The Philippines is embarking on a new chapter in its dairy industry after years of relying heavily on imports, following the enactment of Republic Act No. 12308, or the Animal Industry Development and Competitiveness Act.
Signed last September, the law aims to strengthen livestock and dairy production by streamlining animal health and breeding programs while promoting competitiveness across the sector.
The National Dairy Authority (NDA) said the legislation enhances its regulatory and developmental role, allowing it to better oversee local milk production from farms to consumers. NDA Administrator Marcus Antonius Andaya noted that the agency can now implement programs to increase herd size, monitor animal health, and coordinate with commercial processors.
RA No. 12308 established the Animal Competitiveness Enhancement Fund (AnCEF) with an annual P20-billion budget, derived from tariff collections on livestock, poultry, and dairy products. Part of the funds will support herd repopulation, recovery from biosecurity threats, and modernization of postharvest and processing facilities.
To raise domestic output, the NDA plans to operate five stock farms, with the first already running in General Tinio, Nueva Ecija. Each farm is equipped with modern facilities designed to maximize milk yield, and animals will later be distributed to multiplier farms and smallholders.
The NDA aims to import 870 dairy cattle this year to complement local production. In 2025, domestic output reached 43.3 million liters, up 12.2 percent from 2024, while production value rose 27.7 percent to P1.67 billion, reflecting gains in productivity without relying on imported dairy animals.
Despite these advances, the country still depends on imports for most of its dairy needs. Carabao milk production grew 24 percent in 2025, while cattle and goat milk output rose 4 percent and 27 percent, respectively. Overall, the dairy animal inventory increased 5 percent to 161,868 head, signaling steady progress in building local capacity.