Dairy to Taiwan

(Last updated: 15 Nov 2011)

Trends and opportunities

The market

According to the Council of Agriculture, in 2010, the total dairy import volume stood at 139,127 tonnes, with a value of A$492.4 million. This showed a 3.3 per cent increase in volume and a 29 per cent increase in value compared to 2009.

In terms of value share of the total dairy market, drinking yoghurt and yoghurt have the largest share, with milk following in second place. In Taiwan, locally produced raw milk is used mainly for fresh milk and drinking yoghurt production, whereas milk powder, cheese and butter is predominantly imported.

In regards to imported goods, the largest supplier of dairy products to Taiwan is New Zealand. In 2010, it represented 44.8 per cent of the market share, a decrease of three per cent on the previous year.  The second largest export country was Australia, which accounted for 19.3 per cent of the market share, one per cent up from 2009.

In 2010, Australian dairy export to Taiwan was 26,858 tonnes showing an increase of 11 per cent from 2009. USA is the third largest dairy product supplying country in 2009. Its export volume stood at 11,479 tonnes, an increase of 14 per cent from the previous year.

Opportunities

The demand for Australian dairy products is always high in Taiwan, and the following items offer good potential for Australian exporters:

• UHT milk
• cheese
• milk powder
• butter

Competitive environment

Australian dairy products have a high profile in Taiwan and local consumers have confidence in their quality. New Zealand products also have a good image and are competitive in price, making them Australia’s biggest competitor.

For the past few years, the US Dairy Export Council has regularly promoted their dairy products, even though the total import quantity is still small in comparison with New Zealand and Australia. Its product awareness is established through promotions, and it is a competitor that Australian exporters should be aware of.

Tariffs, regulations and customs

The tariff rates of milk powder

Other dairy product tariffs

(Source: Ministry of Finance, Directorate General of Customs, 'Tariff Database')

Note: Tariff Rate Quota (TRQ) means that the product is permitted under a normal tariff up to a certain annual quota volume, at which point a ‘prohibitive’ tariff is given on any additional imported quantities.

For the most up-to-date tariffs visit www.customs.gov.tw.

Industry standards

Australian exporters need to meet the Food Sanitary Standards defined by the Department of Health.

Australian exporters also need to meet Taiwan’s nutrition labelling regulation.

Marketing your products and services

Market entry

Australian dairy suppliers should have a well-planned marketing strategy and provide an assurance of quality in order to build a solid reputation with buyers. This is fundamental to taking advantage of the diverse range of opportunities available in this market and will assist companies to:

• Assess current demand for the product or service in Taiwan.
• Identify levels of local production and imports of the product.
• Identify major players in the market and potential agents and distributors.
• Understand the regulatory processes, import tariffs and trading regime relevant to the product or service.
• Identify competing products or services in the market and the organisations servicing this competition.

Taiwan buyers remain extremely price-conscious, and have a preference for stable and well-proven products, turn-key solutions, and a strong reliance and expectation on the supplier to provide after-sales service support.

It is also important to be aware of significant cultural differences in Taiwan. As well as having a general understanding of the historical and cultural background of Taiwan, you need to understand and practice the more day-to-day business culture if you are to foster alliances.

Australian dairy is well known and well regarded in the Taiwan market and has an image of being consistently of high quality, healthy and natural. To export successfully in Taiwan, you need to consider:

• Developing a good marketing plan with a long-term vision.
• Providing high-quality and consistent produce.
• Establishing strong relationships with supermarkets and importers with good distribution channels.
• Visiting Taiwan frequently to support your agent and participate in trouble-shooting in a pro-active fashion.
• Following up on issues raised in your visits.
• Participating in the Taipei International Food Show to enhance the profile and image of your products.

Links and industry contacts

Government, business and trade resources

Council of Agriculture – www.coa.gov.tw
Department of Health – www.doh.gov.tw
Taiwan Customs – www.customs.gov.tw