Bangkok: "Suriya" has ordered a comprehensive investigation into the losses of the Dairy Farming Promotion Organization of Thailand (DPO) and is set to propose a 600 million baht loan to the Cabinet. The initiative aims to address the financial challenges faced by the organization and explore innovative solutions to enhance the value of raw milk.
According to Thai News Agency, Mr. Suriya Jungrungreangkit, the Minister of Agriculture and Cooperatives, has instructed Deputy Minister Mr. Watcharapol Khaokham to delve into the causes of the financial losses and liquidity issues plaguing the DPO. The investigation may involve forming a dedicated committee to uncover any potential financial leaks and devise effective corrective measures.
In a bid for immediate relief, a proposal will be presented at the Cabinet meeting tomorrow, seeking approval for a 600 million baht loan from the Farmers' Welfare Fund. This financial injection is intended to facilitate the second phase of the raw milk purchase project, specifically aimed at settling outstanding debts owed to cooperatives under contract with the DPO.
Mr. Watcharaphol Khaokham, the Deputy Minister of Agriculture and Cooperatives, confirmed the plan to propose the loan from the Farmers' Relief Fund to expedite debt repayments to cooperatives. This development has been communicated to the chairman of the Thai-Denmark Dairy Cooperative Federation Limited, leading to a more optimistic outlook for the sector, especially in light of earlier plans by cooperative representatives to protest by blocking Mittraphap Road.
The response to the situation includes a three-phase strategy: immediate resolution of outstanding debts to ensure timely payments to farmers, medium-term restructuring of the management system to enhance efficiency, and long-term goals to fortify the Thai dairy industry for sustainable farmer support.
Additionally, during a press conference, Mr. Watcharaphol introduced "KU Lactova Milk," a new pet milk product developed by Kasetsart University. This product exemplifies innovation in converting raw milk into high-value goods, aligning with the BCG (Bio-Circular-Green) economic model. The launch reflects efforts to capitalize on the growing pet food market while alleviating the surplus of fresh cow's milk.
Further initiatives include expanding the school milk program to ensure continuous milk supply to students and managing raw milk production to stabilize prices and secure income for farmers. Reporters have highlighted that the DPO is burdened with over 3 billion baht in accumulated debts, including unresolved payments for raw milk and packaging costs. Additionally, inventory management issues have led to a surplus of nearly expired milk cartons, some of which are being converted into "milk amino fertilizer" to mitigate losses.