Indonesia's Dairy Consumption Set to Rise with Free Meals Plan
Source: DairyNews.today
Indonesia's President-elect, Prabowo Subianto, has proposed an ambitious plan to provide free meals to over 80 million schoolchildren and pregnant women, a move that is likely to significantly increase dairy consumption and imports in the country.
This initiative, which will cost an estimated US$28 billion when fully implemented, aims to enhance nutritional standards and address the issue of stunting, which affects 21.5% of Indonesian children under five.
The new government's initiative is expected to necessitate around 4 million tonnes of milk, matching the current total milk consumption projected for Indonesia in 2024. Given that only 16% of the country's dairy demand is currently met by domestic production, this policy will inevitably lead to a substantial increase in dairy imports, particularly powdered milk fr om leading suppliers like New Zealand, and live cattle imports from Australia.
The move aligns with Mr. Prabowo's long-standing advocacy for Indonesia to achieve self-sufficiency in food production. However, the country continues to be a significant importer of essential commodities like wheat, rice, soya beans, beef, and dairy products. The planned importation of 1.5 million head of dairy cattle could transform the local dairy industry but also represents a massive logistical and financial challenge.
This policy is set against a backdrop of fluctuating global dairy demand, particularly with reduced demand from China. Suppliers such as New Zealand and the European Union, who are major players in the Indonesian dairy import market, may find renewed opportunities for growth. In 2023, New Zealand exported almost NZ$1 billion worth of dairy products to Indonesia, making it the top dairy supplier to the country.
The inclusion of milk in the school meals program underscores the recognized nutritional value of dairy. However, exporting dairy cattle involves complex logistics, including considerations for infrastructure, supply chains, and animal welfare. Dairy Australia’s general manager of sustainable dairy, Charlie McElhone, highlighted these complexities and noted that negotiations with Indonesian counterparts are ongoing.
While the program aims to lim it imports and manage costs by prioritizing local food sources, the logistical challenges of Indonesia’s geography, spread across thousands of islands, may necessitate innovative solutions such as centralized kitchens or partnerships with local businesses. The program plans to adapt to regional dietary resources, using local ingredients like fish in coastal areas and yams in mountainous regions.
Mr. Prabowo's initiative is not just a measure to boost the dairy sector but a strategic move to improve overall health and stimulate economic growth in Southeast Asia's largest economy. Despite the challenges, this comprehensive approach to enhancing the diet of young Indonesians through school meals could set a precedent for national health and economic policies in developing nations.
The new government's initiative is expected to necessitate around 4 million tonnes of milk, matching the current total milk consumption projected for Indonesia in 2024. Given that only 16% of the country's dairy demand is currently met by domestic production, this policy will inevitably lead to a substantial increase in dairy imports, particularly powdered milk fr om leading suppliers like New Zealand, and live cattle imports from Australia.
The move aligns with Mr. Prabowo's long-standing advocacy for Indonesia to achieve self-sufficiency in food production. However, the country continues to be a significant importer of essential commodities like wheat, rice, soya beans, beef, and dairy products. The planned importation of 1.5 million head of dairy cattle could transform the local dairy industry but also represents a massive logistical and financial challenge.
This policy is set against a backdrop of fluctuating global dairy demand, particularly with reduced demand from China. Suppliers such as New Zealand and the European Union, who are major players in the Indonesian dairy import market, may find renewed opportunities for growth. In 2023, New Zealand exported almost NZ$1 billion worth of dairy products to Indonesia, making it the top dairy supplier to the country.
The inclusion of milk in the school meals program underscores the recognized nutritional value of dairy. However, exporting dairy cattle involves complex logistics, including considerations for infrastructure, supply chains, and animal welfare. Dairy Australia’s general manager of sustainable dairy, Charlie McElhone, highlighted these complexities and noted that negotiations with Indonesian counterparts are ongoing.
While the program aims to lim it imports and manage costs by prioritizing local food sources, the logistical challenges of Indonesia’s geography, spread across thousands of islands, may necessitate innovative solutions such as centralized kitchens or partnerships with local businesses. The program plans to adapt to regional dietary resources, using local ingredients like fish in coastal areas and yams in mountainous regions.
Mr. Prabowo's initiative is not just a measure to boost the dairy sector but a strategic move to improve overall health and stimulate economic growth in Southeast Asia's largest economy. Despite the challenges, this comprehensive approach to enhancing the diet of young Indonesians through school meals could set a precedent for national health and economic policies in developing nations.
23.09.2024
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