Dairy Industry in the Philippines

The Philippines, strategically located in Southeast Asia, is becoming a pivotal participant in the global dairy market. The country's dairy cattle population has reached approximately 615,000, as part of a broader strategy to meet growing domestic demand for dairy products.

Milk Production and Processing

In 2022, the Philippines produced around 24.38 million liters of milk, a result of improved farming techniques and the introduction of imported dairy cattle breeds. Nearly 23.5 million liters of this milk are processed annually, showcasing effective collaboration between cooperatives and private processing plants to maximize output.

Cheese and Milk Powder Production

Cheese production is on the rise, with about 1,500 metric tons produced annually for local consumption and export markets. Additionally, the country produces approximately 4,000 metric tons of milk powder each year, primarily for domestic use, although some quantities are 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 include 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 fulfill domestic needs, the country imports approximately 110,000 metric tons of dairy products each year, including milk powder, cheese, butter, and UHT milk, with key suppliers being New Zealand, the United States, and Australia.

Recent Events in the Dairy Industry

The Philippines has gained attention in the global dairy market, as evidenced by Fonterra's decision to outsource financial services to Manila. The government's Dairy Industry Roadmap 2025 aims to boost local milk production and reduce import dependency. The USDA predicts increased demand for key dairy products like whole milk powder and cheese. Recent developments include Darigold, Inc.'s re-entry into the Philippine market and the opening of the first standalone store by the Spanish brand Yolé in Robinsons Place Manila.

Despite a 12% decline in US exports to the Philippines due to trade tensions, the country remains a significant market for US exports. Farm Fresh has expanded its presence in the Philippines, while Ace International exports dairy products, including whey proteins and milk powder, to the region. Mengniu's ice cream brand 'Aice' is the second largest in the ready-to-eat ice cream market, and Feihe has chosen the Philippines as its entry point into Southeast Asia.

Additionally, the dairy buffalo initiative in Ilocos Norte aims to enhance rural incomes and milk supplies. The Philippine Carabao Center has expanded its dairy buffalo program to stimulate rural economies by enhancing local milk production.

Market Projections

The Philippine dairy market, valued at $4.2 billion in 2025, is estimated to reach $4.5 billion by 2026 and is projected to grow to $6.8 billion by 2034, representing a compound annual growth rate of 5.34% from 2026 to 2034. This growth is driven by increased consumer interest in protein-rich and nutritious foods, alongside urbanization and busier lifestyles.

The Philippines is one of the countries involved in the dairy trade mission. Delegates from the Philippines participated in the AHDB-hosted mission to explore British dairy products.