Annex 3: A summary of the field trip

A half day field visit was arranged by Department of Livestock on 28 February 2008, (7:30 to 12:00 hrs)

The participants visited three sites:

1. Chiang Mai Fresh Milk Co- the dairy plant of the school milk programme;
2. The Dairy Training Institute in Chiang Mai,
3. The Banpatung Huay Mor, dairy cooperative limited located in Ontai Sankumpang, Chiang Mai
4. Family dairy farms that are serviced by the cooperative dairy plant.

The Dairy cooperative plant was established on 5 August, 1992 and current membership consists of 113 members who own approximately 1,000 Frisian cross-bred cows. The follow indicators describe the operation of the coop:

• The average milk supply by the members to the dairy plant is approximately 6500 kg/day with a range of 5.00 MT to 7.00 MT/ day depending on the season.
• Milk is supplied twice a day in the morning and in the evening. About 70% of the milk is collected in the morning and 30% in the evening.
• The plant has 2 milk cooling tanks with a capacity of 10,000L/day. The chilled milk is supplied to the Chiangmai Fresh Milk Co. through 2 milk carriers.
• Farmers receive farm gate prices of 13.5 Baht/kg (US$.41/kg) based on 3.3% fat content.
• The plant supplies the chilled milk to the Chiangmai Fresh Milk Co. at 15.00 Baht (USD 0.50 based on exchange rate of 1USD=31-32 Baht).
• According to the Bangaldeshi participant, the corresponding milk prices in Bangladesh at farm gate is Tk. 22.00-24.00/kg (11-12 baht) and Tk. 25.00 to 26.00/kg to processors (12.50-13.00 baht). This compares to the sale price of pasteurized packet milk of Tk. 40.00 to 42.00 (20 to 21 baht) and for UHT milk is TK. 44.00 to 46.00 (22 to 23 baht).
• The cost of milk is comparatively higher in Bangladesh if compared to per capita income and cost of living in Thailand. This is mainly because of acute shortage of milk production in Bangladesh.
• The chairman of the Coop dairy Ltd informed participants that, on average, each farmer has 2 acres of landholdings .
• Payment of milk prices are made once a month as against weekly payments in CLDDP. Average production of milk per household is 20-25 kg/day.
• Entry fee to the society is 1000 Baht with each share sold at Baht 1600. The society also lends money to its members. It gave a loan of 30 million baht to its members @ 2.0% per annum. The current outstanding loan is about 2.0 m baht.
• Last year the Co-op dairy earned a good net profit- part of which was given to the members as dividends. The Co-op dairy produces fodder/green grass in its land. The family dairy farms also produce fodder in its own lands. The Co-op society buys and supplies animal feed to its members at nominal profit only.
• Participants were informed that, on average, each big farm with 20-30 cows earned profit of about 200,000 baht (US$6,000) a year. Consequently dairy is a relatively lucrative economic activity and almost 90% of the house-holds owned at least a pick-up to facilitate movement of milk and milk products, crops, feed and fodders etc. The Govt. of Thailand (DLD) provided breeding services free of charges.
• Visit to three cow farms: each with 20-30 cows which were fed raw maize plants treated with urea. Formulas were unavailable.