2015 annual report /highlights of accomplishments

NATIONAL DAIRY AUTHORITY

HIGHLIGHTS OF ACCOMPLISHMENTS

As of December, 2015

NDA-CORPLAN 02.02.2016 1

I. THE PHILIPPINE DAIRY INDUSTRY PERFORMANCE

The Dairy sector registered a 3.29% increase in volume of production second to hog but

posted the highest increase (5.07%) in value of production based on the report of the

Philippine Statistical Agency - Bureau of Agricultural Statistics (PSA-BAS) for the year 2015.

Sustained dairy animal production particularly in National Dairy Authority (NDA) assisted dairy

farms and high demand of milk by processors fostered the change.

Total dairy production reached 20.38 thousand MT-level and grossed around P653 million at

current prices.

Performance of the Dairy Sector

January - December 2015

* The NDA -assisted dairy projects shared more than 3/4 (or equivalent to 15.37

thousand MT) to the total national milk output.

II. AGENCY PERFORMANCE

1. MILK PRODUCTION PERFORMANCE OF NDA-ASSISTED DAIRY AREAS

Total milk production increased by 7% reaching 15.37 million liters from 14.30 million liters

in 2014. This pushed daily milk production to 42 tons.

NDA SCORECARD

Growth in the local dairy sector (NDA-assisted areas only)

December, 2015

Livestock

Sector

Volume- ‘000 MT Value – Million Pesos

January-December January- December

2014 2015 %

Change 2014 2015 % Change

Carabao 143.03 142.05 -0.69% 10,740.12 11,062.85 3.00%

Cattle 261.32 266.89 2.13% 23,641.62 24,540.54 3.80%

Hog 2,032.31 2,120.33 4.33% 204,104.89 206,944.21 1.39%

Goat 76.11 77.48 1.80% 8,649.14 8,917.17 3.10%

Dairy 19.73 20.38 3.29% 621.50 652.98 5.07%

Indicators 2014 2015 % Growth

Milk production

(‘000 litres) 14,304.26 15,372.66 7%

Milk production/day

(‘000 litres) 39.19 42.12 7%

Number of Dairy Herd 33,193 38,430 16%





2. INFUSION OF DAIRY ANIMALS

A total of 1,415 imported animals from

New Zealand arrived last June 2015

that came in two (2) boatloads. Only

1,389 were accepted by the NDA. The

483 head pregnant heifer holstein

sahiwal arrived at the Cagayan De

Oro Port last June 9, 2015, and

another batch of 906 heads pregnant

of the same breed arrived at the Port

of Batangas last June 12, 2015. These animals were quarantined for 30 days at the King

Livestock Ranches and Nature Farms Corporation in Batangas and Nuevas Farm in Kiliog,

Libona Bukidnon in Mindanao. The animals were distributed as follows:

AREA Number of

Recipients

No. of Animals

Distributed

North Luzon 7 290

South Luzon 12 594

Visayas 3 60

Mindanao 10 445

TOTAL 32 1,389

3. DAIRY MULTIPLIER FARMS (DMF) OPERATION

The PL-480 funded project: “Multi-Year Dairy Animal Procurement and Breeding Program

to Upscale Heifer Production for the Local Dairy Industry” through the provision of

foundation stocks was responsible for creating dairy multiplier farms (DMFs). Currently,

there are 80 dairy multiplier farms with current stocks of 7,854 heads which is almost twice

the original animals they received.

DMF PERFORMANCE

AREA #DMFs Beginning

Stocks (#)

Current

Stocks

(#)

Herd

Growth (%)

NORTH LUZON 17 844 1,157 38%

SOUTH LUZON 23 1,537 2,619 70%

VISAYAS 12 803 2,185 172%

MINDANAO 28 823 1,893 130%

TOTAL 80 4,007 7,854 96%





4. ANIMAL REPAYMENTS

Dairy Multiplier Farms were created to become local suppliers of dairy animals as

they passed on their animal harvests to new dairy farmers as payment for the

original animals they received.

