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Traceability Code

National Dairy Authority Report of Accomplishments

First Semester 2018

The National Dairy Authority in the implementation of the Dairy Industry Development Program and its sub-programs has accomplished the following for the first semester of 2018. A. DAIRY HERD BUILD-UP PROGRAM

1. DAIRY INDUSTRY UPDATE Dairy registered the highest increase in volume and the second highest increase in value of production at 6.41% and 9.80% respectively. According to PSA, the uptrend in dairy was noted due to increased milk production from all dairy animals during the period

Performance of the Dairy Sector January – June, 2018

Source: Performance of Phil. Agriculture, Jan-Jun, 2018 Philippine Statistics Authority (PSA)

2. GROWTH IN DAIRY ANIMAL INVENTORY AND INCREASE IN MILK PRODUCTION

Total dairy herd in NDA –assisted/monitored areas increased by 5% as of June, 2018 with dams and does increasing by also 5% compared to the same period last year. A 2% increase in the milkline resulted to a total milk production and daily volumes increased of 4% respectively.

Republic of the Philippines Department of Agriculture NATIONAL DAIRY AUTHORITY Central Office BAI Compound, Visayas Avenue, Diliman, Quezon City 1101 Philippines

Tel No.: (632) 926-0733 to 35 Fax: (632) 926-8847

Email:dairynda@pldtdsl.net Website: http://nda.da.gov.ph

Livestock Sector

Volume- ‘000 MT Value – Million Pesos

January-June January-June 2017 2018 % Change 2017 2018 % Change

Carabao 70.61 69.66 -1.35% 5,945.66 6,499.19 9.31%

Cattle 130.82 127.71 -2.38% 12,721.73 13,493.35 6.07%

Hog 1,087.74 1,116.00 2.60% 113,699.56 129,137.55 13.58%

Goat 37.26 36.83 -1.15% 4,549.09 4,964.96 9.14%

Dairy 11.70 12.45 6.41% 411.24 451.55 9.80%

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Dairy Herd and Milk Production As of June 2018

3. ANIMAL DISTRIBUTION PROGRAM

a. In support of ANTIQUE DAIRY DEVELOPMENT

PROGRAM. The NDA, through the funding

support of Sen. Loren Legarda, distributed a total

of 15 heads of pregnant dairy heifers to four (4)

dairy farmers in Antique. This is in line with the

implementation of the Antique Dairy

Development Program which includes dairy

animal distribution and trainings on dairy

farming.

Said animals were given to the farmers during the Senator Loren Legarda Funds Program Accomplishment Presentation in Binirayan Gym in San Jose, Antique last 10 January 2018. Another batch of dairy animals are expected to be delivered to new dairy farmers within the year.

b. In Support of DAIRY GOAT DEVELOPMENT IN PANAY ISLAND

In an effort to develop dairy goat farming in Panay Island in the Visayas, the NDA distributed a total of 23 upgraded dairy goats to 4 dairy goat farmers last 31 January 2018. Basic trainings for dairy goat husbandry was conducted prior to the distribution of these animals.

Total goat inventory of 14,685 is almost 30% of the total dairy herd inventory in NDA-assisted areas of 49,546 heads.

IndicatorsAs of June,

2017

As of June

2018% Growth

Number of Dairy Herd 47,142 49,546 5%

Dams and Does 21,871 23,034 5%

Milk production (‘000 litres) 8,488 8,822 4%

Milk production/day (‘000 litres) 46.90 48.74 4%

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B. TECHNICAL SERVICES RENDERED

A total of 5,129 animals were bred. Previous breeding and upgrading activities led to the production of 1,787 calves which are potential additions to current dairy animal population.

Technical health services to our dairy farmers include 1,149 heads of dairy animals tested for tuberculosis, 812 for brucellosis and 2,937 heads vaccinated with hemosept.

C. DAIRY ENTERPRISE DEVELOPMENT PROGRAM

1. INCREASED INCOMES OF DAIRY FARMERS

Our small hold dairy farmers posted a total revenue of Php 72.15 million. This can be translated to an estimated gross revenue of Php 163 thousand per farmer in six (6) months as against last year’s Php 56.14 million with gross revenue of Php 146 thousand per farmer of the same period.

2. HIGH MILK ACCEPTANCE RATE

Raw milk are collected and delivered to plants for processing into different dairy products. The raw milk delivered should pass the tests set by milk processing plants, once accepted, it is converted to cash as earnings of the dairy farmers. A total of 2.9 million liters of milk were delivered to milk plants for processing with a 99% acceptance rate. The high acceptance rate of raw milk reflects good dairy farm management of dairy farmers in the country and provides safe and good quality milk to consumers.

