Trader helps farmers earn as much as MBA graduates

By Elizabeth Lolarga Philippine Daily Inquirer MANILA, Philippines—That oft-told tale of the last carabao (water buffalo) of a farming family being sold to pay for a would-be domestic helper’s airfare will soon be reversed. Dairy man Danilo V. Fausto held road shows in Singapore and Hong Kong to convince Filipino workers there to invest in their hometowns and help their respective families get back on their feet by buying carabaos and milking them for profit, literally. Author of “Dare to Dream: A Filipino Entrepreneur’s Tale of Success in Dairy Farming,” Fausto left a comfortable sinecure in banking 25 years ago when he saw he could make a bigger difference in his kababayans’ lives by engaging in dairy business. His parents used to scold him, asking him what he was doing with his life, whenever he would visit them in Nueva Ecija. One day, he bought 10 carabaos and put them in the middle of a rice field. That got him started. It is a matter of pride for Fausto to know that he and the cooperative he helped put up were there six years ahead of the Philippine Carabao Center. Other institutions came by to observe what he was doing, especially how a milk enterprise could restore peace and order. “The insurgents were no longer holding Armalites but teats, getting into the business of massaging carabao teats,” Fausto says. But his efforts seem to be a drop in the milk bucket. As of 2009, the country still imports most of its dairy requirements from New Zealand and Australia. That year, the country shipped in 1.8 billion liters of milk, an amount equivalent to $467 million. Milk is the Philippines’ second largest agricultural import. And yet, Fausto told his audience at the Management Association of the Philippines’ weekly forum at the Metropolitan Club in Makati City Thursday, “We are producing less than one percent of the demand. That means less than 40,000 liters a day.” Of the 10 million livestock (cows, carabaos and goats), only 14,405 are being milked. Meanwhile, malnourishment haunts children ages 2 to 10. Sixty-nine percent of them are malnourished. What Fausto is doing is changing farmers’ mindset “from productivity of the soil to having a cash cow.” He says he is putting up a new cult called Iglesia ni Kalabaw (Church of the Carabao) because of the great need for milk. This brings him to wonder why the local dairy industry is not within the radar of the Department of Agriculture. “We need four million dairy animals,” he says. “But the government just brings in 500 heads a year.” He also says that a farmer “does not have to plant rice because the government says so. Governments can rise or fall because of this dependence on rice.” He questions the real freshness of milk in tetrapaks sold in supermarkets and groceries. “How can you claim it’s fresh if it has storage life of from six months to a year? Our milk is gotten from the carabao in the morning, and it’s on the table on the same day.” His DVF Dairy Farm has taken matters into its hands by going into partnership with farmers and overseas Filipino workers, particularly those in Singapore. The dairy farm buys one or two carabaos, the OFW investor lets a farmer take care of it, and they have a 50-50 share of profits. With three carabaos collectively yielding eight liters of milk (each liter sells for P45) a dairy farmer’s income may reach P32,400 in 30 days. “With five liters, given the same numbers, it can be P20,250 a month.” So Fausto, who holds a master of business administration degree, is not joking when he claims that a dairy farmer, who finished Grade One, makes as much as an MBA from the Ateneo or De La Salle. When an OFW is assured that his or her family can earn as much, the overseas worker may look forward to a financially stable life back home. Also, the country stands to benefit from a full-blown dairy industry. Fausto mentions the Philippines’ proximity to major Asian cities, as opposed to New Zealand and Australia, both 12 hours away by air. This proximity allows for fresh milk, premium cheeses, yogurt and ice cream to reach their destinations at a shorter time within the cold chain. Another advantage is that the country has large, river-fed plateaus and high rainfall, enabling grass (carabaofood) to grow fast. “We have the largest grazing resource in East Asia,” Fausto says. The country also has a large rural labor force that can keep the costs of everything low. DVF Dairy Farm has a no-nonsense name for its product: Gatas ng Kalabaw (milk of the carabao). Bottles of it may be found in SM Supermarkets’ refrigerated sections where they are easily sold out. Coming soon are milk-based products like cottage cheese, ricotta and mozzarella cheese. These are all fruits of daring to dream. When in Cebu City, please visit gregmelep.com for your real estate and retirement needs. Source: Manila Bulletin