MVP group’s P2-billion dairy farm in Laguna gets tax perks
Photo from BOI/FACEBOOK
MANILA, Philippines — The Board of Investments (BOI) on Monday said it has approved the registration of the dairy farm and processing facility in Laguna of the Pangilinan group’s Metro Pacific Dairy Farms Inc. (MPDF), which is expected to begin operations in March next year.
The BOI said the project in Bay, Laguna, tagged with an initial cost of P2 billion, is intended to produce high-quality dairy and plant-based products for the local market.
The investment promotion agency added that the project will also use advanced dairy farming principles, techniques, and technology based on the “Israeli” model.
READ: MPIC to add dairy farms to agriculture portfolio
Artificial intelligence and modern equipment will also be used to optimize production efficiency and quality, according to the BOI.
Incentives from the BOI include income tax holidays, a preferential tax rate on gross income, zero value-added taxes (VAT) rating, as well as tax and duty-free importation of capital equipment, raw materials, and supplies.
“We at the BOI are excited about the introduction of advanced dairy farming technology, which promises to deliver superior quality and production efficiency while significantly boosting local dairy and plant-based beverage production,” BOI managing head Ceferino Rodolfo said in a statement.
Access to fresh, high-quality dairy products
Rodolfo, who is also a trade undersecretary, said this initiative is a crucial stride toward enhancing the Philippines’ food security and reducing dependence on imported milk.
“Achieving greater self-sufficiency in our dairy supply likewise ensures that Filipino consumers have access to fresh, high-quality local products,” he added.
READ: Metro Pac, LR Group to build P2-B modern dairy farm in Laguna
MPDF’s planned facility will also house a thousand dairy cows to produce 6.5 million liters of raw milk annually, which will boost by 12 percent of the country’s yearly milk output which currently stands at around 26.3 million liters.
The BOI noted that the domestic dairy industry in 2023 was characterized by decreasing local milk production and a reliance on imports.
Citing the National Dairy Authority, the BOI said that the country imports 99 percent of its dairy consumption, with local production meeting only 0.98 percent of the total demand of 2.93 billion liters.
Further, the BOI noted that the local production capacity for plant-based milk—such as soy milk—is estimated at 24.4 million liters. Based on the rapid industry appraisal commissioned by the BOI to the Philippine plant-based foods industry. INQ
