The Department of Agriculture (DA) announced plans to review the dairy industry law to enhance the Philippines’ milk production. Agriculture Secretary Francisco Tiu Laurel Jr. disclosed the initiative during a meeting with the Philippine Chamber of Agriculture and Food Inc. (PCAFI).
The focus of the review will be Republic Act 7884, also known as The National Dairy Development Act of 1995, particularly examining provisions regarding the agreement between commercial milk processors and domestic dairy cooperatives on the volume of locally produced milk absorbed by the commercial sector.
Despite the law’s passage, domestic milk production has remained below 1% of annual demand. Tiu Laurel stated the DA’s intention to draft measures to activate the provision of the dairy law.
PCAFI proposed that the DA, through the National Dairy Authority, mandates commercial milk processors and traders to secure at least 5% of their total milk requirement from local sources.
The Philippines imported $1.6 billion worth of milk in 2022 mainly from Australia, New Zealand, and the US. PCAFI suggested imposing safeguard duties on imported milk or requiring processors to establish dairy farms locally if they don’t agree to a minimum volume. I
In 2023, cattle production reached 17,850 metric tons, covering about 0.8% of total milk consumption. The DA projects milk consumption for the current year to reach 1.978 million metric tons.
Source: PhilNews24 | March 15, 2024
