DANILO “DANNY” V. FAUSTONational Chairman, Dairy Confederation of the PhilippinesChairman, Talavera Dairy Cooperative, Inc.President, DVF Dairy Farm, Inc.District Governor RY 2007-2008, Rotary International District 3780
Dairy Farming: A Business VentureDairy Farming: A Business Venture
Changing the rural landscapeand way of life…
131131ImportersImportersTradersTraders
ProcessorsProcessors
2008-1.6BLtrs
2009-1.8BLtrs
20082009
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 Cooperatives and Institutions
317 347
11/23/2010
FRESH MILK daw???
DVF DAIRY FARM
Dairy Carabaos Milking of Carabaos
DVF DAIRY FARM
Milk CollectionWeighing of Milk
DAIRY FARM OPERATION
Centrifuge mounted on tricycle
Dairy farmer delivering milk at the plant
DAIRY FARM OPERATION
Testing of Fresh Carabaos Milk
Pasteurizing & Homogenizing
DAIRY FARM OPERATION
DAIRY FARM OPERATION
Packaging of Carabaos MilkFilling Milk in Bottles
SM North EDSA DVF Dairy stall
How does carabao’s milk compare
Milk Source Cow CarabaoFat (%) 4.30 7.90Total solids (%) 13.10 16.30Protein (%) 3.60 4.20Lactose (%) 4.80 5.00Tocopherol (mg/g) 0.31 0.33Cholesterol (mg/g) 3.14 0.65Calcium (mg/100 g) 165.00 264.00Phosphorus (mg/100 g) 213.00 268.00Magnesium (mg/100 g) 23.00 30.00Potassium (mg/100 mg) 185.00 107.00Sodium (mg/100 g) 73.00 65.00Vitamin A (incl. Carotene) IU. 30.30 33.00Vitamin C (mg/100 g) 1.90 6.70
Comparative Analysis – Soil Productivity
RICE FARMING:
Assumptions: •Production hectare/year: 200 to 250 cavans –average of 80-100 cavans for rainy season & 120-150 cavans for dry season•Price per cavan: Php 500.00•70% prod’n inputs, 30% net income to farmersProjection Results: Revenue/hectare/year (250xP500) = Php 125,000.00Production Inputs = Php 87,500.00Net Income = Php 37,500.00
DAIRY FARMERS’ PERSPECTIVE
DAIRY FARMING:
Assumptions:
•One (1) hectare Napier grass= Feeds 20 heads of carabao•Add’l prod’n of carabao w/ Napier grass= 3-5 liters/ day •Milk Price = Php 45.00 per liter•Production period of milk = 10 months
Projection Results:
Sales per hectare per year: •3 Liters (3x20xP45x300) = P 810,000.00•5 Liters (5x20xP45x300) = P 1,350,000.00
DAIRY FARMERS’ PERSPECTIVE
DAIRY FARMERS’ PERSPECTIVE
Dairy Farmer’s Income
Dairy Cow
10 lts/day X P25 X 3 cows X 30 days = P22,500.00
15 lts/day X P25 X 3 cows X 30 days = P33,750.00
Dairy Buffalo
5 lts/day X P45 X 3 buffalos X 30 days = P20,250.00
8 lts/day X P45 X 3 buffalos X 30 days = P32,400.00
Foreign & LocalInvestors
Foreign & LocalInvestors
DIP(Dairy Investment Partners)
CoopsCoops BreedersBreeders
Dairy PlantDairy Plant
Small‐hold Farmers
CoopsCoopsCoopsCoopsCoopsCoops BreedersBreedersBreedersBreeders Market
Export
DVF Dairy Farm System(DIP into the system)
Milk
Milk Milk
Meat Processing
Meat Processing
Animals
MalesAnimals
Animals
Animals
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
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
FARMERS
PROJECT SITE ‐ LOCATION
HOUSING & LABOR
ANIMAL HEALTH
MILK STOCKS
COOPS
ANIMAL STOCKS
REVENUE SHARING AGREEMENT
TECHNICAL & FINANCIAL ASSISTANCE
MARKET
Collection Centers
1
4
2
3
MARKET
• Retail
• Dealers
• Institutional
• Export
DAIRY PLANT
The Dairy Cooperative Movement
DIP
THE DAIRY COOPERATIVE
Annual Cooperative General Assembly of the Talavera Dairy Cooperative & Committee Meeting
Sept. 24, 1994
Dairy Roadshow
Above: OFWs at theBayanihan Center, Singapore
Right: DVF presentingTo Global Pinoy – Singapore
Above: DVF presentingTo DH’s Pinokyo - Singapore
Delivery of cow toRomeo Ancheta
Delivery of cow toAmang Taruc
Transforming Dairy Farmers
Above: new tricycle bought byRene Landingin from carabao’s milk
Above: second hand car bought by Enrico dele Cruz from carabao’s milk
KATAS NG GATAS(Benefits from Dairy Farming)
About 69% malnourished
Out of 12 M children ages 2-10:
MALNUTRITION…erodes the future generation
TALAVERA DAIRY COOPERATIVE, INC.
Milk Feeding Program
BEFOREOctober 2003
Poblacion, Manolo Fortich
AFTERDecember 2003
Poblacion, Manolo Fortich
THE MAGIC OF MILK FEEDING
ANGEL GRACE GALULA
Milk does not only build strong bonesMilk does not only build strong bones……
it also helps build a strong nation.it also helps build a strong nation.
ThankThankYou !!!You !!!
What Do We Stand For ?• EXCELLENCE
DVF DAIRY FARM
• QUALITY
• PIONEERING
• LIVELIHOOD OPPORTUNITY
DVF Dairy Farm’s VALUES & VISION
Why Do We Exist ?• Provide livelihood opportunity to
the dairy farmers
DVF DAIRY FARM
• Provide employment• Business profits for Sustainability
• Contribute to Philippine Economic Development
DVF Dairy Farm’s PURPOSE & MISSION
CORPORATE STRATEGY
MATCHING PROCESS
ENVIRONMENT
ANALYSIS
VALUES
ANALYSIS
RESOURCES
ANALYSIS
End Product
Competitive Edge or Advantage
DVF DAIRY FARMDVF DAIRY FARM
Changing the landscape of the farm
Cows between coconut trees,electric fences for intensive forage farming
Early morning routine and backpack delivery
THE DAIRY COOPERATIVE
Talavera Dairy Coop General Assembly Meeting Sept 27, 2003
Students delivering milk on their way to school