DirekturJenderalPeternakandanKesehatanHewanDirektoratJenderalPeternakan&KesehatanHewanKEMENTERIANPERTANIAN2016

Introduction

q Farm development is part of the economic development that is gearedto increase revenue, welfare, standard of living, and independence ofcattle farmers, and in order to achieve food sufficiency.

q Dairy cows are dairy cattle, as well as cattle that produce meat.

q Dairy development in Indonesia is very important because of its vitalrole in improving the quality and competitiveness of Human Resources(HR) nations in the current global era.T

q he 1945 Constitution mandates that the Government of Indonesia mindsof the people, the Government has an obligation to provide food ofanimal origin that are highly nutritious in an amount sufficient,affordable, safe and lawful

q Dairy cows population in Indonesia is 518.649 heads with fresh milk production 835,1 ton in 2015 (Livestock Statistics 2015)

q National milk consumption in 2015 is less than 15 L / cap/year, and much lower than the consumption of milk ASEAN countries that reached 25 L/cap/year.

q Looking from the distribution of milk production turns out to 99.31% is produced in Java, Sumatra and Sulawesi while contributing to respectively 0.34%, 0.10% Kalimantan and Bali, NTT, NTB amounted to 0.02%.

q It shows the very real imbalance between the production of fresh milk produced on the island of Java and islands in Indonesia.

q Imports of dairy products continued to increase although the majority will be used as raw material for processed milk.

Current Condition

Milk Consumption and Production 2012 - 2015

Source: Statistics of Indonesia. Livestock Statistics 2016, Blue Print of Milk Sector 2013-2025

Information:Demand for milk to meet the needs of domestic consumption increased by an average 12% per year.The growth of domestic production of fresh milk (SSDN) is only about 4%.There was a decrease in 2013 of about 18% from 2012 due to the dairy cow population is down because a lot of cut to meet the needs of fresh beef.

No Description Year

2012 2013 2014 2015

1 Consumption

Population (people) 245,425,000 248,818,000 252,165,000 255,881,000

Percapitaconsumption (L/cap/year) 11 12 13 15

Totalconsumption (ton) 2,699,675 2,985,816 3,278,145 3,838,215

2 Production

Dairycowspopulation (head) 611,939 444,266 502,516 518,649

Localproduction (ton) 959,700 786,900 800,800 835,100

Import(ton) 1,739,975 2,198,916 2,477,345 3,003,115

3 Supply share

Localproduct 0.36 0.26 0.24 0.22

Import 0.64 0.74 0.76 0.78

Issues in Indonesian Dairy Sector

Import 3 million tonnes / year of fresh milk equivalent (78%)in the form Skim Milk Powder, Whole Milk Powder, Anhydrous Milk Fat, Buttermilk Powder

Milk DemandMilk Processing

Industry3.8 million tons / year

(Equivalent to fresh milk)

SSDN835,1 ton

Indonesian Dairy Sector

Condensedmilk

Powderedmilk Liquid milk Yoghurt

National milk consumption ± 15 kg / capita / year under Brunei 129.1 kg / cap / yr, Malaysia 36.2 kg / cap / yr, Myanmar 26.7 kg / cap / yr, Vietnam 12.1 kg / cap / yr

The increasing trend of consumption affected by rising per capita income and the number of middle class

2015

Strengthen the industrial processing of milk-based SSDN

2019

Local fresh milk30%

Import of Industrial Raw

Milk70%

Issues:1. Low dairy cows population§ Cows ownership 2-3 cows/farmer§ Considered as subsistence business

2. Low productivity (on average 11 L/day)§ Land for forage is limited§ High price of concentrate§ Lack of management and infrastruture§ Low quality of milk, result in low farm gate price

3. Institutional• The role of cooperatives is not maximized the

interests of farmers

Strategies to Improve MilkProductivity

Deskripsi 2016 Target 2019(Realistic)

Target 2019 (Optimist) Unit

Number of dairy famers ± 90.000 ± 90.000 ± 90.000 farmer

Cows ownership ± 3-4 4-5* 5-6* Cow/farmer

Cows population ± 300.000 360.000 480.000 cow

Number of lactating cows ± 150.000 180.000 240.000 cow

Productivity ± 10-12 14 15 Ltr/day/cow

Milk production ± 600.000 990.000 1.350.000 ton/year

Total Plate Count (TPC) 2 million <1 million <1 million Cfu/ml

National milk demand ± 3.900.000 4.500.000* 4.500.000* ton/year

Rasio local fresh milk vs import

18 : 82 22:78 30 : 70 %

Information:In 2016, with a scale of 3-4 cattle ownership / farmer cause inefficient production costs, so the price of fresh milk is low compared to the cost of production.Target 2019, with a 5% increase in the need milk / year, the expected number of farmers increased to approximately 2500 farmers with holdings scale 15 cows, so expect production costs to become more efficient.

KONDISI PRODUKSI SSDN DI INDONESIA 2016 DAN TARGET 2019

Sumber: Ministry of Industry 2016

Imported Milk3 million ton/year equivalent fresh milk(78% of national demand)

Threat§ Threats to the independence and food sovereignty

(influence on employment, investment, etc.)

