Thai-Danish to jointly build dairy factory

The state-run Dairy Farming Promotion Organisation (DPO), the manufacturer of Thai-Danish dairy products in Thailand, is setting up a new dairy factory in a joint investment with private operators and dairy farmers.

The development marks the launch of a new business model aimed at building sustainable growth.

The new factory, valued between 700 million and 1 billion baht, will be built under a new business model in which farmers will be stakeholders.

The format is unlike the DPO’s six dairy plants, where the state agency makes its own investments and purchases raw milk from farmers at agreed prices.

He said that the new plant, which is expected to start operations in the next 2-3 years, will not only increase operational efficiency, but help farmers in the North reduce milk transportation costs.

Dairy farmers in the upper North provinces, especially those from Lampang, will have the opportunity to become partners under the new scheme.

Having farmers become stakeholders is a way stabilise the occupation of dairy farming occupation, which he says is on the decline, due to unattractive returns.

To achieve its sales target abroad, the company has already appointed two trading companies in Myanmar to distribute Thai-Danish dairy products in the country, starting September 2016.

Apart from Myanmar, DPO is in talks with Malaysian companies to distribute Thai-Danish products there. It also has plans to expand into the south of China and Taiwan.

Background:
Thai Danish Dairy Farm (TDDF) was a technical cooperation project between the Thai and Danish Governments. The TDDF was initiated during His Majesty the King Bhumipol Adulyadej of Thailand’s state visit to Denmark in 1960. The King was interested in dairy farming and the Danish Agricultural Organization presented this project.On 16th January 1962, the farm was inaugurated by Their Majesties the late King Frederik IX of Denmark and King Bhumibol Adulyadej of Thailand. On October 19, 1971 the TDDF was transferred to the Thai government and, with His Majesty the King Bhumibol’s royal grace, was granted the status of a state enterprise under the Ministry of Agriculture and Co-Operatives in the royal decree. It was then given a new name of “ The Dairy Farming Promotion Organization of Thailand (D.P.O.)”.

Source: Bangkok Post