- Photo: The Nation/ANN
BANGKOK: Thailand has secured the top position as Asean’s leading exporter of dairy products, with exports surging by 11.5% in 2024, reaching a total value of US$582 million (19.623 billion baht), Deputy Minister of Commerce, Suchart Chomklin, announced on Wednesday (Feb 5).
The growth was particularly strong in six key markets: Malaysia saw a 64.3% increase, Vietnam 30.4%, Indonesia 27.1%, Singapore 20.1%, the Philippines 19%, and Myanmar 14.6%.
Asean FTA boosts Thai exports with zero tariffs
Currently, all Thai dairy products enjoy duty-free status in Asean member countries, a benefit stemming from the Asean Trade in Goods Agreement (ATIGA). High-demand products include yogurt, drinking yogurt, UHT milk, and soy milk blended with dairy.
Opportunities for market expansion in Asean
Thailand remains a major producer and exporter, with its competitive pricing supported by Asean free trade agreements (FTAs). The combination of high product quality and efficient logistics has driven continuous growth in Asean dairy exports, with further expansion expected.
"Thai businesses should take advantage of FTAs to penetrate the Asean dairy market further.
" There are still significant opportunities, particularly with the rise of urbanisation and increasing consumption of milk-based beverages such as tea and coffee in neighbouring countries like Cambodia, Malaysia, and Laos where Thailand benefits from proximity and strong brand preference.
"Singapore, which relies on food imports, and the Philippines, where 99% of dairy demand is met through imports due to a growing middle class and population, are also promising markets," Suchart stated.
FTA supports expansion into markets beyond Asean
Beyond Asean, regional FTAs have opened doors for Thai dairy exports to major markets such as China, Australia, New Zealand, Chile, and Hong Kong, which have also eliminated import tariffs on Thai dairy products.
Thai exporters are encouraged to maximise the benefits of FTAs and stay aligned with evolving consumer trends to maintain global competitiveness.
New FTA negotiation plan
The Deputy Minister also directed the Department of Trade Negotiations to explore potential FTAs with emerging markets in Africa and South America.
Thailand aims to finalise FTA negotiations with South Korea and the Asean-Canada FTA by 2025, which would enhance market access, reduce trade barriers, and further strengthen Thailand’s position in the global dairy trade. - The Nation/ANN
