Philippines may import more dairy this year

Philippines may import more dairy this year

The Philippines may import more dairy this year on the back of higher demand from consumers and the processing industry, according to the Food and Agriculture Organization of the United Nations (FAO). In a report, FAO forecasted a slight expansion in global dairy trade this year to 85 million tons in milk equivalent, reversing the 4.6 percent drop in volume last year. 'This is principally due to an anticipated increase in import demand by Algeria, Mexico, Australia, Indonesia, Saudi Arabia and the Philippines reflecting a combination of higher demand from the food processing industry, as well as rising consumer demand that exceeds potential supplies from internal sources,' it said. In particular, the UN agency sees the Philippines importing 2.87 million tons of dairy, up 2.18 percent from the estimated 2.8 million tons imported last year. Most of the country's dairy demand is driven by the government's milk feeding program, led by the Department of Education (DepEd) in partnership with the Department of Agriculture (DA). While the milk feeding program is served mostly by local production, imported milk serves 99 percent of the country's total dairy requirements. Last year, the Philippine milk imports rose by 10 percent to 3.35 billion liters