Thailand's Dairy Industry Overview
Thailand, strategically positioned in Southeast Asia, is undergoing significant growth in its dairy market. As the leading dairy exporter in the ASEAN region, the dairy industry serves as a crucial component of Thailand's economy.
Milk Production and Dairy Cattle
Thailand's dairy sector is supported by approximately 550,000 dairy cattle, resulting in an annual milk production of around 1.4 million tonnes. The sector is further diversified by niche segments such as dairy goats.
Milk Processing and Dairy Production
The country processes about 1.2 million tonnes of milk each year. Although the cheese industry is still developing, it achieves a production volume of approximately 5,000 tonnes annually. Thailand also produces around 15,000 tonnes of milk powder and whey, yet continues to import these products to meet domestic demand.
Key Enterprises and Farms
Prominent enterprises in Thailand's dairy industry include Thai Dairy Co., Ltd., Dutch Mill Co., Ltd., FrieslandCampina Thailand, and Maeil Dairies Thailand. Major contributors to milk production are Muaklek Dairy Farm and Charoen Pokphand (CP) Group farms.
Exports and Imports
Thailand exports about 20,000 tonnes of dairy products annually, primarily consisting of milk powder and UHT milk. Conversely, the country imports approximately 25,000 tonnes of dairy products each year, indicating a reliance on imported milk powder and whey to satisfy domestic consumption.
Significant Market Events
Key developments include an 80% increase in U.S. dry whey exports, reflecting a trend towards premium dairy materials for industrial and consumer applications. Fonterra is enhancing its supply chain operations to strengthen its presence in the market. Thailand remains ASEAN's chief dairy exporter, with an 11.5% growth in exports projected for 2024, generating a revenue of $582 million.
Nestlé's expansion of its Nescafé ready-to-drink cold coffee lineup exemplifies the growing diversification in Thailand’s dairy product offerings. International collaborations with partners from the UK, Germany, Portugal, Ecuador, and African nations further support the Thai dairy sector.
Brenntag's distribution of Arla Foods Ingredients' protein portfolio in Thailand supports various sectors, including health foods, infant nutrition, sports nutrition, and solutions for dairy and bakery functionalities.
Trade Disputes and International Engagement
Thailand is currently engaged in a trade dispute with New Zealand concerning dairy sector obligations under a free trade agreement. Initially, Thailand's tariffs on dairy were to be reduced to zero, but the country has expressed a desire to renegotiate these terms.
Fonterra aims to capture the adult nutrition market in Thailand by expanding its Anlene line to include collagen-infused yogurt, lactose-free milk, and revamped UHT packaging, targeting the aging and health-conscious population.
Favorable Crop Conditions
The FAO Sugar Price Index reflected favorable crop conditions in Thailand, with sugar prices decreasing by 5.2 percent to 103.7 points, the lowest since April 2021. This indicates improved supply conditions in Thailand, a leading sugar-producing nation.
Supply Disruptions
Farm Fresh is responding to supply disruptions caused by border tensions with Thailand by expanding its operations in Southeast Asia. Dairyworks' growth was driven by expansion into new markets, including Thailand, contributing to its revenue increase.
Promotional efforts in Thailand are fostering growth. The 'Discover UK' campaign, supported by AHDB representative Karen Liao, featured seven British dairy brands across 22 Food Hall stores and two Tops Fine Food outlets.
Thailand has introduced stricter regulations on animal feed imports. New environmental regulations mandate that all maize imports for animal feed be derived from burn-free agricultural practices. This regulation, announced by the Department of Foreign Trade (DFT), took effect in January as part of Thailand's commitment to addressing transboundary air pollution and adhering to international sustainability standards.
Modified: 2026/01/19