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Indonesia and Brazil Join Forces to Boost Dairy and Meat Industry

Brazil 17.09.2024
Source: DairyNews.today
1716 EN 中文 DE FR عربى
In a strategic move to strengthen its dairy and meat sector, Indonesia's Asiabeef Biofarma has entered into a preliminary agreement with Brazil's Agropecuaria 31, according to reports from Reuters. The collaboration aims to bolster Indonesia's dairy and meat production, with Brazil set to export 100,000 tropical dairy cattle to Indonesia.
Indonesia and Brazil Join Forces to Boost Dairy and Meat Industry
Source: freepik.com
The deal, valued at approximately $292 million, marks a significant step towards Indonesia's goal of achieving self-sufficiency in meat and milk.

Indonesian Minister of Agriculture Amran Sulaiman highlighted the importance of this partnership, stating that Brazil’s investment would be crucial in supporting Indonesia’s efforts to reduce its reliance on imports and boost local production.

The timing of the agreement aligns with Indonesia’s upcoming policy under president-elect Prabowo Subianto, who has pledged to provide free meals to over 80 million school children. This initiative is expected to significantly increase the demand for dairy products, as the program will require an estimated 4.1 million tons of milk annually. Currently, Indonesia’s domestic production only meets 16% of its dairy needs, underscoring the critical role that imports will play in meeting this new demand.

Indonesia’s Deputy Minister of Agriculture, Sudaryono, also noted that up to 40 companies have committed to importing 1.3 million live cattle to support the government's free meal program. This influx of cattle and investment will be pivotal in developing Indonesia’s underdeveloped milk industry, while also contributing to the broader goal of self-sufficiency in both meat and dairy production.

With such large-scale projects underway, Indonesia’s dairy and meat industries are set for significant growth, driven by both domestic initiatives and international partnerships like the one with Brazil.

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