Dairy self-sufficiency forecast at 2% this year

THE National Dairy Authority (NDA) said it is projecting 2% domestic sufficiency in dairy by year’s end following the growth of the dairy herd.

In a statement, the NDA said the outlook is also supported by strong output in the first nine months.

Citing the Philippine Statistics Authority (PSA), the NDA said the dairy herd grew 7.7% to 162,417 head in the nine months to September.

Milk production was 30.59 million liters, up 25.17% from a year earlier, with most of the increase recorded in the third quarter.

The NDA said the herd expansion is accompanied by improvements in animal health, feeding practices, and farm management.

“The Dairy Herd Build-Up Program has been instrumental in expanding the number of dairy animals and milk lines through the implementation of its subprograms — animal breeding, animal health, and animal nutrition programs,” the NDA said.

The NDA also said data on the carabao dairy segment, which is overseen by the Philippine Carabao Center, is reflecting more of the output generated by smallholder farmers.

“This optimism is supported by a favorable policy environment, particularly with the recent enactment of Republic Act (RA) 12308 or the Animal Industry Development and Competitiveness Act, which provides a stronger institutional framework for livestock and dairy development,” the NDA said.

RA 12308 aims to promote the competitiveness of the livestock industry and streamline animal health and breeding programs.

The bicameral conference committee recently approved a P2.38-billion budget for the NDA in 2026, sharply higher than the P531.16 million allocated by the Executive branch in its National Expenditure Program (NEP). The government is relying on domestic milk to supply the Department of Education’s school-based feeding program.

The bicameral conference committee also raised the budget of the Philippine Carabao Center to P2.08 billion, well above its P959.34-million NEP allocation, also to support the milk feeding program.

The US Department of Agriculture forecast Philippine dairy production to grow 3% to 37,000 metric tons in 2026, citing the expanding herd, ongoing government dairy development projects, and rising demand from the milk feeding program. 

The Philippines currently imports about 99% of its dairy needs from countries like the US and New Zealand. The Department of Agriculture has set a target of 5% dairy self-sufficiency within the next two or three years. — Vonn Andrei E. Villamiel