/ Velvyslanectví České republiky
Embassy of the Czech Republic
Pasuguan ng Republika ng Tseko
/ 30/F Rufino Pacific Tower, 6784 Ayala Avenue Makati City, Metro Manila, Rep. of the Philippines
tel.: (+63-2) 811-1155,56,58 |

PHILIPPINE DAIRY INDUSTRY

PHILIPPINE DAIRY INDUSTRY

IMPORTS & EXPORTS IN DAIRY TRADE

COUNTRIES EXPORTING MILK TO THE PHILIPPINES

KEY PLAYERS ON THE MARKET

IMPORT PROCEDURES FOR MILK /DAIRY PRODUCTS

FAIRS IN THE PHILIPPINES

PHILIPPINE DAIRY INDUSTRY

The Philippine Dairy Industry, according to Invest Philippines, generatessales of about 1 billion dollars annually. Invest Philippines also distinguishes 2 sectors in the Dairy Industry which is composed of

  • 95% IMPORT – Huge importing and processing sector that supplies over 95% of the milk requirements of the country
  • 5% PRODUCTION - small milk producing sector that provides the rest of the supply.

The milk producing sector further consists of: (1) Informal group of individual unorganized producers, and a (2) Formal group that is made up of smallholder producers; smallholder producers with growing dairy herds numbering from over 20 to about 75 heads of milk animals; and Producer-processors that maintain farms with about a hundred milk animals or more, operate a milk pasteurizing plant and undertake marketing of milk in urban centers. In all cases, the producer-processors also procure raw milk from smallholders.

The Dairy Industry is generally being monitored by the Department of Agriculture (DA). There is also a smaller group within DA, the Agribusiness & Marketing Assistance Service under which the Dairy industry, among others, is also being overseen.The National Dairy Authority, an attached agency under the Department of Agriculture, provides an update in the status on Philippine Dairy. It provides secondary data on Philippine Dairy and obtains information from the Philippine Statistics Authority and the Philippine Bureau of Agricultural Statistics.

The huge percentage of milk imports was highlighted in the latest Philippine Dairy update as indicated in the Dairy Industry Performance Report which says that in 2013, more about 99 percent of the 1,965.15 thousand metric tons was imported. The same report indicates that the domestic supply of milk was 1,916.63 thousand tons in 2013.

Further additional statistics provide that local production of Milk is said to have increased slightly in 2014 from 19.23 Liquid Milk Equivalent (LME) ‘000 MT in 2013 to 20.1 LME ‘000 MT. The latest statistics on local production cover up to the month of March says that the local production is currently at 5.12 LME.

Local consumption increased slightly from 1,851.93 to 1,885.75 m kg. As of March 2015, consumption is at 480.04 m kg.Locally the share in domestic production is divided into 63% on cow’s milk, 34% for carabao’s milk (water buffalo, buvolí mléko), and 3% for goat’s milk.

IMPORTS & EXPORTS IN DAIRY TRADE

The value of imports in million USD was 876.02 in 2014 from 857.19 in the previous year. At present, imports up to March 2015 is at 192.58 mil USD. On the other hand, the value of exports is at 46.40 mil USD in 2014 from the previous year of 55.11. At present, the value of exports up to March 2015 is at 12.18 mil USD.

