Thailand continues to lead ASEAN’s dairy market

Thailand has continued to lead ASEAN’s dairy market, with exports growing by 11.5% in 2024 to $582.62 million.

The country remains the top regional exporter, driven by strong demand from key markets, including Malaysia, Vietnam, Indonesia, Singapore, the Philippines, and Myanmar.

The surge in dairy exports is attributed to Thailand’s manufacturing efficiency, competitive pricing, and zero import tariffs under the ASEAN Trade in Goods Agreement (ATIGA).

According to Deputy Minister of Commerce Suchart Chomklin, Thailand's dairy products benefiting from high regional demand include yogurt, UHT milk, buttermilk, cream, and soy milk mixed with dairy.

Suchart noted that the Free Trade Agreements (FTAs) between ASEAN and major partners, including mainland China, Australia, New Zealand, Chile, and Hong Kong, have eliminated tariffs on Thai dairy products, opening up additional opportunities beyond Southeast Asia.

To expand market access, Thailand is actively pursuing new FTAs with South Korea and ASEAN-Canada, which will create additional export channels for dairy products. The Thai government is also exploring potential agreements with countries in Africa and South America to reduce trade barriers and diversify export markets.

Thai exporters are encouraged to maximize the benefits of FTAs and stay abreast of changing consumer trends to maintain global competitiveness.

Currently, Thailand's Trade Negotiation Department is exploring potential FTAs with emerging markets in Africa and South America. Thailand aims to complete FTA negotiations with South Korea and the ASEAN-Canada FTA by 2025, thereby enhancing market access, reducing trade barriers, and further strengthening Thailand's position in the global dairy trade.