Bangkok: With a surplus of 200 tons of raw milk per day, the government is pushing for processing and requesting more private sector purchases.

According to Thai News Agency, the Director-General of the Department of Cooperative Promotion has highlighted the ongoing issue of an oversupply of raw milk, describing it as a structural problem. This surplus is particularly noticeable during peak production seasons, prompting the department to implement a comprehensive milk management plan consisting of three phases: short-term solutions, medium-term strategies, and long-term restructuring of milk farming practices.

Mr. Nirun Multhida, the Director-General, has detailed the current situation, emphasizing the urgent need for systematic management of the surplus. The Ministry of Agriculture and Cooperatives has devised a three-phase approach to address the issue, with the aim of sustaining dairy farmers' livelihoods and stabilizing the market.

In the short term, the government has collaborated with private companies and the Dairy Farming Promotion Organization of Thailand (DPO) to increase the purchase of surplus milk. Additionally, some of the excess milk is used in fertilizer production through partnerships with organizations like the Rubber Authority of Thailand (RAOT). Farmers are also encouraged to reduce production temporarily, without abandoning their profession, to help manage supply.

For the medium term, the government plans to process raw milk into powdered form, despite the higher costs compared to importing. This strategy is expected to extend the shelf life of milk to up to two years, alleviating the surplus during high production periods. Private companies are working on meeting international standards for milk quality, but negotiations on pricing and cost support are ongoing.

Long-term plans involve restructuring the milk production system by developing high-value products and improving farm management. This includes encouraging small farms to form larger cooperatives to share technology and equipment, thus reducing costs and boosting efficiency. The government is also seeking cooperation from private sector importers to stabilize milk prices under free trade agreements (FTAs).

Mr. Nirun also mentioned a proposal to expand the school milk program to include secondary school students and extend coverage to 365 days a year. This initiative aims to increase domestic milk use and improve children's nutrition. The proposal is awaiting consideration by the new government following the dissolution of Parliament, but it remains a priority for the Ministry of Agriculture and Cooperatives.