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Published on February 13, 2008

Some milk manufacturers are also helping farmers accelerate their output.

The firm suggested farmers under dairy cooperatives feed more protein to their cows.

The price of raw milk has grown steadily around the globe since last year, due to shortages brought on by global warming.

In Thailand, raw-milk prices have doubled from last year to Bt5,000 per tonne.

The shortage has also pushed powdered-milk prices higher, because more manufacturers have switched to using powdered milk in production.

The powdered-milk price has gradually increased from Bt12.50 per kilogram to about Bt16.

With higher output expected to ease supply woes, the cost borne by finished-milk manufacturers will be reduced, and they will not need to petition state organisations to allow retail prices to rise.

Globally, the price of raw milk is declining and thus also lowering the price of powdered milk, said marketing director Kaweemat Tangkiriphiman. But such trends will not bring down milk prices in Thailand.

However, the raw-milk price should not climb further, thus curbing pressures on the retail front.

Last year, rising costs prompted the company to petition the Commerce Ministry three times to raise the price. It also recently sent another request. Kaweemat did not reveal the exact amount requested this time.

In its business plan, Friesland plans to launch new products in its UHT group this year. It will allocate Bt100 million for its "Brand Engagement" campaign. The company's major product is UHT, which contributes 80 per cent of total sales. The rest comes from pasteurised milk.

Foremost is the market leader, with a 33-per-cent market share in Thailand's Bt6-billion UHT market. The overall milk market today is worth about Bt46 billion, representing 9-per-cent growth from a year ago, while the UHT market has grown 11 per cent.

The pasteurised-milk segment is worth Bt2.7 billion, up 17 per cent from a year ago.

Nitida Asawanipont

The Nation