New dairy plant rises in Davao

Mindanao is boosting its bid to become a major source of fresh dairy milk with the opening of a new processing facility in Malagos, Davao City, a move that strengthens the region’s ability to produce and process its own high-quality dairy products.

Casuga Agro-Innovations opened the plant on Dec. 8, 2025, in an event attended by government officials, development partners, financial institutions, and local business leaders. The launch signaled a shared push to build a more resilient and competitive dairy industry in the southern Philippines.

For decades, Mindanao’s farming identity revolved around bananas, coconuts, cacao, and other plantation crops. Fresh milk production remained small, forcing households and institutions to rely on shipments from Luzon and imported dairy. 

The Malagos facility is seen as a turning point: milk produced by Mindanao farmers can now be processed locally instead of being sold raw or transported long distances. Advocates say this shift will raise farmer incomes, cut logistical losses, and give communities steadier access to fresh, locally sourced milk.

Stakeholders say the plant represents more than new equipment; it marks a structural shift in Mindanao’s agricultural system. The facility will process fresh and sterilized milk, yogurt, and value-added products like tablea milk, linking dairy farmers and cacao growers to more reliable and higher-value markets, including school feeding programs and institutional buyers. By keeping processing within the island, Mindanao reduces its dependence on imported dairy and strengthens local agribusinesses.

Agencies such as the National Dairy Authority, the Department of Agriculture Region 11, the Department of Science and Technology (Dost) 11, and the Davao City Agriculturist’s Office have spent recent years expanding herd development, improving forage systems, helping cooperatives, and supporting MSMEs capable of processing milk. Their efforts are laying the groundwork for a more organized dairy corridor across Davao, Bukidnon, and other highland provinces suited for cattle raising.

Financing institutions and development organizations have also played a role. Through grants, technology upgrades, and enterprise financing, they have helped processors and farmer groups modernize operations, adopt food safety standards, and strengthen their market readiness. Together, these efforts are building an emerging dairy ecosystem where production, processing, and marketing happen closer to the farmers themselves.

At the inauguration, speakers said Mindanao’s dairy story is still taking shape, but momentum is clearly building. Training centers, farm schools, and producers adopting modern practices are strengthening a farm-to-market system that keeps value within communities. Davao’s upland areas, Calinan, Marilog, and Baguio District, have become hubs for dairy farmers thanks to cooler climates and steady agricultural support.

Local innovation is also driving the industry. Producers are developing culturally rooted products such as tablea milk, blending Davao’s globally recognized cacao with fresh dairy. The combination taps into two of Mindanao’s strongest agricultural identities, creating distinctive products with market potential.

Speakers stressed that Mindanao’s strength lies not only in producing raw milk but in adding value, creating jobs, and supplying nutritious dairy to families and schools. The Malagos facility is one of the latest markers of that shift, showing that Mindanao is moving beyond its role as a supplier of raw agricultural goods and becoming an emerging player in dairy processing. For rural households, the effects could be far-reaching: steadier incomes for smallholder farmers, more jobs in processing and logistics, and more consistent access to fresh milk for children.

“Mindanao is ready. Our farmers are ready. Our enterprises are ready. What we need are deeper partnerships and continued belief that building from the ground up, right here in places like Malagos, is worth it. This plant is just the beginning,” said Cherrylin Casuga, president and CEO of Casuga Agro-Innovations.

For many in Davao’s agriculture and business sectors, the plant’s opening shows what’s possible when producers, institutions, and partners rally behind a shared vision: making fresh, locally processed dairy a defining strength of Mindanao’s farm economy. As the region diversifies beyond its traditional crops, the rise of dairy processing in Davao City signals its readiness to build a stronger, more inclusive, and more value-driven agricultural future. DEF