Where Does Indonesia's Milk Come From?

5 days ago 3

November 11, 2024 | 11:29 am

TEMPO.CO, JakartaThe Indonesian Agriculture Ministry is developing strategies to reduce the nation's reliance on milk imports. Based on the 2025-2029 roadmap outlined by Agriculture Minister Andi Amran Sulaiman, Indonesia aims to import up to one million dairy cows from countries, including Australia, Brazil, New Zealand, the United States, and Mexico.

By 2029, the ministry projects a domestic milk demand of 8.5 million tons, comprising 4.9 million tons of regular milk and 3.6 million tons for the free nutritious meal program, one of President Prabowo Subianto's priority programs. 

To meet this growing demand, the ministry targets a domestic milk production of 8.17 million tons by 2029, with the peak of dairy cow imports occurring in the early years of the program, as cited from Antara.

To lessen direct dependence on imported milk products, the ministry is encouraging domestic production. Vietnamese investor TH Group, for instance, plans to establish farming facilities in Indonesia to bolster local milk production and enhance the country's food self-sufficiency.

Current Sources of Imported Milk

Currently, approximately 79 percent of Indonesia's milk consumption is sourced from imports. According to data from the Central Statistics Agency (BPS), New Zealand is the primary source of imported milk, supplying 102,970 tons valued at US$386.78 million in 2021.

Other significant milk suppliers to Indonesia include the United States (74,990 tons worth US$208.66 million), Malaysia (43,320 tons worth US$43.92 million), Australia (35,610 tons worth US$117.93 million), Belgium (35,510 tons worth US$106.84 million), France (14,750 tons worth US$46.94 million), and Germany (10,590 tons worth US$34.26 million).

However, Indonesia faces significant challenges in reducing its dependence on milk imports. The 2022 milk commodity outlook data reveals that the milk import volume has been steadily increasing, averaging a 1.34% annual growth rate from 2012 to 2021, reaching 314,698 tons per year.

This trend is attributed to the limitations of domestic milk production, which has struggled to meet national consumption demands. As a result, imports remain a crucial source to ensure a stable supply.

To strengthen the domestic milk industry, the government and the Agriculture Ministry are focusing on enhancing local farming capacity through increased investment in the sector. By boosting domestic production and reducing reliance on imports, Indonesia aims to improve the welfare of local farmers and strengthen national food security.

Editor's Choice: Indonesia's Food Imports Includes Most Staple Food Items

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