Business Dairy

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
2

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% 3

4. DAIRY HERD SIZE
Herd size No. 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%)
4

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
5

6. Milk Production per year
800,000
700,000
600,000
500,000
400,000 Milk Production per year
300,000 (Tons)
200,000
100,000
0
1999 2000 2001 2002 2003 2004
Year
6

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
7

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

9. MILK PRODUCTION COSTS
Production costs, Prices farmers received, costs of concentrates from 1999-2004
12
10
8
Costs of production baht/kg
6 Costs of concentrates baht/kg
Prices farmers obtained baht/kg
4
2
0
1 2 3 4 5 6
9

10. MILK CONSUMPTION
Year Total milk Consumption Changes
consumption per capita (%)
(Tons) kg/person/year
1999 550,150 8.9
2000 572,460 9.17 3.03
2001 602,070 9.57 4.36
2002 651,910 10.19 6.48
2003 674,700 10.46 2.65
2004 763,526 12.03 15.01
10

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
11

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
12

13. 13

14. 14

15. Dairy cattle in Thailand (heads)
North-
year Central Northen Southen Total
eastern
186, 24,6 4,28 282,
1999 210 67,536 22 7 655
204, 29,9 4,54 307,
2000 882 68,596 08 1 927
27,8 7,90 343,
233,
2001 74,434 21 1 679
523
248, 28,9 6,01 358,
2002 667 74,807 56 0 440
255, 34,2 6,26 380,
2003 302 84,354 82 5 203
285, 32,4 8,34 408,
2004 520 82,021 68 1 350
15

16. Milk production in Thailand
Milk production
year
(Tons)
1999 464,514
2000 520,115
2001 587,700
2002 660,297
2003 731,923
2004 746,646
2005 800,000
16

17. Farmer Organization and Private milk
collecting centers
Ratio of
Organization Number
Collected
milk
Dairy Co-operative 117 74
Private milk collecting
center 63 26
17

18. Number of Milk processing plants
Plants / Factories Number
1. UHT 15
2. Pasteurize 60
3. Cheese 8
4. Other milk product 82
- Condensed milk 5
- Other dairy product 65
18

19. Volume and Value of Ready to drink milk consumption
in Thailand
Pasteurize and UHT
Drinking yogurt Total
milk
year
Volume Value Volume Value Volume Value
(103 (103 (103
(tons) mil.Baht)
(tons) mil.Baht)
(tons) mil.Baht)
545, 17.6 218, 763,9
2001 003 3 937 9.96 40 27.59
585, 18.6 213, 799,7
2002 991 8 762 9.88 53 28.56
609, 19.8 213, 822,4
2004 399 1 091 9.93 90 29.74
19

20. Milk and Milk product imported on 2005
Volume Value
Type of Product
(Tons) (mil.Baht)
1. Skim milk
Powder 69,671 6,380
2. Supplement 33,635 4,336
3. Whole milk
powder 29,092 2,539
4. Whey 46,916 1,501
5. Butterfat 10,938 1,158
6. Other 42,772 3,959
Total 233,024 19,873
20

21. Milk and Milk product exported on 2005
Volume Value
Type of Product
(Tons) (mil.Baht)
1. Sweetened Condensed Milk
(with palm oil formula) 110,503 4,797
2. Condensed Milk 46,458 1,589
3. Sweetened Condensed Milk 26,351 915
4. Ice Cream 14,288 732
6. Other 76,287 2,868
Total 273,886 10,902
21

22. Raw milk Cost / Price and milk production vate
Cost Price Milk production vate
year
(Baht / Kg) (Baht / Kg) (Kg/head/day)
1999 7.47 10.94 11.91
2000 7.56 11.17 11.50
2001 8.00 11.33 11.53
2002 8.15 11.34 11.15
2003 8.20 11.38 11.59
2004 8.35 11.38 11.60
22

23. Production and Consumption drinking milk
Production Consumption Percapita
year
(Tons) (Tons) (Kg/head/year)
557,40
1999 0 550,150 8.90
580,00
2000 0 572,460 9.17
610,00
2001 0 602,070 9.57
600,50
2002 0 651,910 10.19
683,60
2003 0 674,700 10.46
773,58
2004 2 763,526 12.03
23

24. Comprehensive Dairy Technology
Modernization
Technology for
Dairy Farm
Management
Technology Dairy
for Dairy Marketing
Processing Management

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.
25

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.
26

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.
27

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

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

30. The previous campaign “MILK FOR ALL”
30

31. SCHOOL MILK PROGRAM
31

32. THANK YOU
32

33. Total Dairy Market ปี 2546
%
25
UHT.MILK น ผดั แ ล สำำรับ ำ
ม ง ด ป ง ห ทรก
น สำำรับ กต
ม ห เด็ โ
20
นมสำำหรับเด็กโต น ข้ ห น
ม น วำ
นมข้นหวำน น ข้ จื
มนด
15 Chilled
น ผสำำรับ ใ้ห
ม ง ห ผู ญ่
นมเปรี้ยว
น ส อ รส์
ม เต ร์ริไ
10
น เป วU T
ม รีย H
Cream
นมข้นจืด c ae
remr
5 นมสเตอร์ริไรส์
c ille
h d
U .T.m
.H ilk
0
นมผงดัดแปลงสำำหรับทำรก ำหรับผู้ใหญ่
นมผงสำ
33