Subject: Request for approval of the budget expenditure for the fiscal year 2021, central budget items, reserves paid for emergency or necessary For the implementation of the remedy project for dairy farmers and dairy entrepreneurs. To revive the economy of the dairy and dairy farming sector.
The Cabinet approved the budget for the fiscal year 2021, the central budget of the reserve money for emergency or necessary. For the implementation of the remedy project for dairy farmers and dairy entrepreneurs. To revive the economy of the dairy and dairy farming sector. Within the limit 1,477,758,400 baht to the Ministry of Agriculture and Cooperatives (Kasetsart University) by paying a budget to purchase UHT milk for school children to drink more. For agencies in charge of purchasing school milk Details are as follows
1. Local government organization in the amount of 1,098,086,400 baht
2. Ministry of Education in the amount of 326,396,900 baht
3. Bangkok for 50,822,500 baht
4. Pattaya Municipality, amount 2,452,600 baht
Essence
1. Department of Livestock Development has discussed with entrepreneurs in the food supplement (milk) project of the affected school. And the Thai Dairy Food Industry Association (FTI) on behalf of the commercial dairy operator on December 21, 2020 to consider ways to alleviate the distress according to the proposal of the Budget Bureau. (The most urgent book at 0718/4851 dated January 5, 2021) and can summarize the information as follows.
1) The problem with UHT type school milk is not available for sale. To deliver in semester 2/2563 that does not solve the problem at the root cause Because entrepreneurs continue to purchase raw milk production every day. In order to produce milk at the school in semester 2/2563 according to the right allocated If school milk cannot be produced, this portion of raw milk has to be packaged as UHT product in order to extend shelf life and similar problems.
2) With the Supplementary Food (Milk) Program, the school allocates a budget for students to drink pasteurized milk on the opening day of the semester to drink UHT milk on the holidays.Therefore, the purchasing unit does not have enough budget to purchase milk. UHT school throughout the semester, because UHT type school milk has a selling price of 7.82 baht / box while the pasteurized school milk There is a selling price of 6.58 baht / bag.
3) Thai Dairy Food Industry Association (SAO) on behalf of commercial dairy entrepreneurs Informed that commercial dairy operators cannot purchase raw milk as part of an additional school milk quota As the commercial market has not yet recovered from the coronavirus outbreak that has spread since early 2020, the majority of the population has decreased their purchasing power. In addition, there has not yet been an opening for foreign tourists to enter Thailand. In addition, the current situation of the spread of coronavirus disease in 2019 is likely to widen. As a result, commercial dairy operators have to bear the remaining product balance. 2. Ministry of Agriculture and Cooperatives held a meeting to discuss ways to help treat dairy farmers. And dairy business operators Affected by the spread of Vaiwas Corona Infectious Disease 2019 can be summarized as follows:
1) urgent problem solving Propose for the annual expenditure budget for the fiscal year 2021, the central budget item, the reserve for emergency or necessary. Acquire backlog of UHT school milk to allocate more to students under the School Supplementary Food (Milk) Program for the 2020 school year to increase liquidity in the milk and dairy production chain. Farmers can sell raw milk and Operators can continue to operate.
2) Medium and long-term solutions Offers as follows
- Study and develop the use of raw milk to produce feed additives in pets.
- Study the guidelines for value added milk by using milk to produce other products that meet market and consumer needs such as whipped cream, cheese, etc.
3) The milk consumption campaign will let Thais know that milk is a good food for all genders and ages and increases the consumption of raw milk in the country.
