This program aims to ensure and accelerate the increase in both local dairy stocks and local milk production. Increase in local dairy herd may be realized thru the importation of genetic materials like dairy animals and dairy breeding materials, upgrading of existing local animals to dairy breed, production of replacement stocks thru dairy breeding programs like artificial insemination programs and multiplier farm establishment, and the preservation of existing stocks. Increasing the milking animals will significantly affect overall local milk production in the country. The following sub-programs concretize the herd build-up program.

Save-the-Herd (STH) Program.

This program was designed to channel dairy animals into a scheme which will stimulate animal trading, dairy enterprise enhancement and herd conservation. Under this program, the STH partner receives from NDA a dairy animal which he is obligated to rear, condition and impregnate according to prescribed dairy husbandry management standards.

Herd infusion.

This includes importation of dairy stocks, diversification of sources and local procurement of dairy animals.

Improved breeding efficiency.

Breeding is a primary concern not only in building up the dairy herd but also in producing the right genetics that will produce significant volumes and augment the present milk production. Breeding services are regularly provided to maximize the reproductive capacity of dairy animals either thru artificial insemination or natural (bull) breeding. To keep track of these services and validate efficiency, computer-based monitoring of NDA- assisted herds, regular reporting on the ratio of pregnant animals to total breedable herd and tracking calving intervals are being done.

Animal financing.

Tailoring of animal loan programs to the dairy business cycle and tapping new sources of affordable animal loans. Financing institutions are being tapped for this purpose. Presently though, with the current tight global financial situation, a payment-in-kind scheme is being pursued.

Palit-Baka Scheme of Dairy Animal Distribution.

Refers to the program whereby NDA distributes potential dairy animals to new but eligible and qualified participants who in a certain period of time, would resort to a payment-in- kind by way of female dairy animals.

Upgrading of local animals.

Another strategy used to increase the number of dairy animals is through upgrading. It is done by artificially inseminating local cattle with 100% purebred Holstein-Friesian semen. Calves born from upgrading programs are distributed to new farmers interested in dairying. Despite the longer waiting period to earn money from upgrading, other farmers, LGUs and private organizations still prefer such approach to dairying because of the readily available native animals in their localities.

Breeding/Multiplier farm Operations.

Engaging and encouraging private-public partnership in producing local born dairy stocks to become major sources of affordable quality dairy animals.

Bull Loan Program.
NDA delivers purebred and crossbred dairy bulls to Regional Field Units of the Department of Agriculture or other Dairy Bull project partners to be managed, trained and maintained for semen production, collection and processing purposes.

With the Herd build-up program, productivity is the main concern but for dairy farmers to be successful their business must be profitable. Infusing enterprise orientation among dairy producers is the key to sustainability of the program. This can be done by equipping participants in the industry through installation of systems, continuous education and training and infrastructure development. Efforts to gain market access in both commercial and social markets must be pursued. New areas will be prepared as future dairy zones while the existing ones will get corresponding support as well. Milk processing plants, collection centers and processing equipment will be established and installed while existing ones will be upgraded to ensure the flow of the product to the market.

• Expand share of local milk in the liquid milk market. Metro Manila and other city centers are key targets for commercial market expansion. On a parallel effort, mass markets like schools, offices and factories will be developed through existing as well as new distribution networks. With local government partners, the promotion of pockets of self sufficiency in milk will be aggressively pursued at household and village levels.
• Dairy zone installation. The minimum requirement for a dairy zone consists of 100 farmers with three dairy animals each located in adjacent villages and within a 30-kilometer radius of an urban market that has the capacity to absorb its milk production. The farmers own the animals, the primary cooperative operates the collection center, a federation or private entrepreneur operates a processing plant and undertakes marketing. In this process, the NDA identifies local partners prepared to put up the counterpart resources needed to startup a dairy zone.
• Training of dairy managers and entrepreneurs. Intensive training in dairy enterprise management and entrepreneurship is an important element under this program. Prolonged periods of concentration on production somehow failed to stimulate the entrepreneurial drive among dairy producers. Many dairy cooperatives fail due to lack of professional managers. Even qualified persons have failed to succeed in managing dairy businesses due to lack of exposure in the industry.
• Cost-efficient milk handling and processing facilities. A major breakthrough has been achieved in recent years allowing local processors to install facilities without resorting to expensive turn-key plants. This was achieved in several ways: through the support of the Department of Science and Technology in the design and local fabrication of equipment; the diversification of equipment suppliers; and, the development of dairy engineering skills.

