DairyRoadmap 2010-2016

UPDATED
THE
DAIRY
ROAD MAP
2010-2016
A Medium Term Dairy Development Plan
National Dairy Authority

PHILIPPINES
12 November 2010
DAIRY ROADMAP 2010-2016
The Philippines‟ Dairy Road Map 2010-2016 is designed to serve as the

blueprint of achieving the vision of a vibrant local dairy industry providing
wholesome, affordable milk to delighted consumers, building a nation of
healthier children and wealthier farmers, while contributing to agribusiness
expansion and job generation in agriculture.
The existing stocks were not enough to produce the milk requirements that
will create an impact in terms of achieving sufficiency in the liquid milk
market.
The present picture of the local dairy industry shows that local milk
production captures 26% of the liquid milk supply as the local milk
production is pegged at an average of 12.19M liters.
RTD
YEAR SUPPLY LOCAL IMPORT GAP
DEMAND
1995 28.95 24.66 12.58 12.08 4.29
1996 32.13 29.88 11.50 18.38 2.25
1997 38.48 37.11 10.22 26.89 1.37
1998 41.02 31.32 9.24 22.08 9.70
1999 46.09 29.05 9.85 19.20 17.04
2000 48.63 33.02 10.21 22.81 15.61
2001 51.04 50.75 10.80 39.95 0.29
2002 53.45 54.10 11.00 43.10 (0.65)
2003 58.27 50.10 11.25 38.85 8.17
2004 60.48 55.81 11.61 44.20 4.67
2005 62.69 58.92 12.34 46.58 3.77
2006 67.11 51.61 12.87 38.74 15.50
2007 69.52 58.64 13.43 45.21 10.88
2008 71.93 51.34 13.81 37.53 20.59
2009 76.74 54.27 14.27 40.00 22.47
2010 79.14 64.34 15.86 48.48 14.80
2011 82.44 62.25 16.45 45.80 20.19
2012
2013
56.95 46.89 12.19 34.70 10.06

AVERAGE
82% 26% 74% 18%
of Demand of Supply of Supply of Demand
Planning & Management Services Department

The Dairy Road Map Guide
Dairy development is about “building the local dairy industry through the
development of dairy business enterprises owned and managed by dairy
cooperatives and/or dairy federations in respective dairy zones”.
A dairy zone is the basic building

unit of the local dairy industry in
the Philippines. It is considered
full-fledged if it has a foundation
stock of 300 dairy animals
distributed to about 100 farmers
who are mostly household-based
dairy producers located within a
30-kilometer radius of an urban
center linked by a system of milk
collection and an enterprise than
handles the processing and
marketing of milk and milk-based
products.
In the right table, LEVEL Main Entities Main Products

Raw Milk
the integration of Production Dairy Farmers
Dairy Animals
the four levels of Dairy Farmers
Tested/
Collection Primary Coops or
dairy operations Dairy Federations
Pooled Raw Milk
(production, Primary Coops or

Fresh Milk and
Processing Dairy Federations
collection, Private Processor
Milk Products
processing and Primary Coops or

Fresh Milk and
Marketing Dairy Federations
marketing) is Private Processor
Milk Products
illustrated.
And in the next six years, the NDA is going to track on the infusion of about
60,000 dairy animals for the expansion of the existing dairy zones as well as
the opening of new dairy areas. Animal infusion will come from the
importation of about 10,000 head of live dairy animals and the production
of about 50,000 genetically upgraded dairy cattle out of the more than
three million beef cattle in the country.
Parallel to animal infusion is hitting the right track towards commercial

marketing of fresh milk and premium milk products to meet the various
needs of institutional markets. While doing this, the Milk Feeding Program

will be pursued in collaboration with the Departments of Education, Social

Welfare and Development and Health, local government units and other
political parties, foundations and welfare groups.
Dairy enterprise development programs will continue to be in place in

support to the above programs. These include, but not limited to, milk
quality assurance, infrastructure development, continuous education and
training, technical services and dairy systems development, cooperative
and enterprise development, research and development and public-
private partnerships.
OBJECTIVES
The main objective is to gain significant sufficiency level in the Ready to
Drink (RTD) Milk Market from the present 20% to more than double (43%)
by 2016.
PARAMETERS 2010 2011 2012 2013 2014 2015 2016
TOTAL MILK DEMAND*

(BLiters) 1.77 1.80 1.84 1.87 1.90 1.94 1.97
RTD SHARE (%) 4.5% 4.6% 4.7% 5.0% 5.1% 5.3% 5.6%
RTD DEMAND
(MLiters)
79.14 82.44 87.38 92.57 98.02 103.73 109.68
RTD MILK SUPPLY

(MLiters)
64.34 62.25 53.18 66.05 89.10 95.19 101.62
DEMAND-SUPPLY GAP
(MLiters)
14.80 20.19 34.20 26.52 8.93 8.54 8.07
GAP RATE (%) 23% 12% 64% 40% 9% 8% 7%

RTD Milk Imports
(MLiters)
48.48 45.80 34.73 46.59 52.08 53.28 54.46
LOCAL MILK PRODUCTION

