Gov’t eyes Mindanao as key source for milk

ZAMBOANGA CITY, Philippines - The National Dairy Authority (NDA) targets an increase in Mindanao’s milk production by 50,000 liters a day in the next five years, in a bid to cut the country’s dependence on imported milk. Currently, the country’s dairy sufficiency stands at only at 3% of total demand, or about 11 million liters of milk annually, of which Mindanao’s producers account for 40%. "The country remains heavily dependent on milk imports. At least 97% comes from foreign dairy sources like New Zealand and Australia," Jesus B. So, NDA’s officer in charge for Mindanao, said in an interview. The dairy industry recorded a 3.44% increase in milk output to 13,230 metric tons last year from 12,790 MT in 2006. Of the total milk output, NDA-assisted dairy projects’ accounted for 70% or equivalent to 9,270 MT. Mr. So said to meet the target 50,000 liters of milk production per day, Mindanao should have at least 10,000 cows. Milk producers in southern Philippines now yield 10,000 liters of milk per day from about 3,000 cows. Debbie U. de San Miguel, NDA’s Mindanao information officer, said they expect 450 cows from New Zealand to be delivered in Mindanao this month. Last year, 488 cows arrived and distributed throughout Mindanao. She said in the coming batch, only 100 cows will be retained in Mindanao, the rest will be distributed to Luzon and the Visayas. "The arrival of the imported cows is the eighth batch since NDA started its annual importation of breeders in 2000," she said. The 100 cows will eventually be distributed as livestock loan assistance to the 10 major dairy production centers in Mindanao. Major milk producers in Mindanao operate in the provinces of Bukidnon, Lanao, and Zamboanga Del Norte as well as in the Davao Region. Ms. San Miguel said the NDA has partnered with Quedancor in opening a credit window for dairy farmers. NDA said on its Web site that it is assisting 33 dairy cooperatives in Mindanao in this way. For farmers or private individuals who want to venture into milk production, Mr. So said the average startup capital would range from P120,000-P200,000. This will comprise three half-breed cows and other operating expenditures. A pure-bred dairy cow costs around P90,000. Mr. So said several private individuals and cooperatives in Mindanao have already submitted proposals to the agency for financial assistance and technical expertise on milk production. Local businessman Nonito Bernardo, who owns a mango orchard here, said he had already sent a letter to the regional office of the Department of Agriculture to put up a dairy production center in his farm. Mr. Bernardo is looking at organizing a farmer’s cooperative to help him run the business. "It will also serve as an alternative livelihood for interested farmers who are willing to venture in dairy production," he said. "I’m willing to establish a dairy processing plant in my farm not only to earn but to help the local government in its efforts to solve nutrition problems among the children in far-flung areas of the city." NDA noted that because of their generally low milk intake early in life, Filipinos rapidly lose their ability to digest lactose, a sugar found in milk, and thus become lactose intolerant. Mr. So said the introduction of artificial insemination to NDA-assisted farms has also helped increase the number of cows in recent years. "We are looking at raising our very own island-born dairy animals," he said, adding they are also strengthening goat’s milk production. However, for them to reach their milk production target, the NDA is expected to import more cows soon. Although officials of the state dairy agency expressed optimism that they can meet the targeted milk production in Mindanao, they said the milk industry lacks proper technology and research development. Mr. So said Mindanao should at least add to its current two ultra-high temperature machines, which sterilize and extend the lifespan of the milk to at least six months. Moreover, the industry cannot produce powdered milk. "The technology is too expensive, and it needs high-volume milk production," he said.