The Department of Agriculture (DA) of the Philippines is intensifying its efforts to increase the country’s dairy milk output, an endeavor that includes rallying support from domestic milk processors and fostering growth in the dairy cattle population.
In recent discussions with the Philippine Chamber of Agriculture and Food, Inc. (PCAFI), Agriculture Secretary Francisco P. Tiu Laurel Jr. underlined the department’s strategy to re-evaluate and revitalize Republic Act 7884, known as The National Dairy Development Act of 1995. One of the act’s key provisions—still inactive decades after its enactment—calls for an agreement between commercial milk processors and local dairy cooperatives on the purchase volume of locally produced milk.
Despite RA 7884’s intentions, the country’s domestic milk production languishes at less than 1 percent of the annual demand. “We will draft a measure that will activate the provision of the dairy law,” declared Secretary Laurel, recognizing the untapped potential of the dairy sector as an economic growth engine.
PCAFI has noted the absence of a consensus on milk volume uptake and has proposed a regulatory approach by the National Dairy Authority. The proposal includes a mandate for commercial milk processors to source a minimum of five percent of their milk supply from local producers, which could be implemented gradually over a set timeline.
The Philippines’ reliance on dairy imports remains high, with USD 1.6 billion worth of milk, predominantly in powdered form, imported in 2022 from countries such as Australia, New Zealand, and the United States. This import dependency exists despite two legislative acts aimed at invigorating local dairy production.
Should commercial entities resist stipulating a minimum local milk volume, PCAFI suggests the DA could impose safeguard duties on imported milk to finance local industry development or compel commercial processors to establish dairy farms within the Philippines.
The latest figures from the National Dairy Authority indicate that dairy cattle production in 2023 yielded 17,850 metric tons, a marginal 0.8 percent of the total milk consumption, which was recorded at 1.937 million metric tons. Even with a slight increase from the 2022 output, the NDA projects the country’s milk consumption will climb to 1.978 million metric tons in the current year.
Secretary Laurel’s commitment to this “low-hanging fruit” could steer the country towards a robust dairy sector that not only meets domestic needs but also provides a substantial boost to the livelihoods of local farmers and the economy at large.