(MLiters)
15.86 16.45 18.45 19.46 37.02 41.90 47.16
LOCAL MILK SHARE

(% of Supply) 25% 26% 35% 29% 42% 44% 46%
LOCAL MILK SUFFICIENCY
(% of Demand) 20% 20% 21% 21% 38% 40% 43%
*Projected Milk demand was derived on the latest milk caput per province as gathered
from the Family Income and Expenditures Survey 2006 (see Milk Caput Table)

Other objectives we want to achieve by 2016 are the following:
a. Reduce the RTD milk demand-supply gap to a single digit level by

2016;
b. Increase the dairy herd to about 55,000 head and triple the daily milk
output to 131 tons per day.
c. Create some 22,000 rural jobs and generate family incomes of about
P500 per day per farmer from dairying.
d. Involve some 100,000 dairy farm families in active dairy zones in crop-
dairy systems, and dairy-related enterprises including forage
production, breeding services, calf rearing, heifer care, feed mixing,
milking equipment fabrication and maintenance, milk distribution
dealerships and others.
e. Facilitate the setting up of P300M Dairy Credit Opportunity Window

(D‟COW) to support the investment initiatives of the private and public
sector on dairy business.
f. Facilitate the setting up of P150M Buy Back Fund for the procurement
of upgraded dairy animals and local dairy crossbreds in support to
massive upgrading/crossbreeding program.
g. Institute the Milk Trust Fund to ensure timely milk payments to dairy
farmers serving the milk feeding projects.
h. Firm up the cost-sharing arrangement for milk feeding activities with

local government units and allied partners.
i. Establish and operate viable dairy businesses that will showcase good
farming and manufacturing practices under a public-private joint
venture arrangement; such as, but not limited to DFO (Dairy Farm
Operations) that will serve as a major source of local born dairy
animals as well as marketing systems that will ensure the marketing of
milk and milk products including by-products.

Below are the annual targets of the dairy road map per major program:
PERFORMANCE
2010 2011 2012 2013 2014 2015 2016
INDICATOR
Market
Alliance 1 3 5 7 10 12 15
Firmed-up
MILK
Captive Local
MARKET 26% 34% 36% 39% 42% 44% 46%
Milk Share (%)
DEVT
Captive
Premium Milk
3% 3% 4% 4% 5% 5% 6%
Products
Share (%)
Growth Target 9.1% 3.7% 15.3% 14.6% 13.9% 13.2% 12.5%

Milk
Production 11.15 11.56 28.38 32.51 37.02 41.90 47.16
(M liters)
Daily Milk
31.00 31.67 78.84 90.31 102.83 116.39 131.00
Yield (Tons)
MILK & Milking Herd
HERD 5,747 5,861 22,844 23,710 24,478 25,142 25,701
(Head)
BUILD-UP
Daily Milk
Yield Per Cow 5.31 5.40 5.60 6.27 7.02 7.87 8.81
(Liters/day)
Infusion 500 4,000 1,100 1,100 1,100 1,100 1,100
Upgraded 1,718 2,616 10,000 10,000 10,000 10,000 5,000
Dairy Herd 24,211 26,014 48,956 50,836 52,513 53,974 55,218
Public-Private
Breeding
DAIRY 2 4 7 10 12 15 15
Farms
ENTERPRISE Operating
DEVT
Dairy Zones
20 25 40 60 80 100 100
Operating
Children Milk
NATIONAL Fed 0.071 0.022 0.850 0.900 0.950 1.000 1,000
MILK (M kids)
FEEDING Rehabilitation
90% 90% 90% 90% 90% 90% 90%
Rate

STRATEGIES
To attain the above objectives and targets, we will apply the BUILD-UP* strategy:
B uy more animals. We will need to infuse utmost 10,000 dairy animals within the
next 5 years to build the desired milking herd of about 55,000 head of cattle,
buffalo and goat producing 47 million liters of milk by 2016 capturing 43% of the
liquid milk market. Also, we will maximize the potential dairy animals from our
existing livestock population via the upgrading program.
U pgrade local animals. These upgrading efforts will be in consonance with the
Dairy Cattle Genetic Program and will be done in collaboration with Local
Government Units and Contract Breeding Arrangements will be pursued with
beef cattle ranches and farms.
I nvite Private-Public Partnership. The establishment of dairy breeding farms will

be a public- private endeavor whereby the land and the dairy animals will be
provided by the government while the private partner will provide for the
management and operating expenses. The government will also be networking
with active private associations like the Philippine Chamber of Commerce &
Industries in the establishment of processing facilities, marketing systems and
operation of viable dairy businesses.
L Ighten the credit burden by crafting special credit window and augmenting
the Dairy Credit Fund. The existing Dairy Credit Facility which now stands at
P50M will be augmented to about P300 Million for post harvest and market
facilities as well as a buy back assurance of dairy animals from upgrading
program and local breeding farms.
D evelop more Dairy Zones for rural growth. The current 19 dairy zones all over
the country will be expanded and more new dairy zones will be opened up
creating more rural employment and boosting economic growth.
U nify efforts of government and non-government agencies. Government

agencies such as Livestock Development Council, Philippine Carabao
Center, Bureau of Animal Industry and the National Dairy Authority will join
resources in developing the local dairy industry in collaboration with the Dairy
Confederation of the Philippines, Philippine Chamber of Commerce & Industries,
Academic Institutions and social-civic groups.
P romote the consumption of locally produced milk and premium milk products
in order to encourage investment in production, processing, marketing and
distribution and thus help sustain the health and economic contribution of dairy
to rural and national development

