A Bottle of Milk. A Country at a Crossroads.

The Thai Dairy Crisis: A Heartbreaking Scene That Should Never Have Happened

Why were Thai farmers pouring milk down the drain? And how did it come to this?

In April this year, the image of Thai dairy farmers pouring out gallons of fresh milk hit the headlines—and the hearts—of many. It wasn’t just a protest. It was a cry for help. For many watching, the scene triggered a wave of disbelief:

How could a country known for its agricultural roots allow this to happen?

To understand this crisis, we must go back three decades.

In 1992, Thailand entered the ASEAN Free Trade Area (FTA), initiating a new era of trade liberalization. A few years later, bilateral FTA agreements with Australia and New Zealand followed in 1995. The goal was clear: boost Thai exports. As part of these agreements, Thailand gradually reduced import duties on goods from those countries. The one remaining exception? Dairy products.

But that exception is now expiring.

Starting January 1, 2025, Thailand will fully eliminate tariffs on imported dairy from Australia and New Zealand. This marks the final phase of a 20-year commitment—one that was signed with little consideration for how it might affect smallholder farmers decades down the line.

Now, as multinational companies shift to cheaper imported milk solids and substitutes, domestic demand for raw Thai milk has plummeted. Some cooperatives have been forced to stop buying from local dairy farmers altogether. And with nowhere left to send their milk, many farmers chose to pour it out—not in waste, but in protest.

Facing the Storm: One Farmer’s Perspective on the Overflowing Milk Crisis

The Khaoyai Connect team recently sat down with Pruitti Kerdchoochuen, founder of Dairy Home, to understand how Thai dairy farmers can weather this turbulent moment. His insights were sobering—but also deeply grounded in hope.

“The current milk crisis,” Pruitti began, “is not just affecting conventional raw milk producers. Even organic dairy farmers like those in our Dairy Home network are struggling. We’re all facing the same fundamental issue: the market is shrinking—or at best, stagnating.”

This contraction, he explains, is the direct result of trade agreements signed decades ago. “With the FTA fully kicking in this year, milk-derived products from Australia and New Zealand have entered our market tariff-free. These substitutes—milk powders and imported solids—are increasingly being used by major players in place of local raw milk.”

As a result, Thai dairy farmers are finding fewer buyers for their milk. “The market is no longer expanding,” Pruitti notes. “In fact, if any farm increases its milk yield today, that excess milk has nowhere to go. It becomes surplus overnight.”

His tone is calm, but the message is clear: this is not a passing hiccup. It’s a structural shift that demands long-term thinking.

From Overflow to Opportunity: Reimagining Survival Through Self-Reliance

So in the face of such overwhelming odds—how do you survive?

Pruitti Kerdchoochuen doesn’t sugarcoat the reality.

“This is a brutally tough challenge,” he admits. “Milk is highly perishable. If it’s not processed quickly, it spoils. Even if we produce UHT milk, it only lasts six months. As for milk powder? The cost of production here is so high that we simply can’t compete with imported versions.”

For now, many farmers are doing whatever they can just to keep the milk moving. “They’re trying to process it into other forms—use it in food products, find alternative markets. But the shrinking demand makes that an uphill battle.”

Yet even as he describes the weight of the problem, Pruitti’s tone shifts. There is no despair—only determination.

Self-reliance, he says, is the way forward.

And Dairy Home is already modeling what that could look like.

“One of the most practical solutions,” he shares, “is to reduce your milk output—but lower your costs even more. That means producing your own cattle feed. Stop relying on expensive, store-bought options.”

It’s a strategy rooted in simplicity—and sustainability. “Grow more grass. Grow more corn. Use that as your raw material. Sure, you’ll get less milk, but if your costs are low enough, you can still survive. Sell less, earn more.”

This model won’t be easy for everyone. “Farmers without land will have it hardest,” he acknowledges. “For them, it may not be possible to stay in the dairy game. And that’s the painful truth. Some may need to explore new paths altogether.”

But even that, he implies, is part of the evolution.

The Bitter Truth: Not Everyone Will Survive

The cold, hard truth is that some Thai dairy farmers won’t make it—and many are already being forced to confront that painful reality.

