Evaluating service provision approaches and value-chain interventions to support milk cooperatives to grow the smallholder dairy sector of Indonesia (IndoDairy 2)

This project aims to increase production and improve the livelihoods of smallholder farming households in the Indonesian dairy sector. The project will support village-level milk cooperatives to deliver improved services and increase value chain participation for farmer members.

The project follows on from the 6-year project 'Improving milk supply, competitiveness and livelihoods in smallholder dairy chains in Indonesia' (AGB/2012/099).

Known as IndoDairy 1, the first project identified the importance of village-level milk cooperatives as the primary input, extension and service providers to address challenges throughout the value chain. Two successful approaches to achieve sustainable on-farm practice change were 1) inclusive partnerships across the value chain and 2) participatory extension approaches.

Understanding the diversity and capacity of cooperatives across the major dairy producing areas of Indonesia is essential to scale practice changes. IndoDairy 2 will research and understand a range of approaches to service provision within cooperatives that have been shown to be successful in different contexts. These approaches include:

1. participatory extension to support the farmer learning process 
2. access to inputs and supplies
3. linkages to credit and financial institutions
4. communication strategies with members
5. timeliness, transparency, and fairness of payment mechanisms for members.