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Southeast Asia's import demand for skim milk powder: Implications for US exporters.
J Dairy Sci. 2018 May; 101(5):4676-4689.JD

Abstract

Dairy industries in Southeast Asia are small and produce less than the domestic market demands. As expenditure and population grow in Southeast Asia, it is expected that the expenditures on skim milk powder (SMP) will grow. In this study, we examined the competitiveness of US SMP in the Southeast Asian market with respect to other leading dairy exporters, including the European Union (EU-28), New Zealand, and Australia. Using monthly data from 2006 to 2015, Rotterdam models were used to estimate import demands for SMP in 4 Southeast Asian countries. In a scenario using annual averages from 2013 to 2015 as a baseline, our findings suggest that a 10% reduction in the US price of SMP would cause Indonesia, Singapore, Vietnam, and the Philippines SMP imports from the United States to increase by 3.96, 0.44, 2.68, and 1.94 kt, respectively. Under the same scenario, the value of US SMP imports would decrease for Indonesia, Vietnam, and the Philippines by $4.12, $2.93, and $2.48 million, respectively; however, the value of US SMP to Singapore would increase by $0.20 million. Singapore and Indonesia expenditures for the US SMP are elastic, which means that as expenditure and population in Southeast Asia continue to grow, a 1% increase in SMP expenditure in Singapore and Indonesia would result in 1.25 and 1.20% increases in US SMP exports.

Authors+Show Affiliations

Market and Trade Economics Division, Economic Research Service, USDA, 355 E Street, SW, Washington, DC 20024. Electronic address: chrisdavis@ers.usda.gov.Market and Trade Economics Division, Economic Research Service, USDA, 355 E Street, SW, Washington, DC 20024.Department of Agricultural Economics and Agricultural Business, New Mexico State University, PO Box 30003, Las Cruces 88003.

Pub Type(s)

Journal Article

Language

eng

PubMed ID

29454689

Citation

Davis, C G., et al. "Southeast Asia's Import Demand for Skim Milk Powder: Implications for US Exporters." Journal of Dairy Science, vol. 101, no. 5, 2018, pp. 4676-4689.
Davis CG, Cessna JG, Blayney DP. Southeast Asia's import demand for skim milk powder: Implications for US exporters. J Dairy Sci. 2018;101(5):4676-4689.
Davis, C. G., Cessna, J. G., & Blayney, D. P. (2018). Southeast Asia's import demand for skim milk powder: Implications for US exporters. Journal of Dairy Science, 101(5), 4676-4689. https://doi.org/10.3168/jds.2017-12848
Davis CG, Cessna JG, Blayney DP. Southeast Asia's Import Demand for Skim Milk Powder: Implications for US Exporters. J Dairy Sci. 2018;101(5):4676-4689. PubMed PMID: 29454689.
* Article titles in AMA citation format should be in sentence-case
TY - JOUR T1 - Southeast Asia's import demand for skim milk powder: Implications for US exporters. AU - Davis,C G, AU - Cessna,J G, AU - Blayney,D P, Y1 - 2018/02/14/ PY - 2017/03/08/received PY - 2017/12/14/accepted PY - 2018/2/20/pubmed PY - 2018/10/16/medline PY - 2018/2/19/entrez KW - Southeast Asia KW - competitiveness KW - import demand KW - skim milk powder KW - trade SP - 4676 EP - 4689 JF - Journal of dairy science JO - J Dairy Sci VL - 101 IS - 5 N2 - Dairy industries in Southeast Asia are small and produce less than the domestic market demands. As expenditure and population grow in Southeast Asia, it is expected that the expenditures on skim milk powder (SMP) will grow. In this study, we examined the competitiveness of US SMP in the Southeast Asian market with respect to other leading dairy exporters, including the European Union (EU-28), New Zealand, and Australia. Using monthly data from 2006 to 2015, Rotterdam models were used to estimate import demands for SMP in 4 Southeast Asian countries. In a scenario using annual averages from 2013 to 2015 as a baseline, our findings suggest that a 10% reduction in the US price of SMP would cause Indonesia, Singapore, Vietnam, and the Philippines SMP imports from the United States to increase by 3.96, 0.44, 2.68, and 1.94 kt, respectively. Under the same scenario, the value of US SMP imports would decrease for Indonesia, Vietnam, and the Philippines by $4.12, $2.93, and $2.48 million, respectively; however, the value of US SMP to Singapore would increase by $0.20 million. Singapore and Indonesia expenditures for the US SMP are elastic, which means that as expenditure and population in Southeast Asia continue to grow, a 1% increase in SMP expenditure in Singapore and Indonesia would result in 1.25 and 1.20% increases in US SMP exports. SN - 1525-3198 UR - https://www.unboundmedicine.com/medline/citation/29454689/Southeast_Asia's_import_demand_for_skim_milk_powder:_Implications_for_US_exporters_ L2 - https://linkinghub.elsevier.com/retrieve/pii/S0022-0302(18)30121-8 DB - PRIME DP - Unbound Medicine ER -