As of December 2015, a total of 257 animal repayments were received from

Dairy Multiplier Farms from 2014 to December of 2015 broken down as follows:

5. BUY-BACK ENGAGEMENT

For this year, a total of 554 heads of dairy

cattle were already procured valued at

Php18.6 million under the Buy-back

program. These animals were distributed to

new and existing dairy farmers and

cooperatives all over the country. A total of

186 animals were distributed in Luzon, 300 in

Visayas and 68 in Mindanao.

6. CAPACITY BUILDING- TRAININGS COMPLETED

A total of 1,927 individuals were trained for the year particularly on Cheese and Yoghurt

Processing, Starter Culture and Yogurt Making Seminar, Animal Waste Management,

Milking Machine Troubleshooting, Handling and Repairs and Dairy orientation seminar.

Owner Animal Repayment

Mr. Jesus Mateo (3JM Farm) 47 repayment animals

Mrs. Annabelle Jugador (Green Acres

Dairy Farm ) 10 pregnant heifers

BUGLAS FARM 46 (20 Pregnant heifers and 26 Yearling

Hiefers)

MIRAFLORES FARM (Primas) 17 (15 Pregnant Heifers and 2 Male

Calves)

UBAY DMF, BOHOL 101

YUVIENCO FARM 18 (All Pregnant Heifers)

SUNSHINE DAIRY FARM 10 ( All Pregnant Heifers)

FOUNDATION UNIVERSITY 8 (All All Pregnant Heifers )

TOTAL REPAYMENTS 257 Animals





7. MILKY BANK LAUNCHED

In line with the 20th Anniversary of the NDA, the Milky Bank, a project of the NDA and the

dairy farmers, was launched to promote the cause of

the Milk Feeding Program.

Each individual, dairy cooperative, or any private entity

who pays the amount of Three thousand pesos

(Php3,000.00) automatically becomes a sponsor and is

given a Milky Bank as a souvenir. The NDA issues a

Certificate of Sponsorship and the amount given feeds

a malnourished child for one (1) feeding cycle of 120

days. To date there were one hundred (100) units of

Milky Banks issued.

8. ON THE PHILIPPINE NEW ZEALAND DAIRY PROGRAM (PNZDP)

The Project has expanded its coverage

to Northern Luzon and Visayas regions.

Twelve (12) focus farms with six (6) farms

in each region will be added to the

twelve (12) original focus farms

established last year in Northern

Mindanao and South Luzon areas.

To date, there are 23 focus farms

assisted by the project. A total of 10

hectares of pasture were developed. The project is now evaluating one (1) more farm

from the Visayas region to complete the 24 farms.

CALABARZON NORTHERN MINDANAO

1. Joey Tapay Farm 1. Wilfredo Perez Farm

2. Adrian dela Roca Farm 2. Ramir Linohon Farm

3. Danilo Magpantay Farm 3. NMFDC Farm

4. Amado Gutierrez Farm 4. MOSCAT Farm

5. Antonio Inciong, Jr. Farm 5. Green Acres Dairy Farm

6. Renan Ferrer Farm 6. Napoleon Lancin Farm

NORTH LUZON VISAYAS

1. Bernardo Farm 1. Foundation University Farm

2. De Belen Farm 2. Pagtambayayong Foundation Inc.

3. Nestor Geronimo Farm 3. Miano Farm

4. Jonie Quezon Farm 4. Sepulveda Farm

5. Winifreda Uy Farm 5. Melinda Sibol

6. Nestor Bautista Farm

The project released a total of Php302,800.00 for the establishment of small irrigation

systems for pasture development and purchase of emergency generators and other

farm equipments. This benefitted three (3) Focus Farms and one (1) Focus Group

member in CALABARZON and one (1) Focus Farm in Northern Mindanao.





The Project has received 1,200,000 New Zealand Dollars for the importation of 300 in-calf

heifers from the New Zealand Ministry of Foreign Affairs and Trade (MFAT). Import

protocols have been formulated and two (2) areas have been identified as suitable

quarantine sites for Northern Mindanao and Luzon. The specifications for the animal

importation have been prepared and bidding for the supply of the animals has started.

9. NDA AS A FOOD SAFETY REGULATORY AGENCY

The National Dairy Authority, by virtue of RA 10611 otherwise known as the Food Safety

Act of 2013 and its IRR’s, is one of the duly mandated Food Safety Regulatory Agencies.

