Bangkok: Watcharaphol Khaokham, the Deputy Minister of Agriculture and Cooperatives, has voiced strong criticism towards the Dairy Farming Promotion Organization of Thailand (DPO) for its handling of milk stock, which has led to a severe overstock crisis. He urged the organization to prioritize marketing strategies to effectively compete in the free market, rather than depending on governmental financial aid.
According to Thai News Agency, Mr. Watcharaphol clarified the recent reports calling for the government to address the surplus of boxed milk. This excess inventory has burdened the DPO with increased costs and decreased financial liquidity due to its inability to move the product into the market. Over the past week, Mr. Watcharaphol and his team have been actively analyzing the situation to devise solutions for the overstock problem, aiming for sustainable management and reduction of accumulated financial losses.
Mr. Watcharaphol has instructed immediate actions to prevent further issues, which include expediting the sale of products before expiration and implementing efficient marketing campaigns. He emphasized the need for the DPO to develop comprehensive measures to maintain liquidity, such as securing loans for sustainable recovery, before seeking government funding.
To deal with expired milk cartons, the Deputy Minister has directed the Department of Livestock Development to collaborate with researchers and relevant agencies to find uses for the expired milk, such as enhancing protein production in animal feed and addressing leaf fall disease in rubber trees.
Expressing his concerns, Mr. Watcharaphol questioned the management practices that allowed such a significant stockpile to become unusable. He highlighted the importance of efficient management within state enterprises as a direct responsibility.
Acknowledging the intense market competition, Mr. Watcharaphol urged the DPO to improve its management efficiency, focusing on cost control and marketing strategies. He referenced the success of "Milk Land," an ice cream franchise that once contributed to revenue generation, questioning its cessation.
Despite the challenges, Mr. Watcharaphol expressed confidence in the potential of the Dairy Farming Promotion Organization of Thailand (DPO). Recognized as a Model State Enterprise by the Ministry of Finance for several consecutive years, the DPO once achieved revenues nearing ten billion baht annually. He emphasized the need to analyze the decline in revenue over the past years and the reasons behind the financial losses. By strategically expanding marketing and sales channels, Mr. Watcharaphol believes both the DPO and Thai farmers could achieve renewed success.