A Commodity System Study

Dairy Products

Eastern Primary Multi-Purpose Cooperative

(EPMPC)
Sibut, San Jose City, Nueva Ecija

Prepared by: Group 8

Amparo, Arjay S.
Bumatay, Mae Delphine E.
Chua, Aira Laine C.
Marcos, Dolly Ann B.
Pascual, Shirlyn Petty Jane A.
(BSAB 1-1)

Submitted to:

Edilyn V. Lansangan
AGBUS 1100 Teach
I. INTRODUCTION

A. Importance of the Study

Philippine Carabao Center aims to fulfill the Filipino dream of ending poverty for

small holder farmers, by producing proudly Filipino farm fresh milk from grass-fed

carabao products that are naturally healthy and yummy. They produce some of the

best dairy products the Philippines have to offer, ranging from their fresh and aged

cheese, high-quality butter and probiotic rich yogurt.

Carabao’s milk is an underrated super drink. Its health content, protein, energy

and calcium, is far richer and creamier than cow and goat’s milk. The milk contains a

high percentage of milk fat, which is good source of energy. It is also lower in

cholesterol and higher in calcium adding more health benefits and goodness to your

body.

According to studies of Philippine Carabao Center, carabao’s milk is the most

complete food because of it having low cholesterol and higher in calcium and energy.

It is even used in local government health programs to prevent malnutrition. Even if

you don’t drink carabao milk, there’s a high chance you have had more than you

thought, from food such as ice cream, pastillas de leche, white cheese, and even

mozzarella cheese.

The Philippines’ dairy industry consists of two distinct sectors: One is the milk

powder-based sector that imports, re-processes and repacks milk and milk products.

The other is the liquid milk sector that has an imported UHT milk component and a

locally produced fresh milk component. Although Filipinos are generally considered

non-milk drinkers, with consumption at 19 kg per person per year, the Philippine
dairy market, including the market for imported milk, generates more than US$1

billion in revenues annually. Some 44 percent of the demand for milk is concentrated

in Metro Manila.

The local dairy farm sector is small, comprising 13 000 families and some 300

dairy enterprises. The total dairy herd consists of some 28 000 head, of a total

livestock population of 9.6 million. The single biggest obstacle to dairy development

is the shortage of dairy animals. Hence, programs to upgrade local animals to dairy

breeds are dominant livestock interventions. Recent pronouncements from the

Department of Agriculture have indicated the intent to concentrate on the upgrading

of native carabao.

Located within dairy zones, smallholder dairy farmers (with 2–10 carabao) and

bigger producers (with 20–400 carabao) operate side by side. Annex VI provides the

findings of a 2002 survey by the Bureau of Agriculture Statistics indicating that 4

194, or 85 percent, of 4 957 farmers surveyed owned 1–5 dairy animals. Including the

farmers owning 5–10 dairy animals, the percentage of smallholder dairy farmers rises

to 96 percent.

Coffee shops, hotels, restaurants, supermarkets and small grocery shops make up

the commercial outlets for local milk and absorb about 60 percent of production.

Local government units that sponsor milk feeding programs consume about 40

percent. As provided by law implemented by the National Dairy Authority,

smallholder dairies have priority as suppliers of government-sponsored milk feeding

programs. The significant impact of milk feeding on decreasing the incidence of

malnutrition encourages local governments to support these programs. For social and
 political reasons, the local officials greatly appreciate the concept of nutrition for the

children and income for the farmers

B. Objectives

Generally, the study aimed to know the dairy production and processing of

different dairy products in Eastern Primary Multi-Purpose Cooperative (EPMPC).

Specifically, the objectives of the study were the following:

1. To identify the methods in processing the products

2. To determine if there is any change in increasing or decreasing of production

for the past years

3. To find the processes behind the production by enumerating the subsystems

being involve in the whole production process of the dairy product

4. To determine if there is any significant difference between the production of

dairy industry in Nueva Ecija from the past years.

