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Indonesia a future land of milk and honey
According to the Indonesian Milk Processing Industry Association (AIPS), demand for milk in the country is growing at an annual rate of almost 10 percent.
However, despite growing demand, local milk production has actually declined in recent years.
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Despite growing demand, local milk production has actually declined in recent years. (Shutterstock/*)
M
ilk is becoming increasingly popular in Indonesia. With a growing middleclass and shifts in local diets toward Westernized food and tastes, the country is witnessing rapid growth in the consumption of milk and dairy products.
This growing appetite for milk and its derivative products, like cheese, cream, sour cream and yoghurt, has the potential to make Indonesia a hub for the dairy industry in Southeast Asia and beyond.
But this will only happen if there is a major transformation in the industry, rectifying the widening gap between local milk production and dairy consumption.
According to the Indonesian Milk Processing Industry Association (AIPS), demand for milk in the country is growing at an annual rate of almost 10 percent.
Despite this rapid growth, Indonesia’s level of milk consumption based on 2014 data remains very low compared with its neighbors, at an annual average of just 13.4 liters per person, with Filipinos consuming 22.1 liters, Thais 33.7 liters and Malaysians an impressive 50.9 liters — almost four times the average Indonesian.
From this low base, Indonesia’s taste for milk is expected to grow rapidly, with more Indonesian’s turning towards cow’s milk as: a source of protein and calcium; a substitute for breast milk for infants and babies; the popularity of milk in beverages like coffee grows (shifting away from the Indonesian tradition of drinking black coffee); and as dairy products and cakes increase in popularity.
However, despite growing demand, local milk production has actually declined in recent years. Since reaching a peak of 975,000 tons in 2011, milk production fell to just 801,000 tons in 2014 and only recovered slightly to 805,000 tons in 2015, according to data from the Central Bureau of Statistics (BPS).
