Darigold re-enters Philippine market after five decades 

USA – Darigold one of the largest dairy cooperatives in the United States, has announced its return to the Philippines with branded consumer products for the first time in five decades.

The Seattle-based, farmer-owned company, which first entered the Philippine market in the 1920s, had stopped selling consumer products there in the 1970s. 

The re-entry is in partnership with AllDay Supermarkets and will introduce Darigold’s FIT Milk ultra-filtered product line along with aseptic, ultra-pasteurized fluid milk to Philippine consumers.

The company has maintained a presence in the country over the years through exports of dairy-based ingredients used in a variety of commercial applications, including childhood nutrition, protein drinks, baked goods, and confectionery products. 

It sells commercial dairy ingredients such as butter, cheese, and powdered milk to global food manufacturers, dairy producers, and institutional food service providers. 

With this latest move, Darigold is expanding its offerings beyond commercial dairy ingredients by making its consumer products available in the Philippine market, including its full FIT Milk lineup and ultra-pasteurized fresh milk in single-serve bottles.

Dan Hofmeister, president of Darigold’s brand-to-consumer business, stated that advancements in processing technology have made it possible to distribute fluid milk over longer distances.

“Fluid milk has presented a very different challenge for long-range distribution, including globally, because of its relatively short shelf life,” he said.

“Products like our FIT Milk and aseptic milk, which are ultra-high-temperature pasteurized, provide opportunities to overcome that limitation.” 

These ultra-pasteurized products can be stored for up to a year, making international distribution more feasible.

Industry data indicates that the expansion of shelf-stable dairy products is crucial as global dairy demand continues to rise. 

According to financial services company Rabobank, worldwide dairy demand is expected to grow from 95 million to 115 million metric tons over the next decade. 

Meanwhile, declining milk production in Europe and Oceania has created a supply shortfall, offering American dairy producers with strong export capabilities, such as Darigold, an opportunity to meet this growing demand. 

Reports from the U.S. Department of Agriculture’s Foreign Agricultural Service suggest that the Philippines, which imports 99% of its dairy needs, is expected to see a 3% rise in dairy consumption.

Darigold’s geographic position in the northwestern United States gives it access to a well-developed shipping infrastructure, which includes rail networks, maritime ports, and interstate highways. 

Allan Huttema, the company’s president and chief executive officer, emphasized the significance of this logistical advantage. 

“Darigold’s production and processing capabilities are all in the Northwestern U.S., giving us ready access to global shipping infrastructure,” he said.

The expansion into the Philippines comes amid Darigold’s broader efforts to grow its consumer business within the United States. 

The company has traditionally been well-known in the Northwest but has been working to extend its reach through new distribution partnerships. 

This makes its products available in major markets across the eastern and midwestern regions and through national online retailers like Amazon.

Meanwhile, Darigold is also investing in expanding its production capacity. 

The company recently began construction on a new processing facility in Pasco, Washington, which is expected to process an additional 8 million pounds of milk per day upon completion. 

Owned by nearly 300 family-run farms in Washington, Oregon, Idaho, and Montana, Darigold processes approximately 10 billion pounds of milk annually and operates 11 production facilities.

In addition to its Seattle headquarters, the company maintains offices in Boise, Mexico, and Asia, with a 12th production facility set to open in Washington in 2025.