IF one is looking for a sector in Philippine agriculture that occupies the economic doldrums, one does not need to go further than the dairy industry.

Thirty years ago, it could meet just above 1 percent of the country's total demand. It was for this reason why our well-intentioned policymakers established the Philippine Carabao Center (PCC) in 1992 and the National Dairy Authority (NDA) in 1995, with the purpose of promoting greater milk production in the country. Our legislators rightly assessed that milk and meat from carabaos and cows were rich in protein, indispensable to the proper nourishment and development of the brains and bodies of Filipino children.

In countries like Japan, the United States, Thailand and many others in Europe, milk is given as a free drink to school-age children as it is important in helping promote proper nutrition and brain development. Those countries can easily implement the nutrition program because they have ample milk supplies. In the Philippines, after 30 years of the PCC and the NDA's existence and billions of pesos funneled to them, milk production seems to have stayed in a time warp. Total supply can still only meet just over 1 percent of total demand.

There are several reasons why our dairy industry cannot flourish and develop. It ranges from the flawed romanticization of the carabao's — our national animal — potential (scientifically is proven to be less than cows) to significantly raise dairy production to the fragmentation of farmlands due to agrarian reform and the NDA and the PCC's poor extension services capability. Despite efforts to organize small dairy farmers into cooperatives, there have been more failures than successes unlike in India and Bangladesh.

The reason is that dairy production needs a lot of attention from cattle or carabao raisers such as the provision of adequate silage and veterinary services to prevent disease outbreaks. An ordinary Filipino farmer, whose average educational attainment is Grade 5 or 6, does not have the proper training and education nor sufficient capital to sustain a viable dairy industry. The problem is exacerbated if the government's dairy extension services are poor or in most cases absent.

The weaknesses of our local dairy production can be properly addressed if more middle-class entrepreneurs engage in the business. The market is not a problem because, as noted, production only satisfies just over 1 percent of demand.

Fortunately, there is a successful dairy farm in the country that can be an excellent model for anyone venturing into the business. The 10-hectare Sta. Maria Dairy Farm (SMDF), located in Lipa City, Batangas, has 243 cows in around 2 hectares of land. The remaining area is used to plant grass for silage.

The owner is Jose Tapay, who holds a Bachelor of Science in Agriculture, major in Animal Science, from the University of the Philippines Los Baños. He used to be a kitchenware and dry goods retailer but had to close shop because of stiff competition from cheap Chinese-made imports. It was at this point that he decided to develop the family land in Lipa City for an agricultural venture.

Using his animal science background, Tapay started with quail egg production since it required little capital. Having a relatively large property in Lipa City, real estate developers then tried to convince him to forge a joint venture for a housing development, with the family land as his equity. Tapay spurned the offer, being an agriculturist at heart, and then made a proposal to the NDA for the loan of several heifers (female cows that have yet to give birth). In return, the calves would be surrendered for further distribution to other farmers interested in dairy production. The scheme was meant to significantly increase the number of cows for milking.

Caring for the herd and ensuring that the cows provide ample amounts of milk daily is a full-time job. The day starts as early as four in the morning to gather silage and feed this to the cows. Milking is labor-intensive and has to be done the proper way. There are also measures that have to be adopted to prevent animal diseases, including maintaining a desired barn temperature to ensure maximum milk yields.

Tapay's hard work is paying off. His average production is 14 liters per cow from a herd of 95. This is the highest in the country, and as a result, SMDF has received numerous awards and recognitions as a model dairy farm. SMDF was, in fact, converted into a dairy training and tour center a couple of years ago. Almost all of its trained students have been recruited to work in Australia, New Zealand and Japan, where farmers are aging farmers and their kids are migrating to urban areas.

Tapay is targeting daily production of 20 liters per cow. The main bottleneck is the quantity and quality of corn silage. He has to source his feed from neighboring towns in Batangas but is forced to buy as far as Nueva Ecija, Camarines Norte and Occidental Mindoro to ensure ample supply and quality. He has no problem with the market because all of the farm's produce is immediately snatched up by Laguna Creamery Inc., makers of a local ice cream brand. The expansion of Laguna Creamery's operations means that dairy farmers have an assured market.

The SMDF experience clearly manifests the formula to become a successful agricultural entrepreneur. One has to possess an economically viable land size and not just the hectare bestowed via agrarian reform. One has to have the proper technical knowledge, skills and dedication because agriculture, particularly dairy production, is a 24-hour job. One also has to have sufficient capital to afford productivity-enhancing technologies and understand the market to sustain demand for the product to make the venture viable.

Undeniably, these features to make agriculture a profitable business are possessed by middle-class farmers. Ironically, we practically got rid of this class of farmers as a result of the protracted implementation of the agrarian reform program. Tragically, our agricultural development policy opted for an army of subsistence farmers owning a hectare of land or less and whose survival highly depends on sustained and ever-increasing government dole outs. In other words, Philippine agriculture has practically become a social welfare program rather than a business. No wonder it remains an economic laggard.

fdadriano88@gmail.com