Indonesia's Dairy Sector Urged to Become a National Priority
Indonesia's National Dairy Council (DPN) has emphasized the need for the government to focus on enhancing smallholder dairy farming as part of the national food self-sufficiency program. According to DPN Chairman Teguh Boediyana, despite the annual commemoration of National Milk Day since 2008, significant progress in promoting smallholder dairy farming and increasing fresh milk consumption has yet to be achieved.
Currently, domestic fresh milk production satisfies only about 20% of Indonesia's national demand, with the country's dairy cattle population standing at approximately 600,000 head. On average, smallholder farmers possess only two to four cows. To address these challenges, DPN suggests prioritizing dairy farming under the food self-sufficiency initiative.
Boediyana has called for the issuance of regulations, potentially in the form of a presidential instruction, to establish a legal framework for accelerating the development of smallholder dairy farming. He argues that an expansion of this sector would not only create jobs, particularly for young Indonesians, but also help the nation achieve self-sufficiency in milk production.
One of the issues highlighted is that the added value and profits from processed dairy products largely bypass smallholder farmers, as their fresh milk is primarily used as raw material by the dairy processing industry. Boediyana stressed the necessity for government intervention to improve the welfare of these farmers.
In addition, Boediyana proposed that investment in large-scale dairy operations be regulated to ensure fair partnerships with smallholder farmers. He suggests that at least 20% of the dairy cattle in large-scale farms should be allocated through partnership schemes with smallholders.
DPN also advocates for stronger downstream development in the smallholder dairy sector, aiming to significantly contribute to the government's Free Nutritious Meals program. Furthermore, the council recommends subsidies for imported dairy cattle to mitigate high import costs that limit farmers' capacity to expand their herds.