CRITERIA FOR MEASURING PROGRESS

Based on the identified objectives, the following criteria shall be used to
measure the achievements of the Dairy Sector:
Enhanced Food Security. A dairy farmer and his family are assured of
meeting the recommended daily allowance for calcium and protein
intake by providing them cheap access to milk which the farmer himself
harvests daily. On the other hand, the dairy farmers supply the milk
requirement for milk feeding activities.
At the end of the program, more than 1,000,000 children beneficiaries

nationwide will be served at a target improvement rate of not lower than
90% is projected to be reached.
Improved Poverty Alleviation and Social Equity. The Dairy RoadMap will
create 22,000 full-time rural jobs within the covered period. This provides
thousands of members of the rural population to improve their quality of
life by engaging in dairy-related activities. For the next six (6) years,
projected employment generated is as follows:
Employment Generation
Dairy RoadMap 2010-2016
PARTICULARS 2010 2011 2012 2013 2014 2015 2016
ON FARM
JOBS
4,269 6,840 7,884 9,031 10,283 11,639 13,100
EX-FARM JOBS 2,989 4,788 5,519 6,322 7,198 8,147 9,170
TOTAL DAIRY
7,258 11,629 13,402 15,353 17,481 19,787 22,270
JOBS
Enhanced Income and Profitability. A dairy farmer with a 5-cow module

will generate for him a family income of about P500 (3 milking cows x 8
liters/cow x P20/liter) per day from dairying. In a dairy zone complete with
processing and marketing facilities, several employment opportunities are
made available in various forms which translate to income generated by
our rural communities.

Enhanced Sustainability. The implementation of milk feeding activities

ensures that the program will be carried out continuously by instituting a
cost-sharing scheme with local government units and other sponsors. The
limited budget for the MFP is augmented by funds coming from
sponsorships of LGUs and allies in the industry.
Within the development period, a Milk Trust Fund will have been
established intended to generate matching funds for milk feeding
programs. This will ensure that farmers who supply milk to the MFP will
receive timely payments for their milk produce. In so doing, it further
enhances the market for raw milk coming from dairy cooperatives as they
simultaneously develop commercial niches for Philippine-made dairy
products.
Below is the working logical framework for the Dairy Road Map 2010-2016:
MAJOR FINAL
Objectively Verifiable Indicators Means of Verification
OUTPUTS
Per capita Milk consumption in dairy

zones as against Per capita RDA Dairy Project Area
Enhanced Food Profile
Increased Dairy Herd & Milk Production
Security
Expanded Milk Feeding Coverage
MFP Terminal reports
Nutrition improvement rate
Improved Poverty NDA Annual Report
Employment generated from dairying and
Alleviation and Accomplishment
dairy-related activities
Social Equity Reports
Number of dairy enterprises and farmers
Dairy Zone Profiles
engaged in dairying
Enhanced
Income and Average family income earned by dairy
Profitability farmers Family Income &
No. of dairy farmers with daily cash flow of Expenditure Survey
P500/day
Milk Fund Report &
Milk Trust Fund generated
Bank Statements
Regular Sponsorship in Milk Feeding NDA Annual Report
Enhanced activities MFP Terminal reports
Sustainability
Consultation/Dialogue
Identified and Defined Market
& Alliance with
Channels/Value Chains
Stakeholders

C ONTRIBUTION TO PHILIPPINE AGRICULTURE & ECONOMY
Investments on the development of the Philippine dairy industry usher in

an increase in rural economic activities with the active trading of milk,
animals and farm inputs as well as an increase in the demand for farm
labor, banking, transport, milk handling and other logistical services.
Improvement in the nutritional status and milk food supply of the dairy
communities is assured as farmers are encouraged to keep milk for home
consumption, encouraging members of their families to drink milk or use it
for day-to-day cooking. At the same time, neighbors are expected to
patronize local milk produce. The local governments units (LGUs) and
other entities would have likewise invested in the nutritional needs of
children constituents through milk feeding programs. In turn, these milk
feeding programs develop a taste for milk and act as market propellers
for the milk produce.
Steadily, albeit modest, dairy has contributed 4% to livestock growth and

will significantly contribute more should appropriate funding be made
available.
Volume- „000 MT Value – million Pesos

Livestock
Sector % %
2010 2011 2010 2011
Growth Growth
Carabao 148.02 147.52 -0.34% 10,044.64 10,118.40 0.73%
Cattle 251.75 256.26 1.79% 20,583.08 21,466.90 4.29%
Hog 1,898.16 1,940.35 2.22% 172,049.22 173,079.22 0.60%
Goat 78.45 78.20 -0.32% 7,306.33 7,708.17 5.49%
Dairy 15.86 16.45 3.72% 481.83 498.93 3.55%
On top of all these, about $1B dollars can be saved through the increase
in local milk production and reduction of milk importation and would thus
contribute to the creation of more stimuli for economic growth in the
country.
Clearly, dairying contributes to increasing farm incomes thus reducing

rural poverty incidence, nutritional upliftment, household food security,
employment generation and instilling discipline among dairy farmers in
producing high quality milk on time and dollar savings. It is progressing as
far as its dairy animal resources can support and will continue to do so.

