First-half dairy imports rise on growing demand
The country’s dairy imports expanded to more than 1.7 million metric tons in liquid milk equivalent (MT-LME) in the first six months of 2026, as demand for milk products continues to grow, according to state-run National Dairy Authority (NDA).
In a report, NDA said that dairy imports from January to June reached 1.76 million MT-LME, up by more than two percent from the 1.73 million MT-LME recorded in the same period last year.
Skim milk powder was the top imported dairy product during the first half, accounting for 713,270 MT-LME, or more than 40 percent of total. This was an improvement of about five percent from 675,250 MT-LME last year.
Imports of whey, which is used in the production of many food products, increased to nearly 329,000 MT-LME from 327,050 MT-LME in the previous year.
Meanwhile, imports of buttermilk and buttermilk powder declined by 10 percent year-on-year to 204,220 MT-LME from 226,590 MT-LME.
Ready-to-drink (RTD) liquid milk imports went up by more than 20 percent to 66,650 MT-LME in the reference period from 55,160 MT-LME, based on NDA data.
NDA said the total value of dairy imports in the first half was estimated at ₱43.26 billion, up by seven percent from ₱40.26 billion a year ago.
The dairy import unit cost remained at $0.44 per liter by the end of June. Given the Philippine peso’s depreciation, the cost of imported milk per liter increased to ₱26.23 from ₱25.03 last year.
New Zealand was the country’s top supplier of dairy products in the first half, accounting for 31.63 percent of total volume. This was followed by the United States (US) with 22.66 percent, and Indonesia with 5.4 percent.
The Philippines continues to be highly dependent on imported products to meet its dairy requirements, as local production accounts for only 1.42 percent of the country’s dairy supply, while the rest is covered by purchases from abroad.
The latest Philippine Statistics Authority (PSA) data showed that domestic dairy output reached 21.22 million MT-LME in the first half, 21 percent higher than the 20.94 million MT-LME recorded in the same period last year.
“The large gap between local production and total dairy requirements underscores the continuing challenge of import dependence,” NDA said.
To encourage stronger production, NDA said it will focus on accelerating the country’s herd build-up, enhancing farm-level efficiency, and improving animal productivity.
NDA also noted that sustained government demand for locally produced milk and investments in dairy value chain infrastructure will be crucial in enticing farmers to invest more in farm productivity.
NDA aims to increase the country’s milk self-sufficiency rate to 3.3 percent this year, up from 2.2 percent last year. Eventually, the agency plans to expand sufficiency further to five percent by 2028.