Bangkok: The Thai dairy sector is navigating a challenging period of raw milk surplus, with an excess of 181-211 tons per day beyond what was agreed in the Memorandum of Understanding (MOU). This situation is affecting farmers and cooperatives that primarily produce raw milk for suppliers, leading to an oversupply and subsequent price drops.
According to Thai News Agency, several dairy cooperatives have started processing raw milk into various products under their own brands, creating a full production cycle. These cooperatives have been less impacted by the raw milk surplus. Mr. Nirun Multhida, Director-General of the Department of Cooperative Promotion, highlighted the importance of branding for these cooperatives, stating that a unique brand conveys quality and increases consumer confidence. By ensuring that cooperative brands guarantee products made from 100% fresh cow's milk, consumers can trace the milk's origin, thereby enhancing trust and loyalty.
Mr. Nirun also mentioned that while cooperatives might not have the promotional budgets of private companies, they can gradually build strong brands through quality and word-of-mouth. He underlined the Department's commitment to supporting cooperatives with low-interest loans and marketing equipment to advance dairy product development, provided that the cooperatives are prepared to undertake such initiatives.
The Department of Cooperative Promotion has spotlighted five popular brands from Thai dairy cooperatives. "Muak Lek Dairy Milk," produced by Muak Lek Dairy Cooperative Limited in Saraburi Province, offers a variety of products including UHT milk and dairy-based desserts. In Chiang Mai Province, "CM Milk" from the Chiang Mai Dairy Cooperative Limited is known for its UHT milk, yogurt, and soft-serve ice cream. Khon Kaen Dairy Cooperative Limited's "Canmilk" brand provides a range of items like pasteurized milk, ice cream, and mozzarella cheese, all made from 100% pure cow's milk.
In Maha Sarakham Province, "M Milk" from the Kok Ko Dairy Cooperative Limited is recognized for its diverse offerings, including strawberry milk and fresh milk ice cream. Lastly, "Phatthalung Milk" from Phatthalung Dairy Cooperative Limited in Phatthalung Province focuses on pasteurized and UHT milk, primarily for school programs. These cooperatives exemplify how branding and product diversification can mitigate the challenges posed by raw milk oversupply.