IMPLEMENTABLE PROGRAMS
 A Market Development Program (MDP) that will promote and
institutionalize marketing partnerships among government, non-
government organizations, milk/food companies and local dairy
cooperatives as a concrete mechanism to support the public-private
partnership (PPP) thrust of the current administration.
 A National Milk Feeding Program that promotes cost-sharing with local

government units to attain the twin objectives of addressing
malnutrition and at the same time, creating livelihood opportunities
that build the asset base and increase farm incomes. For sustainability,
the dairy enterprise is assured of a stable market in its early stages of
development thereby ensuring prompt payment for milk. Partner LGUs
are invited to establish a co-managed Milk Trust that will pay for local
milk feeding programs.
 A Herd Build-Up Program via the implementation of unique projects like

Dagdag-Hayop (Animal Infusion), Sagip-Hayop (Save-the-Herd), and Palit-
Hayop (Animal for Animal) that will accelerate animal trading among
dairy entrepreneurs. This will incorporate calf rearing/grow-out schemes,
cow/heifer management and impregnation schemes; and, the
upgrading of local animals. To ensure the flow of transactions that will
direct the animals to those who find dairying more profitable, the NDA is
working out with financing institutions the appropriate guidelines that will
make financing accessible to these various schemes. A feature
appreciated by participating dairy farmers is the repayment-in-kind that
allows them to pay for a dairy animal loan with another dairy animal.
Hence, dairy genetics are preserved and the continuous local sourcing of
dairy animals is enhanced.
 A Dairy Enterprise Development Program that will enhance farmers‟

income from rice, coconut and other crops through crop-dairy systems.
This program focuses on farmer profitability that will promote earning daily
cash flows through direct milk sales at the farm level and generate the
“weekly milk payroll” for dairy farmers at the enterprise level. On a higher
scale, a product development and marketing program will help launch
premium, high-end products for enhanced commercialization given
efficient design and utilization of dairy facilities and established milk
standards. Through this, a stronger leverage is gained in promoting the
absorption of local milk production by commercial processors and
institutional milk markets.

NDA PLANNING DEPARTMENT/APRIL2011

OPERATIONAL DESCRIPTION
This Market Development Program will be the leading component of dairy development for the
next five years. The Program aims to adopt a market-led strategy and firmly establish the
marketability of the locally produced milk. The assurance of an expanding market of dairy
products will serve as an incentive for farmers to seriously consider investing resources and time
into the dairy business. To do this, a nationwide milk education campaign will be launched to
substantially increase the demand and market for fresh milk. Milk Marketing Agreements (MMA)
will be crafted between and among the local and national distribution networks of milk and milk
products after conducting major Stakeholders Fora nationwide. All agreements will be at the
ambit of public-private-partnership (PPP) that is being promoted and encouraged by the
present administration.
Comprehensive marketing activities will be operationalized that cover the social and
commercial markets (institutional and retail) in major dairy producing areas. For the Barangay &
School Milk Marketing, the initiatives/support of the local government units (LGU) and the social
group (NGO) shall be encouraged and institutionalized. Operational strategies may be the
issuance of local milk ordinances, the conduct of drink-milk-a-day campaign and adoption of 1-
child-1-milkglass policy per dairy area. Collaborative efforts and development assistance from
the industry supporters coming from local and foreign entities will be worked out. The NDA‟s role
will center on the provision of technical and logistical support to dairy farmers and distributors
i.e., the establishment of milk depos in strategic locations.
Consistent with their Corporate Social Responsibility (CSR) objectives, the commercial milk sector
will be tapped and enjoined to promote local milk consumption and support the Buy Pinoy Milk
Campaign. Parallel to this is the nationwide promotion of OPM Package (Original Pinoy Milk
Seal) for all major dairy cooperative producers.

This Enterprise Development Program will be the main component of the five year dairy
development program. The Program will ensure the viability and sustainability of the local dairy
enterprises for the economic upliftment of the rural farm families and those that depend on it. To
attain this, Capacity Building and Business Development Assistance Agreements will be provided
to local dairy cooperatives to enhance the knowledge, skills and attitude of our farmers on
enterprise development and business management. Emphasis will be directed in changing the
traditional orientation and values of farmers to achieve sustainability in the emerging dairy
enterprises. All agreements will be at the ambit of Public-Private-Partnership (PPP) that is being
promoted and encouraged by the present administration.
Specific training and development assistance will focus on building farmers‟ value and
character formation, enhancing social responsibilities, group accountabilities and cohesiveness,
and elevating socio-business commitment. In all phases of intervention, the quality assurance
principle will be an integral component. NDA‟s and the public sector‟s role is to ensure that the
necessary technical and infra-structure support is made available when needed.
Delivery of service and assistance is aimed at empowering dairy cooperatives as social

enterprises that positively interact with the business world. When they become fully aware of
their important roles and contributions in propelling rural growth, mastery of the various phases of
dairy business will come out naturally and thus, sustainability of their dairy activities is ensured.