5. To assess the quality of dairy product from the said agribusiness firm.

B. Limitations

The study focused mainly in the commodity system of Dairy in the Philippines

specifically the Eastern Primary Multi-Purpose Cooperative (EPMPC) located at

Sibut, San Jose City, Nueva Ecija.

 II. SCOPE OF THE COMMODITY SYSTEM (location and focus)

The Eastern Primary Multi-Purpose Cooperative (EPMPC) was established in 1992. This

cooperative covered 6 barangays. It is composed of 63 members mainly from San Jose City,

Nueva Ecija. The EPMPC is processing carabao milk into flavored milk, lacto juice, bibingkang

gatas, pastilllas, espasol and milky polvoron.

III. BACKGROUND OF THE FARM INPUT SECTOR

India is the world’s largest milk producing nation, with around 70 million producers. This

year, India is expected to produce 175 billion liters of milk, nearly twice what the US, the second

biggest milk producing nation, is expected to produce. Around 40% of all the milk produced is

consumed within the producer’s household, and 35% sent to small-scale local processors. These

local processors are usually well established within the community and so many producers will

only sell milk exclusively to these vendors, who cater almost exclusively to local demand.

Only around a quarter of milk produced is delivered to larger companies or co-operatives.

These vendors tend to focus on meeting domestic demand, and are not active in the export

market. The fragmentation of the industry means maintaining the chill chain from the large

number of small farms through to a large-scale processor is a challenge. There have been large

investments in developing the cold supply chain infrastructure more recently. Collection centers

and milk chillers at a village levels are being introduced to secure greater control of the milk

supply. By 2020, organized milk handling is expected reach 30%. This means that cooperatives

and private dairy processors will handle up to an estimated 160 million liters a day.
 The Eastern Primary Multi-Purpose Cooperative (EPMPC) was established in 1992. This

cooperative covered 6 barangays. It is composed of 63 members mainly from San Jose City,

Nueva Ecija. The EPMPC aims to increase milk production and processing through sustainable

carabao management and provide livelihood opportunities to members and healthier food option

to consumers. Since then, the PCC supports the cooperative through the establishment of

Village-Based Milk Collection and Consolidation Center (VBMCC) to further make the dairy

industry more vibrant. Such establishment paves the way for the cooperative to have proper milk

collection, storage, delivery, and selling of products which benefits its consumers.

Through the assistance of Philippine Carabao Center (PCC) farmers had the opportunity

to have their own carabao farm for them to produce milk. PCC gave one carabao each farmer to

be able to start nursing carabao. They also gave milking materials like milking cans and tails. As

a support to the farmers, Department of Trade and Industry (DTI) granted the farmers a milking

machine to help them in producing milk in easier way. The Department of Science and

Technology (DOST) also help the farmers by giving cooler box for the preservation of milk.

In milk processing, the cooperative performs some test first before processing primarily

flavored milk, lacto juice and pastillas. Partnership with Local Government Unit, Dairy Box,

Milka Krem etc. boosted the market linkages of the cooperative and now have markets also in

Baguio City.

Carabao’s milk is good source of protein, energy and calcium, is far richer and creamier

than cow and goat’s milk. The milk contains a high percentage of milk fat, which is good source

of energy. It is also lower in cholesterol and higher in calcium adding more health benefits and

goodness to your body. With its health benefits, the cooperative supply ten schools in San Jose
City, Nueva Ecija supported by Local Government Unit, specifically Nutrition Office in

accordance to preventing malnutrition.

The cooperative was able to have milk to process by the help of members of cooperative

particularly farmers who bring and sell their carabao’s milk to the cooperative every morning.

The cooperative also was able to stock products with the use of freezers and coolers to extend the

time span of their products. In case of problems like power interruption, the cooperative is ready

and can preserve their products and maintain its deliciousness.

“By 2020, our chairman is planning to renovate our office with a Café in front. The Café

will also be related to Dairy which will use Carabao milk as its main ingredient.” Ms. Miccaela

N. Alfonso, the manager of EPMPC said.

Since the cooperative anticipates stability and assurance in the coming years, they are to

continue to help new and existing members to increase their production of milk in terms of

giving them machines and equipments. Selling them feeds and vitamins for carabaos to produce

more and more milk.

