IndoDairy

IndoDairy Webpage

Improving milk supply, competitiveness and livelihoods in smallholder dairy chains in Indonesia.

Demand for milk in Indonesia is rapidly growing, with an 5% increase each year. However, domestic production accounts for less than 20% of milk consumed in Indonesia and the sector faces a multitude of constraints to improve quantity and quality of milk produced locally.

A whole-of-chain approach is needed to improve capacity and performance in the Indonesian dairy sector, which includes dairy farmers, traders, village level dairy cooperatives (‘koperasi unit desa’ – KUDs), processors, retailers and consumers. Additionally, it is important to consider external factors affecting the dairy sector, (e.g. incentive schemes, programs, policies, global markets).

The Government of Indonesia (GoI) is investing substantial resources into the nation’s dairy sector, aiming to increase domestic production. The high priority the Indonesian government has placed on the dairy industry aligns closely with the research priorities of the Australian Centre for International Agricultural Research (ACIAR), including strengthening livestock management and marketing systems in Indonesia as well as improving smallholder access and competitiveness in rapidly transforming markets.

In June 2016, ACIAR and GoI approved the research project titled ‘AGB/2012/099: Improving milk supply, competitiveness and livelihoods in smallholder dairy chains in Indonesia’, also known as IndoDairy.

Project activities