Bangkok: The Dairy Farming Promotion Organization of Thailand (DFPO) is preparing to auction off over 94 million expired cartons of ready-to-drink milk, which translates to approximately 2.4 million bulk cartons, for use in fertilizer and animal feed production. This measure comes in response to the significant stockpiling of milk resulting from a surplus of raw milk in the market.
According to Thai News Agency, Mr. Prasert Kongyai, Head of the Central Region Office of the DPO, has revealed that approximately 94 million cartons of expired milk are awaiting auction. The stockpile is primarily stored across warehouses in Saraburi and Khon Kaen provinces, with Saraburi housing about 60% of the supply. The DPO's rented warehouse in Muak Lek district, Saraburi, is part of a network of eight facilities costing approximately 1.5 million baht monthly. The surplus has been accumulating since November 2025.
Mr. Prasert attributed the accumulation to increased competition from the liberalization of the milk and dairy product trade under free trade agreements (FTAs). The Milk Board's late 2025 resolution to purchase surplus raw milk from farmers has exacerbated the situation, with the DFPO managing an average of 73 tons of surplus milk per day, surpassing its handling capacity. Consequently, unsold ready-to-drink milk has been piling up and reaching its expiration date.
The auction process involves appointing a committee to establish a median price, which will be submitted for approval by the DPO Director. The auction is anticipated to be announced on the DPO website, with interested parties able to submit proposals within August.
Mr. Prasert noted the DFPO's additional challenge of managing approximately 200,000 cartons of milk nearing expiration each month. These are being sold through promotions, government sponsorships, and social initiatives. The organization has also appealed to the Ministry of Agriculture and Cooperatives to delay surplus milk purchases to prevent further stockpile growth.
Sources within the DFPO indicate initial plans to set a minimum bid price of 5 million baht for the auction. However, interest from businesses in utilizing expired milk for fertilizer and animal feed may prompt an adjustment of the bid price to between 5-10 million baht. The DFPO has coordinated with the Department of Treasury, affirming the process complies with regulations and does not require DFPO board approval, although it will be reported for their information.
Mr. Sukit Singklang, a dairy farmer in Saraburi Province, highlighted the persistent high production costs, particularly for animal feed, amidst the raw milk oversupply. Many farmers are converting surplus milk into animal feed, while payment delays from the DFPO have led cooperatives to borrow funds to pay members. Mr. Sukit suggests expanding the school milk program, promoting dairy exports, controlling production costs, and expediting outstanding payments to stabilize the industry.
The ongoing oversupply and liquidity issues have prompted the Dairy Cooperative Federation of Thailand Limited to plan a gathering at the Government House on July 14th. They aim to present four demands to the Prime Minister, urging immediate action to resolve the dairy sector's challenges.