“In 2024, we’re already seeing duty-free dairy imports from Australia and New Zealand,” Pruitti explains. “By the end of this year, the U.S. might join in—with a 0% tariff—if trade negotiations move forward under pressure from figures like Donald Trump. And if a deal with the European Union is finalized next year, we’ll soon see EU dairy products flooding in as well.”

It’s a tidal wave of foreign milk—relentless, unstoppable, and subsidized by global supply chains that dwarf Thailand’s local farming networks.

“There have been relief packages before,” Pruitti notes. “But they’re just that—relief. The wounds are already here. Some farmers couldn’t survive them. They’ve had to shut down. And more will follow.”

His words are heavy—not with defeat, but with realism. Because behind every liter of unsold milk is a family, a farm, a future slipping away.

And the implication is clear:

Those who survive this storm will be the ones who can adapt—and who have the resources to do so.

They’re the ones with enough land to grow their own feed. Enough knowledge to change course. Enough time to build a new model of resilience from the ground up.

What happens to the rest?

That’s the question we must all be brave enough to ask.

A New Model for Survival: Small But Smart

Pruitti Kerdchoochuen nods, then shares the model that Dairy Home has quietly been building—one that may offer a lifeline to small-scale dairy farmers across Thailand.

“It comes down to balance,” he explains. “If you have five rai of land, you must reduce your herd to match the size of your farm. That means about 15 cows. Of those, only 10 will be in milk production at any given time.”

The key to this model? Year-round self-sufficiency.

“You need enough grass to feed your cows all year. And that means you must have water. Without a reliable water source to grow feed, the system won’t work.”

This is not the industrial dairy playbook. It’s something altogether more grounded—and, paradoxically, more sustainable.

“Yes, your revenue might go down,” he admits. “But your profit will go up. In the past, we bought a lot of external feed and tried to produce as much milk as possible. The profit per liter was small, but the volume made it worthwhile.”

“That kind of system works for large-scale industry,” he says. “But it doesn’t work anymore—not in this climate. Every farmer across the country is facing the same pressure.”

“So the only path forward now is to bring your production costs down to earth. Strip them to the bone. Let the milk yield drop if it must. But if your costs drop even faster, you’ll still come out ahead.”

It’s a quiet revolution—not one driven by technology or subsidies, but by rethinking what it means to thrive.

The Numbers Don’t Lie — But Hope Still Lives in the Soil

When asked how likely it is for Thai dairy farmers to survive, Pruitti doesn’t hesitate to give a sobering assessment.

“When we first signed the FTA, we had around 30,000 dairy farmers in Thailand,” he recalls. “Ten years later, that number dropped to 18,000. Then came the war in Ukraine, and with it, skyrocketing feed prices. Many farmers couldn’t hold on. Today, we’re down to around 15,000.”

His projection is stark:

“By 2026, I believe we’ll have fewer than 10,000 dairy farmers left in Thailand.”

But even in that difficult truth, he still finds room for hope.

“I do believe Thai farmers have heart. They don’t give up easily. If they try this model—cut costs down to the ground—some will make it. Anyone’s welcome to come visit Dairy Home. We’re not just talking theory—we’re living the solution.”

He makes the model even more tangible.

“One cow eats about 30 kilograms of grass a day. So if you have 10 cows, that’s 300 kilos of fresh grass every day. If you buy it on the market, it’ll cost you around 2 baht per kilo. But if you grow it yourself? Just 25 satang per kilo.”

That’s an 8x reduction in feed cost—a game-changer for survival.

“And not only do you save money,” he adds, “but cows that eat fresh, homegrown grass produce higher-quality milk. So even if the quantity goes down, the quality goes up. That means your milk sells for more—and you’re still standing.”

He smiles. Not because the journey is easy. But because it’s possible.

And sometimes, that’s all you need to start again.

Dairy Home’s Quiet Defiance: Growing an Organic Future, One Promise at a Time

For Pruitti and his team at Dairy Home, the commitment to organic dairy is not just a strategy—it’s a stand.