3. FARMERS EQUIPPED IN DAIRY TECHNOLOGY

To develop globally competitive dairy farmers and farm workers and for the rapid expansion of dairy farming business in the country, the NDA continuously conducts trainings in dairy technology. NDA successfully conducted 49 trainings benefiting 1,099 farmers and extension personnel on the following Dairy Courses:

a. Artificial Insemination and Pregnancy Diagnosis b. Basic Dairy Husbandry Training, c. Basic Nutrition, Herd Management and Calf Rearing d. Milk Handling and Processing e. Corn Silage Production Technology f. Dairy Business Development Planning g. Dairy Project Management and Preparation Seminar h. Dairy Monitoring System and the On Line Reporting System i. Farm Performance Analysis j. Forage Development and Nutrition Calf/Heifer Rearing and Transition

and Cow Management

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4. MILK FEEDING INITIATIVES

a. In the Visayas, several counter-parting arrangements for the Milk Feeding Program were forged with the concerned City Nutrition Action Officers (CNAOs), Municipal Nutrition Action Officers (MNAOs) and other stakeholders:

AREA MFP AMOUNT NEGROS ORIENTAL

Bayawan City 99,900.00 Dumaguete City 499,500.00 Manjuyod 99,900.00

SIQUIJOR Larena 59,400.00 Provincial Veterinarian Office 49,500.00

BOHOL Antequera 59,400.00

NEGROS OCCIDENTAL Sipalay City 91,800.00

TOTAL 959,400.00

Negotiations for more counter-parting arrangement for the milk feeding program is on-going in other areas.

5. LOCAL MILK PROMOTION INITIATIVES a. NDA and dairy partners celebrate the 23rd Dairy Anniversary

With the theme “Sapat at dekalidad na gatas, tungo sa maunlad na Pinas,” the National Dairy Authority (NDA) and its dairy partners celebrated the 23rd Founding Anniversary of the agency on March 15, 2018 at the NMIS Hall, BAI Compound, Diliman, Quezon City. In the message of Administrator Marilyn B. Mabale, she highlighted the new directions set for the industry and encouraged support from the dairy partners. As a symbol of the strong partnership between the NDA and its dairy stakeholders, there was a ceremonial milk toast together with other NDA officials, dairy farmers and partners. The event gathered around 250 participants composed of dairy stakeholders, partner agencies and NDA staff.

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b. WOFEX 2018 in the Visayas NDA Visayas participated in the WOFEX 2018 in Bacolod City last February 7-10, 2018. Information materials were distributed to promote dairy farming and consumption of locally produced milk.

c. 21st Dairy Congress and Exposition in Bohol Continuing its mission to promote and expand the dairy sector, the Dairy Confederation of the Philippines (DairyCon) held its 21st Dairy Congress and Expo (DairyConEx) on May 23-25, 2018 at the Bohol Cultural and Convention Center, Tagbilaran City, Bohol. With the theme “Moving Towards Milk Self-Sufficiency”, the three-day congress aimed to provide a platform for the dairy farmers to create synergy, expand networks and share knowledge on the strategies, best practices and latest technologies that would allow them to boost their milk production. A series of insightful lectures and presentations was provided during the congress focusing on relevant topics such as dairy animal production, forage and pasture development, feeds and feeds management, dairy farm mechanization, dairy development researches, marketing of milk and milk products, and financing programs for the dairy farmers.

Over 600 delegates composed of dairy farmers, government extension and financing institutions, private investors, the academe, commercial processors and stakeholders from all over the country participated in this year’s DairyConEx.

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d. Ilocos Sur Dairy Fair

Recognizing the potentials of the province of Ilocos Sur as a dairy zone, the National Dairy Authority (NDA) and the Office of Congressman of the 1st District of Ilocos Sur joined forces to promote and boost the dairy industry in the province. To formally introduce the ongoing dairy development efforts in the area, stakeholders were convened to take part in the first Ilocos Sur Dairy Fair held on April 26, 2018 at the NSCC Plaza and Convention Center, Caoayan, Ilocos Sur.

Also gracing the event was Ilocos Sur 1st District Representative Deogracias Victor B. Savellano. In his message, he underscored the importance of having a program in place that could significantly increase local milk production and reduce dependency on importation. He noted that at present, the country’s dairy sector only meets one percent of the milk demand and imports 99 percent of it. Thus, he enjoined the participants, with the assistance from the NDA, to take part in making the necessary actions that would help address the issue in support of the development of the local dairy industry.

e. World Milk Day 2018

The NDA participated in the celebration of World Milk Day 2018. A local milk promotional activity was held in the Senior Citizen’s Garden at Rizal Park, Manila last June 1, 2018 and at the San Andres Sports Complex on June 23, 2018.

