DTI: No plan to restrict Aussie milk imports

The Philippines has no plans to impose any restrictions on imported milk solids from Australia, Trade and Industry Secretary Manuel Roxas II disclosed yesterday following reports that the country is planning to impose retaliatory measures in response to Australia’s continued refusal to allow the entry of locally grown fresh fruits.

"We do not contemplate depriving ourselves of milk in order to gain access for our fresh fruits to Australia," Roxas said, adding that "we barely have a domestic milk industry."

According to Roxas, the domestic milk industry is able to supply only about five percent of the country’s total requirement.

Bulk of the Philippines’ milk solid requirements is imported from Australia.

Roxas was surprised over reports that the Philippines is planning to impose restrictions on milk solid imports from Australia.

Unknown to Roxas, Agriculture Undersecretary Ernesto Ordoñez had been quoted by Reuters as saying that the Philippines would look elsewhere for dairy supplies if Australia failed to complete a quarantine study into imports of Philippine bananas by June 30 this year.

Australian banana farmers are against the entry of Philippine bananas.

Industry observers said the dispute between the Philippines and Australia may escalate further as a private sector-led movement has gotten support from local milk manufacturers Nestlé Philippines and Alaska Milk to boycott Australian milk solids.

According to Luis Lorenzo, chairman and chief executive officer of Lapanday Holdings and who is President Arroyo’s presidential adviser on one million jobs generation, Nestlé and Alaska have reportedly agreed to support a private-sector led movement to source their milk solid requirements from other countries.

Lapanday Holdings is the country’s biggest exporter of bananas. – Marianne Go