Thailand’s Dairy Industry Modernization

2

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

3

DAIRY CATTLE POPULATIONDAIRY CATTLE POPULATION

In 2004 408,350 heads, In 2004 408,350 heads, 7.5% decreased from 7.5% decreased from 20032003

» Milking cows 40%» Milking cows 40%

» Dry cows 11%» Dry cows 11%

» Heifers 20% 60% » Heifers 20% 60%

» Calves 29%» Calves 29%

4

DAIRY HERD SIZEDAIRY HERD SIZE

Herd sizeHerd size No. of farmsNo. of farms Small (not more than 10) 9,305 Small (not more than 10) 9,305

(39.7%)(39.7%)

Medium (11-20) 7,383 (31.5%)Medium (11-20) 7,383 (31.5%)

Large (more than 20) 6,751 (28.8%)Large (more than 20) 6,751 (28.8%)

5

DAIRY CATTLE BREEDDAIRY CATTLE BREED

HF%HF% Dairy populationDairy population (%) (%)

62.5 HF% 4.762.5 HF% 4.7 75 HF% 26.775 HF% 26.7 87.5 HF% 46.287.5 HF% 46.2 93.75 HF% 20.293.75 HF% 20.2 100 HF% 1.0100 HF% 1.0 Other 1.2Other 1.2

6

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

1999 2000 2001 2002 2003 2004

Year

Milk Production per year

Milk Production per year(Tons)

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MILK PRODUCTIONMILK PRODUCTION

Of the total yieldOf the total yield

» 73.7% collected by dairy cooperatives» 73.7% collected by dairy cooperatives

» 26.3% collected by privately-owned milk » 26.3% collected by privately-owned milk

collection centerscollection centers Of the total yieldOf the total yield

» 95% supplied to Ready-to-drink milk » 95% supplied to Ready-to-drink milk marketmarket

» 3% for cheese production» 3% for cheese production

» 2% distributed for sales in the villages» 2% distributed for sales in the villages

8

There are 75 RTD milk There are 75 RTD milk processing plantsprocessing plants

» Large-scale UHT milk 15 » Large-scale UHT milk 15

» Pasteurized milk 60» Pasteurized milk 60

9

MILK PRODUCTION COSTSMILK PRODUCTION COSTS

Production costs, Prices farmers received, costs of concentrates from 1999-2004

0

2

4

6

8

10

12

1 2 3 4 5 6

Costs of production baht/kg

Costs of concentrates baht/kg

Prices farmers obtained baht/kg

10

MILK CONSUMPTIONMILK CONSUMPTIONYear   Total milk Year   Total milk Consumption Consumption

ChangesChanges

consumption perconsumption per capitacapita (%)(%)

(Tons) kg/person/year(Tons) kg/person/year

1999 550,1501999 550,150 8.98.9

2000 572,4602000 572,460 9.17 3.039.17 3.03

2001 602,0702001 602,070 9.57 4.369.57 4.36

2002 651,9102002 651,910 10.1910.19 6.486.48

2003 674,7002003 674,700 10.46 2.6510.46 2.65

20042004 763,526 763,526 12.03 12.03 15.0115.01

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ImportImport In 2004 imported 17,897 million baht, In 2004 imported 17,897 million baht,

14.79% higher than in 200314.79% higher than in 2003 Main import product: skimmed milk Main import product: skimmed milk

powderpowder Main import sources: Australia, New Main import sources: Australia, New

ZealandZealand

12

ExportExport In 2004 exported 12,000 million baht, In 2004 exported 12,000 million baht,

18% higher than in 200318% higher than in 2003 Main export products: sweet Main export products: sweet

concentrated milk, infant milk powder, concentrated milk, infant milk powder, ice cream and condensed milkice cream and condensed milk

Main export markets:Main export markets: ASEAN countriesASEAN countries

13

14

15

Dairy cattle in Thailand (heads)

year CentralNorth-eastern

Northen

Southen

Total

1999

186,210

67,536

24,622

4,287

282,655

2000

204,882

68,596

29,908

4,541

307,927

2001

233,523

74,434

27,821

7,901

343,679

2002

248,667

74,807

28,956

6,010

358,440

2003

255,302

84,354

34,282

6,265

380,203

2004

285,520

82,021

32,468

8,341

40

8,35

0

16

Milk production in Thailand

yearMilk production

(Tons)

