Dairy output rises in Q1

The Philippine dairy industry posted stronger growth in the first quarter of 2026 as local milk production continued to rise amid increasing consumer demand and ongoing government support programs aimed at expanding the sector.

Data from the Philippine Statistics Authority (PSA) showed dairy production climbed by 6.47 percent during the January-to-March period, with output increasing to 11.79 million liters from 11.07 million liters a year earlier.

The Philippine dairy industry posted stronger growth in the first quarter of 2026 as local milk production continued to rise amid increasing consumer demand and ongoing government support programs aimed at expanding the sector.

Data from the Philippine Statistics Authority (PSA) showed dairy production climbed by 6.47 percent during the January-to-March period, with output increasing to 11.79 million liters from 11.07 million liters a year earlier.

The value of dairy production at constant 2018 prices also grew by 6.5 percent, surpassing the 5.1 percent increase recorded in the same quarter last year.

At current prices, the dairy subsector registered a 10.3 percent year-on-year increase in value, reflecting stronger farm output and sustained demand for locally produced milk products.

Industry officials said the continued expansion highlights the growing role of dairy farming in supporting food security, rural incomes, and the broader livestock sector.

“The continued growth in the dairy sector reflects both the increasing productivity of our local dairy farmers and continued implementation of programs at the farm level,” said Marcus Antonius T. Andaya, administrator of the National Dairy Authority.

“For the first quarter of 2026, local milk production reached 11.79 million liters, higher than the 11.07 million liters recorded during the same period last year, translating to a 6.47 percent increase in production,” Andaya added.

The NDA said production gains were achieved even before the arrival of additional imported dairy animals intended for government stock farms, which are expected to strengthen breeding programs and expand the country’s milk production capacity in the coming years.

Officials are also banking on stronger institutional demand to further support the industry’s growth.

“We are optimistic about the opportunities that 2026 will bring, particularly with the expansion of the milk feeding program of the Department of Education to be procured under the Sagip Saka Act,” Andaya said.

“This initiative is expected to create stronger and more stable market demand for locally produced milk, which in turn will encourage our dairy farmers to further increase production and invest in herd expansion and productivity improvements,” he added.

Consumer demand for dairy products has also continued to rise, with per capita milk consumption increasing to 19.53 liters from 17.16 liters previously.

Despite the production gains, the country’s milk sufficiency level remained low at 2.10 percent as of March 2026, underscoring the Philippines’ continued dependence on imported dairy products.

Andaya said the low sufficiency rate also reflects the scale of opportunities available for domestic dairy producers as demand continues to expand.

For 2026, the NDA is targeting milk production of 53 million liters and aims to raise the country’s milk sufficiency level to 2.33 percent through continued investments in dairy animal importation, stock farm expansion, and farmer assistance programs.