OUTLINE OF PRESENTATION

• Introduction of NDA

• The Dairy Road Map (2010-2016)

• The Local Milk Market

• 2012 Performance

• Created thru RA 7884 or the National Dairy Development Act

• MANDATE: The Authority shall be the central policy determining & directing body tasked to ensure the accelerated development of the Philippine dairy industry through policy direction & program coordination & implementation.

• VISION: A vibrant local dairy industry providing wholesome, affordable milk to delighted consumers, building a nation of healthier children and wealthier farmers.

MISSION:MISSION:MISSION:MISSION:

• Accelerate dairy herd build-up and milk production;

• Provide excellent technical delivery service packages that enhance dairy business at the farm and enterprise levels;

• Promote consumption of local milk through increased coverage of milk feeding programs that help in reducing malnutrition;

• Mobilize broad support for local milk

In accelerating a sustainable development of the local dairy industry and attain higher level of milk self-sufficiency…

This would require producing a sizeable dairy animal base herd thru Public-Private Partnerships (PPPs) for the infusion of dairy breeds and upgrading and propagation of local dairy animals;

COWS

CARABAOS

GOATS

OUR DAIRY FARM SECTOR

19,100 dams

Particulars 2010 2011 2012

LIVESTOCK POPULATION (HEAD) 9,475,169 9,165,892 9,140,844

Cattle 2,518,407 2,493,199 2,492,422

Carabao 3,075,259 2,963,935 2,931,592

Goat 3,881,503 3,708,758 3,716,830

TOTAL DAIRY ANIMAL

INVENTORY (HEAD) 35,001 37,891 40,696

Cattle 17,405 19,292 21,067

Carabao 13,857 14,681 15,677

Goat 3,739 3,918 3,952

TOTAL DAMS AND DOES 16,505 17,578 19,159

Cattle 7,951 8,563 9,686

Carabao 7,033 7,421 7,863

Goat 1,521 1,594 1,610

NUMBER OF PRODUCERS-FARM

FAMILIES 15,222 26,113 30, 724

Number of primary coops and

institutions 347 343 365

FRESHFRESHFRESHFRESH

MILKMILKMILKMILK

MARKETMARKETMARKETMARKET

HERD HERD HERD HERD

INFUSION & INFUSION & INFUSION & INFUSION &

UPGRADINGUPGRADINGUPGRADINGUPGRADING

MARKET DEVTMARKET DEVTMARKET DEVTMARKET DEVT Milk FeedingMilk FeedingMilk FeedingMilk Feeding

DAIRYDAIRYDAIRYDAIRY

ENTERPRISE SUPPORTENTERPRISE SUPPORTENTERPRISE SUPPORTENTERPRISE SUPPORT

• DOUBLE UP LOCAL MILK SUFFICIENCY

from 19% to 43% of the total liquid milk market;

• DOUBLE UP LOCAL MILK CONTRIBUTION

from 26% to 46% share of the total liquid milk supply;

• TRIPLE ANNUAL LOCAL MILK PRODUCTION

from 15M to 45M liters or from 43 tons to 131 tons of milk daily

2

CREATE

22,000

JOBS

1

INCREASE

DAIRY

HERD TO

55,000

3

INVOLVE

100,000

FARM

FAMILIES

4

SET UP

P300M

D’COW &

P150M

BUY-BACK

FUND

5

OPERATION

OF PUBLIC-

PRIVATE

FARMS &

MARKETING

OUTFITS

6

SET UP

MILKTRUST

FUND &

MILKFEED

1M KIDS

1 THE JOBS

22,270

full-time jobs

2 THE INCOMES

P1.57B milk sales

3 THE ASSET BUILD-UP

P4.14B

animal assets

4 FOREX

SAVINGS

P1.06B

RTD IMPORTS

Brgy 2

Brgy 1

Brgy 4

Brgy 3

South LuzonSouth LuzonSouth LuzonSouth Luzon CaviteCaviteCaviteCavite

LagunaLagunaLagunaLaguna

BatangasBatangasBatangasBatangas

QuezonQuezonQuezonQuezon

PalawanPalawanPalawanPalawan

AlbayAlbayAlbayAlbay

SorsogonSorsogonSorsogonSorsogon

Camarines NorteCamarines NorteCamarines NorteCamarines Norte

Camarines SurCamarines SurCamarines SurCamarines Sur

MasbateMasbateMasbateMasbate

Oriental MindoroOriental MindoroOriental MindoroOriental Mindoro

RizalRizalRizalRizal

MindanaoMindanaoMindanaoMindanao Misamis OrientalMisamis OrientalMisamis OrientalMisamis Oriental