This Herd Build-up Program will be the base component of five-year dairy development
program. The Program will help increase the number of dairy animals in the country thru
Various Animal Contract Agreements (VACA). To achieve this, workable schemes will be
provided to local dairy producers. Dairy animal importations will continue as a fast-track
mechanism to increase the dairy base herd, however, the Dairy Multiplier Farms will be
the mechanisms for the future sources of island born dairy animals. Upgrading the local
cattle population will still be the central program to increase the dairy base herd. The
NDA needs to set-up a fund for the Buy-Back Scheme to be able to secure the promising
upgraded animals. A Female Calf rearing Scheme will be established to ensure that F1s
are properly reared and prepared for further cross-breeding and production of full
pledge local dairy breed. All agreements will be at the ambit of public-private-
partnership (PPP) that is being promoted and encouraged by the present administration.
Specific schemes for deployment are Animal Infusion via importation of dairy animals
(Dagdag-Hayop); operation of Dairy Multiplier Farms (Alaga Mo-Sagot Ko); local
upgrading thru artificial insemination (sexed semen) and bull breeding and other
practical/economical breeding technologies (Gandang-Lahi) with calf-rearing farm
operations (Bantay-Lahi); and, dairy animal distribution (Palit-Baka) arrangements.
Basic inputs will be provided at cost by the government while the partner-operators will
put up the rest of the production requirements. The needed technical assistance such as
veterinary services, animal health & breeding services, farm services, milk quality testing
and the like, shall remain available.

BUDGET REQUIREMENT
Annual budget needed is approximately P2.41B as shown below:
Value in Million Pesos
PARTICULARS BASIS 2010 2011 2012 2013 2014 2015 2016 AVERAGE
children beneficiaries
SOCIAL MARKETING (M)
0.775 0.800 0.850 0.900 0.950 1.000 1.000 0.896
(Milk Feeding)
@P1,200.00/child 930.00 960.00 1,020.00 1,080.00 1,140.00 1,200.00 1,200.00 1,075.71
COMMERCIAL MARKETING Alliance Firmed up 1 3 5 7 10 12 15 8
(Fresh Milk & Premium Milk
Products) @P30M/alliance 30.00 90.00 150.00 210.00 300.00 360.00 450.00 227.14
Imported Animals 500 4000 1100 1100 1100 1100 1100 1429
DAIRY ANIMAL INFUSION
@P0.130M/head 65.00 520.00 143.00 143.00 143.00 143.00 143.00 185.71
Animals Upgraded 5,000 10,000 10,000 10,000 10,000 5,000 8,333
LOCAL ANIMALS UPGRADING
@P5T/head 25.00 50.00 50.00 50.00 50.00 25.00 41.67
@20% harvest rate 1,000 2,000 2,000 2,000 2,000 1,000 1,667
BUY-BACK FUND
@P75T/head 75.00 150.00 150.00 150.00 150.00 75.00 125.00
Private-Public Partnerships PPP set up/run 2 4 7 10 12 15 15 9
Promotion & Mobilization @P15M/PPP 30.00 60.00 105.00 150.00 180.00 225.00 225.00 139.29
Credit Augmentation Fund P300M/year 50.00 300.00 300.00 300.00 300.00 300.00 300.00 264.29
SUB-TOTAL 1,105.00 2,030.00 1,918.00 2,083.00 2,263.00 2,428.00 2,418.00 2,058.81
Program Management Cost 10% Thereof 110.50 203.00 191.80 208.30 226.30 242.80 241.80 205.88
General Administration 7% Thereof 77.35 142.10 134.26 145.81 158.41 169.96 169.26 144.12
TOTAL 1,292.85 2,375.10 2,244.06 2,437.11 2,647.71 2,840.76 2,829.06 2,408.81

IMPLEMENTING AGENCIES
LEAD AGENCY NATIONAL DAIRY AUTHORITY
 LIVESTOCK DEVELOPMENT COUNCIL
 PHILIPPINE CARABAO CENTER
 BUREAU OF ANIMAL INDUSTRY
COOPERATING
 DAIRY RESEARCH & TRAINING INSTITUTE
AGENCIES  DAIRY CONFEDERATION OF THE PHILIPPINES
 PHILIPPINE CHAMBER OF COMMERCE & INDUSTRY
 PHILLIPINE ASSOCIATION OF FOOD MANUFACTURERS

