Japanese confectionary giant Meiji in venturing into the Cambodian powdered milk market to cash in on surging demand in the Kingdom, starting with baby goods stores in the capital, according to a recent report.
Meiji began shipping products to the Kingdom earlier this month with unchanged recipes and in their original Japanese packaging, with labels affixed that contain Khmer-language instructions, expiration dates and other key information, Nikkei reported last week.
Designated for children aged 3 and under, the products, in 800g containers, are to be priced at $25-28.
Meiji predicts that the value of the Cambodian baby formula market will rise to about 10 billion yen ($74 million) in 2030, and expects its sales in the Kingdom to pass the one-billion yen mark by then, thereby capturing a 10 per cent share.
However, the company will see stiff competition from established market players, including the US’ Abbott Laboratories, France’s Danone and Switzerland’s Nestle, all of which offer similar products at comparable prices, the media outlet noted.
Similarly, Tokyo-listed Asahi Group Holdings Ltd has also brought the Wakodo baby formula brand to the Cambodian market.
Taking advantage of compatible standards, Meiji will export to Cambodia the same products that it sells in Japan, without any alterations to formulas to meet territory-specific rules, as is the case with merchandise shipped to every other market that the firm competes in, according to Nikkei.
Meiji’s plans come on the heels after Nestle announced plans to invest in Cambodia by setting up an operation in the near future, a move majorly hailed by local dairy farmers as a means of boosting the fresh milk market in the Kingdom.
Chhor Rithy, CEO of Khmer Fresh Milk which produces the Kirisu Farm milk brand, opined that greater demand for fresh milk should lead to levels of dairy cow rearing rivalling those seen in other countries, which in turn would create jobs for and improve the livelihoods of Cambodian farmers.
At present, the supply of fresh milk from local farms is not enough to meet demand though, Rithy told The Post recently, adding that Khmer Fresh Milk Co Ltd can produce only 10,000 litres per day, or enough to meet about a fifth of market demand.
However, according to Rithy, Khmer Fresh Milk’s production of fresh milk is increasing daily, up from 2,000 litres at the time of initial sale to 10,000 litres per day, while the total number of cows on the farm has increased to nearly 1,000 head.