1999 464,514

2000 520,115

2001 587,700

2002 660,297

2003 731,923

2004 746,646

2005 800,000

17

Farmer Organization and Private milk collecting centers

OrganizationNumb

er

Ratio of

Collected milk

Dairy Co-operative 117 74

Private milk collecting center 63 26

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

19

Volume and Value of Ready to drink milk consumption in Thailand

yearPasteurize and UHT

milkDrinking yogurt Total

Volume Value Volume Value Volume Value

(tons)(103 mil.Bah

t)(tons)

(103 mil.Bah

t)(tons)

(103 mil.Bah

t)

2001

545,003

17.63

218,937

9.96

763,940

27.59

2002

585,991

18.68

213,762

9.88

799,753

28.56

2004

609,399

19.81

213,091

9.93

822,490

29.74

20

Milk and Milk product imported on 2005

Type of ProductVolume Value

(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

21

Milk and Milk product exported on 2005

Type of ProductVolume Value

(Tons) (mil.Baht)1 . Sweetened Condensed

Milk (with palm oil formula) 110,503 4,797

2 . Condensed Milk 46,458 1,5893 . Sweetened Condensed

Milk 26,351 915

4 . Ice Cream 14,288 732

6 . Other 76,287 2,868

Total 273,886 10,902

22

Raw milk Cost / Price and milk production vate

year Cost PriceMilk production

vate

(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

23

Production and Consumption drinking milk

yearProductio

n Consumption Percapita

(Tons) (Tons) (Kg/head/year)

1999

557,40

0 550,150

8.90

2000

580,00

0 572,460

9.17

2001

610,00

0 602,070

9.57

2002

600,500

651,910

10.19

2003

683,600

674,700

10.46

2004

773,582

763,526

12.03

Comprehensive Dairy Technology Comprehensive Dairy Technology ModernizationModernization

Dairy Dairy Marketing Marketing

ManagementManagement

Technology Technology for Dairy for Dairy

ProcessingProcessing

Technology for Technology for Dairy Farm Dairy Farm

Management Management

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Dairy Farm Management :Dairy Farm Management : - Establishment of dairy herd improvement system to increase - Establishment of dairy herd improvement system to increase

productivities over time. productivities over time. - Reduction of farmers’ cost of production for example use of - Reduction of farmers’ cost of production for example use of

local roughage instead of highly concentrate feed, dairy local roughage instead of highly concentrate feed, dairy cattle feed controlling system, nonproductive cows culling cattle feed controlling system, nonproductive cows culling management and more appropriate cow milking for hygienic management and more appropriate cow milking for hygienic raw milk.raw milk.

- The provision of advance techniques in artificial insemination, - The provision of advance techniques in artificial insemination, animal feed, and animal sanitation .animal feed, and animal sanitation .

- The establishment of dairy cattle and movement controlling - The establishment of dairy cattle and movement controlling system for diseases prevention. system for diseases prevention.

- Good management practices of raw milk collection and - Good management practices of raw milk collection and transportation .transportation .

- Farm management technology transfer and milk quality - Farm management technology transfer and milk quality assurance.assurance.

- Training of farmers. - Training of farmers.

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Modern Technology for Dairy Modern Technology for Dairy Processing :Processing :

- Construction of milk processing Construction of milk processing factories using modern technologiesfactories using modern technologies

to manufacture various milk product,to manufacture various milk product,

for instance, butter, milk powder etc.for instance, butter, milk powder etc.

27

Marketing Management .Marketing Management .

- The establishment of marketing and - The establishment of marketing and sales promotion using well-known sales promotion using well-known brands of investor or alternatively brands of investor or alternatively with creation of new brands.with creation of new brands.

- Expansion of domestic and foreign - Expansion of domestic and foreign markets for Thailand dairy products.markets for Thailand dairy products.

28

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

29

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

30

The previous campaign “MILK FOR ALL”

31

SCHOOL MILK SCHOOL MILK PROGRAMPROGRAM

32

THANK YOUTHANK YOU

33

Total Dairy Market Total Dairy Market ปี� ปี� 254254

66

0

5

10

15

20

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