DANILO “DANNY” V. FAUSTO National Chairman, Dairy Confederation of the Philippines Founder, Talavera Dairy Cooperative, Inc. President, DVF Dairy Farm, Inc. District Governor RY 2007-2008, Rotary International District 3780 Academics: AB Economics, University of the Philippines MBA, De La Salle University

DVF

2009 POVERTY INCIDENCE

By: NSCB

3.9

23.1

1.5

9.4

0

5

10

15

20

25 M

M

M

M

FILIPINO FARMER

P4,200 / mo; P50,000/yr (US$1.2T/yr)

Survives on: 1 Crop Farm

2 Off Season Crops

4 Vegetable

5 Fish

6 Hogs

7 Cattle

8 Carabao etc

3 Chicken

THE FARMER

Subsistence Income---------- P 4,870

Target Level__________ P 11,400

P 7,200

Farm Income / Mo ____ __ P 4,200

Poverty Threshold ------------ P7,017

37 Importers Traders

Processors

2010-2.0B Ltrs

2011-1.9B Ltrs

2010

2011

Total Milk Reqt’s 2010 - 2.82B Ltrs - 0.56% sufficiency 2011 - 2.85B Ltrs - 0.58%

Local Consmpt’n 2010 - 1.79B Ltrs - 0.89% 2011- 1.81B Ltrs - 0.91%

Dairy Animals - 18,029

Centrifuge mounted on tricycle

Dairy farmer delivering milk at the plant

Milk Collection

Small-hold Farmer Milk Delivery

Early morning routine and backpack delivery

Students delivering milk on their way to school

Milk Inspection On Site

Quality Control

DAIRY PROCESSING

Packaging of Carabaos Milk Filling Milk in Bottles

COOP

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COOP

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COOP

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Milk

Feeding

Institutional & Export

Supermarts; Coffee Shop; High End Restaurants

Milk

Processing

Plant

Market

Foreign & Local Investors

PHILIPPINE CORP

Coops Breeders

Dairy Plant

Small-hold Farmers

Coops Coops Coops Breeders Breeders (Buffer Farms)

Market

Export

Dairy Farm System

Milk

Milk Milk

Meat Processing

Animals

Males Animals

Animals

Animals

FARMERS

Project Site-Location Housing & Labor

Social & Technical Preparation Animal Health, Nutrition, Breeding

& Milk Production

COOPS

Animal Stocks

Supervision & Stewardship

Technical & Financial Assistance

Milk Collection Community Development

Collection Centers

1

4

2

3

MARKET

• Retail

• Dealers

• Institutional

• Export

DAIRY PLANT

The Dairy Cooperative Partnership

INVESTORS 40% 10%

50%

Sharing

Investor-Farmer Sharing

100%

50% 50%

Investor COOP/Farmer

Preferred Shares - Cash Dividend - 20-30% return p.a. - Animal insurance

40% 10%

Coop Farmer

5% 5%

Operation costs

Trust Fund - Dividends - Scholarship - Micro Finance - Libraries - School buildings

Milk Off-spring

Transforming Dairy Farmers

Above: new tricycle bought by dairy farmer Rene Landingin from carabao’s milk

Above: second hand car bought by dairy farmer Enrico dele Cruz from carabao’s milk

(Benefits from Dairy Farming)

Sustainable Local Economic Development (SLED)

High Value

Crop Prod’n

Dairy Farming

Purchasing Power & Capital Build-up

Community Development

- Education

- Health

- Housing

- Etc..

Philippine Advantages

• Close proximity to major cities allows fresh milk & premium cheese, yogurt & ice cream within a 5-6 day cold chain

• Large river-fed plateaus & high rainfall provide largest grazing resource in East Asia

• Large rural labor force benefits, while keeping costs low

16

What is an information system?

• A combination of information technology and people's activities using that technology to support operations, management, and decision-making

Users and Information Flow

Farmer-Partner Dairy

Processor

Veterinarian

Community

Manager Billboard

Facility

System Manager

DVF Dairy Institute

• Training Modules

- Organizational Development

- Cooperative Governance

- Forage and Pasture Management

- Nutrition and Health Management

- Lactation , Calf Rearing and Grower Management

- Milk Production and Hygiene

- Breeding Management

- Disease Control & Prevention

- Animal Registry Recording System

- Financial Literacy

Kinalanguyan Dairy Cooperative

Sicsican Matanda @ Rolando Valdez’s House

Technical Training

Pinili Dairy Coop

Farmers’Partners

DVF Dairy Youth Program

• The Youth program is a training program for young

people in the dairy zones operated by DVF Dairy Farm ages from 15-30 years old. The participants will attend seminars, camp and workshops organized by DVF Dairy sponsored and expenses paid for by DVF Dairy.

• It aim to encourage and assist the youth as responsible members of the family and potential dairy farmers and effective young entrepreneurs by providing them the training experience.

• To encourage continued succession and leadership in dairy farming of youth by youth.

Youth Program

Farmers’ Income Benchmark

A. Educational Attainment Percent

Elementary Undergraduate 3%

Elementary Graduate 29%

High School Undergraduate 12%

High School Graduate 35%

College Undergraduate 10%

College Graduate 10%

100%

B. Income Profile P4T below- 7% P4,000-7,500 - 63% P 7,500-P10,000 - 12% P10,000 Above - 18% 100% C. Land Area Below 0.5 Hectare- 9% 0.5-1.0 Hectare 35% 1.0-1.5 Hectare 22% 1.5 Hectare- 3.0 hectares 31% 3.0 Hectares Above 3% 100%

STAN (2GP01102)

Best 305D yield 2,383 kg

Breeding Program

Best 305D yield 2,132 kg

NATO (2CL99107)

Thank

You !!!