Misamis OccidentalMisamis OccidentalMisamis OccidentalMisamis Occidental

BukidnonBukidnonBukidnonBukidnon

Davao del NorteDavao del NorteDavao del NorteDavao del Norte

Davao del SurDavao del SurDavao del SurDavao del Sur

Lanao del NorteLanao del NorteLanao del NorteLanao del Norte

North CotabatoNorth CotabatoNorth CotabatoNorth Cotabato

SaranganiSaranganiSaranganiSarangani

Zamboanga del NorteZamboanga del NorteZamboanga del NorteZamboanga del Norte

Zamboanga del SurZamboanga del SurZamboanga del SurZamboanga del Sur

North LuzonNorth LuzonNorth LuzonNorth Luzon BulacanBulacanBulacanBulacan

PangasinanPangasinanPangasinanPangasinan

Nueva EcijaNueva EcijaNueva EcijaNueva Ecija

ZambalesZambalesZambalesZambales

IsabelaIsabelaIsabelaIsabela

BenguetBenguetBenguetBenguet

CagayanCagayanCagayanCagayan

BataanBataanBataanBataan

AuroraAuroraAuroraAurora

TarlacTarlacTarlacTarlac

Visayas Visayas Visayas Visayas CebuCebuCebuCebu

BoholBoholBoholBohol

SiquijorSiquijorSiquijorSiquijor

Negros OrientalNegros OrientalNegros OrientalNegros Oriental

CapizCapizCapizCapiz

AntiqueAntiqueAntiqueAntique

IloiloIloiloIloiloIloilo

Negros OccidentalNegros OccidentalNegros OccidentalNegros Occidental

LeyteLeyteLeyteLeyte

Southern Leyte Southern Leyte Southern Leyte Southern Leyte

BiliranBiliranBiliranBiliran

AklanAklanAklanAklan

There are now

43 dairy multiplier farms operating nationwide with more

than 3,900 dairy

animals on the ground, which are

expected to produce at

least a

boatload next year.

DISTRIBUTION MAP

NDA DAIRY MULTIPLIER FARMS

DISTRIBUTION MAP

ANIMAL DISTRIBUTION PER DAIRY

MULTIPLIER FARM

NORTH LUZON 1,934 Farmers

17 Coops

EASTERN VISAYAS

366 Farmers 6 Coops

SOUTHERN SOUTHERN MINDANAO 429 Farmers

19 Coops

10,143 Farmers 146 Coops

10,143 Farmers 146 Coops

THE LOCAL DAIRY FARMERS SMALLHOLDERS DAIRY OPERATIONS

SOUTH LUZON 563 Farmers

15 Coops

BICOL 948 Farmers

11 Coops

WESTERN VISAYAS

3,458 Farmers 29 Coops

CENTRAL VISAYAS

2,020 Farmers 33 Coops

NORTHERN MINDANAO 425 Farmers

16 Coops

DAIRY ANIMAL DISTRIBUTION SMALLHOLDERS DAIRY PROJECTS

Philippine Dairy Operation

Northern Luzon

Dairy Area

7,956 heads

5,932 heads

9,520 heads

28,014 heads

28,014 heads

4,606 heads

Visayas

Dairy Area

Mindanao

Dairy Area

Southern Tagalog

Dairy Area

131 Importers

Traders Processors

0

500

1000

1500

2000

2500

MIL

LIO

N U

S$

Wheat and Meslin 424.44 724.37 816.45 547.18 955.28 730.68

Milk and Cream Products 588.72 618.43 385.68 592.27 688.64 501.90

Soya bean oil cake/meal 392.02 506.58 422.16 402.35 543.76 459.10

Rice 657.14 1956.78 1,039.64 1652.52 383.20 363.05

Fertilizer, manufactured 289.63 402.00 168.88 270.46 320.24 287.02

2007 2008 2009 2010 20112012-as of

Sept

Skimmilk

Powder

42%

Whey Powder

16%

Wholemilk

Powder

14%

Buttermilk/Butter

milkpowder

9%

Butter/Butterfat/

Dairy Spreads

8%

Cheese

4%

Liquid (RTD)

