Thailand leads ASEAN dairy market with 19 billion baht in revenue
Thailand has emerged as a leader in the ASEAN dairy market, generating over 19 billion baht in revenue, according to a government spokesperson. The country’s strategic use of Free Trade Agreements (FTAs) has bolstered exports of processed milk products across ASEAN.
Anukool Pruksanusak, deputy spokesperson for the Prime Minister’s Office, reported that Thailand has maintained its top position in ASEAN for dairy exports. Last year, exports of Thai milk and dairy products to ASEAN markets increased by 11.5%, amounting to US$582.62 million, or approximately 19 billion baht.
Anukool highlighted that all Thai dairy products are now exempt from import duties in ASEAN member countries, thanks to the ASEAN Trade in Goods Agreement.
This has boosted demand for Thai dairy products such as yoghurt, UHT milk, buttermilk, non-condensed and unsweetened milk and cream, soy milk with milk, and condensed sweetened milk and cream. Thailand is currently a leading producer and exporter of these products.
The benefits of ASEAN’s FTA have made Thai dairy products competitively priced, alongside high-quality standards and efficient logistics. This has led to continuous growth in the ASEAN market, with expectations for further expansion.
Currently, Thai dairy exports are concentrated in six key ASEAN markets: Malaysia (64.3%), Vietnam (30.4%), Indonesia (27.1%), Singapore (20.1%), the Philippines (19%), and Myanmar (14.6%).
ASEAN’s FTAs with various trading partners have also opened opportunities for exporting Thai dairy products beyond the region, to markets such as China, Australia, New Zealand, Chile, and Hong Kong, where import duties have also been lifted.
Thai businesses are encouraged to fully explore FTAs and stay informed about consumer trends, which are crucial for developing competitive products on the global stage.
This approach will enable them to create high-quality, modern, and distinctive products. The government, through the Department of International Trade, Ministry of Commerce, is accelerating discussions for new FTAs with African and South American markets.
By 2025, Thailand aims to finalise FTA negotiations with South Korea and ASEAN-Canada. These agreements will enhance the accessibility of Thai dairy products in global markets, reported KhaoSod.
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