THAILAND DAIRY INDUSTRY

THAILANDDAIRY INDUSTRYDepartment of Livestock DevelopmentThailand

Dairy Cow and Dairy FarmYearDairy Cattle(heads)Grow Rate(%)Dairy Farm(households)20052006478,836410,98617.26-14.1723,37420,9072007489,59319.1321,2302008469,937-4.0119,2142009201020112012483,899529,572554,468556,7582.979.444.702.2217,83719,86320,64520,624

Dairy Cow Density of Thailand on 2010Highly Density Area4 Province1. Saraburi17.85 %2. Nakornratchasima 17.20%3. Lopburi11.17 %4. Ratchaburi10.03 %

Dairy Milk Production in ThailandYear20052006200720082009201020112012Dairy MilkProduction(tons)781,043759,894750,779775,864882,933933,310984,9601,064,270Grow Rate(%)4.61-2.71-1.203.3413.805.715.538.05Milking Cows(heads)296,472310,085291,965293,185293,287301,071310,522295,634Source : DLD,OAE

Dairy Milk PriceYearFarm Gate Price(Baht/kg.)Factory Gate Price(Baht/kg.)2005 11.48 12.502006 11.50 12.502007 12.91 12.50/13.75/14.502008 14.56 14.50/18.002009 15.60 16.502010 15.43 16.50/17.002011 15.73 18.002012 16.88 18.00

Thai Dairy Product Trade (HS=0402-0406)YearImportedvaluesExportedvaluesValues : Million $ US.TradeBalance2005 339.089 124.287 -214.8022006 343.092 108.731 -234.3612007 464.071 131.062 -333.0082008 536.463 134.910 -401.5532009 270.943 127.492 -143.4512010 457.645 139.720 -317.9252011 558.151 161.454 -396.6972012 616.515 139.330 -477.185

On 2010 , Thailand imported dairy product from

Main Imported Dairy ProductQuantity : tonDairy Product 2007 2008 2009 2010Skimmed Milk Powder 56,940 60,666 50,117 59,357Whole Milk Powder 24,450 17,442 16,577 26,529Whey 24,802 19,311 15,821 26,534

Main Exported dairy ProductQuantity : tonDairy Product 2008 2009 20101. Condensed Milk 5,045 4,008 3,6722. Sweetened Condensed Milk 24,128 22,319 16,9983. Milk and cream notconcentrated(fat content 1- 6 % )23,941 18,978 14,663

On 2010, Thailand exported dairy products to…

ORGANIZATION CHARTMinistry ofAgriculture and CooperativeUniversityDepartment ofLivestock Development(DLD)CompanyCooperativePromotionDepartment(CPD)- Disease Control- Nutrition- Standard- Breeding- Certification- Biology Biotechnology- Quality ControlBureau ofLivestock Extension(Dairy Sector)9 Regional Livestock OfficeProvincial Livestock OfficeDistrict Livestock OfficeDairyCooperativeOrganizationFarmer

Process of Raw Milk Quality Control by Department of Livestock Development 2012GAP (DLD) GMP (DLD) GMP (FDA)Dairy Farm20,645 Dairy Farmers560,659 Dairy Cows243,089 Milking CowsปกติMilk Collecting Center103 Cooperative72 Private9 Education4 0 CMilk Processing PlantUHT Plant 16Pasteurized Plant 682,750 Ton/d milk prod.-Bacteria- SCC- Fat- Protein- Total SolidLabRegional Livestock OfficeMilk GradingA B C DPenalty- Adding water 20 times- Finding Antibiotic 60 timesPrice adjustment to milk quality( Raw milk price 18.00 baht/kg atfactory gate )Penalty: Freezing point > -0.520 0 C: White blood cells >500,000 cell / cc.: Bacteria > 500,000 col / cc.: TS < 12 %

1. Genetic ImprovementIssues and Problem‣ Purebred HF resulting in problem ofLow conception rate and shortLactation Period .‣ Milk production < 4,000 kg/hd/lacCurrent approaches for solutions‣ Used upgrading natives cows with purebredHF ( use AI )‣ DLD has produced crossbreed Tropical HFcontain 82.5 – 93.75 % HF

2. Research and extension of livestockIssues and Problem‣ Some technology is not suitable forthem or requires high capital investmentincurring in high cost of production.Current approaches for solutions‣ Has introduced demonstrated farmmodel for technology transfer toencourage farmers ’ participation fornew technology embedding.