references
PHILS 20.37
REGION
MILK CAPUT MILK CAPUT TABLE 2006
(LITERS/YR)
NCR 34.91
QUIRINO 15.27
BATANGAS 24.60
AKLAN 14.89
CAVITE 24.60
ANTIQUE 14.89
LAGUNA 24.60
CAPIZ 14.89
MARINDUQUE 24.60
GUIMARAS 14.89
OCC MINDORO 24.60
ILOILO 14.89
OR MINDORO 24.60
NEGROS OCC 14.89
PALAWAN 24.60
BOHOL 14.29
QUEZON 24.60
CEBU 14.29
RIZAL 24.60
NEGROS OR 14.29
ROMBLON 24.60
SIQUIJOR 14.29
Compostela Valley 20.94
ISABELA CITY 13.12
DAVAO 20.94
ZAMBOANGA DEL NORTE 13.12
Davao Del Sur 20.94
ZAMBOANGA DEL SUR 13.12
Davao Oriental 20.94
ZAMBOANGA SIBUGAY 13.12
AURORA 19.94
BUKIDNON 11.62
BATAAN 19.94
CAMIGUIN 11.62
BULACAN 19.94
LANAO DEL NORTE 11.62
NUEVA ECIJA 19.94
MISAMIS OCC 11.62
PAMPANGA 19.94
MISAMIS OR 11.62
TARLAC 19.94
Agusan Del Norte 10.56
ZAMBALES 19.94
Agusan Del Sur 10.56
ABRA 17.94
Surigao Del Norte 10.56
APAYAO 17.94
Surigao Del Sur 10.56
BENGUET 17.94
BILIRAN 10.30
IFUGAO 17.94
EASTERN SAMAR 10.30
KALINGA 17.94
LEYTE 10.30
MT PROVINCE 17.94
NORTHERN SAMAR 10.30
ILOCOS NORTE 16.20
SAMAR 10.30
ILOCOS SUR 16.20
SOUTHERN LEYTE 10.30
LA UNION 16.20
Cotabato 9.86
PANGASINAN 16.20
Cotabato City 9.86
ALBAY 15.46
Saranggani 9.86
CAMARINES NORTE 15.46
South Cotabato 9.86
CAMARINES SUR 15.46
Sultan Kudarat 9.86
CATANDUANES 15.46
BASILAN 8.74
MASBATE 15.46
Lanao Del Sur 8.74
SORSOGON 15.46
Maguindanao 8.74
BATANES 15.27
Sulu 8.74
CAGAYAN 15.27
Tawi-Tawi 8.74
ISABELA 15.27
NUEVA VIZCAYA 15.27
Source: Family Income & Expenditure Survey 2006

references
Million Liters READY-TO-DRINK MILK TREND

140.00
(WITH INTERVENTION)
120.00 DEMAND LINE
y = 0.077x2 + 1.867x + 31.84
100.00
SUPPLY LINE
80.00
IMPORT LINE
60.00 y = 12.79x0.468
40.00
20.00 LOCAL LINE

y = 0.180x2 - 2.646x + 17.69
-
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020

references
DISTRIBUTION MAP 2010

DAIRY PRODUCING AREAS

references
DISTRIBUTION MAP 2010

DAIRY FARMERS

references
DAIRY PERFORMANCE INDICATORS

INDICATORS 2010 2011 2012 2013 2014 2015 2016
POPULATION 93.90 95.61 97.35 99.12 100.93 102.77 104.45

Population Growth 1.80% 1.82% 1.82% 1.82% 1.82% 1.82% 1.64%
FRESH MILK CAPUT (kg/yr) 0.69 0.65 0.90 0.93 0.97 1.01 1.05
%RDA (1.36kg/yr) 50% 48% 66% 69% 71% 74% 77%
ESTIMATED TOTAL RTD MILK
79.14 82.44 87.38 92.57 98.02 103.73 109.68
DEMAND (MLITERS)
DEMAND GROWTH 3.1% 4.2% 6% 6% 6% 6% 6%
ESTIMATED TOTAL RTD MILK
64.34 62.25 77.95 83.36 89.10 95.19 101.62
SUPPLY (MLITERS)
SUPPLY GROWTH TARGET 19% -3% 7% 7% 7% 7% 7%
DEMAND-SUPPLY GAP 14.80 20.19 9.43 9.22 8.93 8.54 8.07
GAP RATE 23% 32% 11% 10% 9% 8% 7%
TOTAL RTD MILK SUPPLY
81% 76% 89% 90% 91% 92% 93%
SUFFICIENCY
RTD IMPORTS 48.48 45.80 49.57 50.84 52.08 53.28 54.46
Import Growth Rate 21.2% -5.5% 2.7% 2.6% 2.4% 2.3% 2.2%
LOCAL MILK OUTPUT (MLITERS) 15.86 16.45 28.38 32.51 37.02 41.90 47.16
Cattle Share 62% 63% 71% 71% 71% 71% 71%
CATTLE 9.87 10.4 20.15 23.08 26.28 29.75 33.48
CARABAO 5.70 5.82 7.82 8.96 10.20 11.54 12.99
GOAT 0.19 0.23 0.41 0.47 0.54 0.61 0.68
PRODUCTION GROWTH TARGET 11.1% 3.7% 15.3% 14.6% 13.9% 13.2% 12.5%
LOCAL MILK SUPPLY
20% 20% 32% 35% 38% 40% 43%
SUFFICIENCY
LOCAL MILK SHARE 25% 26% 36% 39% 42% 44% 46%
LOCAL MILK VALUE (MPESOS) 481.83 498.93 690.64 838.99 1,112.30 1,325.55 1,567.65
CATTLE 224.38 234.80 318.77 385.72 479.00 584.09 703.09
CARABAO 250.80 256.08 364.58 444.39 620.88 726.92 847.61
GOAT 6.65 8.05 7.29 8.89 12.42 14.54 16.95
RURAL FAMILIES BENEFITTED 36,290 58,144 67,012 76,766 87,406 98,933 111,346
TOTAL JOBS CREATED 7,258 11,629 13,402 15,353 17,481 19,787 22,269
ON-FARM JOBS 4,269 6,840 7,884 9,031 10,283 11,639 13,100
EX-FARM JOBS 2,989 4,788 5,519 6,322 7,198 8,147 9,170
LAND DEVELOPED 6,473.33 8,280.80 8,588.88 8,855.36 9,075.46 9,246.78 9,368.77

