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In Nueva Ecija, Carabao Dairy Farming is Booming
By Rita Festin, ADB National Officer

Out of its daily procured volume, most of the milk or 650 liters daily is sold as raw milk, and the rest is processed into pasteurized milk, chocolate milk, lacto juice, pastillas plain and yema, white cheeses and pastillas de leche.

Talavera, Nueva Ecija - In tourism circles, Nueva Ecija is known for its fresh carabao (water buffalo) milk and pastillas de leche (milk candy). Carabao milk is a welcome alternative to cow's milk as its content of both fat and cholesterol is significantly lower than that of cow's milk.

Joyce Ramones of the provincial agrarian reform office regularly drinks carabao milk herself. "I not only stay fit and slim, I also have no hypertension because of the low level of cholesterol [in] carabao milk," she tells visitors.

The focal point of dairy activity in the province is the Nueva Ecija Federation of Dairy Carabao Cooperatives or NEFEDCCO. This umbrella organization of 27 farmer cooperatives and 5 associate member cooperatives accounts for the largest volume of carabao milk produced in the province. When it was formed in 2002, NEFEDCCO comprised only nine member cooperatives. Three major issues facing dairy cooperatives led to NEFEDCCO's formation: (a) milk is a highly perishable food that requires a reliable cold chain, (b) the individual pricing power of the province's dairy cooperatives was limited, and (c) there was a recognized need for improved quality control, which if implemented would benefit all producers.

Raw milk is stored in freezers to prevent spoilage.

Today, NEFEDCCO procures 1,000 to 1,200 liters of milk a day from its member and associate cooperatives. This level of procurement unfortunately falls far short of the 5,000-liter-per-day requirement of a major ice cream maker that recently approached NEFEDCCO for an exclusive supply contract. Of NEFEDCCO's daily procurement, 650 liters is sold as raw milk, with the remainder being processed into pasteurized milk, chocolate milk, lacto juice, pastillas candy both plain and yema custard candy, white cheeses, and pastillas de leche. NEFEDCCO also accepts orders for ice cream and cheese pimiento. The federation collects the raw carabao milk produced by its member and associate cooperatives and processes and markets its products to major food and pasalubong (gift item) outlets in the cities of Angeles, Baguio, Cabanatuan, Metropolitan Manila, and Olongapo, and as well as throughout the province of Bulacan.

Workers pack pastillas made from carabao's milk.

From its initial low-technology operations using plastic pails and containers, NEFEDCCO has evolved into a modern, sanitary, and professionally-run enterprise using stainless steel milk containers for collection and storage that are consistent with dairy industry standards. Today, nearly 700 Nueva Ecija farmers supply NEFEDCCO with milk from more than 800 animals, on average increasing farm income by a factor of four as compared to producing other farm products such as palay (rice plant).

Carabao milk is less fattening than cow's milk.

A typical farmer owns two carabao that he or she milks every day, 10 to 11 months out of the year. Of the 10-11 liters collected on average per day, a typical farmer earns net income of P29 per liter, which translates into monthly income of up to of P80,000. This compares favorably with a maximum per-hectare income of only P40,000 that can be earned only twice a year from palay production, given that no crop damage from typhoons occurs. This higher level of income from dairy farming as opposed to palay production provides an important financial cushion to dairy farmers in the event that additional expenses arise from emergencies. The higher level of income of dairy farmers allows funds borrowed for emergency purposes to be paid back quickly, thus greatly reducing finance charges from the high interest rates that are typically charged for emergency loans.

Government agencies at the national and provincial level, as well as international aid agencies support NEFEDCCO. For example, milking equipment and training in milk collection, milk quality control, and beef management collectively valued at approximately half a million pesos were provided under Asian Development Bank's Agrarian Reform Communities Project (ADB ARCP), which was implemented by the Philippines Department of Agrarian Reform.

Nearly 30,000 rural households, or 140 agrarian reform communities (ARCs) in nearly 1,000 poverty-stricken communities throughout the Philippines benefited from the ADB ARCP. Of the 1998 project's total cost of $168.9 million, ADB provided $93.2 million.

To qualify for assistance under the ADB ARCP, farmers were required to be organized into ARCs. Other qualifying criteria required that they own land, but that they lack basic infrastructure and support services necessary for reaping the full benefits of land ownership. The ADB ARCP provided roads, bridges, communal irrigation facilities, drinking water supply and other necessary infrastructure. For NEFEDCCO, the ADB ARCP provided equipment and six farm-to-market road networks in Talavera. This greatly improved access to markets and reduced transport costs. The concrete road leading to the cooperative milk collection and processing/marketing center in Barangay San Ricardo in Unlad Buhay ARC, which is conveniently located just six kilometers away from the town proper, was also financed by the ADB ARCP.

Joyce Ramones (second from right) with some visitors.

Following the successful completion of the ADB ARCP in 2007, Asian Development Bank recently approved ADB ARCP Phase II, which focuses on the southern part of the Philippines which is home to three-quarters of the country's rural poor. ADB ARCP Phase II will assist 152 ARCs that are located in 731 barangays (neighborhood governance units) in 137 municipalities. Phase II will thus extend ADB ARCP benefits to 18 provinces in six of the Philippines' administrative regions. Phase II beneficiaries are expected to comprise approximately 215,000 rural community residents, which will include communities in three provinces of the Autonomous Region of Muslim Mindanao.

Healthy carabaos produce a good amount of milk.

Nueva Ecija has been long known as the Rice Bowl of the Philippines, since it is the country's largest rice-producing province. If the province's output of carabao milk continues its current rate of expansion, Nueva Ecija will soon be known as the Dairy Capital of the Philippines as well. As milk and dairy products account for one fourth of the total value of agricultural imports into the Philippines, carabao dairy farming promises to remain a lucrative activity for many years to come.

Philippines

In Nueva Ecija, Carabao Dairy Farming is Booming By Rita Festin, ADB National Officer

In Nueva Ecija, Carabao Dairy Farming is Booming
By Rita Festin, ADB National Officer