Metro Pacific helping gov’t in local dairy production

The Philippines is one of the largest markets of dairy-importing countries despite its huge opportunity in local dairy production and livestock agriculture.

According to data from the National Dairy Authority, as much as 99 percent of dairy products are imported in the Philippines as domestic production cannot meet the annual demand of nearly 3 million metric tons (MMT) liquid milk equivalent (LME) per year.

For 2023, the Foreign Agricultural Service (FAS) of the US Department of Agriculture (USDA) is forecasting dairy imports in the Philippines to pick up by 3 percent. This despite efforts of the Philippine Department of Agriculture (DA) to cut dairy imports and increase local production.

In 2020, the DA has released its Philippine Dairy Roadmap 2020-2025 with a long-term vision for the domestic industry to be invigorated and become competitive that meets the quality and safety standards of the growing market for fresh liquid milk and other dairy products with the smallholders as major players fully organized along the dairy business hubs.

By 2025, the DA’s goal is also to strengthen the foundation for more productive, competitive and sustainable dairy sector.

This is where the Metro Pacific Agro Ventures Inc. (MPAV) aims to help.

Last week, Metro Pacific Investments Corp. (MPIC), the umbrella firm of businessman and philanthropist Manuel V. Pangilinan and parent firm of MPAV, announced that it was engaging the LR Group of Israel as its technical advisors in expanding MPAV’s existing dairy business.

Early this year, MPIC began its foray into the dairy industry by acquiring a 51-percent stake in The Laguna Creamery Inc. to further develop and expand the operations of the Carmen’s Best group’s dairy farm, products and manufacturing facilities.

The transaction includes the construction of a farm facility in Bay, Laguna, with a capacity to produce at least 6 million liters of milk per year.

The two companies are looking to begin the construction in 2023, to be completed in two years, and with operations slated to start by late 2025 to early 2026.

MPAV’s investment and expansion of its agriculture business is synonymous to food security and substantial independence, ultimately aimed at alleviating hunger in the country.

According to MVP, the company’s goal and priority is “to feed our people first.”

To achieve this, MPIC will shell out more investments in the agribusiness sector and help cut the country’s goal of reducing its dependence on food imports.

MPIC’s venture in agribusiness also affirms its commitment to be the largest catalyst for a sustainable Philippines to contribute to national progress and help improve lives of Filipinos.

The initiative is also aligned with the Company’s efforts to contribute to the United Nations Sustainable Development Goals (UN SDGs), particularly Goal 2: End hunger, achieve food security, improve nutrition and promote sustainable agriculture.

Despite the challenges on production, there is a huge potential for the public and private sectors in the Philippines to further cultivate the untapped dairy industry, and we need the help of the private sector to achieve this.

As former DA Secretary William Dar said, we need to elevate our game and aim higher towards increasing competitiveness.

At the end of the day, it is our people -- the marginalized famers and livestock producers -- who will benefit from the expansion through more livelihood programs that will uplift their lives.

Editor’s note: The opinions expressed in the foregoing article are solely the author’s and do not reflect the opinions and beliefs of the Philippine News Agency (PNA) or any other office under the Office of the Press Secretary.