references
DAIRY PERFORMANCE INDICATORS

INDICATORS 2010 2011 2012 2013 2014 2015 2016
DAILY MILK YIELD (TONS) 44.06 45.69 78.84 90.31 102.83 116.39 131.00
CATTLE 27.42 28.89 55.97 64.12 73.01 82.64 93.01
CARABAO 15.83 16.17 21.72 24.88 28.33 32.07 36.09
GOAT 0.53 0.64 1.14 1.31 1.49 1.69 1.90
BEGINNING MILKING ANIMALS 15,891 16,933 21,892 22,844 23,710 24,478 25,142
ANIMAL INFUSION 1,042 5,436 1,798 2,617 3,509 3,509 3,496
IMPORTS 469 869 1,100 1,100 1,100 1,100 1,100
HARVEST UPGRADES 1,000 2,000 2,000 2,000
NORMAL BUILD UP 132 1,018 698 517 409 409 396
DRY ANIMALS 477 847 1,751 2,741 2,845 2,937
ENDING MILKING ANIMALS 16,933 21,892 22,844 23,710 24,478 25,142 25,701

references
MAJOR PROGRAMS & ACTIVITIES ACCOMPLISHED

Since its operation, NDA has been contributing to the modest gains of the local
dairy sector by building up dairy cooperatives, promoting rural livelihood and
driving growth, helping save foreign exchange, and the like. Dairy has
contributed to increasing farmers‟ productivity and incomes, created more
employment opportunities in the countryside and has made milk and milk
products available and affordable to local consumers.
 DAIRY COOPS BUILDER. Almost

three-fourths (73%) of the national
milk output is now produced by
our own local dairy cooperatives
growing significantly from its NATIONAL
contribution of 22% in 1995. This
clearly shows that given the right LOCAL COOPS
support from the government, the

local dairy can be capable of
producing the liquid milk that the
country needs even just to support the vulnerable group.
Table 1
Milk Contribution of NDA-Assisted Dairy Coops to National Production
1995-2012 (In Million Liters)
National Local Coops
Year % Share
Output Output
1995 12.58 2.75 22%
1996 11.50 2.33 20%
1997 10.22 1.98 19%
1998 9.24 2.59 28%
1999 9.85 2.77 28%
2000 10.21 3.23 32%
2001 10.80 3.99 37%
2002 11.00 4.99 45%
2003 11.25 5.92 53%
2004 11.61 7.01 60%
2005 12.34 7.91 64%
2006 12.87 8.52 66%
2007 13.43 9.27 69%
2008 13.81 9.67 70%
2009 14.27 10.22 72%
2010 15.86 11.14 70%
2011 16.45 11.56 70%
2012 18.45 13.50 73%
AVERAGE 12.50 6.63 53%

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 GROWTH DRIVER & LIVELIHOOD PROMOTER. The local dairy industry is a
contributor to rural progress as manifested by the growing confidence of
more than 134 dairy cooperatives to dairy as a reliable farming and
enterprise business. More than 10,000 rural farmers along with their household
members are involved in dairy production as their source of livelihood. In
2011, more than P120M income from sale of milk was generated by dairy
cooperatives and federations.
Table 2
NOTED GROWTH ACHIEVED 1995-2011
NDA DIRECT INTERVENTION
Earnings Milk
Dairy Milk
from milk Dairy Production
YEAR Farmers Production
sales Herd per day
Involved (Mliters)
(MPesos) (Tons)
1995 28.54 1,975 6,346 2.75 7.65
1996 28.75 2,003 5,907 2.33 6.46
1997 27.18 4,571 5,798 1.98 5.51
1998 27.63 4,433 5,166 2.59 7.21
1999 23.88 4,966 4,897 2.77 7.68
2000 25.27 6,106 7,117 3.23 8.98
2001 33.81 4,743 5,868 3.99 11.08
2002 41.62 4,641 7,818 4.99 13.86
2003 56.92 5,585 9,893 5.94 16.50
2004 71.98 9,462 11,580 7.01 19.47
2005 104.69 9,492 12,874 7.91 21.97
2006 105.77 10,947 16,771 8.52 23.67
2007 119.04 11,013 17,785 9.27 25.40
2008 125.83 11,814 20,221 9.67 26.86
2009 118.41 11,802 23,610 10.22 28.00
2010 134.95 11,815 24,211 11.14 30.53
2011 121.79 10,143 26,014 11.56 31.66
2011/1995
GROWTH 4.27 5.14 4.10 4.20 4.14
RATIO

references

 DOLLAR SAVER. For the
economy, every additional liter
of milk produced saves the RTD IMPORTS
1,254.93
country some foreign 80%
exchange. The local dairy

