Milk tariff collections rise by 31% to P2.4 billion

MANILA, Philippines — Revenues raised by the government from various imported milk products jumped by 31 percent to P2.36 billion in 2023, the highest in at least eight years, from P1.8 billion in 2022.

The latest National Dairy Authority (NDA) report attributed the increase to the higher duties slapped on imported cheese, whey powder and buttermilk.

The tariffs collected from imported cheese skyrocketed by 88 percent to P588 million from P312 million in 2022.

Likewise, the government collected P32.26 million from imported whey powder, which used to be zero since 2018.

Meanwhile, the tariffs from buttermilk more than doubled to P220 million from P95 million in 2022.

The NDA data showed that tariffs collected grew despite the decline in both volume and value of imports.

Total milk and milk products imported slipped by three percent to 575,460 metric tons in 2023 from 595,640 MT in 2022.

In terms of value, milk imports amounted to P76.29 billion in 2023, 15 percent lower than the P89.65 billion recorded in 2022.

The NDA data indicated the higher aggregate tariff rates applied on imported milk products lifted the government’s tariff collections.

In 2023, the aggregate tariff rates applied stood at three percent versus the usual two percent from 2016 to 2022.

The tariff on imported whey powder was increased to one percent from zero, while that of buttermilk and buttermilk powder was raised to three percent from one percent.

Likewise, the duty slapped on cheese increased to six percent from four percent.

Legislators are keen on passing a bill that would appropriate all milk tariffs collected to the development of the domestic dairy industry.

The Philippines virtually imports all of its milk requirements as domestic production can only meet a percentage of the country’s total requirement.

The US emerged as the country’s top milk supplier in 2023 with a total volume of 137,620 metric tons valued at P22.5 billion followed by New Zealand at 95,300 metric tons worth P19.53 billion.