cheese (camembert type) and ice cream.
The main supplying countries – and products – of imported dairy products are:
- France – soft and hard cheese, grated cheese and ice cream
- New Zealand – butter, cream and UHT milk
- Australia – powdered milk, UHT milk and cheese spread
Importers acknowledge the quality of Australian dairy produce but competition allows importers to view supplies on a cost-effective basis. The Australian share of the dairy imports has gradually decreased over the last few years, due to the development of the New Caledonian production and tougher competition from New Zealand. New Zealand is Australia’s main competitor in the dairy industry.
Importers often encounter stock handling problems with dairy products from France as the import delay considerably shortens the shelf life of the products. This constraint results in a competitive advantage for Australian and New Zealand dairy products. Australian exporters must be ready to supply in small but regular quantities.
|