In view of that, the Dairy Food Regulations was drafted last 04 September 2015. The

creation of the dairy regulations is one of the accomplishments with regards to Food

Safety. Accordingly, the Dairy Codes of Practice, Risk Management Plan Template and

Audit Checklist for Dairy Farm, Milk Collection Centers, and Dairy Processing Plants were

also established. Island-wide discussions on the said regulations were held with a total of

371 participants from September to October 2015.

III. ORGANIZATIONAL DEVELOPMENT

1. QUALITY MANAGEMENT SYSTEM (QMS) ORIENTATION AND TRAINING

The NDA partnered with the Development

Academy of the Philippines in the development of

the NDA's Quality Management System by

completing the Top and Middle Management

Orientation on ISO 9001:2008 Quality Management

System last 9 March 2015.

A QMS Core Team was formed that will work together with the counterpart staff of DAP in

the preparation of the documents needed to come up with an NDA QMS and Quality

Procedures. Another follow-up workshop entitled "Workshop/Training on Development

and Documentation on Quality Management Systems and Quality Procedures" was

conducted for the designated members of the QMS Core Team last 16-19 June 2015.

QMS is a set of interrelated or interacting elements that allow the organization to

establish its policy and objectives related to quality and to achieve the set objectives. As

an organization grows, there is a need to level up and one way to do this is to gear up for

ISO certification.

2. COMPLIANCE TO THE STRATEGIC PERFORMANCE MANAGEMENT SYSTEM (SPMS)

In view of the current thrust of the government to focus on efficiency vis-a-vis profitability,

the NDA has installed and implemented the Strategic Performance Management System

(SPMS).

The SPMS is a mechanism that links employee performance with organizational

performance to enhance the performance orientation of the compensation system. It





ensures that the employee achieves the objectives set by the organization and the

organization, on the other hand, achieves the objectives that it has set as its strategic

plan. The SPMS complements the Results-Based Performance Management System that is

implemented by the Office of the President and that links organizational performance to

societal goals. It is also linked to the Performance-Based Incentive System (PBIS) that

consists of the Productivity Enhancement Incentive (PEI) and the Performance-Based

Bonus (PBB).

A Performance Management Team (PMT) was formed for the implementation of the

SPMS. The PMT's main functions includes; a) ensuring that office performance targets and

measures, as well as the budget are aligned with those of the agency and that work

distribution of offices/units is rationalized b) recommending approval of the office

performance commitment and rating to the head of the agency and c) acts as appeals

body and final arbiter for performance management issues of the agency, among

others.

3. NDA WEBSITE MIGRATED

In an effort to improve

the agency's website

and serve online

clients better, the

National Dairy

Authority website

migrated to a new

production server.

Last March 19, 2015,

the DOST-ICTO GWHS

production server

started hosting the

new NDA website

after the agency fully

complied with the

web migration

requirement under

AO39.

The new and improved website can now be accessed at http://nda.da.gov.ph. The

NDA will continue to improve all its online services to better serve the increasing number

of dairy farmers, researchers and enthusiasts who are interested in dairying.





IV. NEW PROGRAMS AND LINKAGES

1. NDA-DBP SAFP-DAIRY CREDIT PROGRAM

National Dairy Authority (NDA) Adm. Grace J. Cenas

signed a Memorandum of Agreement (MOA) with the

Development Bank of the Philippines (DBP) Chairman Jose

A. Nuñez, Jr. on June 30, 2015 as part of the Authority’s

commitment to develop the local dairy industry through the provision of financial and

technical support for the production, processing, and marketing activities of dairy

farmers.

Under the agreement, a credit assistance program called the Sustainable Agribusiness

Financing Program for the Dairy Industry (SAFP-Dairy) was launched enabling qualified

beneficiaries nationwide, to access credit assistance for dairy production, processing,

marketing and acquisition of fixed assets.

2. BUSINESS PROPOSALS SET FOR IMPLEMENTATION

The business proposal entitled, “Partnership Arrangement for the Establishment

and Operation of a Dairy Cattle Production & Rearing Farm Business for Dairy

Development” was approved by the Board of Directors for implementation.

