Thailand Unveils Four-Point Strategy to Boost Cattle Industry Competitiveness Amid Rising Global Demand

 

Thailand has announced a comprehensive four-pronged policy framework aimed at strengthening its cattle industry's competitiveness as global beef consumption continues its upward trajectory, reaching 59.55 million tonnes in 2024.

 

The Trade Policy and Strategy Office (TPSO) under the Ministry of Commerce released findings from its study titled "Thai Cattle Moving Forward to Global Markets: The Path to Sustainability for Thai Beef and Dairy Cattle," highlighting both opportunities and challenges facing the domestic livestock sector.

 

Natiya Suchinda, Deputy Director of the TPSO, revealed that global livestock trade has shown consistent growth over the past decade, driven by technological advances and evolving consumer behaviour patterns.

 

World beef consumption increased from 56.05 million tonnes in 2020 to 59.55 million tonnes in 2024, according to USDA data, presenting significant opportunities for Thailand's cattle industry. However, the sector faces substantial challenges that require comprehensive policy intervention.

 

The beef cattle industry struggles with pricing issues, inadequate farm management knowledge, tropical disease outbreaks, high production costs, competition from imported beef, and the need to transition to full industrial-scale production systems.

 

Similarly, the dairy industry confronts high production costs and the challenge of enabling small-scale farms to remain competitive in the long term, necessitating enhanced capabilities and stability measures to cope with global market changes.

 

 

To address these challenges, the TPSO conducted an in-depth analysis of the Thai beef and dairy cattle industries' strengths, weaknesses, opportunities, and threats across all dimensions, covering the entire supply chain from upstream to downstream operations.

 

The resulting policy recommendations are structured around four key pillars:

 

1. Production Stability and Strength

Focused on enhancing farming efficiency and reducing production costs through improved livestock management practices and operational optimisation.

 

2. Price Stability and Strength

Promoting fair pricing mechanisms and reducing market volatility through structured market interventions and support systems.

 

3. Technology and Innovation Stability

Driving the adoption of technology and innovation throughout all stages of the supply chain, from farm management to processing and distribution.

 

4. Market Stability and Competitiveness

Expanding both domestic and international markets whilst enhancing competitive capabilities through strategic market development initiatives.

 

The framework also includes continuous industry support measures designed to create integrated development opportunities, extending towards long-term sustainability for the livestock sector.

 

Thailand's trade data for the first half of 2025 (January-June) reveals mixed performance across beef and dairy segments.
 

 

Thailand imported 16,496.6 tonnes of fresh, chilled, and frozen beef valued at 5.2 billion baht, representing a 26.6% increase in import value compared to the same period last year. Primary import sources include Australia, New Zealand, and Japan.

 

Thailand maintains its position as ASEAN's leading dairy exporter, with first-half 2025 exports reaching 138,799.1 tonnes valued at 6.451 billion baht. Key export markets include Cambodia, the Philippines, and Singapore.

 

Yoghurt and buttermilk products constitute the primary export category, followed by unconcentrated milk and cream without added sugar. Major exported dairy products reflect Thailand's competitive advantage in processed dairy goods.

 

Conversely, Thailand imported 165,408.9 tonnes of dairy products worth 18.292 billion baht during the same period, primarily from New Zealand, Australia, and the United States.

 

Concentrated or sweetened milk and cream, including milk powder, dominated imports, followed by cheese and curd products.

 

The comprehensive policy framework aims to position Thailand's cattle industry for sustainable growth whilst addressing structural challenges that have historically limited competitiveness. 

 

The Ministry of Commerce expects these measures to strengthen Thailand's position in both regional and global livestock markets.

 

The study emphasises the need for integrated supply chain development, from feed production and livestock breeding to processing, marketing, and export capabilities, ensuring Thailand can capitalise on growing global demand whilst building domestic industry resilience.

 

Implementation of these policies is expected to enhance Thailand's agricultural export capabilities and contribute to the country's broader economic development objectives in the livestock sector.