RP imports 500 cows from New Zealand to boost herd stock, milk production

The country is trying to build up its herd stock and milk production without Australia, with the recent importation of 500 head of cattle worth P35 million from New Zealand.

This is the first importation outside of Australia in two years by the Department of Agriculture, through its two attached agencies – Quedan and Rural Credit Guarantee Corp. (Quedancor) and the National Dairy Authority (NDA).

DA officials, including Agriculture Secretary Luis Lorenzo Jr., said the purchase was not part of government’s efforts to pressure Australia into accepting Philippine fruit exports, particularly pineapples and bananas.

"This (importation) has nothing to do with our discussions with the Australian government to allow us to export our fruits," said Lorenzo.

But other sources in the department said the importation forms part of "official and unofficial" measures that will be taken to force Australia to drop its guard on Philippine tropical fruits.

"Last year, finding other sources of cattle and milk outside of Australia was discussed by the government and the private sector. The DA’s hands are tied and it cannot endorse the retaliatory moves against Australia since it still wants to explore bilateral talks, but the private sector was asked if they could source their imports from other countries. Two of the country’s biggest milk importers already agreed and we expect these moves to be implemented," said a source from the DA.

Australia is the country’s biggest source of cattle and beef products.

"Let’s strike them where it hurts most," said a DA source.

Lorenzo is set to talk to Australian agriculture officials before he proceeds to the WTO meeting in Cancun, Mexico this September. The DA already elevated the matter to the WTO which is already being heard by the trade body’s Dispute Settlement Board.

Australia has been fiercely blocking the entry of Philippine pineapples, saying the acceptance of the commodity rests on the country agreeing to de-crown the fruit and subject it to pre-shipment methyl bromide fumigation which is outlawed in other countries. It still has not responded to the Philippines’ request to use an alternative fumigant – hydrocyanic acid.

At the same time, Australia is also preventing Philippine bananas from penetrating its domestic market, saying this will infest its local banana plantations.

Quedancor and NDA forged a P35-million deal to import 500 head of pregnant Holstein-Sahiwal crossbred cows and seven bulls from New Zealand for distribution to dairy farmers in Bulacan, Quezon, Laguna and Batangas.

This is the first shipment made by government since August 2000 and the first shipment financed through Quedancor. It also marked the first cattle shipment unloaded through the Subic Freeport, previous imports were unloaded at the Cagayan de Oro Port in Mindanao.

Farmer beneficiaries will obtain the animals though a loan to be provided by Quedancor. The scheme allows them to pay the animals in five years at eight percent interest per annum.

The arrival of the cows is expected to help the country increase its dairy herd population to 18,718 from 18,218 as of end 2002 and will produce 1.2 million liters of milk by end 2004. This will reduce the country’s dependence on imported milk from 98 percent to 95 percent by end 2004.