This document summarizes information about dairy farming for a board of directors. It includes sections on the objective to inform the board, an industry situation report showing growth in dairy animal populations, descriptions of major dairy breeds in the Philippines like Brahman and Ongole cattle, an explanation of the production cycle from birth to milking and breeding, requirements for land, housing and equipment for small to medium scale farms, and a financial analysis showing average annual income and investment metrics for a 25-head dairy farm model.

1. DAIRY FARMING
Dairy Farming Report1

2. SCOPE OF PRESENTATION
• Objective
• Industry Situationer
• Major Dairy Breeds
• Production Cycle of a Cow
• Land Requirement
• Housing Requirement
• Equipment for Small/Medium Scale Farm
• Financial Analysis
Dairy Farming Report2

3. OBJECTIVE
To apprise the Board of Directors re Dairy Industry
Dairy Farming Report3

4. INDUSTRY SITUATIONER
21.1
16.4
1.6
21.6
16.8
1.9
0.0
5.0
10.0
15.0
20.0
25.0
Cattle Carabao Goat
Dairy Animal by Type (In Thousands)
2013 2014
As of January 1, 2014,
the total dairy animal
population was 40,322
head. This was 3.21
percent higher than last
year’s headcount.
Dairy cattle stocks grew
by 2.55 percent. Dairy
carabao and dairy goat
population went up by
2.84 percent and 15.26
percent respectively.
Dairy Farming Report4

5. INDUSTRY SITUATIONER
Dairy Farming Report5
DAIRY AREAS

6. INDUSTRY SITUATIONER
Dairy Farming Report6
North Luzon
2,878 Farmers
20 Coops
Central Visayas
970 Farmers
35 Coops
Eastern Visayas
38 Farmers
7 Coops
Bicol
824 Farmers
9 Coops
Northern Mindanao
452 Farmers
17 Coops
Southern Mindanao
749 Farmers
22 Coops
South Luzon
512 Farmers
16 Coops
Western Visayas
4,228 Farmers
29 Coops
Small Holders
Dairy
Operations
The Local Dairy
Farmers
• 10,651 farmers
• 155 coops

7. INDUSTRY SITUATIONER
Demand and production of dairy milk products (as of December 2013)
 Net Supply of Milk Products = 1,916.63M li.
 Local Production = 19.46M li. higher by 35% of milk output 5
years ago
 Net imports of Milk Products = 1,897.17 li.
 Number of Producers = 31,232 farm families
 Number of primary cooperatives and institutions = 408
Dairy Farming Report7

8. MAJOR DAIRY BREEDS IN THE PHILIPPINES
Brahman
 Color varies from gray to
white, brown, red, and black
with occasional spots.
 They are resistant to to
insects due to their thick
skin.
 This breed is resistant to
diseases and can withstand
heat better.
Dairy Farming Report8

9. MAJOR DAIRY BREEDS IN THE PHILIPPINES
Ongole or Nellore
 Usually colored white but its
hump and neck are dark
gray.
 They are known for their
toughness, rapid growth
rate and natural tolerance
to tropical heat and disease
resistance.
Dairy Farming Report9

10. MAJOR DAIRY BREEDS IN THE PHILIPPINES
Zebu
 This breed is used for its
milk, meat and as draft
animal.
Dairy Farming Report10

11. MAJOR DAIRY BREEDS IN THE PHILIPPINES
Batangas Cattle
Dairy Farming Report11

12. PRODUCTION CYCLE OF A COW
Dairy Farming Report12
Born
• Heifer calves
retained for
herd
Weaned
• 6-8 weeks
Bred
• 15 months
First Calf
• 24 months
Calving
• 280 days after
breeding
Dries off
• Dry for
60 days
Milking
• 10-14
months
Breeding
• 90-120 days
post-calving

13. PRODUCTION CYCLE OF A COW
Dairy Farming Report13
BIRTH
The calf is usually removed from her dam after only a few hours after
birth. A newborn calf is fed colostrum milk for the first three days of life.
Calves are usually fed milk or milk replacer starting at 3 days of age. They
are also fed calf starter, a grain, beginning at 7 to 10 days of age.
WEANING
Prior to weaning at 6 to 8 weeks, calves are vaccinated, dehorned, have
extra teats removed, and male calves may be castrated to be raised as steers.
At weaning, calves are moved to group housing. The six month old heifer is
usually fed silage, hay, and grain. These heifers may also graze in a pasture.

14. PRODUCTION CYCLE OF A COW
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BREEDING
On the 15th month, a calf is bred. Following breeding, heifers are
maintained until moving to the dairy farm for calving
CALVING
Heifers and dry cows are usually moved to a close-up dry area for close
observation beginning at 3 weeks prior to calving. When calving appears
imminent, cows are moved to individual maternity pens or an open calving area.
Efforts are made to keep these areas clean. Even cows raised on pasture
are sometimes moved to pens for calving to allow close observation in case the
delivery must be assisted, to keep the calf out of cold drafts, and to allow careful
attention to the calf immediately after birth.

15. PRODUCTION CYCLE OF A COW
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MILKING
Normally cows begin to produce milk only after calving, but some heifers
may be milked early to reduce stress and udder edema. Each period of production
or lactation lasts for 12 to 14 months or longer and spans the time period from
calving to dry-off, which is when milking is terminated about 60 days before the
next anticipated calving.
Cows are bred while they are producing milk, usually beginning at
about 60 days after calving to maintain a yearly calving schedule.
Following the 2-month dry period, the cow calves again and
lactation cycle begins anew.

