Thailand Dominates ASEAN Dairy Exports with 11.5% Growth in 2024

Thailand has solidified its position as the top dairy exporter in ASEAN, earning a staggering 11.5% increase in exports to reach $582.62 million in 2024. This accomplishment underscores the country’s robust dairy industry and its strategic partnerships within the region.

Key Drivers of Thailand’s Dairy Success

The surge in dairy exports can be attributed to several key factors. Firstly, Thailand’s manufacturing efficiency has enabled it to produce high-quality dairy products at competitive prices. This pricing advantage is further bolstered by the lack of import tariffs under the ASEAN Trade in Goods Agreement (ATIGA), making Thai dairy products more affordable for consumers in key markets like Malaysia, Vietnam, Indonesia, Singapore, the Philippines, and Myanmar.

Deputy Minister of Commerce Suchart Chomklin highlighted the diverse range of dairy products that are driving this growth, including yogurt, ultra-high-temperature (UHT) milk, buttermilk, cream, and a blend of soy milk with dairy. These products cater to a wide array of consumer preferences across the region, contributing to the overall export success.

Free Trade Agreements Boost Global Market Access

Thailand’s strategic use of Free Trade Agreements (FTAs) has played a crucial role in expanding its export channels beyond Southeast Asia. FTAs with major partners, including mainland China, Australia, New Zealand, Chile, and Hong Kong, have eliminated tariffs on Thai dairy products, opening up substantial new markets. Suchart emphasized how these agreements are not only enhancing Thailand’s market access but also reducing trade barriers.

To further solidify its position, Thailand is actively pursuing FTAs with South Korea and ASEAN-Canada, aimed at establishing new export pathways for its dairy industry. Additionally, the Thai government is exploring potential agreements with countries in Africa and South America to reduce trade barriers and diversify export markets. This proactive approach is expected to bring significant benefits to Thai dairy exporters.

Adapting to Global Consumer Trends

As the global market becomes increasingly competitive, it is crucial for Thai exporters to stay abreast of changing consumer trends. Whether it’s the growing demand for organic and plant-based dairy alternatives or the preference for higher-quality, premium products, adapting to these shifts can help maintain Thailand’s global competitiveness.

The Trade Negotiation Department of Thailand is making significant efforts to explore potential FTAs with emerging markets in Africa and South America. With an aim to complete negotiations with South Korea and ASEAN-Canada by 2025, Thailand is well on its way to enhancing market access, reducing trade barriers, and further strengthening its position in the global dairy trade.

Conclusion

Thailand’s dominance in ASEAN dairy exports is a testament to its manufacturing prowess, competitive pricing, and strategic trade agreements. By continuing to diversify its export markets and adapt to evolving consumer preferences, Thailand is poised to maintain its leadership in this vital industry.

We invite you to share your thoughts on this significant development in the dairy industry. Whether you are an industry expert, a business owner, or simply interested in global market trends, your insights are valuable. Join the conversation and stay informed about the latest news and developments by subscribing to our newsletter and following us on social media.