Ms. Alfonso stated that they chose carabao’s milk because it really helps the farmers to

have additional source of income. Especially, in today’s time that most of the farmers in the

Philippines were affected by the Rice Tariffication Law.

IV. FARM SECTOR

A. Local Farm Production

Current local milk production reached 18.45 million liters, a remarkable 12% growth

from 2011.You might think this is an impressive feat. Think again. Dairy products are our

country’s second largest agricultural import after wheat. Our local milk production is just 1% of
our dairy requirements. This scenario seems to post a long and tough fight to reduce imports and

at the same time, to meet the demand for dairy products. Hence, the industry needs effective

strategies to boost local milk production.

With almost 37% of our local milk production supplied by buffaloes, PCAARRD and the

Philippine Carabao Center (PCC) partnered with local government units (LGUs), dairy farmers’

associations, and milk dealers to increase milk production. This public-private partnership

involves seven technology transfer projects across Regions III, IV, VII, and VIII through the

S&T Community Based Farm (STCBF) and TechnoMart (TM) modalities. These projects have a

combined budget of P23.9 million wherein 70% (P16.7 million) is from PCAARRD and the rest

from PCC, LGUs, and dairy farmers’ cooperatives. In support to increased milk production, TM

projects will handle the processing of dairy products, adopting proper milk handling procedures

through trainings, and use of appropriate milk handling facilities.

Figure 1 shows that the Dairy Production was in uptrend from 2009 to 2018, an excerpt

from PSA.
 Figure 1. Volume of dairy production of the Philippines, PSA

Figure 2 shows the production of carabao per region in the Philippines was in a uptrend

from 2009 to 2019, also an excerpt from PSA.

Figure 2 Volume of Carabao Production per region in the Philippines, PSA

Carabao Care and Management

After the birth of the caracalf, the fetal membrane should be removed, some fluid may

have to be drained from the respiratory tract; Within a few minutes after birth, the navel cord

should be cut and dis-infected with tincture of iodine. Proper identification can subsequently be

done by either earnotching, tattoing, eartagging, or putting a neck chain. The caracalf should

receive colostrums as soon as possible preferably within one hour after birth.

Calves are usually weaned 3 to 5 days after birth and are fed and trained to drink mixed

milk. The calves may put in the pens individually or in group. They should be fed with caracalf

starter at 2 weeks of age and a good caracalf starter should contain at least 18 to 20 percent
crude protein and 75 percent total digestible nutrient. Starting at 2 weeks of age, caracalves

could be fed with some forage like freshly cut grass and fresh and clean water should be

provided at all times. Feeding of high protein diet to weaned calves 8 to 12 months old is

advisable if it is desired to accelerate growth rate.

Pregnant Carabao Management

Those pregnant should be separated from the rest of the herd especially in the last two

months of their pregnancy. They must receive adequate supply of energy, protein, vitamins and

minerals for their maintenance, growth and fetal growth requirements. Poor nutrition may result

to poor milk production; hence it is advisable to stop milking 2 months before the expected date

of calving.

Milking Carabao Management

Milking shed should be built in well drained grounds which is common factor for

diseases and parasites. The shed may be built of native materials like bamboo, nipa and cogon.

Backyard sheds are 2.5 to 3 meters high, for semi-permanent shed with a height of 3 to 3.7

meters. Milking carabaos are fed based on their body weight and milk production. Feeds sold at

EPMPC should be given to milking carabao to increase their milk production. It is given in one

is to one, one kilogram of feed is to one kilogram of milk.

The carabao’s milk time of production is between 3 and 4 in the morning. The carabao is

used to its routine and it go straight to its designed milking shed. Before milking, the carabao

will take a bath first to ensure the cleanliness of milk. Based on Mrs. Mercader said, the average

milk produced of her one carabao was 7-11 litters a day.

