Dairy Farming Regulations?

[subseasteve]

I am very interested to start dairy farming in Thailand I see the growth rates are unreal and water tables are high. I dont know anything about the coverning rules of a venture like this, are there quotas, do I have to become a member of a co-op or can I create my own market? Can any one help me with basic advise or any sources of advise?

[Maizefarmer]

Where do you want to start on this one ...............?

Rules? - pretty relaxed as far as keeping cows and selling the muilk to the co-op is concerned. BF testing seldom if ever done (Butter fat) - same for protein and other basics checked in the West at individual farmer level, but don't get caught off-loading mastitis milk into the public supply. The co-op will cease buying from you.

As for bottling and retailing your own milk - thats a different story: you'll be sudjected to a whole raft of health & safety legislation not even I would bother with, and you'll be up against the established names (e.g. Foremost and Thai Danish... amongst others).

You will need to establish a market that can beat them on retail pricing and that will mean volume, which means logistics, contracts with retailers (7/11, Central, Tesco Lotus ...) .... the idea of being able to establish a local area name and being able to retail in volumes that the local area's can support like home deliveries in the Uk each morning I doubt would be possible in Thailand - the per capita milk consumption per individual is not high enough in Thailand (but it conatinues to rise every year).

And I could go on and on ............ in short your best bet would be wholesaling to a local co-op.

Its a tuff business and if you don;t have any experiance to date, you have very steep learning curve ahead of you. Expect to run at a loss for the first 2 - 5years, expect lots of mistakes, frustrations and uphills from having to deal with the ever present problem of mastitis (biggest headache for Thai dairy farmers, to having to find staff who are relaible and consistant, to battling with having to source decent quality forage in the dry season, to vets fees, not being able to be away form the cows for even 1 day for the first few years, you'll have to micro-manage every single Satang during that time ...... and it goes on and on and on.

That is the reality of it - nothing romantic at all - but get through the first few years and you'll wonder how you did it - then you won't want to give up.

Suggest you start off visiting as many small independant Thai dairy farmers as you can - take notes - note indiviudal differances in animal husbandry -note how many cows they have - how much they produce, and compare it all with the differances in feed practise (you'll see big differances) and try to get some idea of costs.

Feed costs are ultimately what will make or break you. Having your own land to grow feed on is really the only way to go long term.

Wish you all the best

[subseasteve]

Where do you want to start on this one ...............?

Rules? - pretty relaxed as far as keeping cows and selling the muilk to the co-op is concerned. BF testing seldom if ever done (Butter fat) - same for protein and other basics checked in the West at individual farmer level, but don't get caught off-loading mastitis milk into the public supply. The co-op will cease buying from you.

As for bottling and retailing your own milk - thats a different story: you'll be sudjected to a whole raft of health & safety legislation not even I would bother with, and you'll be up against the established names (e.g. Foremost and Thai Danish... amongst others).

You will need to establish a market that can beat them on retail pricing and that will mean volume, which means logistics, contracts with retailers (7/11, Central, Tesco Lotus ...) .... the idea of being able to establish a local area name and being able to retail in volumes that the local area's can support like home deliveries in the Uk each morning I doubt would be possible in Thailand - the per capita milk consumption per individual is not high enough in Thailand (but it conatinues to rise every year).

And I could go on and on ............ in short your best bet would be wholesaling to a local co-op.

Its a tuff business and if you don;t have any experiance to date, you have very steep learning curve ahead of you. Expect to run at a loss for the first 2 - 5years, expect lots of mistakes, frustrations and uphills from having to deal with the ever present problem of mastitis (biggest headache for Thai dairy farmers, to having to find staff who are relaible and consistant, to battling with having to source decent quality forage in the dry season, to vets fees, not being able to be away form the cows for even 1 day for the first few years, you'll have to micro-manage every single Satang during that time ...... and it goes on and on and on.

That is the reality of it - nothing romantic at all - but get through the first few years and you'll wonder how you did it - then you won't want to give up.

Suggest you start off visiting as many small independant Thai dairy farmers as you can - take notes - note indiviudal differances in animal husbandry -note how many cows they have - how much they produce, and compare it all with the differances in feed practise (you'll see big differances) and try to get some idea of costs.

Feed costs are ultimately what will make or break you. Having your own land to grow feed on is really the only way to go long term.

Wish you all the best

Thanks you a lot for the input. I have 10 years experience in dairy farming in NewZealand I had my own farm of 250 crossbreed cows of which I ran by my self, so as you could imagine I was fairly busy. So yes I am familier with the bugger of mastitis etc. But you tend to learn all the tricks of keeping your somatic cell counts low, I hardly ever had to get the vet, and I did all my artificial insemination my self, as well as the niegbours cows too.. I won south Island dairy farmer of the year producing 420kg milk solids per cow in my last year, half i which my herd were heifers, so I could probably fairly say I would be experienced enough to have a crack at it here in Thailand.

But when it comes to the politics of it all, I am useless, I was thinking rather than to try compete with local suppliers.....who's milk is all reconstituted even though they say it is fresh. I would try to supply to restuarants and hotels etc. And as far as price goes, I think milk is basically a bit like gold it has the same value internationaly, the only advantage for marketing that I would have is taste, (Ability to keep somatic cells to a minimum) and of course actually being fresh whole mik. Maybe any surplus could go to feeding pigs?

I could possibly even sell small amounts at the local markets and to those thai milk shake stalls and the likes.

Any other ideas or comments would be most appreciated.

50 cows would be a start to try it out I think.

I am in the Rayong area.

Thanks again for the positive input.

[Maizefarmer]

Well, having that sort of experiance is going to be a big big plus point - but don't under estimate the problem of mastitis - it is huge (in Thailand) and a never ending battle, though with good husbandry controlable.

You can buy fresh milk here in Thailand (as opposed to re-constituted). It's interesting to note though that it's producers in New Zealand and Australia who have caused the Thai diary industry so many problems vis-a- vis our farmgate prices. How the so-called "pacific-rim" countries have been able to produce, process and transport dried milk products to Thailand for retail at BELOW our gate prices has been a contenscious point for many years........... and its that very issue you will have to face and deal with if you wish to market a finished product at the retail level (i.e. pasturised). I've looked at it a number of times and every time have concluded the figures won;t add up.

Still, you're welcome to try and I'd be very interested if you could come up with a viable business plan.

All the best.

.