The Philippine dairy industry sustained its growth momentum in the first quarter of 2026, with both government and private sector players ramping up investments to increase local milk production and strengthen the country's dairy supply chain.
Production Growth and Data
Data from the Philippine Statistics Authority showed that the value of dairy production at constant 2018 prices grew by 6.5 percent in the January-to-March period, faster than the 5.1-percent expansion recorded in the same period last year. At current prices, the dairy subsector posted a 10.3-percent increase in value year-on-year, reflecting stronger production performance and sustained demand for locally produced dairy products.
Milk production volume rose by 6.47 percent to 11.79 million liters in the first quarter of 2026 from 11.07 million liters a year earlier.
Government Initiatives
Marcus Antonius Andaya, administrator of the National Dairy Authority (NDA), said: “The continued growth in the dairy sector reflects both the increasing productivity of our local dairy farmers and continued implementation of programs at the farm level.”
The NDA is targeting 53 million liters of milk production and a 2.33-percent milk sufficiency level this year, supported by dairy animal importation, stock farm development and farmer support programs. The agency said additional imported dairy animals expected to arrive for government stock farms would help strengthen the country's breeding base, accelerate herd buildup and expand milk production capacity in the coming years.
The government is also banking on the expansion of the milk feeding program of the Department of Education under the Sagip Saka Act to create a more stable market for locally produced milk. Rising milk consumption likewise points to growing domestic demand. Per capita milk consumption increased to 19.53 liters from 17.16 liters previously, although the country's milk sufficiency level remained low at 2.10 percent as of March 2026.
Private Sector Investment
Amid these developments, homegrown dairy brand Carmen's Best Dairy Products said it is ramping up investments to help strengthen the Philippine dairy ecosystem as it expands production, distribution and retail operations nationwide. The company recently acquired Universal Harvesters Dairy Farm Inc. in Maramag, Bukidnon, giving it a larger production base in Visayas and Mindanao, where access to fresh dairy products remains limited. The facility currently houses around 180 milking cows.
Carmen's Best said the acquisition forms part of its strategy to shorten the distance between dairy farms and consumers, allowing fresher milk supply and stronger regional distribution capabilities. The company is also investing in domestic milk production through Metro Pacific Dairy Farms in Bay, Laguna, a joint venture between Metro Pacific Agro Ventures and LR Group. The first phase of the dairy farm, which opened in 2025, currently houses 222 purebred Holstein Friesians, including 195 milking cows.
Retail Expansion
Carmen's Best is also expanding its retail footprint with new scooping stations in Cebu City and planned branches in Davao and Metro Manila malls, alongside a wider distribution push through an exclusive partnership with 7-Eleven Philippines for its fresh milk products. Founded in 2011 as a small dairy and ice cream business, the company said its investments are aimed at increasing the share of locally produced fresh milk consumed by Filipinos while supporting the long-term development of the domestic dairy industry.
