To bridge research findings with actionable policy recommendations, the 黑料网 conducted an online Knowledge Unloading Day (KUD) on October 2, 2026, featuring the study Market Analysis of Local Milk and Dairy Products in the Philippines.
KUD is PCAF鈥檚 knowledge-sharing initiative designed to cultivate a continuous learning culture among its employees, government partners, and Consultative Bodies. By sharing research assessments, policy reviews, and field insights, KUD aims to integrate localized data into national agri-fishery strategies.
Funded by PCAF, the featured study was conducted by the University of the Philippines Institute for Small-Scale Industries (UP ISSI) in partnership with the National Dairy Authority (NDA).
Opening the session, PCAF OIC Deputy Executive Director Cyril Soliaban emphasized that understanding value chain interactions is vital to resolving the sector鈥檚 long-standing challenges and bridging practical field experience with academic research.
During the presentation, Dr. Ian Jester De Vera of UP ISSI highlighted a critical strategic shift for the sector. While local milk accounts for only 1.3% of total national dairy requirements鈥攁 market overwhelmingly dominated by imports鈥攍ocal dairy farms already supply 12% of the addressable fresh and ready-to-drink (RTD) segment.
The study revealed that rather than competing head-on with commercial imported milk powder, local producers can maximize their advantage by targeting the fresh RTD category through focused, origin-based branding strategies.
On the operational side, Dr. De Vera noted that field data collected across Luzon, Visayas, and Mindanao exposed significant supply chain bottlenecks, including high feed costs, a shortage of regional veterinarians, and inadequate cold storage and testing infrastructure.
Additionally, while the government’s school milk feeding program serves as the primary market anchor for local processors, procurement and delivery delays create severe financial vulnerability. The study noted that extending feeding schedules to a full 200-day school year and authorizing local milk sales in school canteens would provide the predictable, year-round demand local producers need to break even and scale.
To gain broader perspective and comparative insights, the study team conducted international benchmarking visits to Thailand and Vietnam in early 2024.
These visits demonstrated how neighboring countries have developed robust local dairy industries despite similar challenges:
- Thailand: Demonstrated the power of predictable market demand through formal purchasing agreements between government bodies and dairy cooperatives. The country is also notable in institutional branding, leveraging public and university-backed brands, such as Thai-Denmark and Chulalongkorn University鈥檚 Chula Saraburi brand, to build consumer trust and establish premium quality associations.
- Vietnam: Showcased high productivity and industrial scale. Leading enterprises like Nutifood achieve yields averaging 38 liters per cow daily through modern technology, strict herd management, and a unified industry voice represented by the Vietnam Dairy Association, allowing local milk brands to dominate domestic supermarket shelves over imports.
Key Recommendations of the Study
For farms and processors
- Focus on the fresh market: Target the fresh and RTD milk segment rather than competing head-on with imported milk powder.
- Adopt strategic branding: Promote local dairy products centered on the core attributes of Fresh, Healthy, and Filipino.
- Improve herd and climate management: Breed cattle suited to tropical climates, utilize artificial insemination, and invest in cooling systems to mitigate heat stress and boost milk yields.
- Strengthen distribution networks: Establish cold storage facilities at regional hubs and set up rural milk collection points so smallholders can deliver daily output reliably.
- Invest in research and data: Conduct targeted research on tropical-adapted breeds, animal healthcare, and evolving consumer preferences.
For implementing agencies
- Keep milk feeding schedules predictable: Ensure early alignment on dates and volumes among the NDA, Department of Education (DepEd), Department of Social Welfare and Development, and local government units (LGUs), while identifying contingency buyers when procurement delays occur.
- Expand market access: Connect local producers with nearby retail stores, school canteens, universities, and commercial outlets. Support collection centers through LGUs, cooperatives, or public-private partnerships.
- Support processing technologies: Assist local processors in adopting shelf-life extension technologies (such as Ultra-High Temperature processing, sterilization, and pasteurization) to access broader commercial markets.
- Streamline business operations: Reduce administrative paperwork, digitize government program applications, and sponsor trade fairs and market linkage events.
- Provide whole-of-business training: Expand capacity building for farmers and processors beyond basic production to include marketing, financial management, and overall business operations.
For policy-makers and legislators
- Guarantee year-round demand: Extend the government school milk feeding program from 20 to 120 days to a full school year exceeding 200 days, and permit local dairy products to be sold in school canteens.
- Promote local milk nutrition: Launch national campaigns raising public awareness about the health benefits of fresh, locally produced milk.
- Invest in education and human capital: Create scholarships and specialized university degree programs in dairying (expanding on state university offerings like UP Los Ba帽os) to build the next generation of dairy professionals.
- Support input infrastructure: Enact policies and secure funding for regional feed and silage hubs to provide farmers with consistent, high-quality, and affordable cattle feed.
鈥淲e are encouraging the Agricultural and Fishery Councils and National Sectoral Committees to table the study鈥檚 results in their respective meetings and consultations to validate the gaps and challenges. This will also help us generate sound policy recommendations for endorsement to relevant agencies,鈥� said Planning, Monitoring, and Knowledge Management Division OIC Assistant Division Chief Joane Carla Auditor. | Jezebel Campaniel
