6.4 danny fausto-_niche_marketing_philippines

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On December 8 and 9, a Dairy Expert Roundtable Meeting on “Competitive Dairy Value Chains in Southeast Asia” was held in Muak Lek, Thailand. In this regional meeting, participants from six countries in Southeast Asia discussed how the relatively small dairy value chains could be more competitive and sustainable.

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6.4 danny fausto-_niche_marketing_philippines

  1. 1. NICHE MARKETING IN THE PHILIPPINES DANILO “DANNY” V. FAUSTO National Chairman, Dairy Confederation of the Philippines Chairman, Talavera Dairy Cooperative, Inc. President, DVF Dairy Farm, Inc. District Governor RY 2007-2008, Rotary International District 3780
  2. 2. 2008-1.6B131 LtrsImporters TradersProcessors 2009-1.8B Ltrs20082009
  3. 3. Milk & Dairy Products Import Philippines, 2008• Volume of total import in Whole Milk Butter Milk LME = 1.77b liters Powder Powder Skim Milk 15% 9% Powder• Import is 84% Powdered Milk 41% WHEY 19% RTD• Annual Import =US$720.00 2% OTHERS CURD BUTTER 2% 5% 7% RTD = Ready to Drink Milk
  4. 4. What is our Industry Sufficiency Status (‘000MT) TOTAL TOTAL LOCAL %COMMODITY IMPORT SUPPLY PRODUCTION SUFFICIENCYChicken 1,262.00 1,213.49 49.15 96.1(meat)Pork 1,682.00 1,603.00 79.38 95.3Beef 176.30 118.00 58.33 67.0Carabeef 123.62 61.63 61.99 49.9Dairy 1,753.10 13.23 1739.87 2.0Source : BAS We import ruminant- derived products’ !
  5. 5. Particulars 2008 2009 Livestock population (head) 10,079,313 10,108,862 Cattle 2,566,492 2,565,662 Carabao 3,338,570 3,320,966 Goat 4,174,251 4,222,234 Total dairy herd (head) 28,191 29,593 Cattle 13,864 15,073 Carabao 13,416 13,594 Goat 911 926 Total dams and does 13,739 14,265 Cattle 6,371 6,871 Carabao 6,898 6,922 Goat 470 472 Dairy Farm Families 14,405 15,212 Primary Dairy 317 347 Cooperatives and12/16/2010 Institutions
  6. 6. Ruminants are with the Small Holders 0.17%, Commercial 6.13%, Commercial 0.91%, Commercial 99.83% 93.87% 99.09% Backyard Backyard Backyard Carabao Cattle Goat 3.33M 2.55M 4.12MImproving Ruminant Production in the Philippines is a SOCIAL AGENDA - Achieving growth and food security - Reducing rural-urban income disparities and rural poverty
  7. 7. DVF DAIRY FARM
  8. 8. Milk Collection Dairy farmer delivering milk at the plantCentrifuge mounted on tricycle
  9. 9. Quality Control & Processing Testing of Fresh Pasteurizing & Carabaos Milk Homogenizing
  10. 10. Packaging Filling Milk in Bottles Packaging of Carabaos Milk
  11. 11. SM North EDSA DVF Dairy stall
  12. 12. How does carabao’s milk compareMilk Source Cow Carabao Difference %Fat (%) 4.30 7.90 83.72Total solids (%) 13.10 16.30 24.43Protein (%) 3.60 4.20 16.67Lactose (%) 4.80 5.00 4.17Tocopherol (mg/g) 0.31 0.33 6.45Cholesterol (mg/g) 3.14 0.65 -383.08Calcium (mg/100 g) 165.00 264.00 60.00Phosphorus (mg/100 g) 213.00 268.00 25.82Magnesium (mg/100 g) 23.00 30.00 30.43Potassium (mg/100 mg) 185.00 107.00 -72.90Sodium (mg/100 g) 73.00 65.00 -12.31Vitamin A (incl. Carotene) IU. 30.30 33.00 8.91Vitamin C (mg/100 g) 1.90 6.70 252.63
  13. 13. FRESH MILK???
  14. 14. Philippine Advantages • Close proximity to major cities allows fresh milk & premium cheese, yogurt & ice cream within a 5-6 day cold chain • Large river-fed plateaus & high rainfall provide largest grazing resource in East Asia • Large rural labor force benefits, while keeping costs low 18
  15. 15. MALNUTRITION…erodes the future generation Out of 12 M children ages 2-10: About 69% malnourished
  16. 16. Local Government Units Participation Milk Feeding Program
  17. 17. THE MAGIC OF MILK FEEDING BEFORE AFTER October 2003 December 2003Poblacion, Manolo Fortich Poblacion, Manolo Fortich ANGEL GRACE GALULA
  18. 18. Thank You !!!
  19. 19. Planned Expansion Stages• 1st round expands herd 10x, sets down new operating systems – Improves breeding technology, Starts community-building programs – Continues building cooperatives & Training programs for next phase• 2nd round expands 10x again, begins franchising operations – Extends export business with both brand-building & bulk supply – Prepares groundwork for inter-ASEAN franchising to expand benefits Farmers earn >1/3 of available value
  20. 20. DVF Dairy Farm System (DIP into the system) Foreign & Local Export Investors DIP Dairy Plant (Dairy Investment Partners)Milk Milk Animals Animals Males Coops Coops Breeders Coops Coops Breeders Breeders MarketMilk Animals Animals Meat Small-hold Farmers Processing

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