The Indonesian Industry Ministry is exploring cooperation and investment opportunities with the Dutch government and companies in the provision of dairy cows to spur the development of Indonesia’s dairy processing industry.
The Ministry’s Director General of Agro Industry, Putu Juli Ardika said, “To increase the productivity of the industry, quality dairy cow supply needs to be strengthened to meet the demand for Domestic Fresh Milk (SSDN) as raw material (for dairy products).”
Earlier on, the ministry representatives held meetings with the Dutch Ministry of Agriculture counterparts as well as Dutch multinational dairy giant, FrieslandCampina and some dairy farmers.
Ardika said that Indonesia is also exploring potential cooperation with dairy players in the Netherlands who might be keen to invest in the supply of dairy cows to the country. Ardika added that several big dairy processing companies in Indonesia are interested in buying 8 to 16 thousand Holstein dairy cows originating from the Netherlands.
Indonesia faces a severe shortage of fresh milk supply as the domestic Indonesian dairy processing industry can only supply 80% of the current demand. Indonesia is now hoping for multinationals especially Dutch players to invest in Indonesia and collaborate in cross-breeding the Dutch dairy cattle with the (hot environment) temperature-tolerant local (Indonesian) dairy cattle.