Nestlé's 50-Year Partnership with East Java Farmers Enhances Dairy Sector

Nestlé Indonesia has marked its 50th anniversary of collaboration with East Java dairy farmers, a relationship that originated in 1975. Initially, the partnership began with modest milk quantities but has now grown to over 750,000 liters processed daily. This milk is sourced from approximately 26,000 smallholder farmers, underscoring Nestlé's commitment to integrating local producers into its global supply chain.

More than 13,000 smallholder farmers from 28 cooperatives are currently involved in this partnership. Nestlé provides technical support through 42 milk cooperatives, enhancing farming practices with a focus on hygiene, nutrition, and cattle health. These efforts have led to improvements in milk quality, meeting international standards, and increased farmer incomes.

Nestlé has invested significantly in local infrastructure, establishing cooling centers and collection points to reduce post-harvest losses. This infrastructure facilitates the connection between rural producers and the Pasuruan Factory, enhancing the region's dairy production capacity.

Sustainability is a core aspect of this partnership, with initiatives for regenerative agriculture being implemented. Nestlé collaborates with cooperatives to adopt eco-friendly practices, including biogas digesters for waste management, which convert manure into clean energy. These practices help maintain competitiveness amid evolving environmental regulations.

The partnership serves as a model for public-private-community collaboration, emphasizing sustainability and the professionalization of future dairy farmers. This approach aims to ensure Indonesia's food security and sustain Nestlé's leadership in the global dairy sector.