Food Management

Rice straw alone is a poor quality roughage but when treated with the right amount of

urea solution, its crude protein content will increase from 4% to 7%. Its digestibility and

palatability will be enhanced. In effect, when buffaloes receive proper nutrition, you can expect

not only high quality milk but high milk yield as well.

Grass or corn silage is another enriched forage that could address problems on nutrition

and forage deficiencies during lean months. Silage making could be easily adopted by farmers

for farm use or in a commercial scale because this requires simple equipment (e.g., forage

chopper) and low input costs.

Use of milk replacer to calves were found profitable as these strategies increase milk

yield from 3.5 liters to 4.6 liters based on a recently concluded PCC-implemented S&T Based

Farm (STBF) on buffalo milk production. Milk replacer is a powdered milk that when mixed

with water approximates the nutritive composition of cow’s milk. If farmers will use milk

replacer and sell their raw carabao’s milk, they would gain additional income of P43 per liter. A

liter of milk replacer only costs P20 compared with P63 per liter of raw carabao’s milk.

Moringa or malunggay as livestock feed has been explored due to its high nutritive value,

high dry matter yield, and 17―26% protein content. It is also high in beta carotene, iron, and

potassium. Its galactogenic property is found to stimulate milk production. The S&T

interventions will cover the establishment of moringa pasture for forage production, processing

of moringa leaf meal, and utilization as fresh forage or leaf meal.

Carabao Protection Management

 Some Diseases of Carabao

1. Coccidiosis

Causes: Protozoa (Eimeria) Generally not a primary condition but exists with other enteric
diseases.

Mode of Transmission: Direct infection by ingestion of infective stage (oocyst). Thrives in

moist damp and unsanitary areas.

Symptoms: Common only in caracalves and yearlings. Diarrhea later becoming bloody and
profuse; dehydration and anemia.

Prevention and Control: Clean environment and general sanitation. Treat with sulfa drugs only.

2. Blackleg

Causes: Bacteria (Clostridium chauvoei)

Mode of Transmission: Infection initiated by trauma of the body and oral mucosa

Symptoms: Sudden deaths in acute cases. Less acute: depression, fever, rapid respiration and
suspended rumination. Typically, hot painful swelling in thigh and leg muscles. Cracking
sensation on palpation of swellings due to gas in tissues. Lameness in affected limb.

Prevention and Control: Vaccination. Cremation of carcasses. Early isolation and treatment
with massive doses of antibiotics.

3. Brucellosis

Causes: Bacteria (Brucella abortus). Predisposing: Climatic stress, fatigue, transport, nutritional
and parasitic stresses, etc.

Mode of Transmission: Ingestion of contaminated feed and water. Aborted fetus, fetal
membranes, placenta, urine and uterine discharge are main sources of infection. Infected
carabulls may transfer disease through natural/artificial breeding.
Symptoms: Infertility. Abortion, retained placenta, persistent vaginal discharge. In males,
swollen and painful testicles with subsequent infertility/sterility. Respiratory distress; salivation,
nasal discharge, swelling of throat and brisket, congestion of mucous membrane, diarrhea
becoming bloody later.

Prevention and Control: Blood tests and removal of infected animals. Antibiotic medication,
impractical. Vaccination may be tried. Infective materials discarded properly; contract with
carrier avoided. Removal of predisposition when possible. Early treatment with parental
antibiotics and sulfa drugs.

4. Ephemeral

Causes: Virus

Mode of Transmission: Through bites of bloodsucking insects.

Symptoms: Stiffness of gait, lameness, fever.

Prevention and Control: Supportive treatment like administration of antibiotic and vitamins.
Control biting insects.

5. Parasitic gastroenteritis

Causes: Various species of parasitic nematodes in the digestive tract. Caracalves and yearlings
most susceptible.

Mode of Transmission: Commonly through direct infection with parasitic larval stages through
herbages; less commonly through skin penetration and intrauterine infection.

Symptoms: Poor body condition, anemia, diarrhea, potbelly and weakness.

