Thailand Pushes Dairy Organization to Clear Milk Stock
Thai authorities have ordered the Dairy Promotion Organization to aggressively clear excess milk inventory through marketing before seeking government budget assistance, with expired stock to be repurposed for animal feed and other uses.
Deputy Agriculture Minister Watchrapol Khaokhamma has directed the Thai Dairy Promotion Organization (TDPO) to accelerate marketing plans to clear excess milk inventory before requesting government budget support, emphasizing improved management and marketing efficiency to compete in the open market.
On July 20, 2025, Watchrapol addressed mounting concerns about boxed milk stockpiles at the TDPO, which have accumulated into a significant financial and liquidity burden due to slow market clearance. Over the past week, he and his team conducted an in-depth analysis of the situation to develop sustainable solutions for the excess inventory, oversupply, and accumulated losses.
Watchrapol outlined urgent policy measures, prioritizing accelerated product clearance before expiration dates and preventing wastage through aggressive marketing campaigns before additional inventory expires in October. Before considering government budget support, the TDPO must implement comprehensive measures and secure loans to maintain liquidity and ensure long-term business recovery.
For expired boxed milk, Watchrapol assigned the Department of Livestock to coordinate with researchers, relevant agencies, and Thailand's Rubber Authority to identify alternative uses, such as incorporating expired milk into animal feed as a protein source and treating rubber tree leaf fall disease.
"I don't understand why inventory was allowed to expire in such large quantities," Watchrapol stated. "Operational efficiency is the direct responsibility of state enterprises." He emphasized sympathy for the TDPO's challenges amid increasing market competition and substitutes, highlighting the need to develop competitiveness through better management, cost control, and marketing strategies. He cited the Milk Land ice cream franchise as an example of effective revenue generation and milk distribution that should not have been discontinued.
Watchrapol noted that the TDPO is a capable state enterprise, having won multiple awards for model performance from the Finance Ministry and once generated nearly ten billion baht annually. He called for analysis of why revenues have declined and losses accumulated over the past six to seven years, suggesting that expanded marketing channels and strategic sales initiatives could provide a path forward for both the organization and Thai farmers.