VOLUME OF MILK & MILK PRODUCTS IMPORTS
(in million kilograms)
Dairy Products / 2010 / 2011 / 2012 / 2013 / 2014 / 2015 (Jan-Mar)
Skimmilk powder / 107.16 / 109.43 / 103.88 / 110.64 / 93.05 / 22.85
Wholemilk powder / 31.64 / 27.82 / 31.43 / 25.64 / 19.20 / 5.71
Evaporated Milk / 0.48 / 0.31 / 0.86 / 0.14 / 0.22 / 0.07
Buttermilk/ Buttermilk Powder / 19.47 / 20.27 / 24.82 / 22.22 / 18.60 / 5.19
Whey Powder / 41.51 / 39.16 / 42.01 / 43.75 / 49.21 / 14.13
Liquid (RTD) Milk / 49.75 / 47.08 / 36.06 / 48.58 / 44.20 / 9.91
Cream / 4.55 / 8.25 / 9.46 / 2.91 / 3.38 / 0.62
Condensed Milk / 5.51 / 3.58 / 3.01 / 4.41 / 7.99 / 0.53
Others / 23.20 / 8.40 / 18.04 / 21.62 / 22.80 / 6.09
MILK AND CREAM / 284.27 / 264.30 / 269.57 / 279.91 / 258.65 / 65.10
Butter/Butterfat / 21.20 / 20.26 / 17.73 / 15.82 / 16.50 / 5.60
Cheese / 11.10 / 14.96 / 17.46 / 12.54 / 13.73 / 4.46
Curd / 2.70 / 1.16 / 0.69 / 0.79 / 1.77 / 0.67
MILK IMPORTS / 319.70 / 300.68 / 305.45 / 309.06 / 290.65 / 75.83
Volume of Milk & Milk Products Imports
IMPORTS(‚000 MT or mil. Liters, in LME)
Dairy Products / 2010 / 2011 / 2012 / 2013 / 2014 / 2015 (Jan-Mar)
Skimmilk Powder / 867.42 / 877.63 / 833.10 / 887.38 / 746.30 / 183.27
Wholemilk Powder / 253.74 / 223.14 / 252.06 / 205.65 / 154.00 / 45.75
Evaporated Milk / 1.04 / 0.66 / 1.86 / 0.31 / 0.48 / 0.15
Buttermilk/Buttermilk Powder / 153.63 / 0.66 / 195.82 / 175.31 / 146.76 / 40.97
Whey Powder / 320.91 / 159.92 / 324.75 / 338.18 / 380.41 / 109.24
Liquid (RTD) Milk / 48.48 / 302.73 / 34.73 / 47.51 / 43.66 / 9067
Cream / 8.74 / 45.80 / 15.61 / 5.01 / 6.03 / 0.98
Condensed Milk / 13.96 / 14.20 / 7.62 / 11.15 / 20.21 / 1.34
Others / 113.02 / 9.06 / 57.30 / 82.01 / 35.76 / 9.28
MILK AND CREAM / 1708.94 / 32.07 / 1722.85 / 1752.51 / 1533.61 / 400.65
Butter / Butterfat / 169.31 / 1665.21 / 140.47 / 125.43 / 129.63 / 44.21
Cheese / 52.60 / 162.51 / 89.00 / 64.21 / 68.86 / 22.86
Curd / 12.17 / 5.22 / 3.09 / 3.54 / 7.98 / 3.01
Milk Imports / 2015.02 / 1903.41 / 1955.41 / 1945.69 / 1740.08 / 470.73
VOLUME OF MILK & MILK PRODUCTS
IN ‚000 Kilograms, not in LME
