Press Release
March 29, 2007

VILLAR: DAIRY INDUSTRY NEEDS GOVERNMENT SUPPORT
RP imports P500-million of milk & dairy products annually
& produces only 1% of the countrys population

Senate President Manny Villar, President of the Nacionalista Party, says there is huge untapped potential in the dairy industry and with adequate support from the government the industry can play a major role in the countrys economic development

The multi-billion dairy industry is still a largely untapped economic sector. There is so much the government can do to help both the dairy and agri farmers including the release of allocation, implementation of tariff protection and programs against smuggling as well as corruption, says Villar, who is the guest-of-honor at the three-day Dairy Congress & Expo at the Fontana Convention Center in Clarkfield Pampanga.

Villar adds, Imagine the huge potential in the dairy industryannually we import half a billion dollars worth of milk and dairy products. Our local production capacity can cater to only one percent of the countrys dairy consumption. We should support local dairy producers to reduce our reliance on imported dairy products.

According to Villar, just like the agriculture sector, the dairy industry can play a major role in the countrys economic development. The dairy industry has created more than 16,000 jobs in 2005. It generated income for its workforce worth more than P230 million. This is one of those industries that is labor-intensive and can help solve the unemployment problem in the country, Villar cites.

Furthermore, Villar cited that the Philippines is lagging behind its Asian neighbors in milk production. In fact, besides New Zealand and Australia, Thailand has become one of the top suppliers of milk to the Philippines.

The dairy industry can provide thousands of jobs to Filipinos. On top of this, dairy processing also offers good investment opportunities for local businessmen. And since we can barely meet the dairy requirements or consumption of our people, there is significant room for further growth, further cites Villar.

Villar cited as example how the establishment of dairy zones has helped ordinary farmers in Iloilo to compete head-on with multinational dairy corporations. The dairy production units in the province have provided a much-needed boost in the industry.

I heard that members of dairy cooperatives in Iloilo are benefiting from the dairy zones. Each cooperative rear a few dairy cows and divide the milk or profits among their members. The provinces Iloilo Dairy Fresh products are now widely sold. Programs and initiatives like this in various towns or provinces, put together, can do wonders to the national dairy industry, says Villar.

The National Dairy Authority (NDA) also has a program for dairy farmers by loaning them dairy cows and financial assistance payable in installment basis through milk or dairy sales. It has created jobs from milk processors, products dealers and administrative employees of dairy processing plants.

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