BOI OKs Metro Pacific’s P2 billion dairy farm in Laguna

MANILA, Philippines — The Board of Investments (BOI) has approved the application for registration of Metro Pacific Group’s P2 billion dairy farm and processing facility in Laguna.

In a statement, the BOI said it cleared the application of Metro Pacific Dairy Farms Inc. (MPDF) as a new local producer of dairy products and plant-based beverages in the country.

This means the project would be entitled to fiscal and non-fiscal incentives.

With an initial cost of over P2 billion, the BOI said the facility would start operations in March next year, helping the country achieve food security and address the rising demand for various dietary options.

The facility will have 1,000 cows and an annual production of 6.5 million liters of raw milk.

Aside from addressing the gap in local dairy production, the project will also be providing high-quality dairy and plant-based products to cater to the rising interest in plant-based dairy alternatives in the domestic market.

According to the National Dairy Authority, the country relies on imports for 99 percent of dairy consumption, with local production meeting only 0.98 percent of the total demand.

Based on the Rapid Industry Appraisal of the Philippine Plant-Based Foods Industry commissioned by the BOI, local production capacity for plant-based milk is estimated at 24.4 million liters.

The BOI said MPDF’s project would boost the local production of plant-based milk by 12 percent to reach 27.4 million liters per year and enable local supply to meet 95 percent of the forecasted demand of 28.8 million liters by 2025.

Aside from helping augment local output, MPDF’s state-of-the-art facility will be using advanced dairy farming principles, techniques and technology based on the “Israeli” model, integrating artificial intelligence and modern equipment for quality and efficient production.

MPDF’s Laguna dairy farm project was endorsed by the BOI for green lane processing in December 2023.

“We at the BOI are excited about the introduction of advanced dairy farming technology, which promises to deliver superior quality and production efficiency while significantly boosting local dairy and plant-based beverage production,” Trade Undersecretary and BOI managing head Ceferino Rodolfo said.

“This initiative is a crucial stride toward enhancing our food security and reducing our dependency on imported milk. Achieving greater self-sufficiency in our dairy supply likewise ensures that Filipino consumers have access to fresh, high-quality local products,” Rodolfo added.