Direktur

Jenderal Peternakan dan Kesehatan Hewan

Direktorat Jenderal Peternakan & Kesehatan Hewan
KEMENTERIAN PERTANIAN
2016
 Introduction
q Farm development is part of the economic development that is geared
to increase revenue, welfare, standard of living, and independence of
cattle 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 vital
role 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 minds
of the people, the Government has an obligation to provide food of
animal origin that are highly nutritious in an amount sufficient,
affordable, safe and lawful
 Current Condition
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.
 Milk Consumption and Production 2012 - 2015
No Description Year
2012 2013 2014 2015
1 Consumption
Population (people) 245,425,000 248,818,000 252,165,000 255,881,000

Per capita consumption (L/cap/year) 11 12 13 15

Total consumption (ton) 2,699,675 2,985,816 3,278,145 3,838,215
2 Production
Dairy cows population (head) 611,939 444,266 502,516 518,649
Local production (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
Local product 0.36 0.26 0.24 0.22
Import 0.64 0.74 0.76 0.78

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.
Issues in Indonesian
Dairy Sector
Indonesian Dairy Sector
2015 2019
Import 3 million tonnes / year Milk Demand Strengthen the industrial processing
of fresh milk equivalent Milk Processing of milk-based SSDN
(78%)in the form Skim Milk Industry3.8 million
Powder, Whole Milk Powder, tons / year Local fresh milk Import of
Anhydrous Milk Fat, Buttermilk (Equivalent to fresh 30% Industrial Raw
Milk
Powder milk)
SSDN 70%
835,1 ton
Issues:
1. Low dairy cows population
§ Cows ownership 2-3 cows/farmer
Condensed Powdered § Considered as subsistence business
Liquid milk Yoghurt
milk milk 2. Low productivity (on average 11 L/day)
§ Land for forage is limited
National milk consumption ± 15 kg / capita / year under § High price of concentrate
Brunei 129.1 kg / cap / yr, Malaysia 36.2 kg / cap / yr, § Lack of management and infrastruture
Myanmar 26.7 kg / cap / yr, Vietnam 12.1 kg / cap / yr § Low quality of milk, result in low farm gate price
The increasing trend of consumption affected by rising per 3. Institutional
capita income and the number of middle class • The role of cooperatives is not maximized the
interests of farmers
Strategies to Improve Milk
Productivity
KONDISI PRODUKSI SSDN DI INDONESIA 2016 DAN TARGET 2019
Target 2019 Target 2019
Deskripsi 2016 Unit
(Realistic) (Optimist)
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 18 : 82 22:78 30 : 70 %
import
Sumber: Ministry of Industry 2016
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.
POLICY REVIEW
Imported Milk Threat

3 million ton/year equivalent fresh milk § Threats to the independence and food sovereignty
(influence on employment, investment, etc.)
(78% of national demand)

Short Term Policy

Solusi
• Increasing the number of dairy cattle per farmer
Increase the independence of Indonesia IPS uses a minimum
from 2 into 5 cows/farmer through the help of
of 20% SSDN (local fresh milk):
cages, feed, seed, etc.
1. Development of Mega Indicators • Costs of good sold guarantee regulation of milk
Farm / Dairy Industry • Increased total dairy cows (Rp7,000 / liter)
Integrated integrated • Increased integrated dairy
with the farm (now only industry • Corporate Social Responsibility IPS Regulatory
2 companies) • Growing IPS10% per year obligations IPS uses 20% SSDN
Mid term Policy
• Coaching application of good farming practice to
2. Developing a Indicators improved quality of SSDN
partnership of farmers / § The increasing number of
cooperatives and IPS supply SSDN to IPS • Increased production through genetic
§ Increased scale livestock improvement of dairy cattle
ownership • Revitalization cooperative dairy farmers
• IPS encourage investment outside Java
 STRATEGIES FOR INCREASING PRODUCTIVITY DAIRY CATTLE
POPULATION CONDUCTED by DGLHS

• Maintaining female calf on farmers / cooperatives

• Rearing BPTU
1. Maintain heifers for calf • Build / develop a good rearing in UPT / D, cooperatives,
rearing groups of farmers
• Guidance on farmers, groups, cooperative
• Strengthening of venture capital groups in order rearing

• Subsidized credit facilitation (KKPE) for groups, cooperatives

or companies

2. Imported Heifers • Import dairy cows to the province of West Sumatra, North
Sumatra, West Java, Central Java, East Java, South Sulawesi,
was developed to groups of farmers
• Procurement of superior dairy cows to be developed in UPT

• Preparation of master plan development of dairy farm

3.Development of new
production centre
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
B. PENINGKATAN PRODUKTIVITAS

• ET policies directed to form a superior cattle breeding

1. Optimalisation of focused on UPT or private / cooperative which has been
managed very well
Artificial Insemination • Embryos used, prioritized on the purification of dairy
(AI) and Embryo cows through in vivo and in vitro embryos.
Transfer (ET)
Tests to improve the genetic quality of dairy cows (milk
production) through the production of children of male
2. Zuriat Test candidates. The goal is to produce superior male dairy
cows that have high adaptability, fits with Indonesia agro-
climatic conditions, and reduce dependence on imports
of superior male.

Implementation of data base applications dairy cows

3. Application of SISI computerized system to support the provision of data
that is accurate, relevant and easy to use by farmers,
officials and other stakeholders

4 Feed availability
5. Herd health management
6. Improved safety and
quality of fresh milk
7. Communication,
information and education
of consumption of fresh
milk
Construction of mini feed mill to produce green feed,
concentrates and other feed ingredients.
Will be carried out through the handling of livestock reproduction
status, the equipment will meet the adequate veterinary services.
(Medical Vet, Paramedic, PKB, ATR, inseminator)
• 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)
• 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 - Second
Kennedy Round (CF-SKR) and JICA for Increased Productivity and Dairy Cattle
Population and Productive Disease Control and Management on Dairy Cattle in West
Java, Bengkulu, South Sulawesi and East Java.
2. Cooperation with the Government of New Zealand along with a private party (PT
Fonterra) for human resource development of farmers and officers in order to
increase production and productivity of dairy cows.

3. Knowledge transfer for farmers and Technical Officers carried out by the Directorate
General of Animal Husbandry and Health in collaboration with the Institute of Animal
Husbandry and Animal Health Stone and Training Institute dairy farm Cikole
Lembang, West Java Technical Guidance followed participants of each 80 people
every year