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Indonesian farmers losing appetite for fresh milk business
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Dairy harvest: A cattle breeder milks a cow in Penyaring village, North Moyo district, Sumbawa regency, West Nusa Tenggara, on Sept.24. (Antara/Ahmad Subaidi)
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span class="m_-8358414073523164049gmail-m4742624689799541278gmail-m-1517435756245623305s2">The Indonesian Association of Dairy Cattle Farmers (APSPI) has predicted that the sluggish trend in domestic fresh milk production will continue next year as more local producers are likely to resign from fierce competition with imported dairy products.
The association estimates that next year local fresh milk production will drop to 700,000 tons from 750,000 tons in 2016.
The figure makes up less than 20 percent of national demand for fresh milk, which currently stands at 3.82 million tons.
“In 2020, we predict that the proportion will be between 12 percent and 13 percent,” APSPI chairman Agus Warsito said as quoted by Kontan.co.id on Friday.
(Read also: Dairy farming survives urban development)
The price of local fresh milk currently stands at around Rp 4,500 per liter, leaving only a tight margin after being reduced by production costs.
Many farmers, Agus said, finally decided to sell their cattle and start another more attractive business. Looking at the situation, Agus urged the government to issue a regulation to support existing farmers, for example by forcing dairy processing firms to absorb local production.
Data from the Agriculture Ministry shows that Indonesia had almost 520,000 head of dairy cattle in 2015. This year, the number has increased slightly to 535,860. (hwa)
