1. Thailand’s Dairy Industry Modernization

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

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

4. 4 DAIRY HERD SIZE Herd size No. of farms Small (not more than 10) 9,305 (39.7%) Small (not more than 10) 9,305 (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. 5 DAIRY CATTLE BREED HF% Dairy population (%) HF% Dairy population (%) 62.5 HF% 4.7 62.5 HF% 4.7 75 HF% 26.7 75 HF% 26.7 87.5 HF% 46.2 87.5 HF% 46.2 93.75 HF% 20.2 93.75 HF% 20.2 100 HF% 1.0 100 HF% 1.0 Other 1.2 Other 1.2

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7. 7 MILK PRODUCTION Of the total yield Of 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 centers collection centers Of the total yield Of the total yield » 95% supplied to Ready-to-drink milk market » 95% supplied to Ready-to-drink milk market » 3% for cheese production » 3% for cheese production » 2% distributed for sales in the villages » 2% distributed for sales in the villages

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

9. 9 MILK PRODUCTION COSTS

10. 10 MILK CONSUMPTION Year Total milk Consumption Changes consumption per capita (%) consumption per capita (%) (Tons) kg/person/year (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

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

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

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

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

17. 17 Farmer Organization and Private milk collecting centers OrganizationNumber Ratio of Collected milk Dairy Co-operative11774 Private milk collecting center6326

18. 18 Number of Milk processing plants Plants / FactoriesNumber 1. UHT15 2. Pasteurize60 3. Cheese8 4. Other milk product82 - Condensed milk5 - Other dairy product65

19. 19 Volume and Value of Ready to drink milk consumption in Thailand year Pasteurize and UHT milk Drinking yogurtTotal VolumeValueVolumeValueVolumeValue (tons) (10 3 mil.Baht) (tons) (10 3 mil.Baht) (tons) (10 3 mil.Baht) 2001 545, 003 17.6 3 218, 937 9.96 763,9 40 27.59 2002 585, 991 18.6 8 213, 762 9.88 799,7 53 28.56 2004 609, 399 19.8 1 213, 091 9.93 822,4 90 29.74

20. 20 Milk and Milk product imported on 2005 Type of Product VolumeValue (Tons)(mil.Baht) 1. Skim milk Powder 69,6716,380 2. Supplement 33,6354,336 3. Whole milk powder 29,0922,539 4. Whey 46,9161,501 5. Butterfat 10,9381,158 6. Other 42,7723,959 Total 233,024 19,873

21. 21 Milk and Milk product exported on 2005 Type of Product VolumeValue (Tons)(mil.Baht) 1. Sweetened Condensed Milk (with palm oil formula) 110,5034,797 2. Condensed Milk 46,4581,589 3. Sweetened Condensed Milk 26,351915 4. Ice Cream 14,288732 6. Other 76,2872,868 Total 273,88610,902

22. 22 Raw milk Cost / Price and milk production vate year CostPriceMilk production vate (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. 23 Production and Consumption drinking milk year ProductionConsumptionPercapita (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 600,50 0 651,910 10.19 2003 683,60 0 674,700 10.46 2004 773,58 2 763,526 12.03

25. 25 Dairy Farm Management : Dairy Farm Management : - Establishment of dairy herd improvement system to increase productivities over time. - 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. - 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 provision of advance techniques in artificial insemination, animal feed, and animal sanitation. - The establishment of dairy cattle and movement controlling system for diseases prevention. - The establishment of dairy cattle and movement controlling system for diseases prevention. - Good management practices of raw milk collection and transportation. - Good management practices of raw milk collection and transportation. - Farm management technology transfer and milk quality assurance. - Farm management technology transfer and milk quality assurance. - Training of farmers. - Training of farmers.

26. 26 Modern Technology for Dairy Processing : Modern Technology for Dairy Processing : - Construction of milk processing factories 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. 27 Marketing Management. 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. 28 The project welcomes leaders of dairy export countries to submit proposal for development The project welcomes leaders of dairy export countries to submit proposal for development

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

30. 30 The previous campaign “MILK FOR ALL”

31. 31 SCHOOL MILK PROGRAM

32. 32 THANK YOU

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