October 30, 2005

USDA: Philippines dairy and products annual 2005

Data from the Philippine National Dairy Authority (NDA) shows that in terms of volume, domestic milk production grew 2.27 percent to 11,580 metric tons (MMT) in liquid milk equivalent (LME) in 2004 from 11,250 MT a year earlier. 

Value of dairy production in 2004 amounted to P291 million ($5.22 million at current exchange rate[1]). Currently, the country produces less than one percent of its total annual dairy requirement and imports the balance.

A steady growth in production and processing capacity was a notable feature of the local dairy industry in 2004. Local production capacity in NDA-assisted areas maintained double digit growth rates in herd, milk output and milk sales, albeit over a small base. 

The Philippine dairy industry primarily consists of government-assisted dairy cooperatives and backyard dairy farmers. NDA-assisted cooperatives supplied 63 percent of the raw milk produced in 2004 worth about P126 million, of which about P76 million was sold to the commercial market, while close to P50 million worth was sold to feeding programs for malnourished children. 

NDA forecasts local milk production to reach 13,000 MT by year's end as a result of the continued infusion of dairy animals. 

The Philippines is a large market for milk and milk products with an estimated population of 84 million, growing annually at 2.36 percent. Dairy products are the country's second largest agricultural import after wheat. 

NDA data show that Philippine dairy importation reached $492 million in 2004, six times higher than its revenue from dairy exports of $75 million. Rising dairy importation underscores the growing domestic demand for dairy products and the inability of the domestic dairy sector to keep pace.

In 2004, the country's dairy import level grew to 2.11 MMT LME of milk and milk products worth about $492 million. The major country suppliers by volume were New Zealand with 42 percent share of the total imports; Australia, 26 percent; the United States, 10 percent and Thailand, 7 percent.  Dairy imports are projected to increase further with the lowering of tariffs last year, particularly for NFDM and whey powder.

In 2004, imports of milk and cream combined rose by 12 percent to 1,938 MT from 1,738.37 MT in 2002. 

For the full USDA report, click here.