Republic Act 7884, otherwise known as the National Dairy Development Act of 1995, mandates the inclusion of milk in government feeding programs. within this framework the NDA and the dairy cooperatives that it assists undertake the School Milk feeding Program (SMFP).

The SMFP helps raise the nutritional status of malnourished school children. It also benefits local dairy farmers as it provides a ready to market for their milk produce.

In 1999, a total of 32,023 children in 228 public elementary schools across the country participated in the SMFP. They were fed with 200 ml. of pasteurized fresh milk five days a week up to a period of 120 school days. The milk was supplied by the dairy cooperatives operating within or near the area where the SMFP was being undertaken.. Of the total number of beneficiaries , 46 percent (14.587) were in Mindanao, 36 percent (11,778) in Luzon and 18 percent (5,658) in the Visayas .

Some Php 11.47 million were spent for 1999 SMFP. Of the said amount, Php 24 million came from the funds provided by Sen. Franklin Drilon ; Php 87 million from then senator now Agriculture Secretary Edgardo J. Angara; Php 32 million came from NDA and Php 3.03 million from local government units. The 1999 beneficiaries brought to 144, 245 the total number of school children who have benefited from the SMFP since the NDA began operations on March 12, 1995.