
Dairy Industry Profile
The National Dairy Authority (NDA) reported that the dairy sub-sector, which includes carabao/buffalo, dairy cattle and dairy goat, contributed 16.8% to the total Philippine agricultural value. In 2021, PSA reported the total dairy production of 26.3 thousand MT which is grossed at current prices amounting to Php 1.408 billion, as the dairy sub-sector recorded an uptrend in gross earning with 16.7% growth. The increases in value were 22.1%, 18.5%, and 14.6% for buffalo, cattle, and goat, respectively. However, the Philippines only produces 1% of its 2.5 billion liter milk demand, as reported by NSA, which leads the country to import 99% of the dairy products.
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The Philippines has four main types of dairy farms which are individual smallholder producers, smallholder cooperatives, commercial farms, and government farms (i.e. Philippine Carabao Center and State Universities). Smallholder farmers with an average of 2-4 heads mainly comprise the dairy industry in the country. There are dual-purpose breeds, which are used for both dairy and meat production, and there are improved dairy breed animals which are mainly used for dairy production. Milk is the most important product from dairy farming. Some farmers sell the milk from their farms to cooperatives or local milk processors, which then produce various dairy products such as pasteurized fresh milk, flavored milk, cheeses, ice cream, fermented milk, and confectioneries.
Problems in the Industry
There is not enough local dairy supply to meet the local demand. Hence, the Philippines needs to increase the dairy industryās competitiveness for the country to rely less on imports, and minimize the current trade deficit. The milk production is highly affected by poor feed and management practices, high production costs and lack of adequate dairy infrastructure. Other problems faced by the industry are water scarcity, poor mechanization, low reproductive efficiency, and the high wastage due to the high perishability of milk.

- Policies and Programs
Dairy Policies
Policy Type | Policy Number | Policy Year | Congress | Policy Title | Policy Description | Policy Objective | Policy Link | Commodity | Classification | info_encoder_stamp | info_date_stamp | info_quashing_remarks | filepath |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Administrative Order | Administrative Circular 04 | 2019 | Null | The Dairy Safety Regulations | Dairy safety regulations and standards adopt the Hazard Analysis and Critical Control Points (HACCP), Good Agricultural Practices (GAP), Good Animal Husbandry Practices (GAHP), and Codex Alimentarius standards as far as practicable and suitable to Philippine dairy settings. These regulations also give preference to the compliance by the dairy enterprise operators with existing laws and administrative rules and regulations like health and environmental laws and regulations, quarantine, feeds, drugs and biologies; and consumer laws and fair trade rules. | This order aims to strengthen the dairy safety regulatory system of the country, and shall adopt the following objectives: a. Protect consumers from unsafe and adulterated locally-produced milk; b. Enhance industry and consumer confidence in the dairy regulatory system; c. Achieve economic growth and development by promoting fair trade practices and sound regulatory foundation for domestic distribution; and d. Upgrade the capability of local dairy farmers, consumers, and dairy personnel in ensuring dairy safety. | https://www.da.gov.ph/wp-content/uploads/2021/05/ac04_s2019.pdf | Dairy | Null | Jeff U. | 05/27/2025 | C:\Users\MISD-Jeff\Documents\PCAARRD\Formatting\Output\Dairy_2025-05-27_processed.xlsx | |
Bill | Republic Act No. 7884 | 1995 | 9th | An Act Creating The National Dairy Authority To Accelerate The Development Of The Dairy Industry In The Philippines, Providing For A Dairy Development Fund, And For Other Purposes | It is hereby declared the policy of the State to strive for national self-sufficiency in milk and dairy products as a vital feature in the attainment of a selfreliant and independent Philippine economy in the provision of proper nutrition and the generation of more employment opportunities for the people. It is also the policy of the State to recognize the primary role of the private sector in research, training, production, processing, and marketing, and to provide incentives to those undertaking these activities, with government limiting itself to policy-making, facilitation and regulation. | The bill aims to create an agency tasked to help the private sector accelerate the development and growth of the Philippine dairy industry under the spirit of cooperativism in all stages of dairy production, processing, distribution, marketing, and other dairy-related activities, in such a way that market viability of livestock and dairy products shall be ensured, focusing on developing breeds adapted to Philippine conditions. Likewise, it shall help establish marketing networks and outlets, especially among and between processors and end-users, which may include the integration of local milk production with existing industrial milk plants geared towards the sufficient production of local milk for the needs of the people. | https://www.officialgazette.gov.ph/1995/02/20/republic-act-no-7884/ | Dairy | Null | Jeff U. | 05/27/2025 | C:\Users\MISD-Jeff\Documents\PCAARRD\Formatting\Output\Dairy_2025-05-27_processed.xlsx | |
Law | Republic Act No. 7307 | 1992 | 9th | An Act Creating The Philippine Carabao Center To Propagate And Promote The Philippine Carabao And For Other Purposes | It is hereby declared the policy of the State to develop a self-reliant and independent national economy effectively controlled by Filipinos. It also provides that the state shall support indigenous, appropriate, and self-reliant scientific and technological capabilities, and their application to the country’s productive systems and national life. | The bill aims to establish various programs to conserve, propagate and promote the Philippine carabao as a source of draft animal power, meat, milk, and hide. | https://hrep-website.s3.ap-southeast-1.amazonaws.com/legisdocs/ra_08/Ra07307.pdf | Dairy | Carabao | Jeff U. | 05/27/2025 | C:\Users\MISD-Jeff\Documents\PCAARRD\Formatting\Output\Dairy_2025-05-27_processed.xlsx | |
Presidential Decree | Presidential Decree No. 533, s. 1974 | 1974 | Null | The Anti-Cattle Rustling Law of 1974 | Reports from the law-enforcement agencies reveal that there is a resurgence of thievery of large cattle, commonly known as ācattle rustlingā, especially in the rural areas, thereby directly prejudicing the livelihood of the agricultural workers and adversely affecting our food production program for self-sufficiency in rice, corn and other staple crops, as well as in fresh meat | This aims to protect large cattle raising industry and small time large cattle owners and raisers form the nefarious activities of lawless elements. | https://www.officialgazette.gov.ph/1974/08/08/presidential-decree-no-533-s-1974/ | Dairy | Cattle | Jeff U. | 05/27/2025 | C:\Users\MISD-Jeff\Documents\PCAARRD\Formatting\Output\Dairy_2025-05-27_processed.xlsx |
ISP for Dairy
The PCAARRD Dairy ISP targets to increase average daily milk production for daily buffalo and dairy cattle, increase lactation period, decrease breeding period and decrease calving intervals, and reduce milk wastage and/or spoilage.
Strategic R&D
Strategic R&D is DOST-PCAARRDās banner program comprising all R&D activities that are intended to
generate outputs geared towards maximum economic and social benefits
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Products, equipment, and protocols or process innovations developed to improve productivity, efficiency,
quality, and profitability in the agriculture and aquatic industries, and to achieve sustainable
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Feeding Protocols and Practices
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and academic or research institutions through graduate assistantships & non-degree trainings
and development and/or upgrading of research facilities
Policy Research & Advocacy
Analysis of policy concerns and advocacy of science-informed policies ensures that the AANR policy environment is conducive for S&T development
and investments

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