Prevention and Control: Regular deworming with effective anthelmintics (tetramisole,

parbendazole, thibendazole, pyrantel, etc.) Pasture rotation and improved feeding practices.
Milking and Processing

The milk production can be done by the use of two methods; Using milking machine and

doing manual milking. The carabao will go to the milking shed to get ready to produce its milk.

Bathing and cleaning the carabao is the first step in milking as it cleans all the unnecessary dirt in

carabao’s body that may affect the quality of milk to be produce. After that, the farmer and

his/her helper will place the tail under the carabao’s breast enough to get the milk to be place in

milking can.

All milk produced will be sell on their partner cooperative for processing. The

cooperative will first examine the milk if there is any blood or infection before accepting and

declaring the milk as a good milk for processing their products, usually takes 15 minutes. If the

cooperative doesn’t see any problem in the farmer’s carabao milk, they will pay the farmers at

the amount of P63 per liter. The milk will be process as a flavored milk, lacto juice, pastillas,

polvoron, espasol, and milky bibingka.

B. Technological and Economic State of the Farm Sector

 Trends in its contribution to GNP

The carabao is a major contributor in the agricultural industry. It provides us meat and dairy

products for consumption and contributes to a more sustainable agriculture. The Carabao dairy

production has a contribution of more than 34 percent and is increasing in Gross National

Product (GNP)
Production Trends

Bangladesh, like other South Asian countries, has a dairy system characterized by small-

scale operations, integrated with crops and other off-farm activities. Dairying is considered a

major source of nutrition and income, and offers good opportunities for both farm families and

non-farm rural and urban employment. Consequently, several dairy development programmes

and models have been implemented for improving the dairy sector.

The gradual shift from subsistence to market-oriented dairy units demands more

advanced knowledge and dairy technology. However, adequate information about the dairy

sector and its technological advancement is scanty, which increases the need to identify

opportunities for technical and institutional development. This paper updates information on key

changes in the dairy sector and the characterization of dairy production systems in Bangladesh

and considers their implications for South Asian countries.

Milk demand, measured by per capita consumption, is increasing by 4% per year, which

is higher than the growth in milk production (3.6%). This has led to a continuous widening of the

gap between milk supply and demand. Institutional support and policies play a major role in

narrowing this gap and should therefore be considered in developing strategies for dairy

development.

The major part of the milk production still comes from the family-type farm, but there is

evidence that dairying is moving to even larger, more intensive-type enterprises. Every effort

should be made to preserve the family-type farm as the major source of the milk supply.

Research objectives should be directed to production of technology that favors the farofly-type

dairy farmer to be more productive, more efficient, and more competitive.

Economic and Social Impact

Carabao’s milk has a great economic and social importance worldwide. A smallholder

dairy cattle farming has been practiced by farmers in Tanzania, particularly in rural areas as a

means of livelihood through income generated and food security although information about its

impacts might not be clear from different locations. This study examined socio-economic

impacts of smallholder dairy cattle farming on the livelihood in Sunga ward of Lushoto District,

Tanzania. A cross-sectional study design was adopted whereby quantitative approach was used.

Simple random sampling was used to select 120 households from 384 total households practicing

dairy cattle farming.

The survey was used as the method of data collection. Structured questionnaire

constructed from close and open-ended questions was utilized as an instrument of data

collection. Data analysis was done by using SPSS whereby the study revealed descriptive

statistics and paired-samples t test. Results show that smallholder dairy cattle farming has a

social impact on household food security due to increased crop yields (97.5%), milk

consumption (74.8%) and selling of cattle (67.2%).

Also, households improved access to education (79.2%), improved access to health

services (84%) and increased assets (87.4%) such as buying of land, motorcycles and

construction of houses. Moreover, dairy cattle farming has demonstrated economic impacts

through direct income generated from selling milk (65.8%), using manure for agriculture

(100%), income from selling cattle (71.7%) and perceived as a source of employment (92.5%).