3. Farmers’ group related to livestockIssues and Problem‣ Small scale holder, form for away to market .‣ They have insufficient capital to improvetheir farm management and conduct theirown cooperativesCurrent approaches for solutions‣ Government provides funding to help managedairy cooperatives and support its members.(Soft loan : low interest rate and long termpayment)

4. Cattle managementIssues and Problem‣ Not enough area to grow pasture or roughages.‣ Poor reproductive performance .Current approaches for solutions‣ Contract farming between pasture groups andlivestock groups.‣ Supplement legume added such as leucaena

5. Utilization of local resources as feedIssues and Problem‣ In dry season, it lacks of pasture. Mostof farmers use rice straw to feed cattleCurrent approaches for solutions‣ Contract farming for raw material feed fromnearby factories such as : pineapple shell,corn stem, cassava shell and palm cake‣ Silage to preserve feedSoybean meal + Waste beer + Cassava

6. Health and hygiene managementIssues and Problem‣ 20 – 25 % dairy cows are culled due to poorreproductive performance or other healthproblemsCurrent approaches for solutions‣ Record herd analysis is important toprofitable dairying or other milk productionrecord system is recommended.

7. Utilization of animal by-productsIssues and Problem‣ Smell and waste water from farms‣ In the past, livestock communities werefar away from the cities have expanded.Current approaches for solutions‣ Utilize manure from farms to producebiogas and fertilizer to decrease smelland waste water

8. Quality control of animal productsIssues and Problem‣ Every milk delivery is inspected withregard to certain quality parameterCurrent approaches for solutions‣ Farmer has to check the cow for abnormalmilk before starting to milk the cow‣ Cooperatives establish the standard forcontrolling raw milk quality by cutting downthe price of low quality products orrejecting products and at the same timeincreasing price for higher quality products

9. Processing of animal productIssues and Problem‣ Milk production in 2011 was 2750 tons per day97 % producing of ready to drink milk2.8 % was used for cheese production0.2 % was distributed for sales in villagesCurrent approaches for solutions‣ More research and development onnew kinds of dairy products

10. Marketing of animal productIssues and Problem‣ Most of farmers sell their primary product tolocal milk collecting center‣ Farmers get a little profit and cannot completewith other brands in the marketCurrent approaches for solutions‣ Promoting dairy products totally produced fromfresh milk as high quality product for health‣ Increase domestic milk consumption‣ Establish local brands ( dairy cooperative brand )and sell processed milk directly to localconsumers .‣ Balancing of demand and supply of raw milk toavoid over production problems

VisionStrategyMission1. Research anddevelopment on dairy1. Research farminganddevelopment ondairy farmingStrength of farmers for good future of dairy industry2. Improve dairybreeding forenhancingproductionefficiency2. Develop and enhancefarmers performance inmilk producing3. Reducecost of dairyproduction3. Promote milk consumptionand develop milk product forcompetition4. Promote milkconsumptionand developmilk product forcompetition5. Increase efficiencyof dairy farmerorganization4. Increase efficiency ofdairy farmer organization6. Improvedatabase systemGoal1. Increase milkyield from 12 kgto 15kg/cow/day2.teachnologytransfer to20,000farmer3.Milk qualitymeet goodstandardcriteria at least80 %4.Reduce costfor increasingprofit at least10 %5.Increase milkconsumptionfrom 14 liters to20liters/person/year6.Establish Dairy Board Officein 2016KPIKPI I% Good AgriculturalPractice (GAP) farmersKPI II% processed milk thatincreasing each yearKPI III% milkconsumption incountry thatincreasing eachyearKPI IV% increasingfarm profitKPI V% export product thatincreasing each yearKPI VI6.Establish Dairy BoardOffice in 2016