BANGKOK: The Department of Internal Trade (DITP) has issued an "urgent" summons to commercial dairy operators for a crisis meeting on Friday (March 13).
The move follows reports of a massive raw milk surplus exceeding 200 tonnes per day, leaving dairy farmers across the country with no buyers despite existing purchase agreements (MOUs).
While government officials point to rising production levels in 2025, industry sources told Thansettakij that the crisis is a symptom of deep-seated structural issues rather than a simple matter of oversupply.
The "data vacuum" and policy traps
Industry insiders have been scathing in their assessment of the Ministry of Agriculture and Cooperatives’ management.
A primary concern is the lack of "Big Data," with sources claiming the government cannot pinpoint where the reported 211-tonne daily surplus is located or who is holding the stock.
Furthermore, the decades-old National School Milk Programme is being blamed for creating a market distortion.
Critics argue that the current system—where the government buys milk for only 260 days but pays based on a 365-day cycle—is economically dishonest.
Claims that the surplus is caused by "school holidays" are being dismissed by experts as a "distortion of economic facts."
Calls for privatisation and liberalisation
Radical proposals are now being put forward to overhaul the sector, including:
Dismantling the School Milk Monopoly: Proponents suggest decentralising procurement to governors and schools, allowing parents to "top up" payments for higher-quality brands or diverse flavours.
Empowering Cooperatives: Moving away from state dependency by allowing cooperatives to develop commercial brands that compete directly on supermarket shelves.
G2G Export Pushes: Urging the Ministry of Commerce to pursue "Government-to-Government" (G2G) deals to export Thai pasteurised milk to neighbouring markets, rather than attempting to roll back long-standing Free Trade Agreements (FTAs).
Survival of the fittest
The industry’s message to the state is clear: the era of indefinite subsidies must end.
"The Thai dairy industry has reached a moment of truth," one source stated. "The state cannot prop up everyone forever. It is time to improve productivity and lower costs so Thai farmers can survive globally without a crutch." - The Nation/ANN
