USDA: Philippines to import more dairy products next year

MANILA, Philippines — The country is seen importing more milk products in 2027 due to steadily growing demand, according to the US Department of Agriculture (USDA).

In a report, the USDA Foreign Agricultural Services said the Philippines is set to import 185,000 MT of skim-milk powder (SMP) next year, a two percent increase from the 181,000 MT forecast for 2026.

SMP is mainly used in food manufacturing and is one of the most imported dairy products. Products include sweetened condensed milk, ultra-high temperature liquid milk, ice cream and gelato and infant formula, among others.

It makes up about 40 percent of all dairy imports.

The USDA said higher input and transport costs, driven by rising fuel prices, tempered its import outlook.

“Due to a strong dollar against the peso so far in 2026, importation of SMP is expected to be tempered given rate fluctuation as this is a major food ingredient for food and beverage manufacturers in the Philippines,” it added.

On the other hand, USDA forecasts whole-milk powder (WMP) imports to remain relatively flat at 15,000 MT next year amid higher prices.

It noted that with higher prices, manufacturers may opt to import more SMP next year and keep WMP reserved for products that require nutritional properties.

WMP is primarily used among dairy processors and retailers for its rich, high-fat and calorie-dense content, which enhances flavor and texture.

The international agency also said the Philippines is forecast to import 171,000 metric tons of fluid or ready-to-drink (RTD) milk next year. This represents a three percent expansion from 166,000 MT.

The estimated growth in imports will be driven by increased consumption of fluid milk through the government’s milk feeding program and increased household use.

“The growth in imports is tempered by increased production of local fluid and RTD milk products, though the Philippines is still supplying less than two percent of their total dairy requirements,” the international agency said.

It noted that fluid milk production is expected to increase by 4.3 percent in 2027 to 48,000 MT, mainly caused by the expansion of dairy herds from both small-scale and large-scale producers.

The USDA noted that imports of cheese products are expected to increase by five percent to reach 63,000 MT due to growing demand for cheese in the country.

“We have tempered our forecast due to current transportation and logistical challenges, high cost of inputs including fuel and the currently active El Niño, which may have an impact on the production lines of supplying countries,” it added.

The agency places total cheese consumption at 64,000 MT in 2027, a five percent increase from 2026.

It noted that this was due to increasing consumer demand, especially among middle-to high-income urban consumers in the Philippines, who consume cheese on a regular basis, with 82 percent eating it at least once a week or more.