Asia milk market open to PH firms

BAGUIO CITY—Dairy products from the Philippines have great potential to penetrate the Asian market due to the country’s strategic location and the increasing demand for milk and dairy products in the region, said an investment consultant during the recent Dairy Congress here.

Marshall Mays, director and co-founder of the Emerging Alpha Advisors, a risk advisor to institutional investors, said dairy consumption in Asia has been increasing due to the improvement in the region’s economy.

To take advantage of this growth, he said the dairy industry in the Philippines should establish a distinct brand that will be associated with quality.

Industry players, he said, should take advantage of overseas Filipino workers’ networks to distribute products, like Philippine-produced milk, yogurt, ice cream and cheese, in other countries.

Mays said that the Philippines has an advantage in producing dairy products because it has large river-fed plateaus and high rainfall volume ideal for grazing.

He said the country also has a large rural labor force that can push production.

But Mays said those in the dairy industry should think about charging a premium on products intended for the export market.

“[For example] P200 per liter of milk generates jobs,” he said.

Mays said products should be of high quality, organic and fresh.

“Think about ‘Brand Pilipinas,’ positioning, quality control and customer service,” he told congress delegates.

“Think of the growing middle class … Sell nutrition, status and lifestyle. Make the consumer feel special when buying a product, make it status-oriented,” Mays said.

He said dairy industry players should also educate consumers on their products.

By educating consumers, he said, trust is generated.

But Mays said the industry should invest in its workers in order to compete in a bigger market.

“Best companies invest in people. Train them; there should be capacity building,” he said.