DA to tap ACEF for dairy development program

The Department of Agriculture (DA) will tap the P2.6-billion Agricultural Competitiveness Enhancement Fund (ACEF) to build the country’s dairy herd and increase local milk production.

Agriculture Secretary Luis P. Lorenzo Jr. said the largely unused ACEF will be one of the sources that would buttress the department’s ongoing Ginintuang Masaganang Ani Livestock Program (GMALP) which among others aims to increase the country’s dairy population at the rate of at least 1,000 yearly.

"If we have money from ACEF, the target of increasing the country’s dairy population will be easier to achieve," said Lorenzo.

Under the GMALP, about P35 million has been earmarked for the purchase of about 500 head of dairy cow from New Zealand.

The program is also establishing more "dairy zones" in the country that will raise fresh milk production and cut down the country’s dependence on milk imports to meet local consumer requirements.

There are now 77 dairy cooperatives in 32 provinces and these are grouped into federations, corresponding to the five dairy ones in Bulacan, Laguna, Cebu, Cagayan de Oro, and Davao. Other zones will be established soon in Baguio, Tuguegarao, Negros Occidental, Iloilo, Zamboanga del Norte and Lanao del Norte.

Still, the country’s milk production is miniscule. Thus, more than 90 percent of the country’s dairy and milk requirements come from Australia, New Zealand and the US.

Lorenzo said there is much to be gained from improving the local dairy herd.

Data show that for every P1 million invested in diary cattle raising and milk production, the following benefits are derived from the eight-year productive cycle of dairy animals: 430,950 liters of milk; 44 cow heads and female calves added to the dairy herd; 41 new jobs created; P17.2 million in foreign exchange savings; P6.6 million in projected income from sale of milk and male calves.

Lorenzo said part of the ACEF money should go into the fledgling local dairy industry.

The ACEF was created out of the tariff proceeds of the minimum access volume (MAV) importations and its aim was to provide funds to make local agricultural producers globally-competitive. MAV is the minimum volume of specific agricultural products committed by members of the World Trade Organization that are allowed entry in their respective countries.