Milk

2% Condensed Mik

1% Cream

1%

MILK IMPORTS (in LME - '000 MT)

Average (2008-2012)

Skimmilk Powder 782.27

Whey Powder 301.55

Wholemilk Powder 269.68

Buttermilk/Buttermilk powder 164.04

Butter/Butterfat/DairySpreads 144.06

Cheese 65.62

Others 62.48

Liquid (RTD) Milk 39.77

Curd 13.72

Condensed milk 12.93

Cream 10.46

MILK IMPORTS 1,806.66

13.81 14.41 15.86 16.45 18.45

0

10

20

30

40

50

60

70

Mil

lio

n L

ite

rs

TOTAL 50.44 53.41 64.34 62.25 47.41

LOCAL 13.81 14.41 15.86 16.45 18.45

RTD IMPORTS 36.63 39.00 48.48 45.80 28.96

2008 2009 2010 2011 2012

Our milk production is

now at 18.45 million

liters, higher by 33% of our milk output 5 years ago.

- 5,000 10,000 15,000 20,000 25,000

NCR

CAR

I

II

III

IV

V

VI

VII

VIII

IX

X

XI

XII

XIII

ARMM

Million Pesos

RP DAIRY EXPENDITURES 2009

0 1/2 1 1 1/2 2 2 1/2 3

NCR

CAR

I

II

III

IV

V

VI

VII

VIII

IX

X

XI

XII

XIII

ARMM

Filipinos can now afford to drink ¾ glass of milk

per day, triple than the milk intake 8 years ago.

RP AVERAGE MILK INTAKE 2009

9.0

15.8

20.9

31.2

39.4

47.3

54.6

70.9

R² = 0.9934

0

10

20

30

40

50

60

70

80

90

1988 1991 1994 1997 2000 2003 2006 2009

BIL

LIO

NS

* - based on latest survey released 2/11

IMPORTS

LOCAL

IMPORTS

LOCAL

• Based on the year-end report of the Bureau of

Agricultural Statistics (BAS), among the livestock

sector, dairy posted a double digit increase

of 12.16% in production and 12.23% in

value.

Livestock

Sector

Volume- ‘000 MT Value – million Pesos

2011 2012 % Change 2011 2012 % Change

Carabao 147.52 142.73 -3.25% 10,080.40 10,013.94 -0.66%

Cattle 256.26 253.98 -0.89% 21,461.78 21,547.66 0.40%

Hog 1,940.35 1,973.62 1.71% 172,574.73 174,507.48 1.12%

Goat 78.20 75.66 -3.25% 7,710.52 7,689.33 -0.27%

Dairy 16.45 18.45 12.16% 498.93 559.96 12.23%

Performance of Philippine Agriculture 2012

Source: Bureau of Agricultural Statistics (BAS) as gathered and processed by NDA-PMSD 1/21/13

• Dairy production of 18.45MLiters (or 51 tons/day) in 2012 was the highest level attained

in the last five years.

Production 2008 2009 2010 2011 2012

Annual (MLiters) 13.81 14.41 15.86 16.45 18.45

Daily (Tons) 37.84 39.48 43.45 45.07 50.55

% Change 3% 4% 10% 4% 12%

FARMGATE PRICE (Peso/Liter)

13.55 13.85 14.00 14.80 15.15

16.00 17.00

18.60 19.00

22.00 22.48 22.60 23.04

0.00

5.00

10.00

15.00

20.00

25.00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

5,868

7,818

9,863

11,58012,874

16,77117,933

20,438

23,610 24,211

26,014

28,014

0

5,000

10,000

15,000

20,000

25,000

30,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

NDA SCORECARD 2012

Indicators 2012 2011 % Change

Milk production (Million liters) 13.50* 11.56 17%

Milk production/day (Tons) 36.89* 31.67 17%

Total Number of dairy animals 28,014 26,014 7%

Number of milking animals 6,862 5,861 16%

*This constitutes more than 70% of the national production.

AREA #DMFs Current Dairy

Animals

Animals for

Harvest

NORTH LUZON 6 527 166

SOUTH LUZON 6 642 254

VISAYAS 11 1,793 426

MINDANAO 20 1,005 234

TOTAL 43 3,967 1,080