The maker and distributor of Thai-Denmark dairy products is budgeting B40m to boost production.
Thai-Denmark maker targets B10bn in sales
The Dairy Farming Promotion Organization of Thailand (DPO), the maker and distributor of Thai-Denmark dairy products, plans to increase production capacity for pasteurised milk and chilled dairy products and raise sales revenue to 10 billion baht this year.
Narongrit Wongsuwan, directorgeneral of the DPO, said 40 million baht has been allocated to boost production, serving domestic and international markets.
The budget will include a major renovation and installation of new machinery at the Huay Kaew plant in Chiang Mai.
DPO posted sales revenue of 9.56 billion baht in 2018.
The company on average buys 800 tonnes of raw milk a day from 44 dairy cooperatives for its plants in five regions: Chiang Mai, Sukhothai, Khon Kaen, Pran Buri (in Prachuap Khiri Khan province) and Saraburi.
The renovated plant in Chiang Mai will allow the company to double daily intake of raw milk from 15 to 30 tonnes.
The rising output level of pasteurised milk means more products are available in the market, making Thai-Denmark sales agents more competitive because they can meet higher demand for pasteurised milk and chilled products, both in Chiang Mai and countrywide.
To support the Agriculture and Cooperatives Ministry policy, DPO has launched a campaign promoting regular consumption of fresh milk with no milk powder mixed in among Thai youth.
The agency has also taken steps to develop new distribution channels for Thai-Denmark products.
Under a scheme organised in conjunction with educational institutions nationwide, there are 14 Thai-Denmark milk shops.
Five are located in the North, namely at Montford School in Chiang Mai, Chiang Mai Rajabhat University, Maejo University, Chiang Rai Rajabhat University and Rajamangala University of Technology Lanna.
DPO also franchises Thai-Denmark Milk Land, which uses Thai-Denmark fresh cow milk, yoghurt, pasteurised milk and ice cream as the main ingredients in beverages such as iced cocoa, iced lattes and fruit smoothies.
There are now 24 Milk Land shops.
DPO is looking to diversify its customer base by tapping into the catering business through hotels, food courts and restaurants.
Mr Narongrit said the Chiang Mai plant also serves as a regional distribution centre, serving all areas in the North and facilitating exports to Myanmar and Laos.