Protests Erupt in Indonesia as Dairy Farmers Urged to Buy Local Milk
Source: DairyNews.today
Dairy farmers in East and Central Java, Indonesia, have staged protests against the government’s milk procurement policies, as local processors increasingly opt for imported skimmed milk. This shift has resulted in fresh milk spoiling, exacerbating tensions within the industry.
Farmers in Pasuruan, East Java, have voiced their discontent after processors began prioritizing cheaper imports over local fresh milk. Meanwhile, farmers in Boyolali, Central Java, took their grievances to the streets, symbolically “bathing” in fresh milk while some sold their milk to pig farmers for just US$0.19 per liter, far below market value.
Daniel Johan, a member of the People’s Representative Council, criticized the government for failing to address the challenges faced by dairy farmers. He pointed out that while farmers face multiple taxes, imported milk from Australia and New Zealand enters the country duty-free, undercutting local prices. “Imported milk is cheaper than locally produced milk, and processors are increasingly turning to imports,” Johan said, calling for a reevaluation of the policy and greater support for local farmers.
Partnerships Between Farmers and Processors
Johan argued that despite government policies encouraging milk processors to partner with farmers, few processors are actually buying local milk. He stressed the need for the government to offer incentives to boost local production and reduce dependency on imports.
The issue stems partly from the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), which eliminates import duties on milk from Australia and New Zealand, making these imports financially attractive to processors. According to Budi Arie, Minister of Cooperatives, imported skimmed milk is 15-25% cheaper than local fresh milk. While the current price of local milk is around US$0.44 per liter, it should ideally be priced at US$0.57 per liter.
Quality Concerns
The debate over the shift towards imports has sparked differing opinions within the industry. Sonny Effendhi, executive director of the Milk Processing Industry Association, cited quality concerns as the main reason for reduced local milk procurement. “We found that some local milk contained contaminants, such as water and sugar, which do not meet food safety standards,” Effendhi said.
However, Teguh Boediyana, chairman of the National Milk Board, dismissed these claims. “There is no evidence or lab results to back this up. Dairy farmers have partnered with processors for decades, and quality improvements are part of ongoing efforts,” he said, adding that farmers are motivated to improve milk quality to command higher prices.
Government Response
In response to the protests and industry concerns, Agriculture Minister Amran Sulaiman announced plans to revise regulations, compelling milk processors to purchase local fresh milk if it meets quality standards. “We have instructed livestock agencies in all provinces to ensure that processors support local farmers,” Sulaiman stated.
Boediyana suggested that a balanced approach, such as an import ratio system, could help. Under this proposal, processors would be allowed to import milk only after absorbing a set amount of local fresh milk. This, he argued, would benefit both farmers and processors.
In the meantime, the Ministry of Agriculture is delaying import recommendations for five milk processors to ensure they prioritize local milk purchases. Sulaiman emphasized the government's commitment to protecting local farmers, stating that processors refusing to comply with the new policy could face the revocation of their import permits. “We are firm in our support for farmers,” he said.
Daniel Johan, a member of the People’s Representative Council, criticized the government for failing to address the challenges faced by dairy farmers. He pointed out that while farmers face multiple taxes, imported milk from Australia and New Zealand enters the country duty-free, undercutting local prices. “Imported milk is cheaper than locally produced milk, and processors are increasingly turning to imports,” Johan said, calling for a reevaluation of the policy and greater support for local farmers.
Partnerships Between Farmers and Processors
Johan argued that despite government policies encouraging milk processors to partner with farmers, few processors are actually buying local milk. He stressed the need for the government to offer incentives to boost local production and reduce dependency on imports.
The issue stems partly from the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA), which eliminates import duties on milk from Australia and New Zealand, making these imports financially attractive to processors. According to Budi Arie, Minister of Cooperatives, imported skimmed milk is 15-25% cheaper than local fresh milk. While the current price of local milk is around US$0.44 per liter, it should ideally be priced at US$0.57 per liter.
Quality Concerns
The debate over the shift towards imports has sparked differing opinions within the industry. Sonny Effendhi, executive director of the Milk Processing Industry Association, cited quality concerns as the main reason for reduced local milk procurement. “We found that some local milk contained contaminants, such as water and sugar, which do not meet food safety standards,” Effendhi said.
However, Teguh Boediyana, chairman of the National Milk Board, dismissed these claims. “There is no evidence or lab results to back this up. Dairy farmers have partnered with processors for decades, and quality improvements are part of ongoing efforts,” he said, adding that farmers are motivated to improve milk quality to command higher prices.
Government Response
In response to the protests and industry concerns, Agriculture Minister Amran Sulaiman announced plans to revise regulations, compelling milk processors to purchase local fresh milk if it meets quality standards. “We have instructed livestock agencies in all provinces to ensure that processors support local farmers,” Sulaiman stated.
Boediyana suggested that a balanced approach, such as an import ratio system, could help. Under this proposal, processors would be allowed to import milk only after absorbing a set amount of local fresh milk. This, he argued, would benefit both farmers and processors.
In the meantime, the Ministry of Agriculture is delaying import recommendations for five milk processors to ensure they prioritize local milk purchases. Sulaiman emphasized the government's commitment to protecting local farmers, stating that processors refusing to comply with the new policy could face the revocation of their import permits. “We are firm in our support for farmers,” he said.
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