16. LAND REQUIREMENT
Dairy Farming Report16
A one-hectare with improved grazing field (planted with forage grasses
like napier and pakchong) can accommodate up to 4 animal units per year.
Milking Cow 1 animal unit
Bull 1.25 animal unit
Heifer 0.75 animal unit
Yearling 0.50 animal unit
Calf 0.25 animal unit
For cut and carry, a one-hectare area planted with napier or pakchong can
sustain 10-15 cattle per year.

17. LAND REQUIREMENT
Dairy Farming Report17
For a 25-dairy cattle farm, the following is the land requirement:
 3ha of land for cut and carry forage production
 8 ha of land for animal grazing
 130 sq meters housing for the animals and feed storage
 20 sq meters area for milking and milk room

18. HOUSING REQUIREMENT
Dairy Farming Report18
THE CUBICLES (RESTING AREA)
 must be covered with a roof made of iron sheets, grass thatch or makuti
 has a length of 210 cm (7ft) and a width of 120 cm (4 ft). Cubicles are
separated from each other by two timbers.
 should not be too small for the cow or too big to allow the cow to turn
around inside the cubicle.
 floors are raised and filled with plain soil such as murrum; A soft
bedding provides comfort to a cow and prevents wounds on its skin

19. HOUSING REQUIREMENT
Dairy Farming Report19
Sample cubicle

20. HOUSING REQUIREMENT
Dairy Farming Report20
THE WALKING AREA
 about 3 meters wide i.e. between the resting area
 where the feed and water troughs are located. No roofing is required
for this area except under very hot conditions.
 Floor is made of concrete; for possible collection of urine and
manure.
 surface of the floor should be rough so that animals cannot slip on it

21. HOUSING REQUIREMENT
Dairy Farming Report21
Sample walking area

22. HOUSING REQUIREMENT
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THE FEED AND WATER TROUGHS
 Feed troughs should run along the length of the walking area with a water
trough in the middle
 Total length of the feed trough should be such that each animal has 2.5-3 feet
to itself
 inside measurements of the feed trough should be 60 cm (2 ft) wide at the
bottom and should be raised at least 15 cm (1/2 ft) above the ground level of
the walking area
 water trough should be placed such that both the young stock and the mature
cows have access to it instead of constructing separate trough for each side

23. HOUSING REQUIREMENT
Dairy Farming Report23
Sample feed trough

24. HOUSING REQUIREMENT
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THE MILKING PLACE
 should be constructed next to the cubicles
 should also be of same dimensions as cubicles i.e. 120 cm (4 ft) by 210 cm (7
ft)
 The floor should be flat and made of firm concrete and slope towards the
walking area. The direction of slope of the floor would ensure that dirt
collected from the floor can flow through the walking area onto the manure
pit.
 feed trough should also be placed at the head of milking place for cow
feeding during milking

25. HOUSING REQUIREMENT
Dairy Farming Report25
Milk area with a feed trough and neck yoke

26. HOUSING REQUIREMENT
Dairy Farming Report26
THE CALFPEN (optional)
 recommended when free suckling is not permitted like in the case of zero-
grazing system
 Situated opposite the milking place or on the side of a cubicle or milking
place; can also be movable or fixed
 Floor surface of 4x5ft and should be slatted and raised by ½ to 1 foot above
the concrete floor to make cleaning easier

27. HOUSING REQUIREMENT
Dairy Farming Report27
Sample calf pen

28. HOUSING REQUIREMENT
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THE MANURE STORAGE
 Manure can be stored in a small pit dug out of the soil. The pit mayor may
not be cemented.
 Manure can also be stored as compost made from dung, urine and plant
materials. In this case the compost is heaped next to the unit. Compost may
be covered with soil or plastic.

29. EQUIPMENT FOR SMALL/MEDIUM SCALE
 Milking Equipment
Milking machine with
Single Cluster
Milking machine with Two
Clusters and Two Cans
Dairy Farming Report30

30. EQUIPMENT FOR SMALL/MEDIUM SCALE
 Tractor
Dairy Farming Report31
 Semen Container

31. EQUIPMENT FOR SMALL/MEDIUM SCALE
 Green Fodder Chaff Cutter
with Motor
 Feed Grinder with Motor
(Optional)
Dairy Farming Report32

32. EQUIPMENT FOR SMALL/MEDIUM SCALE
 Mist Cooling System
Dairy Farming Report33

33. EQUIPMENT FOR SMALL/MEDIUM SCALE
 Milk Cooling Tank  Milk Cans
Dairy Farming Report34

34. EQUIPMENT FOR SMALL/MEDIUM SCALE
 Generator
 Borewell with Motor
 Weighing Scale
 Trolly
 Ropes, chains, tagging equipment, water pipes
Dairy Farming Report35

35. FINANCIAL ANALYSIS
Dairy Farming Report36
Capital costs 4,123,000.00
Pasture establishment 220,000.00
Farm and Infrastructure Facilities 165,000.00
Purchase and installation of farm equipment 243,000.00
Purchase of dairy animals 1,295,000.00
Land 2,200,000.00
Initial working capital 934,973.00
Total capital investment 5,057,973.00
Average annual net income 644,010.29
Internal rate of return 22%
Net present value at 15% discount rate 923,617.15
Payback Period 5.9 years
Summary of Financial Analysis for a 25-dairy cattle module

36. THANK YOU
Dairy Farming Report38