October 27, 2004

 

 

Philippines Eyeing New Markets for Halal Milk Products

 

The National Dairy Authority (NDA) Tuesday said the Philippines is looking at local and international Muslim consumers of halal products as new markets for local producers of milk and milk products.

 

"For milk to be halal, it must come from animals Muslims are permitted to eat. Milk products must not be mixed or contaminated with forbidden substances like alcohol, blood, lard, gelatin, glycerin, lecithin and enzymes. They must be processed using utensils and equipment that are cleaned according to Islamic law. It is important that substances used are derived from sources certified by the Halal Certification Committee," NDA administrator Salvacion Bulatao explained.

 

She said she would consult with Lanao del Sur Rep. Abdullah Dimaporo about making Mindanao the center of halal milk production, adding that the latter had been actively promoting the upgrading of local cattle into dairy breeds.

 

The idea was brought up to the NDA by the Philippine Embassy in Thailand, because that country exports halal milk and milk products to Brunei.

 

"The local industry for milk and milk products is doing very well despite overwhelming competition from imported milk that freely comes in with very little protection for local producers," Bulatao pointed out.

 

She said that in other countries, such as Thailand, imported milk is slapped a 20-percent to 40-percent tariff, while only a 3-percent to 5-percent tariff is imposed on milk imports in the Philippines.

 

She noted that of the 326-million-kilogram demand for milk and milk products last year, local producers provided just 11 million kilograms.

 

Nestle Philippines, Alaska Milk Corp. and New Zealand Creamery are the top three importers of milk in the country, according to the NDA.

 

Local producers, on the other hand, reportedly succeed by finding niche markets in their own areas especially when supported by milk-feeding programs and local governments. There are also the fresh-milk suppliers of establishments like Starbucks, Seattle's Best, big hotels and supermarkets, Bulatao said.

 

She identified Bulacan, Laguna, Cebu, Cagayan de Oro and Davao as those with milk-processing plants, and Nueva Ecija, Batangas, Quezon and Zambales, as well as Negros Occidental, Iloilo, Zamboanga del Norte and Bukidnon, which all have emerging industries, as the country's major milk-producing provinces.

 

"However, the Philippines has not achieved self-sufficiency in milk because there is not enough investments in dairy and there are not enough animals on the ground to support the huge demand," Bulatao noted.

 

To boost the local milk industry, she said the government can institutionalize milk feeding, particularly for the six million malnourished kids in the country today.

 

"This will reap the double fruits of reducing malnutrition and increasing rural income. The government should also enable local producers to develop forage sources from local materials, provide affordable sources of feeds and support their herd buildup program. It can also help cluster upgraded animals into dairy production areas for greater efficiency and productivity."

 

NDA figures showed daily milk production has risen from 16,000 liters last year to 20,000 liters this year.