Another proposal entitled, “Production of Tropical Dairy Cattle for the Local Dairy

Industry thru the Dairy Genetic Improvement Program” particularly the

component on Embryo Transfer is out for bidding for qualified service providers.

The objectives of the above proposals, which will become part of the new

projects of NDA for the succeeding years, is to establish local sources of dairy

cattle that will increase the number and improve the quality of dairy animals in

the country. Milk produced through these projects will increase present milk

volumes.





V. INTERNATIONAL AND LOCAL COOPERATION

1. ATTENDANCE ON THE REGIONAL MEETING ON SUSTAINABLE DAIRY DEVELOPMENT IN ASIA

NDA Administrator Grace J. Cenas

together with Mr. Juan P. Lozano,

the Chairman of the Dairy

Confederation of the Philippines

attended the Regional Meeting on

Sustainable Dairy Development in

Asia from March 23-26, 2015 in

Anand, Gujarat, India.

The said meeting was attended by

a broad range of stakeholders including senior officials from governments, national and

international development agencies, private sector agencies, civil society organizations,

donors and development partners and academic and research institutions.

This meeting has been organized by the National Dairy Development Board of India

(NDDB) and the Food and Agriculture Organization of the United Nations (FAO).

The meeting was held mainly to endorse and adopt Strategic Framework for sustainable

dairy development in Asia; prepare an indicative plan of action to operationalize the

strategic framework paper; discuss and agree on the structure and processes of Dairy

Asia platform and to foster collaboration between countries by identifying

cooperation opportunities and knowledge sharing.

2. NDA TAKES PART IN THE 18TH DAIRY CONGRESS AND EXPO

The National Dairy Authority (NDA) once again

signified its unity with the Dairy Confederation of

the Philippines (Dairy Con) as it took part in the

18th Dairy Congress and Expo held on 28-

30April2015 at Lima Park Hotel, Malvar,

Batangas.

Anchored on the theme “Gatas Pinoy:

Paunlarin, Tangkilikin, Palaganapin,” the

occasion offered a platform for dairy

stakeholders and allied sectors to build synergy among themselves and know the latest

innovations and breakthroughs in the areas of dairy production, processing, marketing

and cooperative development.

The event was well attended with some 600 participants comprising of dairy

stakeholders, business entrepreneurs and the local government. Some of the most

important officials who graced the event include the Department of Agriculture (DA)

Assistant Secretary for Livestock Davinio P. Catbagan, Cooperative Development

Authority (CDA) Executive Director Ray Ragel Elevazo, 4th District of Batangas

Representative Mark Llandro L. Mendoza, Governance Commission for GOCCs (GCG)





Commissioner Rainier B. Butalid, DairyCon National Chairman Juan P. Lozano and USDA

Foreign Agricultural Service Agricultural Counselor Ralph Bean.

Adm. Cenas reported the national performance of the dairy industry in the past year.

She is optimistic that stakeholders will still step up and take even greater stride to

enhance their animal nutrition and milk production operations, improve breeding

efficiency, and boost their incomes.

3. NDA INAUGURATES ITS DAIRY FARM AND NEW MILK PROCESSING PLANT DURING THE FIRST

BOHOL DAIRY FESTIVAL

The National Dairy Authority (NDA) recently celebrated the inauguration of its dairy

facilities in Ubay, Bohol including the 500-hectare dairy farm and the newly built milk

processing plant. The inauguration coincided with the celebration of the First Bohol Dairy

Festival held on December 9, 2015 at the Dairy Processing Centers, Lomangog, Ubay

Bohol.

Gov. Edgar Chatto, Provincial Veterinarian Dr. Bing Lapiz, NDA Administrator Grace J.

Cenas and Mayor Galicano Atup led the ribbon cutting ceremonies of the new milk

processing centers.

Other NDA officials who graced the event were

Mr. Rene M. de Guzman, Manager for NDA

Corporate Planning Department; Dr. Jaime M.

Lopez, Officer-in-Charge (OIC) Manager for NDA

Operations Department; Ms. Monina G.

Mangubat, OIC Manager for NDA Visayas

Department; and NDA staff from central and

Visayas offices.

