DAIRY INDUSTRY UPDATE Corplan2017

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DAIRY INDUSTRY UPDATE 2017

Corplan2017

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The dairy supply situation in 2017 is characterized by increasing local milk and decreasing imports and exports of milk and dairy products.

volume-million kg#

Particulars CY2016 CY2017 % Change

Local Milk Production 21.16 22.76 8%

Milk & Dairy Imports 452.99 417.07 -8%

Milk & Dairy Exports 28.48 25.86 -9%

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Corplan2017

Dairy Industry Players

Coops, 31%

Govt Farms (SCUs, SFs, LGUs), 12%

Private Farms, 34%

Commercial Processors/Importers,

3%

Milk Traders, 20%

8 0 3

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The Local Milk and Dairy Market

185

IMPORTERS PROCESSORS

TRADERS

618

COOPS PRIVATE FARMS

GOVT FARMS

P809.33M US$903.10M

(P45.36B)

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Corplan2017

One out of four glasses of liquid milk we drink is produced locally

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Dairy Imports 2017

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Milk and Dairy Imports

Dairy Products 2017*

Skimmilk Powder 139.83

Whey Powder 54.64

Liquid (RTD) Milk 62.51

Buttermilk Powder 30.60

Butter/Butterfat/Dairy Spreads 31.20 Wholemilk Powder 18.77 Cheese 22.21

Others 57.31

Milk Imports (m kg) 417.07

* Milk powder makes up 58% of milk and dairy imports

* 15% is accounted for ready-to-drink (RTD) milk

* New Zealand and USA are the top exporters

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2012 2013 2014 2015 2016 Ave

Wheat and Meslin 976 869 1,030 1,319 1,230 1,085

Soya bean oil cake/meal 689 759 971 888 1,054 872

Milk and Cream Products 644 751 763 650 641 690

Coffee 251 215 246 298 483 299

Meat of Bovine, Frozen 239 236 336 325 348 297

- 200 400 600 800 1,000 1,200 1,400

MILLION US$

Top 5 Agri-Imports

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Dairy Exports 2017

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Milk and Dairy Exports

Dairy Products 2017*

Ice cream/mixes 10.07

Condensed milk 5.53

Ice drops 2.96

Cream 1.82

Others 5.48

Milk Exports (m kg) 25.86

Ice cream/mixes 39%

Condensed milk 21%

Ice drops 12%

Cream 7%

Others 21%

Milk Exports

* The biggest export item is ice cream/mixes at 39%

* Malaysia and Singapore are the top market of dairy exports

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Corplan2017

Local Milk Production 2017

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2012 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Carabao 142.53 141.48 143.03 142.04 144.69 144.41 -0.74% 1.10% -0.69% 1.87% -0.19%

Cattle 253.98 258.46 261.32 266.9 270.42 266.3 1.76% 1.11% 2.14% 1.32% -1.52%

Hog 1,973.62 2,012.17 2,032.31 2,120.33 2,231.66 2,265.02 1.95% 1.00% 4.33% 5.25% 1.49%

Goat 75.66 75.42 76.11 77.48 77.45 77.34 -0.32% 0.91% 1.80% -0.04% -0.14%

Dairy 18.50 19.53 19.73 20.39 21.16 22.76 5.57% 1.02% 3.35% 3.78% 7.56%

Livestock Sector Volume- ‘000 MT Growth Rate

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4% growth in dairy animal inventory from 55,776 to 58,023

heads

Particulars CY2016 CY2017 % Change

Total Dairy Animal

Inventory (Head) 55,776 58,023 4%

Cattle 25,697 25,728 0.1%

Carabao 17,802 18,320 3%

Goat 12,277 13,975 14%

Total Dams and Does 27,768 27,889 0.4%

Cattle 11,872 11,726 -1%

Carabao 9,079 9,343 3%

Goat 6,817 6,820 0.04%

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• Region 4 has the highest cow’s milk production

• Region 3 for buffalo milk

• Region 11 for goat’s milk.

2017 Top Milk Producing Regions

2017 Top Milk

Producing Regions – By Animal Type

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Cow's Milk Production

- Batangas, Bukidnon, Laguna, Bulacan, and Davao City

Buffalo Milk Production

- Nueva Ecija, Bulacan, Cagayan, Cavite and Leyte

Goat's Milk Production

- Davao del Sur, Iloilo, Misamis Oriental, Leyte and North Cotabato

- 500.00 1,000.00 1,500.00 2,000.00 2,500.00 3,000.00 3,500.00

Batangas Bukidnon Bulacan Laguna Davao City

2017 Top Milk Producing Provinces

2017 Top Milk

Producing Regions – By Animal Type

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DAIRY AREAS

64 Provinces

Area Provinces/City No. of Dairy Players No. Dairy Animals

16 Provinces 83 dairy players 12,577 heads

21 Local Coops 2,874 dairy cattle 49 Private Farms 7,530 dairy buffaloes 13 Govt Farms (SCU/LGU/GSFs) 2,173 dairy goats

45 Local Coops 9,095 dairy cattle 44 Private Farms 579 dairy buffaloes 14 Govt Farms (SCU/LGU/GSFs) 734 dairy goats

68 Local Coops 5,351 dairy cattle 34 Private Farms 1,242 dairy buffaloes 34 Govt Farms (SCU/LGU/GSFs) 5,555 dairy goats

49 Local Coops 8,439 dairy cattle

108 Private Farms 607 dairy buffaloes 32 Govt Farms (SCU/LGU/GSFs) 5,482 dairy goats Benguet, La Union, Pangasinan,Ilocos Norte, Batanes, Cagayan, Isabela, Nueva

Vizcaya, Quirino, Aurora, Bataan, Bulacan, Nueva Ecija, Pampanga,Tarlac, Zambales

Batangas, Cavite, Laguna, Quezon, Rizal, Oriental Mindoro, Palawan, Albay, Camarines Sur, Catanduanes, Masbate, Sorsogon

Aklan, Antique, Capiz, Guimaras, Iloilo, Negros Occidental, Bohol, Cebu, Negros Oriental, Siquijor, Biliran, Leyte, Northern Samar, Southern Leyte

Zamboanga City, Zamboanga del Norte, Zamboanga del Sur, Bukidnon, Camiguin, Lanao del Norte, Misamis Occidental, Misamis Oriental, Compostela Valley, Davao City, Davao del Norte, Davao del Sur, Davao Oriental, North Cotabato, Sarangani, South Cotabato, Sultan Kudarat, Agusan del Norte, Agusan del Sur, Surigao del Sur, Maguindanao, Lanao del Sur

North Luzon

South Luzon

Visayas

Mindanao

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Corplan2017

DAIRY ZONES

29 Provinces

Provinces/Cities North Luzon

5 Dairy Zones

South Luzon

6 Dairy Zones

Visayas

7 Dairy Zones

Mindanao

11 Dairy Zones

Bukidnon, Misamis Oriental, Lanao del Norte, Davao City, Davao del Norte, Davao del Sur, Davao Oriental, Sarangani,

North Cotabato, Sultan Kudarat, South Cotabato Total - 29 Dairy Zones

Bulacan, Nueva Ecija, Tarlac, Isabela, Cagayan

Batangas, Laguna, Quezon, Cavite, Rizal, Camarines Sur

Aklan, Iloilo, Negros Occidental, Bohol, Cebu, Negros Oriental, Leyte

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