Overview of Thailand's Dairy Industry
Thailand, strategically positioned in Southeast Asia, is experiencing a significant growth in its dairy market. As the leading dairy exporter in the ASEAN region, Thailand's dairy industry plays a crucial role in the country's economy.
Milk Production and Dairy Cattle
The Thai dairy sector is supported by approximately 550,000 dairy cattle, which contribute to an annual milk production of around 1.4 million tonnes. This production is further complemented by niche segments such as dairy goats.
Milk Processing and Dairy Production
Thailand processes about 1.2 million tonnes of milk each year. The cheese industry, although still developing, has a production volume of approximately 5,000 tonnes per year. The country also produces around 15,000 tonnes of milk powder and whey, but 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 comprising milk powder and UHT milk. However, the country imports approximately 25,000 tonnes of dairy products each year, highlighting a dependency 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 maintains its leading position as ASEAN’s chief dairy exporter, with an 11.5% growth in exports reported for 2024, generating a revenue of $582 million.
Nestlé's expansion of its Nescafé ready-to-drink cold coffee lineup is indicative of the growing diversification in Thailand’s dairy product offerings. International collaborations with partners from the UK, Germany, Portugal, Ecuador, and African nations further bolster the Thai dairy sector.
Brenntag's distribution of Arla Foods Ingredients' protein portfolio in Thailand supports sectors such as health foods, infant nutrition, sports nutrition, and solutions for dairy and bakery functionalities.
Trade Disputes
Thailand is currently involved in a trade dispute with New Zealand regarding dairy sector obligations under a free trade agreement. Originally, Thailand's tariffs on dairy were due to fall to zero, but the country has expressed a desire to renegotiate the original terms.
Modified: 2025/05/18