Aside from the NDA’s dairy facilities, the dairy festival also highlighted the inauguration of

the Philippine Carabao Center (PCC) Milk Processing Center and the Bohol Dairy

Producers Association (BoDPA) Office.

With the theme, “Celebrating Milestones of the Bohol Dairy Industry,” the festival

showcased the province’s victory of having produced its first 1,000 liters of milk, 500 liters

each from dairy cattle and dairy carabaos.





VI. NDA-ASSISTED DAIRY MULTIPLIER FARMS RECOGNIZED

1. MYDAP DAIRY MULTIPLIER FARM

(DMF) FORUM AND RECOGNITION

OF DMF PARTNERS

The National Dairy Authority

conducted a Dairy Multiplier Farm

(DMF) Forum and Recognition for

its DMF Partners for their

contribution in the implementation

of the PL 480 funded project

entitled, “Multi-Year Dairy Animal

Procurement and Breeding

Program to Upscale Heifer Production for the Local Dairy Industry (MYDAP)” last

December 17, 2015 at the Brentwood Suites in Quezon City.

The event was attended by some 100 participants comprising of dairy stakeholders and

business entrepreneurs, implementing partners of the NDA which include officials from

the Department of Agriculture, the Philippine Council of Agriculture and Fisheries (PCAF),

USDA, NDA Commission on Audit (COA) and NDA Employees led by Adm. Grace J.

Cenas. Some of the most important officials who graced the event include Executive

Director Ariel T. Cayanan of the PCAF, Mr. Jeffrey Albanese, Agricultural Attaché to the

Philippines of the USDA, Ms. Pia Ang, Agricultural Specialist of the USDA, and Ms.

Salvacion M. Bulatao, DA Consultant and former Administrator of the NDA.

The dairy forum served as a venue to recognize top DMF partners in helping the NDA

achieve the goals and objectives of the project and also to recognize USDA, PCAF and

our NDA Regional Field Offices for the successful funding, implementation and

monitoring of the project.

There were four (4) categories of awards - 1) Top Milk Producers based on Total Milk

Produced from 2011-June, 2015, 2) Most Numbers of Dairy Animals Produced, 3) Up-to-

date Dairy Development Fee Payment and 4) Most Numbers of Animal Repayments.

Three (3) DMF partners from each NDA Dairy Areas were chosen as awardees for the first

and second category and one (1) awardee from each area for the 3rd and 4th

category. The said event concluded the activities of the project which is set to terminate

in 2015.

2. MALAYA DEVELOPMENT COOPERATIVE FEATURED IN THE PHILIPPINE DAILY

INQUIRER BUSINESS SECTION

The Malaya Development Cooperative (MDC), one of the NDA's DMF partners,

was featured in the Philippine Daily Inquirer Business page last August 30, 2015 in

an article by Mr. Mark Anthony D. Toldo entitled "Unleashing the Full Potential of

Social Enterprises in PH".





The article focused on how the NDA provided assistance to Malaya through the

infusion of dairy cattle into the cooperative and helped the members regained

their strength and pushed them to be successful in their venture into dairy.

“For us to get out of the cycle of poverty, we needed to look for an alternative

income source and we saw the potential of dairy,” general manager Ernesto

Lactao told the Inquirer.

Based on an agreement with the National Dairy Authority, which has provided

the cooperative with 50 cows to date, MDC and its members follow a multiplier

model wherein the cooperative will distribute at least three cows to every

member household.

Members are then responsible for multiplying them. Five years after procurement,

a member will pay back the NDA with the same number of cows, which will in

turn be distributed to other households.

3. NORTHERN MINDANAO FEDERATION OF DAIRY COOPERATIVES (NMFDC) BAGS

TOFARM AWARD

NMFDC received the Gold Award as the Outstanding Agri-Entreprenuer Coop in the

Search for The Outstanding Farmers in the Philippines (TOFARM) held in Makati City on

January 30, 2015. The annual search is initiated by the Junior Chamber International

(JCI) and the Universal Harvester Incorporated Philippines.

NMFDC's Highland Fresh Dairy Products was also part of the 12 Philippine food products

featured in the Seoul Food & Hotel 2015 @ KINTEX, Seoul, Korea on May 12-15, 2015.

2015 annual report /highlights of accomplishments

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