Department of Agriculture urges higher-value dairy processing

MANILA, Philippines - The Department of Agriculture (DA) has ordered the National Dairy Authority (NDA) to help farmers move to higher-value dairy processing from livestock fattening to increase their income and fill gaps in demand.

Agriculture Secretary Proceso Alcala is also encouraging local consumption of local dairy products to encourage production in the local dairy sector.

Last month, the department, through its Agricultural Competitiveness Enhancement Fund (ACEF), launched the program called “Acquisition and Upgrading of Milk Collection and Processing Facilities and Market Expansion Project” in Cebu to promote enhancements in the local dairy industry.

At present, local production of fresh milk does not satisfy domestic demand.

NDA data shows that local consumption of fresh and processed dairy products in 2011 was 1.8 billion kilograms, with local production contributing only 16.45 million kilogram in liquid milk equivalent. The balance was covered by imports coming from New Zealand, USA, Australia and France.

Developing the local dairy industry is one of the government’s strategies to help reduce poverty in the country.

The Agriculture department is encouraging growers of cows, carabaos and goats to reverse focus from fattening to dairy production.

“Dairy production augments profit and uplifts the income and lives of farmers in the rural areas,” Alcala said.

One milk-producing animal can raise an average monthly income of P7,000 for a grower. A well-trained farming family can raise six dairy animals, resulting to an income of P40,000 to P50,000 per month.

NDA administrator Grace Cenas said cows produce milk for 300 days after giving birth. Farmers usually let them recover for two months while raising their calves, then get them to reproduce again.

The process continues until the cows become too old to bear offspring.

Cebu has an active, albeit small dairy industry. The Cebu Federation of Dairy Cooperatives (CEFEDCO) provides livelihood to 300 farming families in the province.

The cooperative produces fresh milk, milk bars, pastilles, butter, yoghurt, polvoron and white cheese under the Cebu Dairy Fresh brand.

CEFEDCO was formed when four dairy cooperatives merged as the Liloan-Consolacion Federation of Dairy Cooperatives through the initiative of the NDA to address the growing problem of supply deficiency in 1989.

Cooperative members underwent training in Bukidnon and were given 281 pregnant dairy cattle imported from New Zealand.

Each cooperative was awarded P5,000 each, making up for the P20,000 initial federation investment in addition to the P250,000 they collectively availed from the government.

In 1991, construction of the P12-million Pitogo dairy plant started and was officially turned over to the federation a year later.

In 1994, more cooperatives expressed interest, prompting the management to change its name to CEFEDCO to reflect its broader coverage.