Income from selling milk contributes about 47% of annual income of the household.
  Technological developments

Through the assistance of Philippine Carabao Center (PCC) which give the farmers a

carabao, milking cans and milking tails as an starter pack business and also the Department of

Trade and Industry (DTI) which granted milking machine. The Department of Science and

Technology also support the farmers by giving cooler box to be able to preserve the milk.

Through their help, farmers have the opportunity to start their own farm and earn additional

income through selling carabao’s milk.

Recently, milk traders attended a meeting at PCC, as part of the event, they were

allowed to do actual milk quality testing through organoleptic tests and other essential tests

under the supervision of Daisy Flores, science research assistant.

After the training, each of the participants received a milk testing kit. The kit included a

lactometer, graduated cylinder (250 ml cap), 10 pieces of conical tube (15 ml cap), one set of

computed specific gravity table, one bottle of 60% ethanol (500 ml), one pipette (10 ml), one

recording logbook, and a bottle of 70% ethyl alcohol.

 Key location factors

There are many factors a dairy producer would consider when seeking a location for a dairy

farm. Here are some of the factors that might be considered:

 Availability of suppliers (vets, equipment, feed companies, etc.)

 Land and infrastructure availability and cost

 Proximity to areas that have productive land for forage and grain crops

 Location of processing plants. Risk management – irrigation areas

Many factors pertaining to the family dynamic beyond the farm, such as where their

support is, such as family and friends. Simply personal preference and what they value in

a community
  Climate

 Where the farms are located/ what are the characteristics which contributed to

the development/growth of the commodity? Why?

The Eastern Primary Multi-Purpose Cooperative (EPMPC) is located at Sibut, San Jose

City, Nueva Ecija and all the carabao’s milk needed for processing are produced by their own

members at different barangays in San Jose City, Nueva Ecija. Because of this delicious taste

and nutrients content, the cooperative continues to have more costumers and partner market as it

boost their sales and have development and growth on the input that they used.

 Flow chart
EPMPC Dairy TESTING CONSUMERS
PROCESING
(Fresh Milk) (Class A to Class B) (100% good quality
\ finish products)

V. THE PROCESSING INDUSTRY

A. Product forms and supply

The dairy industry has successfully incorporated membrane technologies throughout

different manufacturing stages, from on-farm raw milk concentration, to milk processing and to

effluent treatment. Dairy industry produces a wide range of perishable and semi perishable

products obtain to the carabao, cattle, buffaloes, etc. (P. Bremer et.al). Since this kind of industry

produce different products, the characteristics of the products also vary greatly depending on the

type of operation or practice performed.

 Philippine Carabao Center (PCC) was created through legislation to pursue the

conservation, propagation and promotion of the water buffalo as a source of milk and meat, in

addition to draught power and hide leather. Ironically dairy isn't a big industry in the Philippines

even though it contains a lot of potential. At any given moment, there are approximately 264

million dairy cows living on dairy farms around the world. Those cows produce an average of

600 million tons of milk against their will.

List of Dairy Products

The dairy industry is the large-scale practice of breeding and raising cows for the sole

purpose of using their milk for the production of food. The Philippine dairy products such as

butter, milk, cheese, yogurt, ice cream is popular output of milk production. In Nueva Ecija, PCC

mainly the Eastern Primary Multi-Purpose Cooperative create a product that students, persons

who can't buy a large scale of milk these includes the flavored milk, pastillas and polvoron.

1. Flavored milk (Choco and Lacto juice)

Those milk were affordable especially for the students. Though soy milk is suitable

replacement for dairy milk, dairy milk is healthy alternative to soft drinks and fruit juices. Soft

drinks are bad for our health because of their sugar content. Milk also serves as nutritional

powerhouse, it has nine vitamins and mineral namely calcium, protein, Vitamin A, D, and B12,

Riboflavin and Naicin into one serving.

