Manila: Sustained government and industry investments have helped boost the Philippines’ local dairy production by 21.2% to 25.38 million litres during the first six months of 2026, according to the National Dairy Authority (NDA).
Data from the Philippine Statistics Authority showed that the value of domestic dairy output at constant 2018 prices reached ₱975.73 million, up 21.35% from the corresponding period.
Zamboanga Peninsula leads regional growth
The strongest increase in dairy production was recorded in the Zamboanga Peninsula, where output grew 128.66%. It was followed by Caraga at 72.03% and Ilocos at 58.15%.
The growth comes alongside an expansion in the country’s dairy herd. While total livestock inventory declined 3% to 8.52 million head, the dairy herd increased 6.5% to 165,858 head during the period.
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The contrasting trend indicates that investments are increasingly being directed towards expanding productive dairy animals rather than the broader livestock population.
Farm-gate prices also increase
The improvement in production was accompanied by a modest increase in producer prices.
The average farm-gate milk price rose 0.41% to ₱47.05 per litre, while the price of carabao’s milk increased 4.95% to ₱89.55 per litre.
Government procurement programmes have also helped strengthen market confidence among producers. The NDA said procurement of locally produced milk under the Sagip Saka Act provides farmers with greater assurance of a market for their expanding production.
Dairy imports remain substantial
Despite the increase in domestic production, the Philippines continues to rely heavily on imported dairy products.
Dairy imports increased 2.03% to 1.76 million litres in liquid-milk equivalent, while their value climbed 6.92% to ₱46.26 billion.
The composition of imports also changed during the first half of the year. Skim milk powder imports increased substantially, while imports of several other dairy products declined. Imports of ready-to-drink liquid milk recorded a more modest increase.
Focus shifts towards the entire dairy value chain
The NDA said it will continue implementing programmes aimed at strengthening the country’s domestic dairy industry, including:
- Dairy herd development
- Genetic improvement and breeding
- Animal nutrition
- Dairy enterprise development
- Milk processing
- Market development
- Value-chain infrastructure
- Farmer support and capacity building
The first-half performance suggests that investment in herd expansion, genetics, processing and assured markets is beginning to translate into higher domestic milk production.
However, the continued growth in dairy imports also highlights the scale of the challenge: raising local production alone will not be enough; the Philippines will need competitive productivity, reliable processing infrastructure and stronger domestic value chains to reduce its dependence on imported dairy products.
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