Deputy Farm Minister Urges Dairy Co-op to Clear Expired Milk Stock

Deputy Agriculture Minister Watchrapol Khaokhram has explained the government's response to calls for accelerating clearance of boxed milk stock accumulated by the Thai Dairy Promotion Organization (TDPO), which has become a financial and liquidity burden due to poor market distribution. Over the past week, he and his team have closely monitored and analyzed the TDPO's situation to develop measures addressing excess inventory, milk oversupply, and accumulated losses on a sustainable basis.

Khaokhram has ordered the TDPO to urgently clear stock before expiration "with full operational efficiency" through intensive marketing campaigns, acting promptly before additional products expire in October. Before the TDPO seeks state budget support, comprehensive measures and alternative financing must be arranged to maintain liquidity and sustain business recovery.

For expired boxed milk, Khaokhram has instructed the Department of Livestock to consult with researchers, relevant agencies, and the Thai Rubber Organization to explore using expired milk for animal feed protein supplementation and treating rubber tree leaf disease.

"Personally, I don't understand how so much stock was allowed to expire," Khaokhram said. "Efficient management is the direct responsibility of state enterprises." He acknowledged the TDPO faces increased competition and market saturation but urged the organization to improve management efficiency, particularly in cost control and marketing. He cited Milk Land, an ice cream franchise that effectively moved fresh milk and generated revenue, questioning why such ventures were abandoned.

The TDPO was once a highly capable state enterprise that won model enterprise awards for several consecutive years and generated nearly a billion baht annually. The ministry must analyze why revenue has declined and losses accumulated over the past six to seven years. Expanding marketing channels and implementing strategic sales approaches may be the path to recovery for both the TDPO and Thai dairy farmers.

Deputy Permanent Secretary Aphai Suttisangkh revealed that following a recent children's and youth milk nutrition committee meeting on July 20, discussions focused on establishing guidelines for school milk procurement covering 260 days annually so students receive continuous nutritional supplements throughout the school year. The committee also addressed schools seeking to join the program but unable to meet existing criteria, seeking fair management solutions for all parties.

The committee also approved in principle expanding the school milk supplementation program to junior secondary students in opportunity schools, to begin in the first semester of the 2027 school year, pending central budget allocation and detailed guidelines from the committee.