he milk in your morning coffee. The beef in your favourite menu. Both come from small Thai farms now struggling to survive.

The cattle industry is the backbone of Thailand’s rural economy. More than two million farming families depend on it, whether as live animals, meat, or raw milk. The industry also supports a wider chain of industries, including feed crops, food processing, transport, local markets, and exports. 

In short, the cattle industry is not marginal. Yet Thailand still lacks strong policies to protect it.

Amid global economic shifts, new farm technologies, and changing consumer tastes, the livelihoods of beef and dairy farmers hang in the balance. Policy action is needed, not only to help the farmers adapt to new challenges, but also to make the industry a key driver of the country’s long-term economic growth.

Without it, these farmers risk being left behind.

Thai beef challenges 

Thailand has around 9.6 million beef cattle as of June, 2025, according to the Department of Livestock Development. Most are raised in the Northeast and North by some 1.38 million smallholders who typically keep one to twenty animals. About 95% are native breeds or crossbreeds. Only 3% are fattened cattle and 2% purebred. It’s then difficult for the sector to grow into a large-scale, competitive industry.

In 2024, Thailand produced about 220,000 tonnes of beef while the demand reached 260,000 tonnes. The shortfall is filled by imports, especially premium beef.

Thanks to prior government support, the local beef cattle industry has a firm footing. The locally developed cattle breed are suited to the local climate, disease resistant, and producing quality meat. 

In addition, the country has a complete supply chain, from breeding and fattening to slaughter and processing, with markets at every level from domestic to export. Live cattle exports, especially to ASEAN countries, China, and the Middle East, are also growing.

Despite these strengths, the industry faces many significant challenges.

For starters, the industry relies heavily on small, scattered farms. They struggle with high feed costs, limited access to finance, and unstable selling prices. On top of that, outbreaks of foot-and-mouth and lumpy skin diseases remain a threat, blocking Thailand from getting “disease-free” certification from the World Organisation for Animal Health. Without it, Thailand cannot fully tap export markets.

Smuggling of illegal cattle and beef continues to hurt local farmers while local premium beef must compete with cheaper, high-quality imports from Australia, New Zealand, Japan, and Brazil.

What needs to be done?

A strong “Thai Beef” brand is also key to reaching premium buyers at home and overseas. At the same time, tighter anti-smuggling measures and international disease-free status would open the way for more exports.

Strengthening Thailand’s beef industry will take coordinated actions on several fronts. A national cattle ID system would make it easier to track animals, manage farms, and plan markets more efficiently. Better breeding and modern farming methods are also crucial to cut costs, improve meat quality, and match consumer demand.

Farmer cooperatives need to be strengthened too, since they boost bargaining power, encourage knowledge sharing, and make it easier to get loans. New selling channels, such as central online markets, live cattle auctions, and contract farming, can help keep prices steady.

A strong “Thai Beef” brand is also key to reaching premium buyers at home and abroad. At the same time, tighter anti-smuggling measures and international “disease-free” status would open the door to more export opportunities.

Thai dairy challenges

Thailand has about 550,000 dairy cows producing over one million tonnes of raw milk annually, or an average of 2,818 tonnes a day. About 15,655 households are involved, most operating through cooperatives that improve efficiency and coordination.

Most milk goes into the government’s school milk programmes or commercial products sold domestically. A smaller portion is exported to neighbouring countries.

Thanks to over 65 years of unceasing development, Thailand’s dairy industry has remarkably improved cattle breeds and feed technology, resulting in high-quality milk with competitive prices. Dairy farmers are highly skilled, and their cooperatives are strong, which further enhances production and market growth.

Urban demand is also rising steadily, driven by cafés and bakeries, now a booming business. Meanwhile, the milk markets in neighbouring countries continue to grow.

Still, there are many challenges to overcome.

First and foremost is the high cost of animal feed. That the domestic demand depends heavily on school milk programmes makes it vulnerable to policy changes. Competition also comes from cheaper imported products, which are often cheaper and of higher quality due to the producers’ better technology and lower production costs. Another hurdle is the limited production of high-value dairy products such as cheese, butter, and cream. 

The solutions are clear. Supporting farmer groups and cooperatives to reduce costs and improve efficiency. Training farmers and entrepreneurs to help them stay competitive and manage fluctuating costs. A modern data system tracking herd numbers, milk output, and quality to allow better management.

Boosting domestic demand is also essential. Supporting cafés, bakeries, and other food businesses that use milk can increase local consumption. Expanding free milk programmes to include the elderly and low-income populations would improve nutrition and raise local consumption. Meanwhile, liberalising trade within ASEAN could open wider export opportunities for Thai dairy products.

The country’s dairy industry is at a crossroads. Policy support is no longer optional. Investment in breeding, technology, cooperatives, and branding, along with stronger disease control and export strategies, is essential to keep it afloat.

Despite the challenges, Thailand’s cattle industry can grow if the government tackles them head-on to save farmers and earn global trust. Whether the country’s cattle industry will thrive or wither depends on how the government acts now.

 Policy analyses from the TDRI appear in the Bangkok Post on alternate Wednesdays.