The country’s milk import bill in 2018 rose by 9.4 percent to an all-time high of nearly $1 billion as traders were encouraged to buy dairy products from abroad due to low prices.
The latest data from the National Dairy Authority (NDA) showed that the total value of imported dairy products last year reached $987.88 million, $84.78 million over the $807.72 million recorded in 2017.
Also, the total volume of milk imports in 2018 surged to a record 2.939 MMT, 18.23 percent higher than the 2.486 MMT in 2017, NDA data showed.
NDA data indicated that this volume was a turnaround from the 10.33-percent decline recorded in 2016-2017.
“In terms of [import value], it went up by 9 percent, indicating a decrease in unit import cost of 14 percent and 10 percent in dollar terms and in pesos, respectively,” the NDA said in a series of reports published recently.
The average import cost of milk products during the reference period was pegged at $0.34 per liter (P17.9 per liter), from $0.36 per liter quotation (P18.31 per liter) in 2016, NDA data showed.
“In terms of sources and value share, New Zealand remained to be the leading source of imported dairy products, accounting for 38 percent to total dairy import bill,” the NDA said.
“The United States ranked as second supplier, followed by Malaysia and Australia with 21 percent,6 percent and 6 percent, respectively,” it added.
New Zealand’s milk exports to the Philippines last year expanded by 3.85 percent to $373.97 million from $360.10 million in 2017. The volume of shipment grew by 2.75 percent to 726.73 MMT liquid milk equivalent from 707.23 MMT-LME.
In its Dairy Market Review report, the United Nations’s Food and Agriculture Organization (FAO) said world dairy prices in 2018 declined as more milk products were produced globally.
FAO said its Dairy Price Index in 2018 fell by 4.6 percent year-on-year, “reflecting declines in prices of all dairy products represented in the Index.”