Private milk feeding program opens P1.26M market for dairy farmers

A P1.26-million milk supply deal is opening a new revenue stream for Philippine dairy farmers, as corporate-funded school feeding programs emerge as a potential market for local producers seeking stable demand and room to expand.

ABI Pascual Foods Inc. said Wednesday it is extending its partnership with the National Dairy Authority (NDA) to provide fresh milk to 504 learners at Malitlit Elementary School in Sta. Rosa, Laguna, through 2027, creating a potential blueprint for companies to support local agriculture through sustained procurement.

The initial 100-day rollout alone will require 10,080 liters of locally produced milk, equivalent to 50,400 bottles priced at an estimated P25 each.

The P1.26-million supply contract will benefit Katipunan ng Kooperatibang Manggagatas Inc. (KKMI), a Laguna-based cooperative identified as Southern Luzon's largest dairy processing cooperative.

NDA Administrator Marcus Antonius Andaya said linking corporate-funded feeding programs with local suppliers could help address one of the dairy industry's challenges: securing reliable demand.

“Connecting school feeding initiatives with direct local procurement under the Sagip Saka Act creates a win-win model for both child health and local agriculture,” Andaya said.

“Guaranteed demand from committed private sector partners like ABI Pascual gives our dairy farmers the economic stability they need to be able to expand their herds and boost local production.”

The arrangement taps Republic Act No. 11321, or the Sagip Saka Act, which allows negotiated procurement directly from qualified farmers and cooperatives.

The mechanism could open a wider institutional market for domestic milk producers if more companies adopt similar arrangements, turning school feeding programs into recurring business opportunities for agricultural cooperatives.

ABI Pascual, the first private-sector partner under the NDA's Private Sector-Funded Milk Feeding Program, said its extended commitment is designed to sustain both child nutrition and local milk purchases.

“Nutrition requires consistency to make a lasting difference,” ABI Pascual Managing Director Javier Palomino said.

“By expanding our commitment to the program, we ensure that these learners receive sustained nourishment needed to truly thrive in the classroom, while supporting local dairy farmers through more reliable market demand.”

Launched in October, the program provides 504 Kindergarten to Grade 6 learners with a daily 200-milliliter bottle of fresh pasteurized milk.

The NDA handles milk sourcing and cooperative accreditation, while the Department of Education supervises distribution and monitoring. The Sta. Rosa local government supports health assessments and community engagement.

Students underwent baseline health and weight assessments before the rollout, with another evaluation scheduled after 100 days to measure changes in nutrition, attendance, and classroom engagement.

Andaya said stronger private-sector participation could help sustain feeding programs and expand their reach.

“Milk feeding programs help support school-aged children’s growth and development by addressing their nutritional needs, which are essential to learning and reaching their full potential,” he said.

“Through partnerships with the private sector such as ABI Pascual, we can help sustain these initiatives and ensure that more Filipino learners receive the nutritional support they need to grow, thrive, and reach their full potential.”

The partnership stems from an agreement signed in Makati City last June among ABI Pascual, the NDA, education officials, and the local government.

Palomino said the arrangement could be replicated by other companies, potentially creating a broader market for Philippine dairy products while reducing uncertainty for local suppliers.

“Public-private alliances succeed when every partner brings its core strengths to the table,” he said.

“What we are building at Malitlit Elementary School with the NDA, DepEd, and the Sta. Rosa LGU is more than a feeding program—it is a clear, repeatable blueprint for how corporate resources and public policy can unite to achieve long-term child nutrition and national dairy self-sufficiency.”