The Department of Agriculture (DA) said Thursday it is taking steps to boost local milk production by encouraging more investments in the dairy industry.
Agriculture Secretary Francisco Tiu Laurel Jr. underscored the need to review Republic Act 7884, or The National Dairy Development Act of 1995, in a recent meeting with the Philippine Chamber of Agriculture and Food Inc. (PCAFI).
“We will draft a measure to activate this provision of the dairy law,” he said, noting that the industry is among the “low hanging fruits” in the sector.
The DA said it would focus on the provision requiring agreement between commercial milk processors and domestic dairy cooperatives on the volume of locally-produced milk absorbed by the commercial sector.
The Dairy Act would have determined an increase in volume in 1998, three years after its passage. However, despite the legislation, domestic production remains low, hovering around 1 percent of annual demand, according to the department.
PCAFI said there is lack of agreement on minimum volume and suggested that the DA, through the National Dairy Authority (DA), implement a rule.
The rule would require “commercial milk processors and traders to secure their milk supply from local sources with definite volume, or at least 5 percent of their total requirement, within a full or staggered basis over a certain fixed period.”
Despite existing laws on dairy production, investments in Philippine dairy milk production remain low, even with a steadily growing demand for dairy products.
The country imported $1.6 billion worth of milk in 2022, primarily powdered milk, from Australia, New Zealand, and the United States.
PCAFI presented options if commercial processors and traders don’t agree to a minimum volume where the DA could either implement a safeguard duty on imported milk to fund the development of the local dairy industry or require commercial processors and traders to establish their own dairy farms within the Philippines.
Data from the National Dairy Authority (NDA) showed that cattle production in 2023 reached 17,850 metric tons, contributing roughly 0.8 percent of total milk consumption of 1.937 million metric tons (MT).
The NDA expects consumption to reach 1.978 million MT in 2024.