Dairy Products / 2010 / 2011 / 2012 / 2013 / 2014 / 2015
Liquid (RTD) Milk / 47.35 / 129.36 / 122.61 / 1.54 / 136.15 / 3.74
Skimmilk Powder / 197.80 / 144.13 / 105.82 / 43.13 / 63.65 / 2.09
Wholemilk Powder / 30143.61 / 35558.50 / 15560.55 / 5266.43 / 7028.14 / 2325.27
Evaporated milk / 156.37 / 43.90 / 28.19 / 6.02 / 941.40 / -
Cream / 108.14 / 101.77 / 76.50 / 13.43 / 158.81 / 59.60
Condensed milk / 0.05 / 1.85 / 0.29 / 10.80 / 83.65 / 20.34
Ice cream/mixes / 3065.53 / 2016.36 / 1152.96 / 556.46 / 2437.63 / 675.30
Ice Drops / 0.65 / 21.00 / - / - / - / -
Whey / 10.00 / 37.00 / 70.66 / 14.92 / 141.64 / 4.75
Others / 56.13 / 64.72 / 501.27 / 141.39 / 195.02 / 50.25
MILK AND CREAM / 33785.63 / 38118.59 / 17618.85 / 6054.12 / 11182.09 / 3141.34
Butter/Butterfat / 15.93 / 36.85 / 9.66 / 6.50 / 144.79 / 74.15
Cheese / 876.47 / 809.91 / 472.66 / 144778.74 / 496.62 / 153.04
Curd / 37.69 / 7.59 / 077
MILK EXPORTS / 34678.03 / 38965.35 / 18101.17 / 6877.05 / 11829.09 / 3369.30
VOLUME OF MILK & MILK PRODUCTS
(In ‚000 li or MT, in Liquid Milk Equivalent (LME)
Dairy Products / 2010 / 2011 / 2012 / 2013 / 2014 / 2015
Liquid (RTD) Milk / 47.35 / 129.36 / 122.32 / 1.43 / 135.28 / 3.27
Skimmilk Powder / 1586.35 / 1155.91 / 848.68 / 345.92 / 510.44 / 16.73
Wholemilk powder / 241751.74 / 285179.15 / 124795.60 / 42236.77 / 56365.71 / 18648.64
Evaporated Milk / 3337.76 / 94.83 / 60.88 / 13.00 / 2033.42 / -
Cream / 267.10 / 251.37 / 188.96 / 32.54 / 354.59 / 143.91
Condensed Milk / 0.14 / 4.69 / 0.73 / 27.32 / 211.65 / 51.45
Ice cream/mixes / 5824.34 / 3830.89 / 2190.63 / 1057.27 / 4631.50 / 1283.07
Ice drops / 0.60 / 19.11 / - / - / - / -
Whey / 77.30 / 286.01 / 546.02 / 115.33 / 1094.92 / 36.72
Others / 57.77 / 64.71 / 766.63 / 141.39 / 195.02 / 50.27
MILK AND CREAM / 249950.45 / 291016.03 / 129520.45 / 43970.97 / 65532.53 / 20234.06
Butter/Butterfat / 107.34 / 248.27 / 65.57 / 52.20 / 1094.88 / 571.42
Cheese / 4925.78 / 4550.71 / 2652.92 / 4326.11 / 2741.76 / 851.75
Curd / 169.59 / 34.16 / 3.51
MILK EXPORTS / 254983.57 / 295815.01 / 132240.94 / 48518.87 / 69403.33 / 21660.74

