Dairy collaboration with France to increase Phl’s milk sufficiency rate

The National Dairy Administration (NDA) aims to raise the country’s milk sufficiency rate from the current 1.66% to 5% by 2028 through international collaboration and potential funding from France’s government and private sector.

The Philippines and France recently signed an agreement to boost dairy sector cooperation, with an ongoing feasibility study assessing the viability of a large-scale milk production project. The NDA and French firm Phylum SARL formalized their partnership through a memorandum of understanding (MOU) to evaluate the Philippine Dairy Project.

The project envisions a modern dairy farm in Ubay, Bohol, capable of housing over 300 cows and processing up to 10 metric tons of raw milk daily. It also includes plans for milk collection centers and processing facilities in select areas nationwide, with local cooperatives playing a key role in milk and fodder production.

Funded by a grant from France’s Fonds d’Etudes et d’Aide au Secteur Privé (FASEP), the feasibility study will determine the project’s eligibility for a concessional loan. The NDA noted that poor feed quality, high production costs, and inadequate infrastructure currently constrain local milk production, with the average output per cow at just 8 liters per day.

The NDA is seeking additional funding to increase milk output and meet at least 5% of the country’s dairy needs. Under the 2025 National Expenditure Program, the agency is set to receive a budget of P537 million, slightly higher than its 2024 allocation of P522 million.

The MOU was signed by DA Secretary Francisco Tiu Laurel Jr. and Phylum Managing Partner François Gary, in the presence of French Ambassador Marie Fontanel, DA Undersecretary for Special Concerns Jerome V. Oliveros, and NDA Administrator Marcus Antonius T. Andaya.

The NDA reaffirmed its commitment to international partnerships and private-sector investments to strengthen the local dairy industry.