Thailand’s Dairy Industry Modernization

1. Thailand’s Dairy Industry Modernization

2. Dairy farming in Thailand started in 1956 • Holstein Friesian was introduced in 1961 • Commercial dairy farming began in 1962 w

3. DAIRY CATTLE POPULATION • In 2004 408,350 heads, 7.5% decreased from 2003 » Milking cows 40% » Dry cows 11% » Heifers 20% 60% » Calves 29%

4. DAIRY HERD SIZE Herd sizeNo. of farms Small (not more than 10) 9,305 (39.7%) Medium (11-20) 7,383 (31.5%) Large (more than 20) 6,751 (28.8%)

5. DAIRY CATTLE BREED HF%Dairy population (%) 62.5 HF% 4.7 75 HF% 26.7 87.5 HF% 46.2 93.75 HF% 20.2 100 HF% 1.0 Other 1.2

7. MILK PRODUCTION • Of the total yield » 73.7% collected by dairy cooperatives » 26.3% collected by privately-owned milk collection centers • Of the total yield » 95% supplied to Ready-to-drink milk market » 3% for cheese production » 2% distributed for sales in the villages

8. There are 75 RTD milk processing plants » Large-scale UHT milk 15 » Pasteurized milk 60

9. MILK PRODUCTION COSTS

10. MILK CONSUMPTION Year   Total milk Consumption Changes consumption percapita(%) (Tons) kg/person/year 1999 550,1508.9 2000 572,4609.17 3.03 2001 602,0709.57 4.36 2002 651,91010.196.48 2003 674,70010.46 2.65 2004 763,526 12.0315.01

11. Import • In 2004 imported 17,897 million baht, 14.79% higher than in 2003 • Main import product: skimmed milk powder • Main import sources: Australia, New Zealand

12. Export • In 2004 exported 12,000 million baht, 18% higher than in 2003 • Main export products: sweet concentrated milk, infant milk powder, ice cream and condensed milk • Main export markets: • ASEAN countries

25. Dairy Farm Management : - Establishment of dairy herd improvement system to increase productivities over time. - Reduction of farmers’ cost of production for example use of local roughage instead of highly concentrate feed, dairy cattle feed controlling system, nonproductive cows culling management and more appropriate cow milking for hygienic raw milk. - The provision of advance techniques in artificial insemination, animal feed, and animal sanitation . - The establishment of dairy cattle and movement controlling system for diseases prevention. - Good management practices of raw milk collection and transportation . - Farm management technology transfer and milk quality assurance. - Training of farmers.

26. Modern Technology for Dairy Processing : • Construction of milk processing factories using modern technologies to manufacture various milk product, for instance, butter, milk powder etc.

27. Marketing Management . - The establishment of marketing and sales promotion using well-known brands of investor or alternatively with creation of new brands. - Expansion of domestic and foreign markets for Thailand dairy products.

28. The project welcomes leaders of dairy export countries to submit proposal for development

29. The duration of the project is approximately 5 years.

30. The previous campaign “MILK FOR ALL”

31. SCHOOL MILK PROGRAM

32. THANK YOU

33. Total Dairy Market ปี 2546 % UHT.MILK นมสำหรับเด็กโต นมข้นหวาน Chilled นมเปรี้ยว Cream นมข้นจืด นมสเตอร์ริไรส์ นมผงสำหรับผู้ใหญ่ นมผงดัดแปลงสำหรับทารก