It has a role in child nutrition program. The EPMPC distribute flavored and unflavored milk

in different schools in San Jose City, Nueva Ecija. It serves also their kind of product advertising

through the concerns of students. According to U.S. Department of Agriculture data, 66 percent

of the milk chosen by children in schools is flavored, most of which is low-fat (1%) or fat-free.
 Studies have revealed kids’ clear nutritious beverage of choice: low-fat flavored milk,

whether or not it’s lactose-free. Flavored milk can help increase milk consumption and boost

overall participation in school meal programs. It helps the kids or students to meet their calcium

requirement as they consume these milk.

2. Pastillas

Carabao milk usually used in making pastillas de letche. These products not only satisfy our

tooths also they also give nutritional benefits. It is complete in protein, fat and lactose. They are

rich, creamier, healthier and source of energy. The normal pastillas were made by flour,

evaporated milk, sugar but in the instances of the EPMPC, PCC they use the carabao milk to

produced healthier pastillas.

3. Polvoron

A polvorón (From polvo, the Spanish word for powder, or dust; Cebuano: polboron;

Tagalog:pulburón) is a type of heavy, soft and very crumbly Spanish shortbread made of flour,

sugar, milk, and nuts. It contains 127 calories per serving. It also contains protein, vitamin A &

C, Calcium, and Iron.

The process flow of flavored milk:

Cleaning and
Preparing of
disinfenction Mixing
ingredients
of tools

Packaging and
Cooking
storage

Restoration Cooling

Cleaning and Disinfection of tools- disinfection is important series of cooking to prevent from

harmful bacteria and viruses that tools may contain.

Preparing of Ingredients - according to Williams Sonoma, these kinds of procedure explain

how to prepare a variety of ingredients for use in recipes. Also, the measuring of ingredients

(cocoa/lacto, skimmed milk powder, sugar, water) and raw milk that has been test.

Mixing - mix all the dried ingredients in one bowl, and place it to the raw milk. Mix and stir it

very well.

Cooking- after mixing, place the container in the boiling water, add water. Mix it every 5

minutes and measure the temperature until it become 75° F.

Cooling - after cooking, place the container in the cooling bath ang put net above to eliminate

the insects that can fall. Measure the temperature in 20°F and it is ready for packaging and

storing.

Packaging and Storage - EPMPC use different scale in packing their product, they use 100 &

150 ml for sachet, 200, 500 and 1 litter for bottled flavored milk. Store in refrigerator or freezer.

The process flow of polvoron and pastillas:

Cleaning and disinfenction Preparing of

of tools ingredients

Packaging
Restoration Cooking
and storage

Cleaning and Disinfection of tools - In processing, cleaning and Disinfection is important.

Preparing of Ingredients - according to Williams Sonoma, these kinds of procedure explain

how to prepare a variety of ingredients for use in recipes. Also, the measuring of ingredients and

raw milk that has been test.

Cooking - In cooking pastillas, mix all ingredients (milk, sugar, and starch) place it in the pan

until it become sticky and creamy. For polvoron, pour flour in the frying pan, mix it until the
color become Golden brown and place it to another bowl. After that, mix the sugar, milk, flavor

if any and melt the margarine. If the margarine melt, mix it with dried ingredients.

Packaging and Storage- Wrap the pastillas, and pack it. Same with polvoron mold it through

the use of molder and wrap in paper or cellophane. Store in refrigerator or freezer.

B. Firms and Supply

The EPMPC aims to increase the production of products by providing optimum social and

economic benefits to members. By improving the practices of the cooperative in terms of

business management. To actively support the government through the development of the

cooperative.

C. Competition

In business arrangement competition is a situation in which someone is trying to win

something or be more successful than someone else (Cambridge Dictionary). Competitors

always there. In a business with the same industry or similar industry which offer the same

product or services impendent in competition. In such way, business world becomes thrilling.

The Enrico's dairy products is popular also in Nueva Ecija. In fact, the owner of this industry

similar to EMPC work first in Milka Krem processing before establishing their business. The

San Vicente's kakanin also offers products like pastillas and polvoron. Also, the online sellers

indicate that they are the competitor. But EPMPC offered a guaranteed and healthier product.

