Philippine ready-to-drink dairy milk production set to increase by 2027

The production and consumption of ready-to-drink dairy milk in the Philippines is expected to increase by 2027 due to the increase in dairy herds and various demands, the United States Department of Agriculture (USDA) said.

"Post forecasts overall demand for dairy products to increase in Marketing Year (MY) 2027. Fluid or Ready-to-Drink milk production is forecast to increase, driven by an increase in dairy herd and government funding for feeding programs. Consumption is also forecast to increase, as well as imports over the same period," the USDA Foreign Agricultural Service (FAS) Manila said in its report.

The FAS Manila forecasts fluid milk production to reach 48,000 metric tons (MT) in 2027.

“According to the Philippine National Dairy Authority’s (NDA) data, overall dairy animal inventory increased by 5 percent from 2024 to 2025 and further increased by close to 7 percent between January and June 2026 compared to the same period last year,” the report read.

It can be recalled that the NDA resumed its importation of dairy cattle after receiving 1,419 pregnant cows from Australia to boost the country’s milk production.

The importation is composed of Holstein-Jersey, purebred Holstein, and Holstein-Jersey cross breeds.

Luzon leads milk production in the Philippines, with major centers in Laguna, Bulacan, and Batangas. Meanwhile, Davao and Bukidnon serve as Mindanao's primary dairy producers, the report noted.

Alongside the expected rise in production, the FAS Manila also forecasts rise in consumption in ready-to-drink milk next year to 219,000 MT.

The reported cited the possible rise in milk consumption to the continued expansion of the government’s Milk Feeding Program (MFP) that is targeting 4.6 million beneficiaries nationwide.

Further, the expected increase in milk consumption is also attributed to the growing food and retail service sector, including in the coffee shop sector.

“The growing food and retail service sector has also contributed to the increase in domestic fluid milk consumption, as restaurants and coffee shops expand across the country,” the report said.

“Metro Manila remains the main market for fresh or pasteurized milk. Local milk processors mostly sell to hotels, restaurants, hospitals, and coffee shops,” it added.

Coffee shops primarily source their fresh milk from processors in Southern Luzon, especially those based in Batangas and Laguna, the FAS Manila further said.

Moreover, the report noted that imports are projected to rise to 171,000 MT in 2027, driven by higher demand the MFP alongside increased household and industrial processing use.

Likewise, the USDA also sees an increase in consumption on other dairy products like cheese and skim milk powder.

For cheese, the FAS Manila expects cheese consumption among Filipinos to rise to 64,000 MT, “supported by an increase in cheese consumption among middle to high income households and a growing consumption of various products from bakeries, pizzerias, fast food chains, hotels and restaurants.”

On the other hand, the steady demand from food and beverage manufacturers can increase skim milk powder consumption by 2% next year. —NB, GMA News