Dairy production in the Philippines is expected to increase by 3 percent to 26,800 metric tons (MT) this year from last year’s 26,000 MT, according to the United States Department of Agriculture (USDA).
In a report dated October 17,
USDA said the increase will be driven by the availability of more dairy animals and the active implementation of the government’s dairy development projects geared towards increasing milk production.
The agency said these projects are also seen to contribute to improvement in milk yield among dairy cattle.
Despite the expected growth in local production, the USDA said the Philippines cannot meet requirements which reached 3 million MT last year.
The agency also expects the Philippines’ dairy consumption this year to grow due to infrastructure investments particularly in cold chain facilities, supermarkets and display areas as well as the government’s milk feeding program in schools that catered to as much as 3.2 million beneficiaries.
Imports are seen growing this year from last year’s 3.04 million MT as the economy reopens.
“The Philippines supplies only one percent of its total dairy requirement, which makes it a competitive market for imported dairy products. The United States and New Zealand are the top two suppliers, the US being the leader,” the report said.
The report warned prices of dairy products will increase as supply problems and ongoing logistics challenges influence costs shouldered by consumers.
Importers cite scarce vessel space, delays, high freight rates and container shortages.
USDA said dairy importers will continue to ship imported dairy products to meet the country’s increasing demand for dairy products especially for milk, cream, butter, cheese and curd.
