August 31, 2009

Land O’Lakes International Development Division (IDD) announces the recent award of a USDA-funded dairy development program in Mindanao, the Republic of the Philippines, under the Food for Progress program. This initiative will expand Land O’Lakes current dairy development activities into six dairy zones across Mindanao. By increasing affordability of improved dairy cattle, providing training to farmers in herd management practices and expanding dairy market linkages, the program will increase production of high-quality raw milk and expand opportunities to produce and sell dairy products locally that meet consumer demands.

“By intensely working to revitalize the dairy industry, Land O’Lakes and USDA can help break a cycle of poverty, violence and isolation that is synonymous with this part of the Philippines,” said Meredith Kruger, Land O’Lakes regional project manager for Asia. “The Philippines produces less than two percent of its domestic fresh milk requirements though the country’s climate, water resources, and available feed crops are all conducive to raising healthy dairy cows. Land O’Lakes can take an active part in turning that around.”

Mindanao is the country’s poorest region with a poverty rate of over 45 percent. Six out of the country’s 10 poorest provinces are located in Mindanao. The lack of economic opportunities for people living on the island contributes to ongoing rebel insurgencies and clan-based disputes, which, in turn, stifle development in the region.

As a result of this program, Land O’Lakes will increase herd size on the island by 12 percent. Milk processing capacity on the island will increase 28 percent, from 56,000 liters per day to 72,000 liters per day. The program will create 200 jobs and increase the incomes of 1,200 farmers.