Minister of Cooperatives and SMEs Teten Masduki encourages partnerships between dairy farmer cooperatives and industry as offtakers to improve the productivity of dairy products in Indonesia. In the inauguration of the expansion of the production capacity of PT Nestle Indonesia's Milo and biomass boilers in Karawang, West Java, Tuesday, Teten identified two ongoing problems, namely the need for rejuvenation of cattle breeds and the lack of green fodder areas. "That's why we want a partnership with industry so that we can combine financing for the development of small dairy farmers to cooperatives and large industries as our milk offtakers," she said. Teten said that cow's milk producer cooperatives are continuously encouraged to consolidate cow breeders to join the cooperative, and also cooperate with relevant stakeholders for the provision of animal feed. Not only that, by connecting cooperative dairy farmers as product offtakers, as well as industrial offtakers, the Ministry of Cooperatives and SMEs combines the financing of People's Business Credit (KUR) for MSMEs as well as with banks. Where the portion of banking MSME financing will be increased to 30 percent in 2024.
"Through this method, it is expected to increase the dairy cow population and domestic milk production," She said. Teten added that the partnership between cooperatives and industry will also encourage market certainty that absorbs dairy products. "I think we want domestic milk production to continue to increase, so we can reduce imports," added Teten. President Director of Nestle Indonesia Indonesia Ganesan Ampalavanar admitted that half of the raw material needed for milk for the company's production is still imported. However, as one of the offtakers of the national dairy industry, his party has also made various efforts so that fulfillment through imports can be suppressed. "We have purchased dairy cows from Indonesian farmers, from East Java, from 26,000 farmers. During the last two years of Covid-19, we have also not stopped collecting milk and we are proud of this partnership," he said. With the existing conditions, Ganesan said that the company is also encouraging the productivity of dairy cattle by providing cattle feed and adding quality cattle breeds. "We have advisors who provide education about raising cattle for free. This is our contribution to support milk sovereignty in Indonesia," concluded Ganesan.
Source: https://www.antaranews.com/berita/2924329/teten-dorong-kemitraan-koperasi-peternak-susu-dan-industri
