Many people are likely familiar with the Dairy Home brand, as it was a pioneer of organic milk in Thailand and a producer of continuously innovative milk products. Dairy Home, a well-known organic cow's milk brand in Thailand for almost two decades, is a small-scale milk producer that consistently meets demand, thriving amidst major domestic and international market players. It was founded by Mr. Prutthi Kerdchuchuen.
Twenty years ago, the Thai dairy industry wasn't widely accepted because many believed that Thai farmers' milk wasn't very safe and might contain contaminants. This problem motivated Prutti, who had extensive experience in the dairy industry, to address it and improve the quality of Thai milk. This inspiration led him to establish Dairy Home.
The core principle of his farming concept is to minimize production costs and utilize available resources as efficiently as possible. Prutti experimented with natural cattle farming at his farm first, before encouraging nearby farmers to switch to this system. However, initially, hardly any farms joined him, because going against the tide of capitalism wasn't as easy as he thought.
Having previously produced large quantities to supply a hungry market, the change was difficult. Most dairy farms at that time competed to raise cows that produced the most milk. Cows that produced a lot of milk were famous and fetched high prices. When he encouraged farmers to switch to natural farming methods and found that production decreased, the question that followed from his fellow farmers was, "Why should they do that?" And it took too long to wait.
Raising cows naturally results in lower milk yields higher quality milk.
A turning point in Prutti's life, which led him to dedicate himself entirely to organic milk production, occurred around 2002-2003 when Thailand announced Free Trade Agreements (FTAs) with Australia and New Zealand. This made it easier for milk from these two countries to enter the Thai market at significantly lower prices.
Mr. Phrutthi realized that small-scale farmers like himself and others in the surrounding area couldn't compete with the price of imported milk. Therefore, the only way to win was to compete on "quality." He adjusted his business model by repositioning Dairy Home to have a clearer image as an organic milk brand, aligning with the gradually growing health-conscious trend in Thai society.
The challenge that Prutti must solve is how to ensure the survival of his organic milk business while also ensuring the survival of other dairy farmers.
Changing farmers' behavior to raise organic cows is not easy. Mr. Phruthi revealed that he tries to explain the facts. For example, cows consume 50 percent farm feed and 50 percent supplemental feed/stimulants, resulting in increased milk production. However, because a cow's udder has a limited capacity (only 20 liters), excessive feeding can lead to mastitis. Organic farming involves feeding cows natural, chemical-free grass, supplemented with concentrated feed. The advantages are healthier cows, richer milk full of vitamins, protein, and fat, and better taste. The disadvantage is a decrease in milk yield; normally a cow produces 20 kilograms of milk, but organically it decreases to 12 kilograms. However, the sustainable and tangible benefits include increased profits from reduced feed and medication costs, an increased average lifespan for cows (from 8 to 15 years), and happier, less sick cows.
To prove his concept, Mr. Prutti conducted research with Kasetsart University to demonstrate that free-range dairy cows can indeed produce nutritious milk. This led to Dairy Home offering Grass-fed milk, which comes from cows that are primarily allowed to graze on pastures with minimal supplemental feed. Therefore, when cows are fed a suitable and natural diet, they are happy and healthy, resulting in high-quality milk with abundant nutrients and a delicious taste.
Environmentally friendly dairy farms
Dairy Home is one of the few milk brands that displays a carbon label, a certification that the product is environmentally friendly and helps reduce carbon dioxide emissions.
Mr. Prutti told us that the main consumer group is still health-conscious adults, perhaps mothers buying milk for their children. However, with the increasing demand for Dairy Home milk, he believes this is because younger generations are becoming more aware of health and environmental issues.
“We don't aim to increase product output; we just want the right quantity of quality. The global milk market is declining these days because the industry has turned milk into a commodity with relatively low prices. If price is the deciding factor, Dairy Home milk can't compete because it's not cheaper. But for health and environmentally conscious individuals, they'll understand that even a slightly higher price is better for them and the environment.”
Furthermore, we reuse glass containers. Our glass bottles aren't single-use (disposable) bottles; they're bottles we collect from customers. We want customers to return the bottles because every bottle has value. If customers return them, we give them a refund: 5 baht for large bottles and 1 baht for small bottles. However, they must be cleaned thoroughly before return. The cleaning process is similar to washing dishes. Afterwards, Dairy Home washes them again and sterilizes them. Glass bottles can be reused up to 20 times before being discarded, ensuring they've been used to their full potential. This method also significantly reduces plastic waste.
Finally, regarding wastewater treatment, we are a factory that produces no wastewater at all. We separate the water into two parts. The first part is water heavily contaminated with milk, which we set aside. The other part is water with low milk contamination, which is like the wastewater used in large factories – the water we use to wash equipment, containers, and machinery. This lightly contaminated water is cloudy white, and we use a system to spray it on our lawns. The grass is very lush and green because we water it with fresh milk.
Therefore, you can see that wastewater can be transformed into new milk, or processed into grass, which is then used to feed cows. As for waste, there's no need to even mention it. Waste here is money because we entrust it to our employees to manage, collect, sort, and sell. The income from the sale goes into a welfare fund, which they can use for whatever they want, such as charitable donations, CSR activities, or various public benefit projects as they see fit.
For 20 years, Mr. Prutti has continued to work hard, and by 2030, he intends for the milk from his farm to be carbon neutral, in line with the United Nations' policy to reduce greenhouse gas emissions into the atmosphere, which are the cause of global warming.
Beyond hoping to see improved lives for farmers and a healthy ecosystem that produces high-quality milk for people to drink, he also hopes that this will be a new alternative small-scale business model demonstrating that even in the course of capitalism, agriculture can develop in parallel with the environment, while still yielding good products.
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