School Milk Programme Could Boost New Zealand Dairy Exports

Indonesia’s child nutrition plans may mean a lift in demand for NZ dairy. A new Indonesian school milk programme is expected to significantly increase the country’s total dairy consumption, creating opportunities for New Zealand and other global dairy players, according to a new report by food and agribusiness banking specialist Rabobank.

Rabobank said the recently elected Indonesian government has introduced a range of policy measures with the potential to transform the country’s dairy supply chain. "The centrepiece of its policy is the Nutritious Meals Programme, which aims to combat malnutrition and promote healthy eating among school children," report author RaboResearch senior analyst Michael Harvey said. "A key feature of this programme is to provide food, including milk, to 60 million students on every school day by 2029.

RaboResearch estimates the total milk required at full implementation could surpass 2 billion litres." The majority of milk consumed by Indonesia’s 280 million people in 2024 was imported, with domestic production estimated at 900 million litres, and an additional 2.5 billion litres (liquid milk equivalent) imported," Harvey said. The programme could create live cattle export opportunities for New Zealand given Indonesia’s desire to expand its domestic dairy cattle herd.