Bangkok: The Permanent Secretary of the Ministry of Agriculture has clarified that it is not possible to restrict the import of powdered milk due to obligations under the Free Trade Agreement (FTA) framework. The official emphasized the necessity of restructuring production to address the surplus in milk supply and highlighted ongoing collaboration with the Dairy Farming Promotion Organization of Thailand (DFPO) and the private sector to enhance the competitiveness of Thai dairy products internationally.
According to Thai News Agency, Mr. Winairoj Trapsongsuk, Permanent Secretary of the Ministry of Agriculture and Cooperatives and Chairman of the Dairy and Dairy Product Policy Committee (Milk Board), outlined the strategy to tackle the surplus of raw milk in the market. He stressed the urgency of restructuring the entire dairy industry's management and acknowledged that restricting imports of powdered milk is not feasible due to existing FTA obligations.
Thailand currently imports milk powder along with processed dairy products like butter, cream, and cheese. Consequently, there is a vital need to study and develop Thai dairy products to enable local farmers to maintain long-term competitiveness. The private sector in Thailand possesses the capability to develop and process these products, while the government, particularly the Dairy Farming Promotion Organization of Thailand (DPO), should facilitate market connections and system management.
The Ministry of Agriculture and Cooperatives, through the DPO, is tasked with coordinating and negotiating market access. Dairy cooperatives are urged to accelerate the enhancement of raw milk quality to meet standards, supporting processing and commercial competitiveness. Collaboration among all sectors is crucial to align with the development of Thailand's commercial dairy business.
Thailand's current raw milk production averages around 3,000 tons per day, influenced by weather conditions. A significant volume of milk is released to the market during the winter months, risking surplus conditions. Therefore, a strategic raw milk management plan is essential throughout the year to prevent excessive surpluses or shortages.
Regarding the DFPO's accumulated debt, reportedly exceeding 3 billion baht, an investigation is required to evaluate liquidity. While not considered a management failure, improvements are needed to safeguard dairy farmers from adverse impacts.
At a special meeting of the Dairy and Dairy Product Policy Committee in late December 2025, the framework for allocating quotas and import volumes of skimmed milk powder for 2026 was approved under the World Trade Organization (WTO), Thailand-Australia Free Trade Agreement (TAFTA), and Thailand-New Zealand Closer Economic Partnership Agreement (TNZCEP). The total allocation volume is set at 47,576.5 tons, divided into two rounds to align with the domestic industry's situation.
The meeting also approved guidelines for drafting Memorandums of Understanding (MOUs) for the 2025/2026 purchase of raw milk from collection centers without sales outlets, ensuring efficient product distribution, price stability, and mitigating surplus risks.
Furthermore, approval was granted to appoint a subcommittee under the Milk Board to promote and develop the marketing of cow's milk and dairy products. This subcommittee will establish policies, plans, and guidelines for developing diverse and value-added processed milk products, with representatives from the government, private sector, and farmers as members.