This program focuses on the installation of quality-based milk test and payment systems to all NDA-assisted cooperatives. The farmers were paid not only based on volume but also on the quality of their milk produce. These milk payment schemes are changing the dairy producers’ outlook and many had benefited from the incentives given to the farmers to produce clean and wholesome local milk. It also includes activities such as regular laboratory testing of raw milk and finished products and farm and plant audit.

Farm and plant Audit. To complement the capacity of the Bureau of Food and Drugs and pursuant to DA Administrative Order No. 9 (S-2006), the NDA undertakes farm and plant audit to ensure the observance of appropriate quality protocols.

Installation of quality control systems (QCS). The installation of in-house laboratory capacity to conduct regular milk tests and generate reports to concerned processing facilities and farmers are important activities in this field. Starting 2004, almost all milk plants have initiated quality-based milk payment systems.

This program continuously served as the base market of the local dairy farmers, especially those who had just started in the business of dairying. It addresses the issues of poverty by rescuing children from malnutrition while providing a steady flow of income to local dairy farmers and their cooperatives.

Enforcement of Section 16 of the National Dairy Development Act of 1995.

This section requires that government nutrition programs that use milk shall be supplied by local milk producers and shall be coordinated with the NDA.

Inter-agency Milk Feeding Committee (IMFC).

The creation and active involvement of the IMFC in overseeing all milk programs and ensuring the quality of milk delivered have made transactions in milk feeding programs supplied by local producers very transparent. The IMFC enforces a Joint Statement issued in 2003 by the Departments of Agriculture (through the National Dairy Authority), Education, Health (through the Bureau of Food and Drugs and the National Nutrition Council) and the Social Welfare and Development.

Build-up of the Philippine Milk Fund.

This is a fund that is used by the NDA to offer as counterpart to local governments and other co-sponsors. NDA continues to seek new partners in augmenting this fund.

Upgrading of local animals. Another strategy used to increase the number of dairy animals is through upgrading. It is done by artificially inseminating local cattle with 100% purebred Holstein-Friesian semen.  Calves born from upgrading programs are distributed to new farmers interested in dairying.   Despite the longer waiting period to earn money from upgrading, other farmers, LGUs and private organizations still prefer such approach to dairying because of the readily available native   animals in their localities.

Breeding/Multiplier farm Operations.  Engaging and encouraging private-public partnership in producing local born dairy stocks to become major sources of affordable quality dairy animals.

To enhance productivity among dairy animals and ensure profitable income for farmers. NDA technical  staff delivered various animal health services, which included vaccination, testing and vitamin supplementation.

To enhance productivity among dairy animals and ensure profitable income for farmers. NDA technical  staff delivered various animal health services, which included vaccination, testing and vitamin supplementation.

Fresh milk and other products produced and processed by NDA-assisted dairy farmers meet dairy industry standards. Customers-such as premium coffee shops and first-class hotels-are assured of quality items. Gouda cheese (Queso de Oro) has passed the discriminating test of cheese lovers. The cheese is produced by the Northern Mindanao Federation of Dairy Cooperatives (NMFDC) and distributed by the Dairy Development Foundation of the Philippines, Inc. (DDFPI). The product has been purchased by the Dutch flag carrier KLM as a corporate give-away and has also gained acceptance among chefs of first-class hotels. Panir (unsalted cheese) produced by the Sta. Maria Dairy Farmers Multi-Purpose Cooperative (SMDFMPC) is patronized by Indian customers.