Phl still hopeful on Israeli dairy project
The Department of Agriculture (DA) is awaiting the proposal of Israeli firm LR Group to push through with a dairy farm project seen to boost the local dairy industry.
National Dairy Authority (NDA) Department Manager Rene Martin de Guzman said talks for the project, to be built on a turn-key basis, started in January this year but have stalled possibly owing to the change in leadership on both sides.
William Dar, who was also DA chief during former president Estrada’s administration, took over as acting secretary for the agency on 5 August after for DA Secretary Manny Piñol was assigned to lead the Mindanao Development Authority.
On the other hand, Israel is slated to conduct a legislative election in September. Agro-industrial firm LR Group was supposed to present its proposal in end July, said De Guzman, adding that he hoped the firm would also present to Dar.
“We hope it won’t be affected (by) the change of leadership because it’s more on the industry development. It’s the goal of LR Group, they can really decide whether to go ahead with the investment or not,” De Guzman said at the sidelines of a meeting by the Israel Chamber of Commerce in Makati on Thursday.
The government is banking on Israeli technology to spur agricultural production in the Philippines. The LR Group, through its affiliate Innovative Agro Industry, has earlier on offered to fund the DA’s flagship P44-billion solar-powered irrigation system program through a long-term loan payable in 10 years. The SPIS is seen to irrigate 500,000 hectares of farmland in the country.
Meanwhile, the initial plan is for the dairy farm project to be patterned after LR Group’s 800-cow module implemented in Papua New Guinea. The DA and the LR Group has identified three possible government-owned sites where the project can be introduced.
“There’s no one in the private sector yet but eventually, we’ll introduce that to any private sector if anyone wants to enter it. But initially, the plan is to prospect Bohol, Bukidnon, then another one is in Palawan but it hasn’t been determined (yet),” De Guzman said.
The government is banking on Israeli technology to spur agricultural production in the Philippines.
The local industry supplies only about one-fourth of the country’s growing annual dairy consumption. Imports, primarily from New Zealand, the US and Australia, account for the rest.
United States’ Department of Agriculture ranked the Philippines as the third emerging market in the dairy industry with an annual domestic consumption growth rate for fluid milk of 3.30 percent. Consumption for non-fat dry milk grew at a faster rate of 6.25 percent.
Data from the NDA also stated that domestic dairy expenditures have grown to P150 billion in 2017 from just P99 billion in 2015, and might still grow to P200 billion this year on the back of increased consumption prompted by several factors. This includes the growing number of coffee shops, pizza parlors and fast food chains which translates to additional demand for milk.