Reduce Imports, Govt Encourages the Development of National Milk Processing Industry

INDUSTRY.co.id - Blitar, The development of dairy farms can reduce the dependence of imported raw materials, thus saving foreign exchange.

This effort in order to realize the national economic independence by moving the domestic strategic sectors according to the mandate of Nawacita.

Minister of Industry of Airlangga Hartarto at the Inauguration of Dairy Farmers of PT Greenfields Indonesia in Blitar, East Java, Tuesday (6/3/2018) explains, dairy cattle breeding can reduce the dependence of imported milk raw materials, thus saving foreign exchange.

This effort in order to realize the national economic independence by moving the domestic strategic sectors according to the mandate of Nawacita.

"We are targeting the supply of raw milk raw material to increase 41 percent in 2022, with better quality," he said.

According to him, in terms of off-farm, there are more than 60 dairy processing industries operating in Indonesia.

However, he explained there are currently 14 companies that have partnered with domestic cattle ranchers.

The supply of fresh milk raw material from local dairy farmers only suffices 852 thousand tons per year or about 23 percent.

Meanwhile, the demand for raw milk for domestic milk processing industry is 3.7 million tons in 2016.

Because the raw materials can not be supplied from domestic, the rest is still imported in the form of skim milk powder, anhydrous milk fat, and butter milk powder from various countries such as Australia, New Zealand, United States and European Union.

"So, there is still plenty of room for those who want to invest to deepen the structure of the dairy industry in Indonesia," said the minister.

In addressing these conditions, Minister of Industry said, his side continues to encourage domestic milk processing industry to further increase investment commitment.

Ministry of Industry has proposed providing fiscal incentives for industrial sectors that absorb a lot of manpower so that it will contribute in growing the manufacturing sector and national economy.

CEO of AustAsia Dairy Group Edgar Collins said, with the operation of this second farm, there will be a significant increase in domestic fresh milk production and strengthen the position of Greenfields as the number one producer of fresh milk in Indonesia.

We also want to introduce modern dairy farming practices as a model to improve the productivity and quality of fresh milk domestically, he explained.

Edgar Collins added that it is building a Greenfields Dairy Institute Foundation that will train more than 800 dairy farmers annually to improve their skills to increase productivity.

"This will certainly increase their income," he added.

He added that since 2000 Greenfields has become a major exporter of fresh milk products from Indonesia.

"Currently around 20 percent of our production is exported to countries such as Hong Kong, Singapore, Malaysia, Brunei, Philippines, Myanmar and Cambodia," he concluded.