Mah Boonkrong Dairy Goats will spend Bt200 million to expand its factory's production capacity next year, from six tonnes a day at present to 10 tonnes, executive vice president Saravut Vulakul told a press conference yesterday.

He said the company's Sirichai-brand UHT goat's milk had proven so successful after it was introduced this year that production capacity needed to be expanded from 40,000 boxes a day to 100,000, which follows along with plans to double sales next year.

The company expects revenues of Bt300 million this year and Bt600 million next year.

To help meet next year's target, the company will next week launch its new Sirichai goat-soy milk, a mix of goat's and soy milk.

The new product enjoys a reduced production cost and thus a lower retail price.

The regular 190-millilitre box of UHT goat's milk retails at Bt20, but the same size for the goat-soy milk will be only Bt12.

"We expect sales from new product to account for as much as half of next year's Bt600-million sales target, because the price is lower than for pure goat's milk.

The new product will also do better than pure goat's milk in meeting customer demand," he said.

Meanwhile, the company is negotiating with an Indian distributor to export goat's milk to that market next year.

"If our product meets with success in India, that will boost sales over our target for next year," Saravut said.

The company will also enlarge its goat farm.

There are now 4,000 goats on the farm. This will be increased to 8,000 by negotiating with farmers who are interested in raising the animals.

"We'll set up contract farming with farmers who confirm they will participate in the programme," he said.

Mah Boonkrong Dairy Goats is Thailand's leader in developing goat's-milk products. It is the distributor of Sirichai pasteurised, UHT and cup yoghurt and markets GMK goat's-milk cosmetics.

Goat's milk is recommended for those who cannot digest cow's milk. Sirichai's raw materials come from goat breeds imported from Australia and New Zealand and raised on closed farms for hygienic reasons.

Somluck Srimalee

The Nation