Bangkok: The Ministry of Agriculture and Cooperatives is set to propose to the Cabinet next week an extension of the school milk program to include students up to grade 9 (M.3). This move is part of a broader strategy to address ongoing challenges in the Thai dairy sector.
According to Thai News Agency, Mr. Yotsanun Wongsawat, Deputy Prime Minister and Minister of Higher Education, Science, Research and Innovation, outlined the government's plans to stabilize the dairy industry. The immediate focus is on managing surplus production and improving liquidity for farmers, while long-term strategies include enhancing raw milk utilization and revitalizing the Dairy Farming Promotion Organization of Thailand (DFPO).
The government aims to extend the age range for the school milk supplement program in coordination with the Ministry of Education. This extension is expected to boost raw milk purchases from farmers. Additionally, the government is exploring loan sources and funds to aid liquidity during market oversupply periods.
Regarding the stockpile of over 1.9 million cartons of milk nearing expiration at DFPO, Mr. Yotsanan reported that efforts are underway to distribute these products swiftly through various agencies. The Ministry of Social Development and Human Security has pledged support for this distribution to ensure timely utilization.
For sustainable development, the government is considering adopting South Korea's model, which transforms raw milk into high-value products and promotes dairy farms as tourist attractions. This approach aims to increase farmers' income and diversify milk consumption.
Mr. Yotsanan also highlighted the necessity of addressing structural issues within DFPO, which is burdened with debts exceeding 4.5 billion baht. A comprehensive rehabilitation plan involving expert input and inter-ministerial cooperation is being developed to enhance management, support milk processing, and create long-term stability in the dairy sector.
Deputy Minister of Agriculture and Cooperatives, Mr. Watcharaphol Khaokham, emphasized the importance of efficient marketing and inventory management at DFPO to clear products before expiration. He noted that proactive measures must precede any government funding requests and that securing loan sources is crucial for liquidity and long-term recovery.
Furthermore, the Department of Livestock Development is exploring innovative uses for expired milk, such as increasing protein in animal feed and treating leaf fall disease in rubber trees, to minimize product losses.
Mr. Watcharaphol highlighted the potential of DFPO to remain competitive with improved management efficiency, citing the successful Milk Land franchise project as a model for generating revenue. The proposal to extend the school milk program's eligibility is expected to be submitted at the upcoming Cabinet meeting.