industry has now produced one
out of four glasses of liquid milk.
This simply means that 20% of
the total liquid milk value
LOCAL MILK
304.82
(P1.62B) or equivalent to P400M 20%
was actual savings realized.
 DAIRY ZONE LEADER. Active dairy areas now cover 44 provinces with 15
dairy zones in-place throughout the country. These dairy zones are
located in Bulacan, Nueva Ecija, Zambales, Batangas, Laguna/Quezon,
Camarines Sur, Albay/Sorsogon, Baguio, Iloilo, Negros Occidental, Cebu,
Misamis Oriental/Bukidnon, Zamboanga del Norte, Lanao del Norte and
Davao del Sur.
 DAIRYLAND TRANSFORMER. Dairy is transforming idle lands into dairy

pasture areas as the current standing dairy stocks now utilize 3,395
hectares of pasturelands. Relatively, some 8.49 hectares of these lands
are now used to support the operation of mini-dairy processing plants
and/or milk cooling facilities.
 JOB SECURITY PROVIDER. Some 12,000 farm and off-farm jobs are being
generated/secured through various dairy activities, from farming to
processing to distribution.

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 OPERATION EFFICIENCY. NDA has managed to give positive returns on
every peso that the government spent for dairy development since 1998.
The local dairy sector was able to generate annually more than P860M
worth of the combined production value of the standing dairy stocks and
actual milk produced
Table 3
BENEFIT-COST RATIO
DAIRY SECTOR DEVELOPMENT
BENEFITS/
COST
YEAR COST BENEFITS
RATIO
(BCR)
1998 127.21 248.57 1.95
1999 64.29 235.67 3.67
2000 138.20 328.22 2.37
2001 120.55 316.11 2.62
2002 91.05 385.55 4.23
2003 72.26 479.90 6.64
2004 80.04 585.34 7.31
2005 73.85 672.05 9.10
2006 115.11 920.72 8.00
2007 87.57 1,099.69 12.56
2008 134.37 1,282.09 9.54
2009 96.15 1,580.49 16.44
2010 131.71 1,843.71 14.00
2011 137.03 2,166.69 15.81
AVERAGE 104.96 867.49 8.27

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UPDATED

National Dairy Authority

The Philippines‟ Dairy Road Map 2010-2016 is designed to serve as the

56.95 46.89 12.19 34.70 10.06

Planning & Management Services Department

The Dairy Road Map Guide

A dairy zone is the basic building

In the right table, LEVEL Main Entities Main Products

(production, Primary Coops or

processing and Primary Coops or

Parallel to animal infusion is hitting the right track towards commercial

Planning & Management Services Department

will be pursued in collaboration with the Departments of Education, Social

Dairy enterprise development programs will continue to be in place in

PARAMETERS 2010 2011 2012 2013 2014 2015 2016

TOTAL MILK DEMAND*

RTD MILK SUPPLY

GAP RATE (%) 23% 12% 64% 40% 9% 8% 7%

LOCAL MILK PRODUCTION

LOCAL MILK SHARE

Planning & Management Services Department

Other objectives we want to achieve by 2016 are the following:

a. Reduce the RTD milk demand-supply gap to a single digit level by

e. Facilitate the setting up of P300M Dairy Credit Opportunity Window

h. Firm up the cost-sharing arrangement for milk feeding activities with

Planning & Management Services Department

Growth Target 9.1% 3.7% 15.3% 14.6% 13.9% 13.2% 12.5%

Planning & Management Services Department

I nvite Private-Public Partnership. The establishment of dairy breeding farms will

U nify efforts of government and non-government agencies. Government

Planning & Management Services Department

CRITERIA FOR MEASURING PROGRESS

At the end of the program, more than 1,000,000 children beneficiaries

Enhanced Income and Profitability. A dairy farmer with a 5-cow module

Planning & Management Services Department

Enhanced Sustainability. The implementation of milk feeding activities

Per capita Milk consumption in dairy

Planning & Management Services Department

C ONTRIBUTION TO PHILIPPINE AGRICULTURE & ECONOMY

Investments on the development of the Philippine dairy industry usher in

Steadily, albeit modest, dairy has contributed 4% to livestock growth and

Volume- „000 MT Value – million Pesos

Clearly, dairying contributes to increasing farm incomes thus reducing

Planning & Management Services Department

 A National Milk Feeding Program that promotes cost-sharing with local

 A Herd Build-Up Program via the implementation of unique projects like

 A Dairy Enterprise Development Program that will enhance farmers‟

Planning & Management Services Department

NDA PLANNING DEPARTMENT/APRIL2011

NDA PLANNING DEPARTMENT/APRIL2011

Delivery of service and assistance is aimed at empowering dairy cooperatives as social

NDA PLANNING DEPARTMENT/APRIL2011

NDA PLANNING DEPARTMENT/APRIL2011

TOTAL 1,292.85 2,375.10 2,244.06 2,437.11 2,647.71 2,840.76 2,829.06 2,408.81

NDA PLANNING DEPARTMENT/APRIL2011

NDA PLANNING DEPARTMENT/APRIL2011

Source: Family Income & Expenditure Survey 2006

NDA PLANNING DEPARTMENT/APRIL2011

Million Liters READY-TO-DRINK MILK TREND

20.00 LOCAL LINE