Deputy Minister of Agriculture Takes Steps to Upgrade Dairy Cooperatives Amid Milk Surplus

Chiang mai: Deputy Minister of Agriculture and Cooperatives, Ms. Piyarat Tiyapairat, is advancing efforts to enhance the capabilities of dairy cooperatives to tackle the issue of milk surplus in the market sustainably. The focus is on improving dairy management through the cooperative system to ensure a stable and prosperous future for Thai dairy farmers.

According to Thai News Agency, Ms. Piyarat visited Chiang Mai Province to evaluate the operations of the Mae On Dairy Cooperative Limited and assess the raw milk management in the upper northern region. The Deputy Minister was joined by Mr. Nirun Multhida, Director-General of the Department of Cooperative Promotion; Ms. Apiwan Thanasittisak, Inspector-General of the Department; Mr. Phitsanu Pinrod, Director of the Agricultural Cooperative and Farmer Group Development Division; and Mr. Kampee Nabsang, Chiang Mai Provincial Cooperative Officer, among other ministry executives. The visit was conducted at the Mae On Dairy Cooperative Limited in the Mae On District of Chiang Mai Province.

Established on March 20, 1999, Mae On Dairy Cooperative Limited is a farmer's organization dedicated to collecting raw milk to ensure stable livelihoods and income for its members in Mae On district and nearby areas. The cooperative currently comprises 134 members, with 94 supplying milk, averaging over 24 tons of raw milk daily and an operating capital exceeding 117 million baht. The cooperative's operations span four areas: raw milk collection, product distribution, credit services, and animal feed processing, with an emphasis on improving raw milk quality and reducing production costs.

During the visit, Ms. Piyarat engaged with cooperative members and local residents, listening to their concerns and providing policy guidance. She highlighted the cooperative's critical role in managing raw milk, averaging over 24 tons per day, vital for generating income and stability for dairy farmers in Chiang Mai and the northern region. She acknowledged the challenges facing Thailand's dairy industry, such as rising production costs, increased market competition, and changing consumer behavior, which necessitate systematic management to maintain raw milk price stability.

Ms. Piyarat emphasized the Ministry's key policies under the "Innovative Agriculture for the Sustainability of Thai Farmers" approach, focusing on holistic agricultural product management, especially raw milk. The government is prioritizing the improvement of raw milk production efficiency by supporting innovation, technology, and modern knowledge in farm management, animal feed development, cost reduction, and dairy cow health management. This aims to enhance the competitiveness of the Thai dairy industry while ensuring cooperatives evolve beyond raw milk collection centers to market management and value addition.

On this occasion, Ms. Piyarat presented marketing equipment to four farmer institutions as part of projects to upgrade farmer institutions to become agricultural business entrepreneurs by 2025. Additional support was provided from the Cooperative Development Fund to eight dairy cooperatives in Chiang Mai province, totaling over 108,660,000 baht.

The visit also included exhibitions from the Ministry's agencies and booths showcasing cooperative products such as Arabica coffee, tea leaf pillows, processed dairy products, and chicken eggs.

The Department of Cooperative Promotion prioritizes the cooperative movement as a foundation for grassroots economic stability. Currently, there are 101 dairy cooperatives nationwide, producing over 3,000 tons of raw milk daily. Dairy cooperatives are essential in connecting farmers to industry standards and elevating Thai milk's quality for international recognition. Chiang Mai province, with nine dairy cooperatives, produces an average of 211 tons of milk per day, making it a high-quality raw milk production area in the North.

The Cooperative Development Fund supports these initiatives by providing funding for marketing equipment, machinery, and necessary construction to enhance efficiency in the raw milk production chain. Efforts are focused on upgrading production efficiency and encouraging cooperatives to adopt innovations in farm and raw milk collection management. These steps aim to sustainably address milk oversupply while ensuring stable and fair income for members and enhancing cooperatives' market competitiveness through upgraded quality standards and proactive marketing management.