PH dairy industry grows in Q1, but milk sufficiency still at a low 2.1%

This is AI generated summarization, which may have errors. For context, always refer to the full article.

The National Dairy Authority is banking on animal imports, more stock farms, and bigger budget to boost the import-dependent industry

MANILA, Philippines – The value of the Philippines’ dairy production grew by 6.5% in first quarter of 2026 from 5.1% in the same period last year, but the country’s milk sufficiency level was still at a very low 2.1% as of March this year. 

In terms of volume, dairy production went up from 11.07 million liters in the first quarter of 2025 to 11.79 million liters in the the first quarter of 2026 or an increase of 6.47%. 

National Dairy Authority (NDA) Administrator Marcus Andaya said per capita milk consumption increased from 17.16 liters to 19.53 liters, “reflecting growing consumer demand for dairy products.” 

“While the country’s milk sufficiency level stands at 2.1% as of March 2026, this further highlights the expanding market opportunities and the need to continue strengthening local milk production,” he said. 

The NDA remains optimistic that its milk sufficiency target of 3.3% will be achieved by end of 2026, despite rising costs of farming inputs due to the Middle East conflict.

“We are confident makakaya, makukuha,” said Andaya on Tuesday, May 19. “Kung ma-short man ‘yan, umabot ng 3%, that’s good enough. 1% [milk sufficiency level] was thirty years in the making.”

(We are confident that we can achieve that. If we fall short and reach 3%, that’s good enough. 1% milk sufficiency was 30 years in the making.)

Andaya pegged the Philippines’ milk sufficiency at 2.2% in 2025 with the rest covered by imports.

A 3.3% milk sufficiency by end of 2026 means the Philippines should be able to produce 53 million liters of milk locally this year.

To boost the import-dependent industry, the NDA is banking on around 1,600 cows coming from Australia, three more stock farms next year, and an additional P1.5 billion budget for 2027.

Andaya said the 2027 budget will be on top of the funds for the milk feeding program and P20-billion from the Animal Competitiveness Enhancement Fund.

Four stock farms are already operational located in Nueva Ecija, Bohol, Agusan del Sur, and Cotabato. Another one will be completed this year, in Bukidnon. Another three are set to rise next year.

Andaya said these stock farms cover 50 hectares and require P50-million budget each. Moreover, the government is working on a P2-billion loan from France that will cover technology transfer.

One immediate effect of the Middle East conflict on the local dairy industry is the higher cost of cows. One head used to cost P180,000, but now it has risen to P220,000, according to Andaya.

The NDA targets 5% milk sufficiency by 2028.

“We’re on track,” Andaya said. “So kami confident ‘yung 5% na cinommit namin sa presidente sa 2028 maaabot natin.” (We are confident we will achieve the 5% target we committed to the president by 2028.)

A sunrise industry

During a luncheon meeting organized by the European Chamber of Commerce of the Philippines on Tuesday, Andaya stressed the need for public-private collaboration.

“The future of the dairy industry cannot be built by the government alone,” Andaya said. While the NDA chief acknowledged that its an underdeveloped sector, Andaya also called it a “sunrise industry.” A number of businessmen have taken up the challenge.

Business tycoon Manny Pangilinan has put in more money in the local dairy industry after acquiring a majority stake in local dairy brand Carmen’s Best in 2022. Under his Metro Pacific Investments Corporation (MPIC), the brand has expanded its fresh milk products.

“Only 1% of milk consumed in the Philippines is produced locally, which means many Filipinos have never truly experienced fresh, local milk,” Metro Pacific Agro Ventures chief commercial officer Toby Gatchalian said in February.

Another player in the local dairy industry is Hacienda Macalauan Incorporated (HMI), producer of the Philippine milk brand Pure & Best Milk. Its pasture land, automated milking parlor, and dairy processing plant are located in Laguna.

HMI was established in 1995 and turned into a small-scale dairy farm after it imported 100 heads of Freshian Sahiwals from Australia. – Rappler.com