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DAIRY ENTERPRISE DEVELOPMENT PROGRAM

·         Herd Build-up

The build-up of a productive herd of suitable dairy animals is one of the major concerns of the NDA.  In 1999, it set into motion the infusion of 1,200 milking cows from Mew Zealand.  The said animals are due to arrive in the second quarter of Year 2000 after having achieved 4-5 months confined pregnancy.  These are intended to augment the existing dairy herd in the NDA’s target areas.

The NDA also initiated steps for the establishment of a contract breeding scheme in cooperation with the Federation of Cattle Raisers of the Philippines (FCRAP) to produce Holstein-Brahman crosses.  The annual target number is 10,000 head starting on the second year of the program, with a desired herd build-up of about 30,000 head by 2004.

Corollary to this, the NDA started talks with the Quedan and Rural Credit Guarantee Corporation (QUEDANCOR), a DA-attached agency, for the setting up of a guarantee fund that would facilitate procurement of the FCRAP breedable dairy crosses by qualified farmers and cooperatives.  The said fund will also allow dairy farmers to avail of loans that shall be applied to various activities and requirements involving production, packaging, marketing, and distribution of milk and other dairy products.

Meanwhile, the NDA continued to deliver breeding services through its four island offices in North Luzon, south Luzon, Visayas and Mindanao.  A Total of 2,883 dairy animals were covered through artificial insemination using semen from genetically superior bulls or through the natural method.  This resulted in the pregnancy of 1,548 of the said cows, and the eventual birth of 1,291 calves

The NDA also facilitated the dispersal of 25 Bulgarian Murrah heifers to farmers in Consolacion, Cebu in cooperation with the Philippine Carabao Center (PCC) through its 25-Head Dairy Buffalo Module.

As of end-1999, the dairy cow population of NDA-assisted cooperatives stood at 2,285 head.  Of this number, some 1,275 were on the milk line

·         Technical Assistance to Dairy Coops

The NDA extends continuing technical support to dairy cooperatives whose farmer-members undertake smallhold-type dairy projects.  Such assistance-which includes veterinary health care, product development and facilities maintenance-enables the dairy coops to efficiently and effectively handle the critical areas of production, collection, processing and marketing, as well as the strengthening of their respective groups within the framework of cooperativism.  Project development officers of the NDA are mainly responsible for the provision of the said technical support.

Milk Production

In 1999, the NDA-assisted dairy cooperatives produced 2.77 thousand metric tons of fresh milk.  The said volume is 6.87 percent higher than the 1998 production.

The Luzon-based farmers accounted for 46 percent of the total production 

The 1999 production value reached Php36.54 million, which is 7.17 percent higher compared to the previous year’s figure.

Milk Collection

The daily produce of farmer-members were brought to collection centers set up by the dairy coops.  In 1999 there were 32 such facilities.

On the average, 63 percent of the 1999 milk production or some 1.74 thousand metric tons were collected by the coops.

Processing

The milk collected were processed in 10 milk plants run by the dairy coops themselves.  Processing conformed to internationally accepted standards and procedures, such as the use of chemical, microbiological and organoleptic tests, to ensure quality and wholesome milk and other dairy products.  Home-based processing was also done by farmer-members using 13 facilities for such type of activity.  Proper hygiene and sanitation were also observed.  

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Marketing

NDA-assisted cooperatives marketed their products through direct selling to homes and offices, and through commercial outlets such as supermarkets, restaurants and hotels.  The products sold included liquid milk (natural and flavored), cottage cheese, yoghurt and milk bars.

The Batangas Dairy Cooperative (BADACO), a South Luzon-based cooperative, for instance, regularly supplied the milk needs of a coffee restaurant in Metro Manila that is part of an international group.

In coordination with the NDA, the coops also undertook product promotion through, among others, participation in trade fairs and exhibits, such as the Agri-Aqua Fair held May 24-28 and the 6th International Agribusiness Exhibition and Conference held October 7-8.  

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·        Animal Health and Other Services

NDA field personnel delivered vaccination services covering a total  of 3,941 animals, or 4.31 percent higher compared to the previous year.  In addition, zoonotic testing was done on 1,291 animals, aside from deworming, deticking and vitamin supplementation.

Further, various types of assistance were extended to other entities, such as upgrading services for dairy animals of agrarian reform beneficiaries in Cebu province; evaluation of the facilities and resources of a private company based in Sarangani province whose employees’ cooperative indicated interest in dairy production; and upgrading of the animals of a buffalo-based dairy cooperative in Pangasinan.

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·         Training and Education

As part of its efforts to empower the dairy farmers, the NDA conducted a variety of trainings, which ranged from basic dairy husbandry to values orientation.  A total of 437 farmer-members participated in the said short-term courses.

Technical staff from the NDA and from fellow government agencies, such as the Dairy Training and Research Institute (DTRI) at the University of the Philippines in Los Banos, Laguna, and from private institutions served as resource persons.  

 

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INDUSTRY SUPPORT PROGRAM

Research and Development

Policy Study

A team of Swede-Agri experts completed a research entitled Philippine Dairy Policy Study, which was funded by the Swedish International Development Agency (SIDA) under the bilateral cooperation between Sweden and the Philippines.  The results were formally presented to representatives of the Philippine government on September 23, 1999.  

The study focused on macro policies affecting the local dairy sector to include the following:  tariffication and other international commitments in relation to the General Agreement on Trade and Tariff World Trade Organization (GATT-WTO); privatization and liberalization policies of the Philippine Government; credit systems and policies; and prospects and limitations in regard to RA 7884.

It recommended seven interrelated strategies that would improve the sustainability of the Philippine dairy industry.  One of these is the increase of the tariff rate on imported UHT (ultra-high temperature) milk products to the maximum allowed bound rate, which can be set aside to finance local dairy development.

The report also cited the need for serious and aggressive public investment on the use of the school milk feeding program as a potent measure to stimulated local dairy production.  It also urged public investment on vital dairy infrastructure for processing and packaging.

Livelihood Potentials

On the other hand, the National Institute of Molecular Biology and Biotechnology 9BIOTECH) at the University of the Philippines-Los Banos Laguna (UPLB) submitted its final reports on two researchers commissioned by the NDA, namely, “Commercialization of the NDA Bio-Organic Fertilizer” and “Microbial Rennet Production.”  The first study documented the potential of commercial production of bio-fertilizer from cattle manure as added source of income for dairy farmers.  The other study established the possibilities of commercial production and application of microbial rennet by the local dairy industry.

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