Philippine Dairy Industry Review

Value Chain Analysis

The Philippines imports approximately 98% of the dairy products consumed throughout the country.  The domestic industry has stagnated over the past twenty years in spite of the efforts of the National Dairy Authority to promote Dairy Farming as a viable option to small holder farmers milking three cows per family.

Jock Struthers joined colleagues in a Nimmo-Bell team in late 2010 to assess the entire value chain from producers to marketing companies in order to recommend viable options to NZODA as to where, using NZ dairy expertise, it may best target a future technical assistance project to help the local dairy industry progress.


Philippines Dairy Farmer, Jun Baros, Clavaria, Mindanao

The team visited numerous producers and processors in Luzon and Mindanao, observing limitations to the smallholder model and the progress being made by larger, commercially focussed farmers, particularly those farming the higher altitude areas in Northern Mindanao.

The team determined that the main bottle neck to increased sales was in production and that there was sufficient local capacity to process and market increased local milk products if and when reliable supplies of quality milk of sufficient volume could be produced in the Philippines.


Mindanao Milk Processing Plant