US dairy exports to PH resilient despite global risks

MANILA, Philippines — The United States anticipates that dairy exports to the Philippines will remain robust despite geopolitical risks and supply chain disruptions, according to the US Dairy Export Council (USDEC).

“We do anticipate that exports of dairy into the Philippines will remain strong,” USDEC Regional Director for Southeast Asia Dalilah Ghazalay said in an interview on Thursday.

Article continues after this advertisement

Ghazalay refrained from providing specific projections on US dairy shipments to the Philippines this year, although she said that “demand will still continue,” supported by limited local production, the country’s nutritional needs and demand from food manufacturers.

“I don’t have a crystal ball because there are many other factors in play here in terms of the geopolitics, supply chain disruptions,” Ghazalay said. “It’s kind of hard to say because tomorrow can be something else.”

“Local milk production is still very small, and you do need to supplement that with different dairy ingredients to make all these different products that the consumers here need,” she said.

Ghazalay said Southeast Asia, including the Philippines, is deficit in dairy production, highlighting the crucial role of imported dairy in meeting the region’s nutritional needs.

Article continues after this advertisement

She also said dairy ingredients can provide affordable nutrition when incorporated into food products.

According to USDEC, the Philippines is the top market for US dairy in Southeast Asia and the second for US milk powder worldwide.

Article continues after this advertisement

USDEC noted that skim milk powder shipments to the country totaled 43,185.3 metric tons in the first half, a 31-percent increase compared to the same period last year.

American suppliers provide various dairy ingredients to the country, including skim milk powder, lactose, buttermilk powder, dairy permeate, milk proteins, and cheese.

Ghazalay said global demand for dairy proteins is outstripping supply, with the Philippines being no exception to strong demand.

“The demand for dairy proteins, particularly in the world, is actually outstripping supply. That shows really globally, and the Philippines is no exception. Globally, the demand for dairy proteins is very, very strong, outstripping supply at this point,” she added. /pai