USDA reports decline in dairy imports in Indonesia for 2023
Source: The DairyNews
Although Indonesian dairy production is still reeling from the 2022 Foot and Mouth Disease (FMD) outbreak, imports of dairy ingredients are expected to decline in 2023. Dairy importers are reporting a 10 to 20 percent drop in demand in 2023 due to a multitude of factors, including problems obtaining import recommendations and licenses, decreased consumer purchasing power, and election uncertainty.
The United States Department of Agriculture (USDA) estimates Indonesia's total dairy consumption at 4.22 and 3.7 million metric tons in 2022 and 2023, respectively, with a projected rebound to 4 million metric tons in 2024.
The FMD outbreak, starting in mid-April 2022, has significantly impacted domestic milk production, resulting in a 35 to 60 percent decrease. The Indonesian Dairy Cooperatives Association (GKSI) reports the loss of 11,581 dairy cows, contributing to a mortality rate of 4-5 percent. Post calculations indicate a 48 percent drop in domestic milk production compared to pre-FMD levels. Despite the resumption of artificial insemination services and the birth of calves in 2023, many cows failed to produce milk due to irreparable damage, adding to the official FMD outbreak mortality count.
The majority of Indonesia's fresh milk is produced by 59 dairy cooperatives under GKSI, with approximately 227,615 cooperative cows and 32,000 cows on modern dairy farms. The FMD outbreak has reduced the average daily yields of cooperative cows to 9-10 liters, while modern dairy farms, with better management, maintain yields at a minimum of 25 liters per head. Fresh milk production in 2023 is estimated at 571,000 metric tons, with the concentration on the island of Java, housing 99 percent of the total dairy cattle population.
Despite the challenges, there is no clear government action plan to restock the dairy cattle population. However, the Indonesian Chamber of Commerce's Permanent Commission for Livestock Affairs, in collaboration with the Indonesian Dairy Processors Association, has proposed a plan to increase the domestic dairy cattle population and fresh milk production. The proposal aims to import 17,889 pregnant heifers within three years, leading to a 70,000-head increase in the dairy cattle population over five years. The plan projects an additional daily production of 384 metric tons of fresh milk by the fifth year.
The plan designates 25 dairy cooperatives and private dairy farming companies to receive imported heifers. During a recent assessment trip, the U.S. Livestock Genetics Export found interest among private dairy farming companies and some cooperatives in importing around 24,000 heads of U.S. dairy cattle. Despite these efforts, there remains an unmet import demand for approximately 15,000 heads of dairy cattle.
The FMD outbreak, starting in mid-April 2022, has significantly impacted domestic milk production, resulting in a 35 to 60 percent decrease. The Indonesian Dairy Cooperatives Association (GKSI) reports the loss of 11,581 dairy cows, contributing to a mortality rate of 4-5 percent. Post calculations indicate a 48 percent drop in domestic milk production compared to pre-FMD levels. Despite the resumption of artificial insemination services and the birth of calves in 2023, many cows failed to produce milk due to irreparable damage, adding to the official FMD outbreak mortality count.
The majority of Indonesia's fresh milk is produced by 59 dairy cooperatives under GKSI, with approximately 227,615 cooperative cows and 32,000 cows on modern dairy farms. The FMD outbreak has reduced the average daily yields of cooperative cows to 9-10 liters, while modern dairy farms, with better management, maintain yields at a minimum of 25 liters per head. Fresh milk production in 2023 is estimated at 571,000 metric tons, with the concentration on the island of Java, housing 99 percent of the total dairy cattle population.
Despite the challenges, there is no clear government action plan to restock the dairy cattle population. However, the Indonesian Chamber of Commerce's Permanent Commission for Livestock Affairs, in collaboration with the Indonesian Dairy Processors Association, has proposed a plan to increase the domestic dairy cattle population and fresh milk production. The proposal aims to import 17,889 pregnant heifers within three years, leading to a 70,000-head increase in the dairy cattle population over five years. The plan projects an additional daily production of 384 metric tons of fresh milk by the fifth year.
The plan designates 25 dairy cooperatives and private dairy farming companies to receive imported heifers. During a recent assessment trip, the U.S. Livestock Genetics Export found interest among private dairy farming companies and some cooperatives in importing around 24,000 heads of U.S. dairy cattle. Despite these efforts, there remains an unmet import demand for approximately 15,000 heads of dairy cattle.
23.09.2024
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I have been thinking to make this post yes/ no. I decided for yes and like to ask everyone to not "shoot the messenger". The chart shows an analysis of IFCN Dairy Research Network from the 2024 supporter conference in Poland.
