January – December 2021
The dairy supply situation for 2021 is characterized by increasing milk and dairy products imports and exports and decreasing local milk production. The net supply stood at 3.01 billion liters or 3.01 million MT in liquid milk equivalent (LME), 3% higher than last year’s net supply of 2.93 million MT. Local production declined by 1.5% and imports up by more than 3% and exports up by around 44%, respectively.
For 2021, imports of milk and dairy products increased by more than 3% (from 2.94 million MT to 3.04 million MT.). In terms of value, it went up to 11% (from total dairy import bill of US$1,082.15 million to US$1,199.06 million) indicating an increase in unit import cost of 7% and 6% in dollar terms and in pesos, respectively.
Milk powder constituted the bulk of imports contributing 78% to the total milk and dairy products imports. Skimmed milk powder comprised 44%, whey powder at 17%, buttermilk powder at 11% and whole milk powder at 5% of milk imports. Of the milk powder, whey powder posted with a highest increase of 43% and buttermilk powder by 9%, while whole milk powder and skimmed milk powder posted a decrease of 25% and 6%, respectively.
Of the total dairy product imports, 84% were under milk and cream products. Whey powder, cheese, buttermilk powder and butter/butterfat recorded the highest increase in volume among imported dairy products at 43%, 31%, 9% and 7%, respectively (please refer to dairy industry data as Annex 1).
Ready to drink milk decreased by 9% and 4% in volume level and in value, respectively. It accounted for around 3% of the total dairy import volume.
The decrease in local production of around 2% accompanied by a decrease in imports of liquid milk by 9%, resulted in 21% share of local production to total liquid milk supply. Hence, local production contributed more than one glass out of five glasses of liquid milk supply.
In terms of sources and value share, United States of America remained to be the leading source of imported dairy products, accounting for 30% to total dairy import bill. New Zealand ranked as second supplier, followed by Belgium and Australia with 29%, 6% and 5%, respectively.
The volume of exports reached 51.42 thousand MT or 44% higher compared to last year’s volume of 35.81 thousand MT.
Cream, ice drops and cheese were the big export items during the year. Evaporated milk, skimmed milk powder, whey , cream, whole milk powder, butter/butterfat and cheese posted also an increase. On the other hand, liquid (RTD) milk, ice drops, ice cream and condensed milk recorded decrease in exports.
Malaysia and Vietnam were the top market of Philippine dairy products, accounting for 38% and 14%, respectively of the entire dairy export value. Next was Singapore that took 12% of the total value and with other countries of destination that include United Arab Emirates and United States of America with shares of 8% and 5%, respectively.
Dairy registered with an expansion of around 17% in value of production and 1.5% decrease in volume of output. Total dairy production reached 26.30 thousand MT-level and grossed more than P1,408 million at current prices.
Local milk production comes from the dairy animal (herd) inventory of 69,616 head. Of this inventory, dairy cattle registered a number of 24,252 head and the number of dairy carabaos reached to 17,907 head. Goat inventory totaled to 27,457 head. By animal source, 61% of the total volume of milk produced came from dairy cattle, 32% from carabao and 7% from goat.
Of the total milk output of 26.30 million liters or thousand MT, production from NDA-assisted dairy farms accounted for 77% or a total of 20.29 million liters.
Gross earnings in the dairy sector recorded around 17 % increase from P1,207 million in 2020 to P1,408 million this year. The dairy sector accounted for 0.07% and 0.42% of the total agricultural and livestock production value (at current prices) of Php1,997.20 billion and Php335.48 billion, respectively.
Philippine Dairy Industry 2021