Under the fierce competition in Asean market, all milk producers need to improve factories to increase operational efficiency and production capacity, including product research and development to increase product diversities to response change of market conditions. Thai-Denmark milk brand or “Red Cow Milk” under the Dairy Promotion Organization of Thailand (DPO) has prepared for the most remarkable change.
DPO launched the five year master plan (2017-2021) and worked under the revised plan in line with the changing market situations in the past year.
The important strategy is to drive Thai- Denmark milk to be the national dairy brand with the sale target at 11.7 billion baht in 2021 from the current sale of 9.7 billion baht. The factories development and improvement are the key strategies to accelerate the efficiency to be successful in 2021.
Dr.Narongrit Wongsuwan,Director General of Dairy Farming Organization of Thailand (DPO) said to drive Thai- Denmark dairy products to penetrate both of domestic and international dairy markets , DPO need to improve machineries to increase production capacity to support growth of Thai-Denmark dairy market in the future and preparing to be the national milk brand in 2021.
DPO has been improving factories in four parts of Thailand. In June previously, the factory in Northeastern, Khon Kaen province has just installed the new UHT high speed packing machine, model A3 with the packing speed capacity of 24,000 packs / hour.
This new machine installation in Khon Kaen province was line with the 5-year state enterprise plan (2017-2021) to support expansion of Thai-Denmark milk brand production capacity with expected target sale volume at least 11.7 billion baht in 2021. And preparing capacity for future raw milk market from dairy farmers who are cooperative members and raw milk collecting center in the DPO promotion area.
Raw milk production increases every year, especially up 15% this year from the previous forecast at 6-10% per year. Currently, DPO bought raw milk with approximately 735 tons per day from 44 dairy cooperatives and raw milk collecting centers. “Dr. Narongrit said.
Now, DPO developed 200 ml size to serve customers who like modern packaging with lower production cost at 6%. It will be the alternative choice for consumers. The launch will start in the Northern market with natural flavoured for commercial and milk for schools.
Besides, DPO plans to install UHT high speed packing machine in the processing plant in Pranburi district, Prachuap Khiri Khan with a packing capacity of 24,000 packs / hour that is higher than the existing low speed packing machine with capacity 7,500-8,000 packs / hour. The packaging of Thai- Denmark milk is environmental friendly with FSC certified standard which made from certified plantation trees, not tree from natural forest.
To response domestic milk consumption, new product lines have been developing continuously to serve increasing of market demand especially refrigerated milk product line such as pasteurized milk, yoghurt, instant drinking yoghurt, and ice cream. Both of domestic and international milk consumption have the same trend in favouring refrigerated milk products.
DPO has developed potential cold milk processing factories in the upper Northern part, Chiangmai and Muak Lek in Saraburi to increase capacity to 30 tons / day from 10 tons / day to increase production capacity for different products and to support growth of market demand.
In 2017, DPO has a sale volume at 140 million baht. The company has increased the sales target at 150 million baht this year. The cold milk growth will be averaged at10% per year by 2021. 90% of sale volume will be from UHT milk products and 10% from cold dairy products.However, The present DPO was the attempted to maintain a sale volume 50% in Modern Trade and 50% in Traditional Trade Market
DPO intends to be the world class organization with achieving High Performance Organization (HPO) and take leader position in the market with market share growth by 1.5% per year. DPO has plan to increase distributors/agent for Traditional Trade Market or TT by 5% per year from existing 50 distributors nationwide and transform them to smart distributor/agents. The purposes are to build up strong marketing channels and stake holders, strengthen “Thai- Denmark” Brand trust among those distributors/agent and consumers nationwide, and developing more effective and modern management system.
All of above are the important strategic overall activities of DPO in organizing and find tuning organization to be ready for the fierce competition in the milk industry and to accomplish “Thai- Denmark” milk brand to be National Milk Brand within the year 2021 and the industry leader in the near future.