Philippines milk imports to hit 2.65 million metric tons

MANILA, Philippines — The country’s imports of milk and milk products are seen increasing by 14 percent to over 2.6 million metric tons (in milk equivalent) this year, driven by higher demand from food processors coupled by softer world market prices.

In its Dairy Market Review, the United Nations’ Food and Agriculture Organization (FAO) projected that the Philippines’ dairy imports would hit 2.648 million MT this year, about 325,000 MT higher than last year’s 2.323 million MT.

The full-year import forecast is close to the country’s 2020-2022 import average of 2.653 million MT, based on FAO data.

The FAO attributed the increase to improved consumer demand and increased food service sales in the country.

The international agency noted that there has been “increasing spending on food consumed out of home and the overall increased demand from the hotel, restaurant and institutional sector” in the Philippines.

The Philippines was cited as one of the countries that would contribute to the marginal increase in global dairy trade, which is estimated to grow by 0.4 percent year-on-year to 85 million MT this year.

 “This relatively stable trade outlook is mainly driven by improved consumer demand and increased food service sales in some countries induced by the post COVID-19 recovery of tourism, the increasing spending on food consumed out of home and the overall increased demand from the hotel, restaurant and institutional sector, notably in the Philippines, Saudi Arabia, Indonesia, Algeria, Mexico and the United States,”  the FAO said.

The Philippines is seen as one of the countries that would mitigate the decline in global skimmed milk powder trade, according to the FAO. World SMP trade is projected to fall by 1.8 percent year-on-year to 2.6 million MT, the FAO added.

“More positive demand prospects are expected in the Philippines and Indonesia, especially after last year’s decreases, induced by higher demand from the food processing and services sectors and relatively lower international SMP prices,” the international agency said.
Meanwhile, the country’s domestic milk output will grow by more than six percent to 32,000 MT from last year’s 30,000 MT, the FAO projected. The Philippines will surpass its average output of 28,000 MT from 2020 to 2022, according to the FAO.

The country imports virtually all of its dairy supplies as local production remains miniscule. The National Dairy Authority (NDA), tasked to oversee nationwide dairy dairy production, plans to hike the country’s milk sufficiency ratio to five percent by 2028 from the current level of 1.5 percent.

Some of the agency’s plans to achieve the target include expanding the national dairy herd, boosting milk yields, creating demand, raising public awareness and increasing farmers’ incomes.

The NDA targets to grow the national dairy herd through stock farms, multiplier farms and nucleus farms. He explained that imported cattle would be acclimatized at stock farms before their offspring are distributed to multiplier farms and eventually to farmer beneficiaries.

The NDA is set to construct five stock farms across key locations: General Tinio in Nueva Ecija, Ubay in Bohol, Malaybalay in Bukidnon, Carmen in Cotabato and Prosperidad in Agusan del Sur.