- India is the world's largest milk producer and major dairy exports include ghee, butter, cheese and milk powder. The UAE is a key export market for Indian dairy products.
- Key factors to consider for exporting dairy to the UAE include pricing based on production and transportation costs, distribution through major cities like Dubai and Abu Dhabi, and promotional activities like advertising.
- The dairy industry should target all age groups across the UAE and position Indian products as the world's prime source of high-quality protein. Regulatory requirements to enter the UAE market and sell dairy include obtaining a trade license and following rules around branches in different emirates.
2. Indian Dairy industry
• Today, India is the world’s largest milk producer, accounting for more
than 13% of the world’s total milk production.
• Some of the major destinations of Indian dairy products are
Bangladesh, UAE, US, and Philippines.
• Ghee is the most widely used milk product in the Indian sub continent.
• Ghee has been a regular export item from India since the 1930’s.
• Dairy sector is probably one of the most distorted agriculture sectors.
8. About UAE
Fact Sheet: UAE
• Capital : Abu Dhabi
• GDP (official exchange rate) : US $ 361.9 bn (2012 est.)
• GDP (PPP) : US $ 271.2 bn (2012 est.)
• GDP (real growth rate) : 4% (2012 est.)
• GDP (composition by sectors) : Agriculture: 0.8%, Industry:
56.1% and Services: 43.1%
(2012 est.)
• Population : 5,314,317 (July 2012 est.)
9. • Agriculture – Products : dates, vegetables, watermelons; poultry, eggs,
dairy products, fish
• Industries : petroleum and petrochemicals; aluminum,
cement, fertilizers, commercial ship repair,
construction materials, some boat building,
handicrafts, textiles
• Exports : US $ 300.6 bn (2012 est.)
• Major Export Commodities : crude oil 45%, natural gas,
reexports, dried fish, dates
• Export Partners : Japan 16.2%, India 13.5%, Iran 10.9%, South
Korea 5.6%, Thailand 5.5%, Singapore 4.4% (2011)
• Imports : US $ 220.3 bn (2012 est.)
• Major Import Commodities : machinery and transport equipment, chemicals,
food
• Import Partners : India 19.8%, China 13.7%, US 8.1%, Germany
4.6%
10. Bilateral Economic & Commercial
Relations: India - UAE
• India and the United Arab Emirates (UAE) enjoy a strong and friendly
relationship based on historical contacts, shared traditions and values.
• Being one of the significant trade corridors in the world, UAE has emerged
as India’s second largest trade trading partner after China.
• UAE, a long standing commercial and business hub of the Arabian world,
has also emerged as the third major re-export centre in the world after
Singapore and Hong Kong.
• India's exports to the UAE are well diversified with a large basket.
• Major items of India's exports to UAE have been petroleum products,
precious metals, stones, gems & jewellery, minerals, food items (cereals,
sugar, fruits & vegetables, tea, meat, and seafood), textiles (garments,
apparel, synthetic fibre, cotton, yarn) and engineering & machinery
products and chemicals
11. PESTLE Analysis
• Political
– Each Emirate has its own governmental institution.
• Economic
– Wealth is based on oil and gas exports (Abu Dhabi)
• Social
– Islam plays a large role in business
• Technological
– Telephones (land line and cell), radio broadcast stations,
television, internet
• Legal
– Court proceedings in the UAE are time-consuming.
• Environmental
-Arid/tropical, sandy desert, and coastal areas
12. SWOT Analysis
• Strengths
– Free Trade Zones, relative ease of business start up
• Weaknesses
– One needs a network of people in order to expand opportunities
– Trust must be gained before any business transaction occurs
• Opportunities
– Large export market
– Trade missions
• Threats
– Sandstorms and dust storms occur frequently.
13. ENTERING THE MARKET
• A local sponsor or service agent
• Trade license
• Register with the local Chamber of Commerce and Industry, the Economic
Development Department, and with the Minister of Finance
• Annual renewal of the trade license
• Company can function only within the emirate where the license was
granted
• Separate license must be obtained to open a branch in other emirates
• Free Trade Zones
14. SELLING DAIRY PRODUCTS
• Using an Agent or Distributor
• Establishing an Office
• Franchising
• Direct Marketing
• Distribution and Sales Channel