Nestle Spends IDR 1.6 Trillion per Year to Buy Local Fresh Milk
PT Nestle Indonesia purchases fresh milk from dairy farmers in rural areas worth IDR 1.6 trillion per year. The purchase is part of a partnership and at the same time fulfills the increasing national demand amidst the lack of domestic supply. "Every year, Nestlé Indonesia pays around Rp. 1.6 trillion for the purchase of fresh milk to dairy farmers in rural areas, which supports rural economic development and the livelihoods of dairy farmers," said Nestlé Indonesia President Director Ganesan Ampalavanar, in a press release from the Ministry of Industry. , Monday (6/12). Ganesan emphasized that during its 50 years of operation, Nestle is committed to using as many local raw materials as possible, including fresh milk from smallholder farmers. This step is expected to create more jobs and contribute to Indonesia's economic development. This partnership is a tangible manifestation of the company's belief that to achieve long-term success, the community around the company must also prosper," he added. Quoted from Nestle Indonesia's Twitter page, the company The company partners with dairy farmers in East Java by providing technical assistance and training. Every day, they buy more than 750 thousand liters of fresh milk from 27 thousand dairy farmers in East Java. For information, the supply of raw materials for fresh milk from within the country is still far from the demand figure. Domestic raw materials can only meet industrial needs around 22%, and 78% of raw material needs are still imported. Plt. Director General of Agro Industry of the Ministry of Industry said one of the current challenges in the development of SSDN production, namely the productivity of fresh milk from people's dairy cows only 8-12 liters per head per ha ri. Meanwhile, according to best practice, the ideal can reach 30 liters per head per day. "So, we are trying to accelerate the import substitution policy by 35% in 2022," Putu said in his official statement. "To increase the productivity of the domestic fresh milk industry, good dairy cow maintenance and the provision of forage feed are important. If fresh milk can be increased, the income of local cattle farmers will also increase. Putu said that his party encouraged the milk processing industry to contribute to cultivating forage feed. The Ministry of Industry also spurred investment in the forage feed processing industry to grow the sector. and competitive, will boost the productivity of the milk processing industry in the country. Moreover, investment in the milk processing industry sector continues to grow, "he said. Therefore, the Ministry of Industry will develop forage feed processing, especially industries that are integrated with feed raw materials. This effort believed can provide broad economic effects, from local dairy farmers, cooperatives, to industry. The availability of forage feed is indeed one of the important factors in increasing the production of fresh milk. Feed consists of two types, namely concentrate and forage. Therefore, feed solutions are urgent, especially for ruminants. That's because, in the country not many who cultivate forage feed. Although some farmers have developed it, the quantity and quality still do not meet the standards. According to him, the development of the forage feed industry is a strategic program for the Ministry of Industry because it is considered to be able to support the productivity of the milk processing industry. “So, it is very important to grow this forage feed processing industry. Moreover, we have natural resources that can be used as raw materials for feed," he said.
Meanwhile, the milk processing industry in Indonesia is still dependent on imports. Based on records from the Ministry of Industry, aka the Ministry of Industry, 78% of the raw materials for the dairy industry are supplied from abroad or imported, while 22% comes from local breeders. The main challenge comes from the low productivity of dairy cattle. In Pangalengan, the productivity of dairy cattle is around 15-19 liters per head per day. However, in several large industries, the productivity of dairy cattle has reached 30 liters per day. On the other hand, the obstacles faced by farmers are generally the high price of cattle feed. For this reason, the Ministry of Industry will intervene to reduce feed prices, especially for processing machines and feed ingredients. Acting Director General of Agro Industry of the Ministry of Industry Putu Juli Ardika said that his party was trying to increase milk productivity per cow.