POLICY REVIEW

SolusiIncrease the independence of Indonesia IPS uses a minimum of 20% SSDN (local fresh milk):

Short Term Policy• Increasing the number of dairy cattle per farmer

from 2 into 5 cows/farmer through the help of cages, feed, seed, etc.

• Costs of good sold guarantee regulation of milk (Rp7,000 / liter)

• Corporate Social Responsibility IPS Regulatory obligations IPS uses 20% SSDN

Mid term Policy• Coaching application of good farming practice to

improved quality of SSDN• Increased production through genetic

improvement of dairy cattle• Revitalization cooperative dairy farmers• IPS encourage investment outside Java

Indicators• Increased total dairy cows• Increased integrated dairy

industry• Growing IPS10% per year

2. Developing a partnership of farmers / cooperatives and IPS

Indicators§ The increasing number of

supply SSDN to IPS§ Increased scale livestock

ownership

1. Development of Mega Farm / Dairy Industry Integrated integrated with the farm (now only 2 companies)

STRATEGIES FOR INCREASING PRODUCTIVITY DAIRY CATTLE POPULATION CONDUCTED by DGLHS

• Maintaining female calf on farmers / cooperatives• Rearing BPTU• Build / develop a good rearing in UPT / D, cooperatives,

groups of farmers• Guidance on farmers, groups, cooperative• Strengthening of venture capital groups in order rearing

2. Imported Heifers

3.Development of new production centre

1. Maintain heifers for calfrearing

• Preparation of master plan development of dairy farm businesses

• Facilitation of facilities and infrastructure management in every production chain

• PMUK to increase the cattle population and groups• Dairy cattle business development outside Java Island that

integration of upstream and downstreamCreating a business climate that is conducive to the development of milk processing industries outside Java island

• Subsidized credit facilitation (KKPE) for groups, cooperativesor companies

• Import dairy cows to the province of West Sumatra, NorthSumatra, West Java, Central Java, East Java, South Sulawesi,was developed to groups of farmers

• Procurement of superior dairy cows to be developed in UPT

B. PENINGKATAN PRODUKTIVITAS

• ET policies directed to form a superior cattle breeding focused on UPT or private / cooperative which has been managed very well

• Embryos used, prioritized on the purification of dairy cows through in vivo and in vitro embryos.

1.Optimalisation ofArtificial Insemination(AI) and EmbryoTransfer (ET)

Tests to improve the genetic quality of dairy cows (milkproduction) through the production of children of malecandidates. The goal is to produce superior male dairycows that have high adaptability, fits with Indonesia agro-climatic conditions, and reduce dependence on importsof superior male.

2. Zuriat Test

Implementation of data base applications dairy cowscomputerized system to support the provision of datathat is accurate, relevant and easy to use by farmers,officials and other stakeholders

3.Application of SISI

Construction of mini feed mill to produce green feed,concentrates and other feed ingredients.4 Feed availability

Will be carried out through the handling of livestock reproductionstatus, the equipment will meet the adequate veterinary services.(Medical Vet, Paramedic, PKB, ATR, inseminator)

5. Herd health management

• the application of production methods and handling of dairy hygiene(good handling practices / GHP)

• provision of means of production and handling of fresh milk (TPS)• Preparation of reward and punishment system• The implementation of mandatory SNI fresh milk• Zoonotic disease control (brucellosis and tuberculosis)

6. Improved safety and quality of fresh milk

7. Communication, information and education of consumption of fresh milk

• Socialization to drink milk, especially in children of school age• Coordination with other ministries, the Ministry of Education, Youth

and Sports, Health and Trade• Promotion through print and electronic media• Coordination with the LG Provincial / District / City

AGRIBUSINESS DEVELOPMENT OPPORTUNITIES DAIRY CATTLE OUT OF JAVA

q Dairy cattle business is labor intensive so it can absorb the workforce, as well as to generate economic activities in the countryside.

q Value ratio of domestic milk consumption with lower imported products, opening up opportunities to increase domestic milk production to meet the needs of the national dairy.

q Sumatra, Sulawesi and Kalimantan is rich with ruminant feed, as well as land that is still roomy enough there are also appropriate areas for dairy development.

q Rapid population growth, especially children of school age, the main consumers of dairy products and increasing public awareness of nutrition resulted in increased consumption of milk, so that the marketing potential is still wide open.

q In some of the new centers of dairy cows outside Java, culture milk-based foods (danke in South Sulawesi, curds in North Sumatra and West Sumatra), sufficient potential for development.

PENGEMBANGAN DAN KERJASAMA

1. Cooperation with the Japanese Government through the Counterpart Fund - SecondKennedy Round (CF-SKR) and JICA for Increased Productivity and Dairy CattlePopulation and Productive Disease Control and Management on Dairy Cattle in WestJava, Bengkulu, South Sulawesi and East Java.

2. Cooperation with the Government of New Zealand along with a private party (PTFonterra) for human resource development of farmers and officers in order toincrease productionand productivityof dairy cows.

3. Knowledge transfer for farmers and Technical Officers carried out by the DirectorateGeneral of Animal Husbandry and Health in collaboration with the Institute of AnimalHusbandry and Animal Health Stone and Training Institute dairy farm CikoleLembang, West Java Technical Guidance followed participants of each 80 peopleevery year