Bangkok: The Permanent Secretary of the Ministry of Agriculture and Cooperatives has reiterated concerns over the difficulties faced by dairy farmers in distributing raw milk, resulting in the unfortunate disposal of significant quantities of milk. He emphasized the urgency in collaborating with government and private sector agencies to find alternative markets for these products.
According to Thai News Agency, the Dairy Farming Promotion Organization of Thailand (DFPO) is reportedly experiencing financial losses, preventing it from purchasing raw milk from cooperatives as per existing contracts. The Permanent Secretary assured farmers that the Ministry of Agriculture and Cooperatives is actively working to stabilize the situation and will not allow the DFPO to manage the problem on its own.
Mr. Winairoj Trapsongsuk, Permanent Secretary and Chairman of the Dairy and Dairy Product Policy Committee, highlighted the urgency with which the Ministry of Agriculture is addressing the marketing and distribution issues affecting dairy farmers across various regions. Discussions have been initiated with government bodies, the private sector, cooperatives, and other relevant organizations to find immediate and systematic solutions.
A working group has been formed to facilitate dialogue among the private sector, dairy cooperatives, and the DFPO, focusing on the future direction of Thailand's dairy industry. This includes addressing production, marketing, and product development to meet market demand and tackle the surplus of raw milk.
The Permanent Secretary suggested expanding the Thai dairy market beyond traditional products like pasteurized and UHT milk to include value-added products such as butter, cheese, and cream, which have untapped market potential. This initiative could also link with the private sector and tourism, with some areas being developed into agricultural tourism destinations.
He emphasized the need for greater private sector involvement, especially regarding the import of powdered milk under free trade agreements. Cooperation is sought to purchase raw milk from Thai farmers.
A special meeting of the Dairy and Dairy Product Policy Committee in December 2025 approved a comprehensive management strategy for the dairy industry. The strategy aims to sustainably strengthen and add value to the Thai dairy sector through collaboration between the government, private sector, and dairy cooperatives to balance the interests of farmers, businesses, and the economy.
The meeting also approved drafting a Memorandum of Understanding for raw milk purchases in 2025/2026, aiming for efficient product distribution and price stability. Additionally, it outlined the quota and import volumes for skimmed milk powder under international agreements for 2026, aligning with domestic dairy industry conditions. A subcommittee was appointed to promote and develop cow's milk marketing, aiming to diversify and add value to dairy products.
Regarding the DFPO's financial difficulties, which have led to contract breaches and milk disposal by cooperatives, the board is reviewing the situation to determine appropriate actions. The Ministry of Agriculture emphasized its commitment to not leaving the DFPO to resolve the challenges alone and to work collaboratively to mitigate the impact on dairy farmers.
Recent incidents, including the disposal of milk by cooperative members due to DFPO's failure to purchase contracted raw milk, highlight the urgency of the situation. Mr. Samran Khangsamrong, chairman of the Thai-Denmark Dairy Cooperative, reported that the DFPO's inability to purchase milk has resulted in significant challenges for over 200 member farmers. The cooperative is seeking urgent intervention from relevant agencies to address these issues.
Reporters have noted that the DFPO's marketing challenges and reduced product sales have resulted in financial losses, affecting its ability to honor contracts with dairy cooperatives and pay debts to packaging companies, further hampering milk processing.