Private-Sector Funded School Milk Feeding Program Launched in Laguna
Key Takeaways
- •The National Dairy Authority's private-sector-backed milk feeding program will cover 504 students at Malitlit Elementary School in Sta. Rosa, Laguna.
- •ABI Pascual Foods, Inc. will procure and deliver around 50,400 bottles of 200-milliliter fresh milk, approximately 10,080 liters, over the initial 100-day rollout — roughly one bottle per student per day.
- •The NDA projects about P1.26 million in sales for the Katipunan ng Kooperatibang Manggagatas, Inc. dairy cooperative, based on an estimated procurement price of P25 per bottle.
- •The program operates under Republic Act No. 11321, the Sagip Saka Act, which allows direct government purchases from accredited farmers and fisherfolk cooperatives and enterprises.
- •Participating corporations are exempt from donor's tax and may fully deduct program costs from gross income, reducing the after-tax cost of funding the milk deliveries.
The National Dairy Authority (NDA) said its private-sector-backed school milk feeding program will reach 504 students of Malitlit Elementary School in Sta. Rosa, Laguna.
The initiative falls under the Private Sector-Funded Milk Feeding Program, whose partner for the school, ABI Pascual Foods, Inc., will procure and deliver around 50,400 bottles of 200-milliliter fresh milk — approximately 10,080 liters in total — to the students. Spread across the program's initial 100-day rollout, that volume works out to roughly one 200-milliliter bottle per student per day.
The procurement price is estimated at P25 per bottle, with the NDA projecting around P1.26 million in sales for the Katipunan ng Kooperatibang Manggagatas, Inc. dairy cooperative during the program's initial 100-day rollout. The projection lines up with 50,400 bottles at P25 each, meaning the program's procurement spending flows to the dairy cooperative as sales revenue rather than to an outside supplier.
“Guaranteed demand from committed private-sector partners like ABI Pascual gives our dairy farmers the economic stability they need to be able to expand their herds and boost local production,” NDA Administrator Marcus Antonius T. Andaya said.
The program is anchored on Republic Act No. 11321, or the Sagip Saka Act, enacted in 2019, which allows the government to directly purchase agricultural goods from accredited Farmers and Fisherfolk Cooperatives and Enterprises. In practice, that legal framework is what lets the students' milk be bought straight from the dairy cooperative supplying it.
“Connecting school feeding initiatives with direct local procurement under the Sagip Saka Act creates a win-win model for both child health and local agriculture,” Mr. Andaya said.
Corporations taking part in the Milk Feeding Program are exempt from donor's tax, the levy on gifts, and may fully deduct associated costs from gross income. For corporate partners, the combined incentives effectively reduce the after-tax cost of funding the milk deliveries.
— Maria Mikaela H. Tormon
