The Philippines' dairy industry which generates sales of about 1 Billion dollars annually is made up of two (2) distinct sectors:
- Huge importing and processing sector that supplies over 95% of the milk requirements of the country.
- Small milk producing sector that provides the rest of the supply.
The milk producing sector consists of:
- Informal group of individual unorganized producers, and
- Formal group that is made up of
- Smallholder producers with 1 to head of milk animals
- Smallholder producers with growing dairy herds numbering from over 20 to about 75 head of milk animals, and
- Producer-processors that maintain farms with about a hundred milk animals or more, operate a milk pasteurizing plant and undertake marketing of milk in urban centers. In all cases, the producer-processors, also procure raw milk from smallholders.