METRO PACIFIC Agro Ventures, Inc. (MPAV) said it is looking to participate in the government’s plan to increase the country’s dairy herd by providing a potential quarantine site for imported cattle.
“The new facility that we are building in Laguna with the Israelis is so high-tech that we are pitching to the government that it becomes the natural quarantine facility for all cows imported from other countries entering the Philippines,” MPAV President and Chief Executive Officer Jovy I. Hernandez said during a briefing late Wednesday.
The government aims to increase dairy production to 80 million liters per year by 2028 to increase the share of domestic production to about 5% of dairy demand.
“Part of the agenda of the National Dairy Authority (NDA) is to increase the total herd size of the Philippines,” Mr. Hernandez added.
The NDA said that it is looking to import 5,000 heads of cattle by 2028 as part of its goal to increase dairy self-sufficiency by 5% from the current 1.5%.
Under the NDA’s program, the calves of the imported dairy herd would be distributed to about 150,000 farmers.
“I know that the NDA wants to establish stock farms within the country. The intention is for every region to have one, so of course, we in the private sector, if we can help in some of those areas, we will be willing because, again, it’s part and parcel of uplifting the industry,” he said.
The Philippines imports about 99% of its dairy requirements as domestic production cannot meet market demand.
MPAV, in partnership with Israel-based LR Group, is set to start the operations of its P2 billion integrated dairy facility by April.
“We’re expecting the new herd to come in April and already start the operations there. In fact, by the fourth quarter of this year, we’re expecting full-blast raw milk production already,” he said.
Mr. Hernandez said that the company expects to be fully sufficient in its dairy needs by 2026, meeting about 25% of the Philippines’ demand.
“By 2026, we will be self-sufficient in terms of milk supply, for the demand that we are seeing, roughly about 25% of the local dairy production,” he added.
The company currently has stakes in The Laguna Creamery, Inc., which owns the brands Carmen’s Best ice cream and Holly’s Milk.
Last year, it also acquired 100% ownership of Universal Harvester Dairy Farms, Inc. (UHDFI) for over P700 million to expand its dairy business and market.
MPAV is the agriculture unit of Metro Pacific Investments Corp. (MPIC). It has businesses in vegetable production, coconut processing and export, integrated dairy processing, and ice cream.
MPIC is one of three key Philippine units of First Pacific, the others being Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — Adrian H. Halili
