Diversified demand jacked up milk imports in H1

Philippine dairy imports increased by 4.6 percent in the six months ending June, as demand for various milk products grew.

In a report, the National Dairy Authority (NDA) said dairy imports climbed to 1.73 billion liters as of end-June from 1.65 billion liters in the same period a year ago.

In terms of value, dairy imports totaled P43.26 billion, an increment of 16.89 percent.

On the other hand, local dairy output increased by 11.35 percent to 18.6 million liters. This was valued at P1.08 billion.

“The Philippine dairy sector is making measurable progress, as evidenced by increased dairy inventory, higher local production, and rising production value,” the report said.

“However, the persistent and overwhelming reliance on imports continues to be a major challenge, highlighting the pressing need for targeted policy interventions, and increased investment in local dairy production,” it added.

The Philippines is almost entirely dependent on imports to meet its dairy requirements.

Skim milk powder is the most imported dairy product, accounting for 39.06 percent or 675.25 million liters. It is widely used to add milk solids and protein to various products.

Inbound skim milk powder imports went up by 2.7 percent during the period.

Other imports in powder form came next with 18.3 percent share or 316.36 million liters, reflecting a 14.3 percent increase.

Ready to drink

The country imported 55.16 million liters of liquid ready-to-drink milk, down 5.9 percent. It comprised 3.19 percent of the overall volume.

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According to the NDA, the share of imports from the top two supplying countries decreased to 53.93 percent.

New Zealand topped the list with 31.79 percent, followed by the United States with 22.13 percent. Other import sources include Australia, Indonesia and Denmark.

The national dairy inventory inched up by 4.6 percent to 1.75 billion liters. However, dairy exports dropped by 9.39 percent to 19.06 million liters.

Based on data at the Philippine Statistics Authority, the national livestock inventory dipped by 3.27 percent to 8.78 million heads.

The NDA said the dairy subsector exhibited growth, with dairy inventory rising by 16.42 percent to 166,411 heads. This “indicat(ed) continued expansion within the industry.”