“We’re probably the smallest dairy processor in Thailand,” he says with a calm conviction. “But we’ve chosen to work with farmers who produce high-quality, organic raw milk. That’s our direction—and we’re not turning back.”

What makes Dairy Home different isn’t just the product.

It’s the promise.

“We work on what we call a ‘contract of trust’—not a legal obligation, but a moral one. When a farmer commits to going organic, we commit to buying all their milk. That’s the deal. That’s the relationship.”

Currently, the Dairy Home network includes around 30 partner farmers, supplying 8 tons of raw milk daily. They’ve built a tight-knit, values-driven community—but growth is challenging in a shrinking market.

“We’re thinking hard about how to expand—how to help consumers understand the value of organic milk,” Pruitti says. “There are more farmers ready to join us. They’ve already made the transition to organic. But we haven’t been able to bring them in yet—because the market isn’t ready.”

That’s why Dairy Home is working tirelessly to reach more people—both in Thailand and overseas. To show them that this kind of milk is better. Healthier. More humane. More sustainable.

And behind every bottle of milk, there’s not just a cow.

There’s a family. There’s a farm. There’s a promise.

“We’re struggling too,” Pruitti admits, without a hint of defensiveness. “The market has shrunk for everyone. Dairy Home isn’t immune to that. We’re carrying the weight just like every other farmer.”

But they’re not standing still.

“We’re pushing our sales efforts. We’re working hard to find new channels, new ways to process the milk we still have. Yes, we have a niche customer base—but we also have surplus milk. And we need to turn that into something that sustains our farmers.”

Then he pauses—his tone shifts from explanation to invitation.

“If you care about quality milk—if you want your purchase to matter—consider choosing Dairy Home,” he says gently. “Not because it’ll make me rich. It won’t. This isn’t that kind of company.”

“We’re a social enterprise. We don’t distribute profits. Every baht goes back—into buying more milk from farmers, into research, into innovation, into building something better. For them. For you. For the land.”

This isn’t a pitch. It’s a philosophy.

And it’s a quiet revolution—one carton at a time

From a small but determined beginning, the brand has expanded into a full range of dairy products designed to meet modern lifestyles without compromising on values.

There’s the “bedtime milk”—gentle and calming.

Milk from Jersey cows, known for their rich creaminess.

Grass-fed milk from cows raised on natural pastures.

Real chocolate milk. Strawberry milk made with actual strawberries—not artificial syrup—colored only with natural fruit hues.

Even Barista milk, crafted for coffee lovers.

And now, their latest innovation: High-Protein Milk with 30 grams of protein per bottle—already available at all Tops locations, and launching nationwide across major retailers on August 1st.

These products don’t just offer variety.

They offer a new kind of value—where nutrition, sustainability, and social impact go hand in hand.

Behind every product is a deeper intention:

to reinvest in farmers, to respect the land, and to restore the dignity of local dairy.

A Bottle of Milk. A Future Worth Fighting For.

Dairy Home’s latest innovation isn’t just a product—it’s a promise.

The new High-Protein Milk, packed with 30 grams of BCAA-rich protein, is designed for everyone from athletes to aging parents. Priced at 65 baht, it delivers full-spectrum nutrition in a single bottle. “It can be your dinner,” Pruitti says with a smile. “Just one bottle, and you’re good for the night.”

But more than muscle recovery or convenience, it represents something deeper:

the belief that food can be functional, ethical, and empowering all at once.

In a time of immense pressure for Thailand’s dairy farmers, this model—rooted in trust, innovation, and self-reliance—is lighting the way forward. It proves that even in a globalized market, small producers can stand tall. And it shows other farmers that adaptation is possible—with the right knowledge, support, and shared vision.

But farmers can’t do it alone.

As hopeful as this story may be, Pruitti offers one final, quiet appeal:

“Courage alone is not enough. Thai farmers need support—from policymakers, from consumers, from all of us.”

Because in the end, when you choose a bottle of Dairy Home milk,

you’re not just choosing better nutrition.

You’re choosing a better system.

A better way forward.

And most importantly—you’re choosing not to look away.

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