Bangkok: The Dairy Farming Promotion Organization of Thailand (DFPO) has come under investigation following its recent sale of milk products at significantly reduced prices. This decision, outlined by the organization's director, Ms. Watcharee Wannasri, in a letter to Deputy Minister of Agriculture and Cooperatives, Mr. Watcharapol Khaokham, was aimed at managing stock nearing expiration and curtailing substantial storage and destruction costs.
According to Thai News Agency, the DFPO's strategy was devised to alleviate the financial burden of storing approximately 15,000 pallets of milk products. The storage costs were identified as approximately 1.5 million baht monthly, with destruction costs projected at 6.75 million baht. By selling the products in bulk at lower prices, the DFPO reportedly saved at least 8.25 million baht and generated 5 million baht in revenue.
The DFPO's approach involved consultations with various government and private sector entities to dispose of the milk products, though limitations prevented these agencies from purchasing the entire stock. Consequently, the decision to sell the products was made at an executive meeting, deemed the most economically and strategically viable option for the organization.
The sale also aimed to mitigate environmental and hygiene issues associated with spoiled dairy products. However, concerns about the transparency and process of these sales led Mr. Teerachai Saenkaew, advisor to the Deputy Minister, to impose a temporary suspension on the sales pending an investigation.
Mr. Teerachai was tasked with reviewing the DFPO's stock, assets, and liabilities, which reportedly exceed 3 billion baht. This inspection is intended to provide a clear picture of the DFPO's financial standing and assist in developing strategies to stabilize and sustain the organization.
The investigation also ties into broader efforts to bolster the DFPO's role in supporting dairy farmers, enhancing technological advancements in dairy processing, and expanding the school milk program. Mr. Teerachai is set to lead a meeting addressing these issues, including the integration of stricter quality controls for raw milk and the expansion of the school milk initiative to lower secondary students.
This scrutiny marks a critical juncture for the DFPO as it seeks to address financial challenges while upholding its mission to support Thailand's dairy industry.