Thailand - UHT Flavored Milk

Essay by JanissaryUniversity, Bachelor'sA, March 2005

download word file, 13 pages 5.0

The amount of milk consumed in Thailand, has trebled since 1987. (Anonymous, 1993, p73) The Thai government has increasingly encouraged young Thai's to drink milk and other dairy products thus Thai's have increased their consumption of coloured and sweetened milk. Additionally they have started educational programs that emphasize the goodness of milk. (Tasker, 1997, p46) Our group decided to select a joint venture, providing flavored milk, as there presently is limited flavored milk in Thailand, thus indicating to us that this would be a good opportunity for this product. With the right marketing strategy, it's highly likely that we could dominate the flavored milk market in Thailand.

Australian dairy product exporters have significant opportunities within Thailand, which is the biggest importer of food and beverages in South-East Asia with a total market value of dairy products reaching A$2 billion in 2000. This is expected to increase by approximately five per cent in 2001.


Although milk production in Thailand commenced in 1961, the real expansion of this industry started in 1983. Thai milk production is anticipated to grow steadily over the next few years, but is not expected to match the rate of growth in overall demand. As a result, there is increasing opportunities for dairy products. Skim milk powder is the major dairy export from Australia to Thailand. There are also niche markets for products such as:

1. Premium ice cream

2. Cheese

3. Basic dairy ingredients such as skim milk powder, whole milk powder

and whey (

The strong growth in the UHT and liquid milk sectors presents significant potential for Australian investment in terms of joint ventures in existing manufacturing or farming facilities. (

Thailand is a net importer of dairy products. Local milk production is not sufficient to meet consumer needs, falling short of demand by...