3.The situation of the epidemic of COVID-19 since early 2020
Affecting the economy and society for a wide range Including the Thai dairy food industry Dairy farmers and dairy entrepreneurs And more than 120,000 workers in the milk and dairy production chain have suffered greatly. Due to general economic recession problems Total sales of dairy products in The commercial milk market has fallen by about 30 percent, although dairy farmers and dairy operators have tried to solve the initial problem. To reduce the production of raw milk And raw milk is processed into UHT dairy products by packing in school milk cartons Which cannot be sold in the commercial milk market And expires between the end of 2020? In the middle of 2021, there are approximately 213 million boxes of UHT type school milk, which are valued at 7.82 baht per box, totaling approximately 1,655.66 million baht. 7 baht per box, totaling approximately 1,477 million baht
The dairy farming profession. Approximately 20,000 dairy farmers are burdened with regular expenses, including wages for workers to milk 4-6 people per farm, resulting in approximately 120,000 jobs.
The cost of feeding for dairy cattle, which 60% of the dairy feed is rough, such as various grasses, straw, corn, peas, cassava, palm residue, pineapple and molasses, and another 40% of the dairy feed is concentrated that farmers may Will produce by ourselves Or buy from an animal feed factory The cost of transporting raw milk from the farm to the raw milk collection center The cost of transporting raw milk from the raw milk collection center to the processing plant To be processed into dairy products, 151 raw milk collection centers employ approximately 1,000 people and dairy processing plants of 50 dairy producers employ approximately 4,000.
Dairy farmers have to milk their cattle every day. As a result, raw milk production continues to occur every day, but farmers have solved their initial problem by stopping the milking of cattle (Dry) to reduce raw milk production. Because entrepreneurs have reduced purchases, raw milk that exceeds the amount that entrepreneurs want to buy must be processed into UHT milk by packaging school milk cartons to help extend the shelf life of raw milk. For up to 10 months instead of producing pasteurized milk, which has a much shorter shelf life. From the decline in raw milk collection centers Causing the raw milk collection center to have problems with the lack of financial liquidity in the payment Raw milk for dairy farmers therefore need to borrow money from financial institutions. Causing debt burden
Because UHT milk products in school milk cartons are about to expire if they cannot be sold. There will be repeated problems for farmers and dairy entrepreneurs in the school food supplement program (milk). Therefore, the remedies for dairy farmers and dairy entrepreneurs who have been affected by the situation. The epidemic of COVID-19 is urgently needed. The company asked for a budget to purchase 213 million boxes of such UHT milk products, amounting to approximately 1,477 million baht, in order to allocate more milk for students to consume as a way to strengthen the body and immunity of School children Reducing expenses for parents affected by the epidemic situation of COVID-19 and also restoring the foundational economy. To have continued employment Continue to build the sustainability of the dairy farming profession and the dairy industry of Thailand.
4. Objectives of the project
1) To help and cure the troubles of dairy farmers. Raw milk collection center And dairy business operators From the situation of the spread of coronavirus infection 2019 to be able to sell the manufactured UHT milk products
2) To restore the foundation economy, create jobs, generate income for farmers, raw milk collection center. And dairy producers To ensure the sustainability of dairy careers and the dairy industry throughout the dairy and dairy production chain.
3) To encourage students to consume more milk. Strengthen your health And have strong immunity It helps to reduce the cost burden of the parents. During the outbreak of COVID-19 infection
5. Methods and procedures
1) The Central Administrative Subcommittee of the Supplementary Food (Dairy) Project, the school shall allocate distribution rights, and the subcommittee to drive the dairy food for children and youth project at the area group level (5 groups) allocate the distribution area to the dairy business operators.
2) Provide the agency responsible for purchasing school milk. (Local government organization, Bangkok And Pattaya Municipality) and the school proceeds to purchase school milk in the project Using the same procurement method as the supplementary food (milk) program, the school entered into a purchase agreement with the licensed operator. Including purchasing and delivering school milk for students to drink according to the project period
3) To the agency responsible for purchasing milk in the school (Local government organization, Bangkok And the Pattaya City Municipality) and schools together with the Department of Livestock Development and the departments under the supervision, monitoring, and solving problems
Source: General Prayut Chan-o-cha (Prime Minister) Cabinet Meeting on 12 January 2021
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