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This is likewise in celebration to the World Day Against Child Labor 2018 in partnership with the Department of Labor and Employment (DOLE).

D. DAIRY REGULATORY PROGRAM

The NDA is one of the agencies of the Department of Agriculture identified to have food safety regulatory functions particularly on milk and post-harvest handling. To carry-out this function, the NDA shall enforce the Dairy Safety Regulation Standards and ensure compliance by the dairy farmers and all stakeholders involved in milk production and post-harvest activities. After all standards are established, the NDA shall conduct dairy farm and plant registration and audit to ensure the adoption of quality standard protocols.

To date, the NDA has consulted/engaged more than 800 participants during the conduct of five (5) series of public consultations as a requirement for every regulations to be released. Dairy Farmer Profiling is also being conducted which will serve as an assessment tool relevant to food safety.

PUBLIC CONSULTATIONS CONDUCTED

ISLAND #Participants AREA DATE

North Luzon 384

NDA Central Office, Quezon City Nueva Ecija

Bulacan Isabela

February 5, 2018 March 8, 2018

March 19, 2018 March 21, 2018

Visayas 181 NDA Visayas Office,

Cebu City Dumaguete

February 13, 2018 May 9, 2018

North Mindanao

84 Cagayan de Oro, Misamis Oriental

February 20, 2018

South Mindanao

130 Ma-a, Davao City February 22, 2018

South Luzon 64 Lipa City, Batangas February 23, 2018

Total 843

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E. INDUSTRY SUPPORT PROGRAM

1. INCLUSION OF DAIRY PROGRAMS IN THE NATIONAL PRIORITY PROGRAM

(NPP) 2018 One of NDA programs, Enterprise Assistance via Equipment and Technology Support, was successfully included under the 2018 National Priority Plan (NPP) of the Government. The program is considered as part of priority projects, programs and activities (PPAs) together with other DA programs including Rapid Propagation and Dissemination of High Yielding Varieties (HYV) of Sugarcane and Urban Agriculture Program. The certification entitles sponsors who will donate for the said programs tax deductions in accordance with the provisions of Sec. 34 of the National Internal Revenue Code of 1997.

2. QUALITY MANAGEMENT SYSTEM UPDATES In pursuit of the agency target on ISO certification, series of QMS activities were undertaken on the first quarter of the year. The Technical Working Group on Policies and Guidelines together with the QMS Secretariat conducted series of meetings and workshops with the process owners in order to come up with the Quality Procedures-Work Manuals. The Training and Education Team (TET) discussed and cascaded the provisions of the manuals to all relevant functions, levels and processes of the agency during a one-day orientation activity. These orientations were conducted by the team to all agency area departments from the 2nd week until the last of March 2018. Implementation of the NDA QMS started in April and a refresher training course on Auditing QMS was conducted to prepare the internal auditors and process owners on the conduct of audit.

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The Management committee demonstrates leadership and commitment with respect to the full implementation of the QMS by ensuring that all requirements are integrated into the agency’s core and support processes.

F. INTER-AGENCY COLLABORATION

a. National Level

i. NDA-CCC – NDA takes part in tagging climate change-related expenditures which form part of the DBM-CCC Joint Memorandum Circular No. 2015-01 or the Revised Guidelines for Climate Change Expenditure Tagging (CCET).

ii. NDA-DA-NLP – NDA participates in the preparation of livestock projects in relation to dairy. The DA-NLP recently funded a communal dairy farming project that aims to provide livelihood opportunities for farmers and their families in the countryside.

iii. NDA-DAR – A MOA is being crafted for the benefit of 15 Agrarian

Reform Beneficiaries Organizations (ARBOs) in order to build and improve their members’ capacity to undertake agricultural enterprises in the dairy industry.

iv. NDA-PCSO – A joint project of NDA and PCSO in pursuit of providing livelihood to local dairy farmers and good nutrition to our beneficiaries through the Milk Feeding Program. Target areas are in Maasim in Sarangani and Oslob in Cebu. A total of 521 and 244 children will be milk-fed in both areas respectively for a feeding period of 120 days.

b. International Level

i. NDA-DAIRY ASIA – NDA actively participates in the Dairy Asia which

is a multi-stakeholder partnership of willing partners committed to

visioning and building a sustainable dairy sector in Asia and the Pacific

region. It is one of the national focal points which comprise the

steering committee along with knowledge partners, sponsors and

technical working group members which provide strategic guidance

and oversight.

ii. NDA-CZECH – A project proposal was approved for funding by the

Czech Republic entitled Expert Assistance on In-Depth Analysis of the Supply Chain of the Philippine Dairy Industry. This project aims to prepare and ready the key players in the whole dairy value chain through knowledge sharing/transfer.