DVF

DANILO DANNY V. FAUSTO

National Chairman, Dairy Confederation of the Philippines
Founder, Talavera Dairy Cooperative, Inc.
President, DVF Dairy Farm, Inc.
District Governor RY 2007-2008, Rotary International District 3780
Academics: AB Economics, University of the Philippines
MBA, De La Salle University

2009 POVERTY INCIDENCE

By: NSCB

25
20
15
10
5
0

23.1 M

9.4 M
3.9M

1.5 M

FILIPINO FARMER

P4,200 / mo; P50,000/yr (US$1.2T/yr)

Survives on:
1 Crop Farm
2 Off Season Crops
3 Chicken

4 Vegetable
5 Fish
6 Hogs
7 Cattle
8 Carabao etc

THE FARMER
Target Level__________ P 11,400
P 7,200
Poverty Threshold ------------ P7,017
Subsistence Income---------- P 4,870
Farm Income / Mo ____ __ P 4,200

37

Importers
Traders
Processors

2010-2.0B Ltrs
2011-1.9B Ltrs

Total Milk Reqts

2010 - 2.82B Ltrs - 0.56% sufficiency
2011 - 2.85B Ltrs - 0.58%

Local Consmptn
2010 - 1.79B Ltrs - 0.89%
2011- 1.81B Ltrs - 0.91%

Dairy Animals

2010
2011

- 18,029

Milk Collection
Dairy farmer delivering
milk at the plant

Centrifuge mounted
on tricycle

Small-hold Farmer Milk Delivery

Early morning routine and

backpack delivery

Students delivering milk on their

way to school

Milk Inspection On Site

Quality Control

DAIRY PROCESSING

Filling Milk in Bottles

Packaging of Carabaos Milk

Institutional & Export

Supermarts; Coffee Shop; High End Restaurants

Market

Milk
Processing
Plant

FF
FF

Milk
Feeding

FF
FF

FF

FF

FF

FF

FF

COOP

COOP
FF

FF
FF

FF

FF
FF

FF

FF

FF

FF

FF

FF
FF

FF

COOP

FF

FF
FF
FF

FF

FF

COOP
FF

FF
FF

FF

FF

FF

FF

FF
FF

FF
FF

Dairy Farm System

Foreign & Local
Investors

Export

PHILIPPINE CORP

Dairy Plant

Milk
Animals

Coops
Coops
Coops
Coops
Milk

Animals

Milk
Males

Breeders
Breeders
Breeders

Market

(Buffer Farms)

Animals

Animals

Small-hold Farmers

Meat
Processing

The Dairy Cooperative Partnership

Collection
Centers

Project Site-Location
Housing & Labor
Social & Technical Preparation
Animal Health, Nutrition, Breeding
& Milk Production

1
2

DAIRY
PLANT
50%

FARMERS

40% Sharing 10%

COOPS

INVESTORS

3
4

Animal Stocks
Supervision & Stewardship
Technical & Financial Assistance

Milk Collection
Community Development

MARKET
Retail
Dealers
Institutional
Export

Investor-Farmer Sharing
100%

Milk
Off-spring

Investor

COOP/Farmer

50%

50%

Preferred Shares
- Cash Dividend
- 20-30% return p.a.
- Animal insurance

5%
Operation
costs

Coop

Farmer

10%

40%
5%
Trust Fund
- Dividends
- Scholarship
- Micro Finance
- Libraries
- School buildings

Transforming Dairy Farmers

(Benefits from Dairy Farming)

Above: new tricycle bought by dairy farmer Above: second hand car bought by dairy farmer
Rene Landingin from carabaos milk
Enrico dele Cruz from carabaos milk

Sustainable Local Economic Development

(SLED)

Community Development

High Value
Crop Prodn

Purchasing Power &

Capital Build-up

Dairy Farming

- Education
- Health
- Housing
- Etc..

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

16

What is an information system?

A combination of information technology and
people's activities using that technology to
support operations, management, and
decision-making

Users and Information Flow

Farmer-Partner

Veterinarian

Community
Manager

Dairy
Processor

System Manager

Billboard
Facility

DVF Dairy Institute

Training Modules
- Organizational Development
- Cooperative Governance
- Forage and Pasture Management
- Nutrition and Health Management
- Lactation , Calf Rearing and Grower Management
- Milk Production and Hygiene
- Breeding Management
- Disease Control & Prevention
- Animal Registry Recording System
- Financial Literacy

Kinalanguyan Dairy Cooperative

Sicsican Matanda @
Rolando Valdezs House

Technical Training

Pinili Dairy Coop

FarmersPartners

DVF Dairy Youth Program

The Youth program is a training program for young
people in the dairy zones operated by DVF Dairy Farm
ages from 15-30 years old. The participants will attend
seminars, camp and workshops organized by DVF Dairy
sponsored and expenses paid for by DVF Dairy.
It aim to encourage and assist the youth as responsible
members of the family and potential dairy farmers and
effective young entrepreneurs by providing them the
training experience.
To encourage continued succession and leadership in
dairy farming of youth by youth.

Youth Program

Farmers Income Benchmark

A. Educational Attainment Percent
Elementary Undergraduate
3%
Elementary Graduate
29%
High School Undergraduate 12%
High School Graduate
35%
College Undergraduate
10%
College Graduate
10%
100%

B. Income Profile
P4T belowP4,000-7,500 P 7,500-P10,000 P10,000 Above -

7%
63%
12%
18%
100%

C. Land Area
Below 0.5 Hectare9%
0.5-1.0 Hectare
35%
1.0-1.5 Hectare
22%
1.5 Hectare- 3.0 hectares 31%
3.0 Hectares Above
3%
100%

Breeding Program
Best 305D yield
2,383 kg

STAN (2GP01102)

Best 305D yield

2,132 kg

NATO (2CL99107)

Thank
You !!!