More investments in milk production needed – Natl Dairy Authority

More investment in the milk production segment of the dairy industry will allow the increased production of local dairy products and bring down their prices in the domestic market, the National Dairy Association (NDA) said. "With our need to increase milk output, the production segment needs investment inflows the most," NDA administrator Grace Cenas said Tuesday. With the country importing nearly all of its total dairy requirement of 1.8 billion kilograms, foreign brands are less expensive than local brands. But boosting the milk production segment—which includes breeding dairy animals and harvesting their milk—will in turn promote growth in the processing and marketing segments of the industry. Local milk production has been growing by an average of seven percent in the last five years. Raw milk production increased by 12 percent year-on-year from 16.45 million liters to 18.45 million liters in 2012. The increase exceeded the agency's 10-percent growth target, but the bulk of milk products in the country is still imported from New Zealand, USA, Australia and France. Increased milk production would lead to the increase in other popular dairy products such as cheese, said Cenas. “With the increase milk production, processors will automatically go here. There is a big demand [for cheese],” she said. At present, the country's milk sufficiency level is at 40 percent. The NDA hopes to increase this to 43 percent by 2016 and reach self-sufficiency by 2021. In order to do this, the country's number of dairy animals should go from the present 40,696 to one million. The NDA has already announced that the Department of Agriculture will launch a herd build-up and breeding program, in which multiplier farms for breeding, milk production and processing will be set up by the government and imported dairy animals will augment local stock. Dairy farmers will also receive assistance in importing embryos and breeding equipment. The increase in NDA's budget from P172 million in 2012 to P262 million this year will help it provide assistance to these farmers, said Cenas. The local dairy industry produces fresh milk, flavored milk, native cheese, processed cheese, ice cream, candy and yogurt. — BM, GMA News