The Philippine dairy industry is growing, but the country’s self-sufficiency in milk remains at 2.1%

The Philippine dairy industry recorded growth in Q1 2026, with milk production rising more than 6%. However, the country still meets only 2.1% of national demand from domestic production. As AgriMoon reports, the government has set ambitious targets to grow the sector to 5% self-sufficiency by 2028.

According to the National Dairy Authority (NDA), production rose from 11.07 million litres in Q1 2025 to 11.79 million litres in Q1 2026 (+6.47%). Per capita milk consumption increased from 17.16 to 19.53 litres. Despite this growth, nearly 98% of dairy requirements are met through imports from New Zealand, Australia and the US.

Government targets higher milk sufficiency

The government targets: 2.2% self-sufficiency in 2025, 3.3% in 2026 and 5.0% by 2028. To meet the 2026 target, local production must reach approximately 53 million litres.

Strategy to increase local milk production

Around 1,600 dairy cows from Australia are expected to be imported to strengthen the national herd. Four government stock farms are currently operational (Nueva Ecija, Bohol, Agusan del Sur, Cotabato); a fifth is due to open in Bukidnon this year, with three more planned for 2027. Each farm covers around 50 hectares and requires an investment of approximately PHP 50 million.

The NDA is requesting an additional PHP 1.5 billion budget for 2027. The government is also exploring a PHP 2 billion loan from France to support technology transfer and modernisation.

Challenges from global events

Geopolitical tensions in the Middle East have raised input costs. The price of an imported dairy cow has risen from PHP 180,000 to PHP 220,000, adding pressure to herd expansion programmes.

Public-private collaboration

NDA Administrator Marcus Andaya described dairy as a “sunrise industry” and called for greater private-sector participation. 

“The future of the dairy industry cannot be built by the government alone,” he said. Key private investments include Manny Pangilinan’s Metro Pacific Investments Corporation acquiring a majority stake in Carmen’s Best, and Hacienda Macalauan Incorporated’s Pure & Best Milk brand, which has operated since 1995 after importing 100 dairy animals from Australia.

Source: AgriMoon