Go to top of page

Primary tabs

Agribusiness

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

Project Code: AGB/2012/099
Program: Agribusiness
Budget:
A$1,871,681
Research Program Manager: Mr Howard Hall
Project Leader: Wendy Umberger - University of Adelaide
Duration:
JUN 2016
2019
DEC 2020
Project Status: Legally Committed/Active
Map
maps_agb-2012-099
Key partners
Australasian Dairy Corporation
Bogor Agricultural University
Department of Economic Development
Jobs
Department of Economic Development, Jobs, Transport and Resources
Indonesia Centre for Animal Research and Development
Indonesian Centre for Agriculture Socio Economic and Policy Studies
DOCUMENTS

Overview

Increasing milk supply (quantity and quality) by 25% and net-household incomes for at least 3,000 dairy producers in West Java and North Sumatra, Indonesia by 2020. 

In 2012, Indonesia produced less than one-third of its domestic dairy demand – and even less in recent years. 

Most dairy production takes place on Java. However, several constraints challenge its growth. The Government has identified 12 provinces for dairy development outside of Java, including North Sumatra. However, North Sumatra’s dairy industry is still in its infancy. 

An integrated approach to both capacity building and supply chain analyses is essential. This project aims to identify and recommend strategies and policies to support development of sustainable, profitable and smallholder-inclusive dairy supply chains in North Sumatra and West Java; identify barriers to adoption of profitable management practices and develop strategies to inform development of extension programmes in West Java and North Sumatra; and develop, pilot and evaluate best-bet dissemination to improve adoption of innovative dairy management practices by smallholder farmers in West Java.    

Expected project outcomes

  • Increased domestic milk supply and quality, helping to meet domestic demand.
  • Improved productivity and efficiency of smallholders in the dairy value chain and higher returns to smallholder dairy farmers, with increased cash flows being used to cover food, health and education expenses.
  • Increased availability and access to local fresh milk, providing health and nutrition benefits.
  • Greater capacity at all levels of the dairy industry, including in dairy production, marketing and market analysis.
  • Greater capacity among partner institutions in terms of research and extension.