On December 8 and 9, a Dairy Expert Roundtable Meeting on “Competitive Dairy Value Chains in Southeast Asia” was held in Muak Lek, Thailand. In this regional meeting, participants from six countries in Southeast Asia discussed how the relatively small dairy value chains could be more competitive and sustainable.

1. NICHE MARKETING IN THE PHILIPPINES
DANILO “DANNY” V. FAUSTO
National Chairman, Dairy Confederation of the Philippines
Chairman, Talavera Dairy Cooperative, Inc.
President, DVF Dairy Farm, Inc.
District Governor RY 2007-2008, Rotary International District 3780

2. 2008-1.6B
131 Ltrs
Importers
Traders
Processors
2009-1.8B
Ltrs
2008
2009

3. Milk & Dairy Products Import
Philippines, 2008
• Volume of total import in Whole Milk Butter Milk
LME = 1.77b liters Powder Powder
Skim Milk 15% 9%
Powder
• Import is 84% Powdered Milk 41% WHEY
19%
RTD
• Annual Import
=US$720.00 2%
OTHERS CURD BUTTER
2% 5%
7%
RTD = Ready to Drink Milk

4. What is our Industry Sufficiency Status (‘000MT)
TOTAL TOTAL LOCAL %
COMMODITY IMPORT
SUPPLY PRODUCTION SUFFICIENCY
Chicken
1,262.00 1,213.49 49.15 96.1
(meat)
Pork 1,682.00 1,603.00 79.38 95.3
Beef 176.30 118.00 58.33 67.0
Carabeef 123.62 61.63 61.99 49.9
Dairy 1,753.10 13.23 1739.87 2.0
Source : BAS
We import ruminant- derived
products’ !

5. Particulars 2008 2009
Livestock population
(head) 10,079,313 10,108,862
Cattle 2,566,492 2,565,662
Carabao 3,338,570 3,320,966
Goat 4,174,251 4,222,234
Total dairy herd (head) 28,191 29,593
Cattle 13,864 15,073
Carabao 13,416 13,594
Goat 911 926
Total dams and does 13,739 14,265
Cattle 6,371 6,871
Carabao 6,898 6,922
Goat 470 472
Dairy Farm Families 14,405 15,212
Primary Dairy 317 347
Cooperatives and
12/16/2010 Institutions

6. Ruminants are with the Small Holders
0.17%, Commercial 6.13%, Commercial 0.91%, Commercial
99.83% 93.87% 99.09%
Backyard Backyard Backyard
Carabao Cattle Goat
3.33M 2.55M 4.12M
Improving Ruminant Production in the Philippines is a SOCIAL AGENDA
- Achieving growth and food security
- Reducing rural-urban income disparities and rural poverty

8. DVF DAIRY FARM

9. Milk Collection
Dairy farmer delivering
milk at the plant
Centrifuge mounted
on tricycle

10. Quality Control & Processing
Testing of Fresh Pasteurizing &
Carabaos Milk Homogenizing

11. Packaging
Filling Milk in Bottles Packaging of Carabaos Milk

14. SM North EDSA DVF Dairy stall

16. How does carabao’s milk compare
Milk Source Cow Carabao Difference %
Fat (%) 4.30 7.90 83.72
Total solids (%) 13.10 16.30 24.43
Protein (%) 3.60 4.20 16.67
Lactose (%) 4.80 5.00 4.17
Tocopherol (mg/g) 0.31 0.33 6.45
Cholesterol (mg/g) 3.14 0.65 -383.08
Calcium (mg/100 g) 165.00 264.00 60.00
Phosphorus (mg/100 g) 213.00 268.00 25.82
Magnesium (mg/100 g) 23.00 30.00 30.43
Potassium (mg/100 mg) 185.00 107.00 -72.90
Sodium (mg/100 g) 73.00 65.00 -12.31
Vitamin A (incl. Carotene) IU. 30.30 33.00 8.91
Vitamin C (mg/100 g) 1.90 6.70 252.63

17. FRESH MILK???

18. Philippine Advantages
• Close proximity to major
cities allows fresh milk &
premium cheese, yogurt &
ice cream within a 5-6 day
cold chain
• Large river-fed plateaus &
high rainfall provide
largest grazing resource in
East Asia
• Large rural labor force
benefits, while keeping
costs low
18

19. MALNUTRITION…
erodes the future generation
Out of 12 M children
ages 2-10:
About 69%
malnourished

20. Local Government Units Participation
Milk Feeding Program

21. THE MAGIC OF MILK FEEDING
BEFORE AFTER
October 2003 December 2003
Poblacion, Manolo Fortich Poblacion, Manolo Fortich
ANGEL GRACE GALULA

22. Thank
You !!!

23. Planned Expansion Stages
• 1st round expands herd 10x, sets down new operating systems
– Improves breeding technology, Starts community-building programs
– Continues building cooperatives & Training programs for next phase
• 2nd round expands 10x again, begins franchising operations
– Extends export business with both brand-building & bulk supply
– Prepares groundwork for inter-ASEAN franchising to expand benefits
Farmers
earn >1/3 of
available
value

24. DVF Dairy Farm System
(DIP into the system)
Foreign & Local Export
Investors
DIP
Dairy Plant
(Dairy Investment Partners)
Milk Milk
Animals Animals
Males
Coops
Coops Breeders
Coops
Coops Breeders
Breeders Market
Milk Animals Animals
Meat
Small-hold Farmers
Processing