Dairy Industry in the Philippines

The Philippines, located in Southeast Asia, is becoming a significant player in the global dairy industry. The country's efforts are apparent in its increasing dairy cattle population, which currently stands at approximately 615,000, reflecting a commitment to expanding herd sizes to satisfy the growing demand for milk.

Milk Production and Processing

In 2022, the Philippines produced around 24.38 million liters of milk, a growth attributed to improved farming techniques and the introduction of imported dairy cattle breeds. Approximately 23.5 million liters of milk are processed annually, demonstrating strong collaboration between cooperatives and private processing plants to optimize milk output.

Cheese and Milk Powder Production

Cheese production in the Philippines is increasing, with approximately 1,500 metric tons produced annually, catering to both local and export markets. Additionally, the country produces about 4,000 metric tons of milk powder each year, primarily for local consumption, with some quantities exported.

Key Dairy Facilities

Prominent dairy plants in the Philippines include the Alaminos Dairy Cooperative, DVF Dairy Farm, Laguna Creamery, Inc., and the Philippine Carabao Center Dairy Farm. Notable dairy farms encompass the Batangas Dairy Producers Cooperative, Bohol Dairy Cooperative, Gatas ng Kalabaw Farmers Cooperative, and Pantaleon Livestock & Poultry Farm.

Export and Import of Dairy Products

The Philippines exports around 3,000 metric tons of dairy products annually, including cheese, milk powder, and condensed milk, mainly to other Asian markets. To meet domestic demand, the country imports approximately 110,000 metric tons of dairy products each year, such as milk powder, cheese, butter, and UHT milk, with key suppliers being New Zealand, the United States, and Australia.

Recent Events in the Dairy Industry

Fonterra's decision to outsource financial services to Manila underscores the Philippines' increasing role in the global dairy market. The government's Dairy Industry Roadmap 2025 aims to boost local milk production and reduce dependency on imports. The Philippines is a major buyer in the whey market, importing from Ukraine, and has seen a 34% increase in NFDM/SMP exports to Southeast Asia as of September. The country remains a key market for Malaysian palm oil and is among the top importers of South Korean ice cream, with imports worth $1.1 million in July. Darigold, Inc. has re-entered the Philippine consumer market after a 50-year hiatus, and the Spanish brand Yolé has opened its first standalone store in Robinsons Place Manila. The USDA predicts increased demand for key dairy products like whole milk powder and cheese. Despite a 12% decline in US exports to the Philippines due to trade tensions, the Philippines remains one of the largest US export markets. Farm Fresh has established a presence in the Philippines, intensifying its expansion efforts across Southeast Asia. Ace International exports its dairy products, including whey proteins and milk powder, to the Philippines. Mengniu's ice cream brand 'Aice' holds the second position in the ready-to-eat ice cream market, and Feihe has chosen the Philippines as the first stop for its Southeast Asian market entry.

A representative from the ALAFOP Federation of the Philippines participated in a significant event, where the Chairman of the ALAFOP Federation of the Philippines commented on the event's importance for companies seeking industrial automation. The Philippines has emerged as the largest destination for Indonesian dairy products. Indonesia already exports to countries like Hong Kong, the Philippines, and Thailand.

Modified: 2026/05/13

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