PH seen to import less dairy products from US this year
The United States Department of Agriculture (USDA) is expecting US companies to ship lower amount of dairy products to the Philippines until the end of the year amid rising prices.
“[Philippine’s] total imports in 2017 are forecast to drop slightly to 2.5 MMT from a high of 2.77 MMT in 2016 as a result of rising dairy prices,” according to the Global Agricultural Information Network (GAIN) report of USDA Foreign Agricultural Services.
As of now, Philippine’s major suppliers of dairy products are New Zealand (39 percent), the United States (24 percent), and Australia (6 percent).
In 2016, the Philippines was the fifth largest market for US dairy products by value at $227 million and the fourth largest by volume at 125,000 MT.
“The Philippines imports virtually all of its dairy products, especially milk powder, as domestic production cannot meet the country’s dairy requirement of 2.0 million metric tons (MMT) liquid milk equivalent (LME),” according to the National Dairy Authority (NDA).
To date, the Philippines produces less than one percent of its total annual dairy requirement and imports the balance. But local milk production is projected to reach 22,000 MT in 2017 and will likely continue expanding on an annual basis due to increasing consumer preference for fresh milk and improved dairying capabilities.