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From Raw Milk to High-Value Dairy: Carabao Milk Cheese Production for Small Carabao Dairy Farmers

IRL Philippines and the UP CIDS Political Economy Program team come together during the NICE4GUT® Aged Carabao Milk Cheese tasting event and soft launch. From left to right: Zedric Nicholas Bisenio (PEP), Paula Camille Ingalla (IRL), Micah Tarun (IRL), Dr. Antoinette Raquiza (PEP), Dr. Joyce Ibana (IRL), Josfred Riva (IRL), Janina M. Guarte (IRL), and Honey Tabiola (PEP).

Quezon City, Philippines — Dr. Joyce Ibana, Head and Founder of the Integrative Research Laboratory (IRL Philippines) of the University of the Philippines Institute of Biology, and the Political Economy Program (PEP) are working together to promote functional  carabao milk cheese technology  for small dairy farmers.

Dr. Ibana and her research team developed NICE4GUT® Aged Carabao Milk Cheese, an innovative, high-value dairy product made from carabao milk using a starter culture. The cheese is designed to provide high energy and protein while supporting digestive health, immune function, and overall wellness.

Carabao milk is widely recognized for its rich nutritional content. However, many small farmers face low farmgate prices and experience losses due to the short shelf life of raw milk. By transforming fresh milk into a value-added product with a significantly longer shelf life and gut health benefits, NICE4GUT® cheese offers an opportunity to reduce post-harvest losses while enabling farmers to access premium markets both locally and, potentially, internationally.

Recognizing that technological innovation alone is insufficient to achieve broad-based impact, Dr. Ibana invited PEP-UP CIDS to examine the social, institutional, and policy dimensions of the technology. The collaboration sought to identify how public policy can enable smallholder dairy farmers not only to adopt the innovation but also to participate meaningfully in its commercialization as partners rather than mere suppliers of raw materials.

The collaboration produced a policy brief that:

    • situates the innovation within the country’s enabling policy framework, including the Philippine Carabao Act of 1992 (Republic Act No. 7307), the Philippine Dairy Industry Development Act of 1995 (Republic Act No. 7884), the Technology Transfer Act of 2009 (Republic Act No. 10055), and the Philippine Innovation Act (Republic Act No. 11293), among others;
    • identifies policy actors and potential beneficiaries;
    • examines the respective roles of universities and government in strengthening innovation programs and projects; and
    • explores how small dairy farmers can participate in the production and sale of functional carabao milk cheese as both adopters and co-creators of innovation.

Based on the study, Dr. Ibana and her team recommend the following policy measures:

    1. Strengthen government support for dairy farmer cooperatives through training and capacity-building programs on hygienic milking practices, milk handling and storage, animal health and nutrition management, equipment sanitation, and the adoption of locally developed dairy technologies.
    2. Establish a “Microbiologists for the Barrios” fellowship under the Department of Science and Technology (DOST) scholarship programs to deploy young scientists to assist rural  farmer cooperatives in dairy milk  quality assurance.
    3. Protect product integrity and brand value by combining Geographical Indication (GI) protection with blockchain-enabled traceability systems.
    4. Implement an equitable profit-sharing arrangement that allows farmer cooperatives to participate in commercialization revenues, ensuring that publicly funded innovations generate direct and sustained economic returns for rural communities.

“When enterprises use technology developed with public funds, it is important to recognize farmers as co-creators by ensuring that a share of the returns flows back to them. After all, they supply the high-quality milk that makes production possible. This is how government investment can truly benefit society,” Dr. Ibana said during the product’s cheese tasting event and soft launch on December 15, 2025.

The development of NICE4GUT® Aged Carabao Milk Cheese was supported through funding from several government initiatives, including the DOST,  and the UP Technology Transfer and Business Development Office (UP TTBDO) Bridge Fund.

By integrating biotechnology, public policy, and social enterprise, the collaboration offers a blueprint to create shared prosperity for small producers in society.

The full policy brief is available here.