Source: Philippine Statistics Authority/National Dairy Authority

COUNTRIES EXPORTING MILK TO THE PHILIPPINES

The Major country suppliers and value share for 2015 were New Zealand at 41%, USA at 17%, Australia at 14% and Netherlands at 4%. It is notable that powdered milk accounts for 81% of the imports of the Philippines.

IMPORTS- COUNTRY SOURCES OF MILK AND MILK PRODUCTS - 2010-2015
Year / Country / Quantity / Percent / Volume / Percent / CIFValue / Percent
(m kg) / (000 MT- in LME) / (m US$)
2015 / Total / 75.83 / 100.00 / 470.72 / 100.00 / 192.58 / 100.00
Jan- Mar /
  1. New Zealand
/ 26.87 / 35.43 / 164.53 / 34.95 / 79.59 / 41.33
  1. USA
/ 13.44 / 17.72 / 101.64 / 21.59 / 32.34 / 16.79
  1. Australia
/ 7.08 / 9.34 / 46.53 / 9.88 / 27.86 / 14.47
  1. Netherlands
/ 2.88 / 3.80 / 22.61 / 4.80 / 7.51 / 3.90
  1. Germany
/ 2.65 / 3.49 / 19.43 / 4.13 / 6.92 / 3.59
  1. Others
/ 22.91 / 30.21 / 115.98 / 24.64 / 38.36 / 19.92
2014 / Total / 290.65 / 100.00 / 1740.08 / 100.00 / 876.02 / 100.00
  1. New Zealand
/ 85.88 / 29.55 / 484.16 / 27.82 / 319.37 / 36.46
  1. USA
/ 69.72 / 23.99 / 523.57 / 30.09 / 244.79 / 27.94
  1. Australia
/ 20.02 / 6.89 / 114.19 / 6.56 / 60.25 / 6.88
  1. Netherlands
/ 13.69 / 4.71 / 104.03 / 5.98 / 46.60 / 5.32
  1. France
/ 10.17 / 3.50 / 55.96 / 3.22 / 30.38 / 3.47
  1. Others
/ 91.17 / 31.37 / 458.17 / 26.33 / 174.63 / 19.93
EXPORTS- COUNTRY DESTINATION OF MILK AND MILK PRODUCTS 2010-2015
Year / Country / Quantity thous.kg, not milk equiv) / percent / Volume (‚000 li or MT) / Percent / FOB Value (‚000 US$) / Percent
2015 / Total / 3369.30 / 100.00% / 21660.74 / 100.00% / 12180.49 / 100.00%
(I-III) / Malaysia / 1333.29 / 39.57% / 10692.97 / 49.37% / 5623.19 / 46.17
Thailand / 592.17 / 17.58% / 4749.24 / 21.93% / 2430.53 / 19.95%
Cameroon / 153.32 / 4.55% / 1229.66 / 5.68% / 683.86 / 5.61%
Indonesia / 334.55 / 9.93% / 895.85 / 4.14% / 552.48 / 4.54%
Canada / 176.69 / 5.24% / 523.12 / 2.42% / 549.67 / 4.51%
Others / 11829.09 / 23.13% / 3569.90 / 16.48% / 2340.76 / 19.22%
2014 / Total / 3809.13 / 100.00& / 69403.33 / 100.00% / 46399.19 / 100.00%
Malaysia / 3809.13 / 32.20% / 29643.33 / 42.71% / 17264.16 / 37.21%
Thailand / 2465.99 / 20.85% / 19736.06 / 28.44% / 10514.50 / 22.66%
Nigeria / 936.81 / 7.92% / 2023.51 / 2.92% / 2502.90 / 5.39
USA / 484.18 / 4.09 / 1511.16 / 2.18% / 1962.36 / 4.23%
UAE / 567.84 / 4.80% / 1052.64 / 1.52% / 1522.11 / 3.26%
Others / 3565.14 / 30.14% / 15436.92 / 22.24% / 12633.16 / 27.23%

Source: Philippine Statistics Authority/National Dairy Authority

KEY PLAYERS ON THE MARKET

1. NESTLE CORPORATION

Mr. Mabini L. Antonio, Senior Vice President-Corporate Affairs

Tel.: +632 8980001

2. ALASKA MILK CORP

Blen M. Fernando, Vice President - Marketing

Tel.: +632 8404500 loc 176

Email:

Atty. Santiagi A. Polido, Vice President - Corporate Affairs,
Tel.: +632840 4500 loc 114

,

3. Monde Nissin

Mr. Welly - Purchasing Materials manager
Tel.: +632 7548100,

4. Consolidated Dairy & Frozen Food Corp.

Ms. Abigail Ko - Import Manager,

Tel.: +632 2424305

5. Mead Johnson Nutrition

Ms. Jinky Cabrera
Tel.: +6328418181 local 2418

6. Commodity Quest Inc.

Mr. Marty Panganiban,
Tel.: +632 7069966

,

7. Wyeth Philippines
Ms. Angela Molintas / Ms. Weng Lacerna

Tel.: +6328846800 (Purchasing), +632 8199384 (Careline)

COMPLETE LIST OF IMPORTERS

A complete list of importers of milk products can be found on the website of the National Dairy Authority.
Milk and Dairy Products – Exporters

Source: National Dairy Authority, (as of 2011)

