Filipinos may find less cheese in their burgers, pizza and other cheesy food due to more expensive imports, according to the United States Department of Agriculture (USDA).
In an Oct. 23 report, USDA-Foreign Agricultural Service's (FAS) Manila office projected cheese demand in the Philippines next year "will continue to decline due to high prices and tight supply."
At present, domestic cheese production, which uses the milk of buffalos—more popularly known locally as carabaos—and cows, is "minimal," FAS Manila noted, such that "supply will continue to be supported by imported cheese products."
The meager local production mostly comes from the Philippine Carabao Center (PCC) and the government-owned Dairy Training and Research Institute (DTRI), which churn out mozzarella and white cheese.
"There are also growing Indian communities in the country that prefer to buy buffalo milk-derived Indian type cheeses," FAS Manila said.
Amid expectations of lower cheese imports to the Philippines in 2025, FAS Manila expects "usage will be conservative among fast-food, pizza chains, and other restaurants, which are the drivers of demand for cheese."
"Hotels, which are an important market for cheese, will continue to moderate cheese offerings due to high prices," FAS Manila added.
Citing figures from Trade Data Monitor (TDM), FAS Manila estimated 22,000 metric tons (MT) of cheese were imported by the Philippines from January to June 2024, of which 37 percent came from New Zealand; 14 percent from the US; also 14 percent from Australia; 13 percent from Denmark; five percent from Indonesia; and the remaining 17 percent from other countries.
During the first half of this year, imported cheese dropped by a tenth because "prices increased in June and there were reports of continued increase to date."
As such, FAS Manila sees total cheese import volume in 2024 to be nine-percent lower than the 46,000 MT imported last year.
New Zealand accounted for 42 percent of cheese imports to the country in 2023; 13 percent were from Australia; 12 percent from the US; 11 percent from Denmark; four percent from Indonesia; and 18 percent from other nations.
Moving forward, FAS Manila forecasted that elevated global cheese prices would keep Philippine imports flat next year, affecting food manufacturers in the country.
"The food manufacturing sector's expansion will remain conservative due to high raw material prices," according to FAS Manila.
As local cheese production is meager, domestic producers manage to export an average of 1,000 MT yearly, including cheddar, edam and spreadable cheeses.
"Cheese is exported to cater to Filipino communities abroad such as those in the US, Canada, Taiwan, Singapore and Hong Kong. The increasing numbers of Filipinos abroad encourage exporters to ship locally produced cheese to cater to this market," FAS Manila explained.