Bangkok: The Permanent Secretary of the Ministry of Agriculture and Cooperatives has received complaints from a network of dairy cooperatives and ordered an investigation into the entire school milk quota system.
According to Thai News Agency, the Permanent Secretary received grievances from 11 dairy cooperatives concerning the allocation of school milk supplies. He initiated a comprehensive investigation, emphasizing the need for fairness, transparency, and timely delivery of milk to students for the upcoming school year.
Mr. Winairoj Sapsongsuk, who serves as the Permanent Secretary and Chairman of the Milk and Dairy Products Policy Committee (Milk Board) as well as the Committee on Supplementing Milk for Children and Youth, revealed after a meeting with the dairy cooperative network that discussions focused on the impact of quota allocation, monitoring milk quantities in the system, and the issue of unsold school milk stocks.
The allocation of rights has been acknowledged as potentially inequitable, with some areas not receiving the full amount requested. Comprehensive consideration of the impact on each group is necessary. Verification of all applicants, both cooperative and private entities, has been mandated to ensure accurate reporting of raw milk quantities. Equal adherence to criteria and verifiable claims are being stressed.
Authorities have ordered a verification process for the actual quantity of raw milk supplied by all applicants to ensure fair allocation. Any false information found will result in immediate revocation of allocation rights.
The issue of school milk surplus was highlighted as a major concern by cooperatives. A survey in March revealed 7,355,271 cartons of UHT school milk, valued over 63 million baht, in stock due to excessive raw milk supply and a declining student population, hindering distribution during school holidays.
Dairy cooperatives have been forced to process surplus raw milk into UHT milk, resulting in accumulated stock with a limited consumption period of about one month from the school term start on May 18, 2026. This poses a sales risk.
Urgent measures have been initiated by the Permanent Secretary to address the problem. Negotiations with milk recipients are underway to prioritize distributing current milk stocks to students at the school term's start. Relevant agencies will inspect milk quality and shelf life. The school milk is mandated to be made from fresh cow's milk, with any powdered milk mix leading to immediate disqualification.
Orders have been given to inspect factories and warehouses to verify quantities and prevent misuse of old products in allocation.
Regarding farmer assistance, the Ministry is expediting the use of the Farmers' Relief Fund to compensate dairy farmers' debts, ensuring direct financial aid to them.
Mr. Winaroj noted the decrease in schoolchildren from approximately 8 million to around 6 million, impacting milk demand. Plans are in place to expand the school milk program year-round and include lower secondary and vocational students to boost milk consumption and ensure a long-term supply of raw milk.
He also addressed the Dairy Farming Promotion Organization of Thailand's (DPO) accumulated debt and stock nearing expiration, stating management is the DPO executive committee's responsibility, with the Ministry overseeing and encouraging proper management.
The Ministry plans to support processing surplus or near-expired dairy products into "milk amino fertilizer," sellable to farmers. While initially used in rubber plantations, farmers reported benefits when applied to pineapples.
Reporters revealed the Dairy Farming Promotion Organization of Thailand (DFPO) faces a large surplus of expired Thai-Denmark dairy products, totaling approximately 8,000 tons and potentially increasing to 12,000 tons. This stockpile, manufactured nearly two years ago but unsold, represents an estimated loss of 400-600 million baht.
Recently, DFPO began moving over 100 tons of dairy products out of stock to process into milk-based amino acid fertilizer, following Ministry guidelines to generate revenue and mitigate financial impact.
The large accumulation of milk stocks has affected DFPO's liquidity, leading to continuous debt accumulation to farmers and dairy cooperatives. Over the past two years, questions have arisen about DFPO's stock management and distribution planning, significantly impacting its revenue.