D. Technological and Economic State of Processing

Technology use in the processing: milking test machine, refrigerator/freezer and

thermometer.
 E. Key Location Factors

 Power supply

 Communication

 Management practices, training of the employees, and marketing.

F. Foreign Trade

VI. DISTRIBUTION AND MARKETING SECTOR

A. Demand for the different product form

 Project demand

Carabao’s milk is also produced locally here in the Philippines. According to Philippine

Carabao Center (PCC) carabao’s milk has a better nutritional benefits than the cow’s milk. It is

lower in cholesterol, higher in calcium and energy. With its beneficial uses, Eastern Primary

Multi-Purpose Cooperative (EPMPC) is promoting different dairy products such as Flavored

milk (choco milk, lacto juice and fresh milk) Pastillas and Polvoron.

Currently, the cooperative provides income in every staff with Ᵽ300.00 per workday. “

We have daily collection of fresh carabao’s milk from those members of our cooperative with

their own farm and we have daily processing for pastillas and flavored milk. Commonly, we

collect 500 to 700 liters of fresh milk from the members. But it will be doubled the total volume

during september to december which is 250 to 500 liters a day.” Alfonso said.

 Projected supply
 Eastern Primary Multi-Purpose Cooperative (EPMPC) was able to maintain the

production of dairy products for the whole year because of their members who have their own

farm with alot of carabao for the production of milk being needed by the cooperative for their

dairy milk products.

B. Pre-marketing practices/Post-harvest handling practices

C. Product flow

EPMPC’s Members Farms CONSUMERS

PROCESING
(Collection of Fresh Milk) (100% good quality
Assisted by the PCC
finish products)
Assisted by VBMCC

D. Prices Trends

Product Price, Php / unit

1. Flavored Milk 135.00 / 1 liter bottle

2. Polvoron 75.00 / 1 box

3. Pastillas 90.0 / 1 box

E. Firms/Traders
 The Eastern Primary Multi-Purpose Cooperative ( EPMPC ) is a cooperative that buys

milk from their members, process it and distribute the finished dairy product from their

cooperative. They sell those products only in the trade fairs or by orders.

F. Key Locations and Factor

Providing trainings and good relationships with the employees and costumers.

VII. FINANCIAL SYSTEM INTERFACE

The cooperative provides income for every farm supplier with P63.00 per liter of milk. “I

sold P63.00 per liter of milk. Each carabao, I got 7-11 liters and I have 11 carabaos and

estimately 4,000-8,000 income every day.” Mrs. Erlinda Mercader said. the audit and inventory

head in EPMPC.

VIII. THE PUBLIC SECTOR

A. The Government support and regulatory system

 Philippine Carabao Center (PCC)

 Local Government Unit (LGU)

 Department of Agrarian Reform (DAR)

 Department of Industry (DTI)

 Small and Medium Enterprise Council (SMEC)

 Department of Science and Technology (DOST)

  National Nutrition Council, Department of Health (DOH)

Rules, Regulation and Policy

 Implementing the Rules and Regulations of Republic Act No. 10611 “An act to

strengthen the food safety regulatory system in the country to protect consumer health

and facilitate market access of local food and food products and for other purposes.

Otherwise known as the “Food Safety Act of 2013”.

 ACT NO. 4041 - AN ACT TO DEVELOP THE DAIRY INDUSTRY

Declaration of Policy. Recognizing the importance of the dairy industry on the

development of the national economy, it is hereby declared to be the policy of the

Government of the Philippines to promote and encourage the development of dairy

industry so as to achieve self-sufficiency, at least, in milk and dairy products and to

improve the health and standard of living of the people.

 REPUBLIC ACT NO. 7884

An act creating the national dairy authority to accelerate the development of the dairy

industry in the Philippines, providing for a dairy development fund, and for other

purposes.

B. International Organization

C. Other institution

CENTRAL LUZON STATE UNIVERSITY (CLSU)

IX. SUMMARY ANALYSIS

Problem Analysis
X.CONCLUSION AND RECOMMENDATION

Conclusion

Recommendations