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