Name of Exporter

1 Alaska Milk Corporation

2 CPW Philippines, Inc.

3 Creative Multi-Commodities International, Inc.

4 Kraft Foods (Philippines), Inc.

5 Magnolia, Inc.

6 Mead Johnson Nutrition (Philippines), Inc.

7 Nestle Philippines, Inc.

8 RFM Corporation

9 San Miguel Foods, Inc.

10 Snow Mountain Dairy

11 Unilever RFM Ice Cream, Inc.

12 United Laboratories, Inc.

13 Wyeth Philippines, Inc.

IMPORT PROCEDURES FOR MILK /DAIRY PRODUCTS

In order for any foreign company to import dairy products in the Philippines, they must obtain approval from both the Bureau of Animal Industry, an attached industry of the Department of Agriculture and the Food and Drug Administration which is under the Department of Health.

The initial step is to obtain a license from the Food and Drug Administration after which, the foreign company must accomplish registration and must undergo assessment for facility and source, in order for the Bureau of Animal Industry to recommend them for accreditation. The Institution concerned with these matters in particular in the Bureau of Animal Industry (BA) is the National Veterinary Quarantine Services.

It is the discretion of the BAI whether it is necessary to send representatives to the facilities in the Czech Republic on the expenses of the potential exporter, especially if it is the first time of the company to export to the Philippines. There are instances, especially if the facility has good record of trade with other countries and has provided necessary proof thereof, with the inclusion of the submission of Health Certificate issued by the Government Veterinarian Authority in the Czech Republic.

Storage facilities are included in the accreditation procedure. After the registration procedure and assessment, the company will be able to secure an SPS Import clearance. The SPS import clearance procedure is automated and the clearance must be issued before the cargo is sent out by the exporter.

Upon entry in Philippine ports, quarantine officers for the Bureau of Animal Industry will be checking the cargo from foreign exporters. They will be checking if the importer has the SPS clearance and a Health Certificate issued by the Government Veterinarian Authority in the Czech Republic.

Contact persons for Import Procedures

Mr. Elmer Esplana, Agribusiness & Marketing Assistance, Department of Agriculture, Tel.: +632 9204077, +639178434851,

Dr. Florence Silvano

Bureau of Animal Industry, Tel: +632 9200815,

Ms. Maricar Briones

NationalDairy Authority, Tel: +632 9288681

FAIRS IN THE PHILIPPINES

Dairy Congress and Expo – April

Description of Event: It is geared towards substantially raising the productivity and incomes of dairy farmers, augment the base herd, create new market niches, and accelerate the realization of a self-reliant countryside

Contact Person: Ms. Weng Bautista

Tel: +63 917.8323004, +632 697.6049, Fax: +632926.3840

Email: , Website

International Food Exhibition (IFEX) - May

Description of event: Organized by the Department of Trade and Industry, it is one of the largest food and ingredients trade in the country. It includes Exhibition on rst-rate farm and fish products, the Agri-Aqua and Natural Products Pavilion in the Agriculture and Commodities Hall is organized in partnership with the Philippine Department of Agriculture (DA).

Tel: +632 5818708, 8312336, Fax: +6328323965, +6328340177

Email: , Website:

Agritech Cebu- July

Description of event: This event showcases products and services like Agribusiness & Aquabusiness Equipment, Machinery, Technology, Supplies and Services and many more related products and services etc. in the Agriculture & Forestry industry

Tel: +63 32-232-6888, Fax No: +63 32-232-6880, Website

World Food Expo (WOFEX) - August

Tel: +632 9297963, +632 9297993, +632 4269603, +632 4364209,
+632 4364898, 0999 8885000

Email: , Website:

Cebu Food and Beverages Exposition (CEFBEX) - November

Description of event: A trade fair on food preparation and service advancement, organized in order to improve sales and launch the recent products in the south.

Contact Person: Mr. Mike Bayonito (Manila), Ms. Jean Oliveros (Cebu)
Tel:Mr. Bayonito – +639175036893, +632 3470153, Ms. Oliveros - +6332 4223153, Fax: Mr. Bayonito - +622 5332026, Ms. Oliveros - +6332 3439120

Email:, Website

Zpracovali: Erynne Bulaon, Jan Vytopil

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