Breeders Dispose Of Milk, Budi Arie Ensures Milk Production From Factory Absorbed Cooperatives

Minister of Cooperatives Budi Arie Setiadi (center) delivered a press statement at his office in Jakarta, Monday (11/11/2024). (ANTARA/Shofi Ayudiana)

Minister of Cooperatives Budi Arie Setiadi ensured that milk production from cattle breeders and dairy cooperatives could be absorbed by a dairy processing factory (IPS) to prevent the disposal of milk by collectors and breeders, which has recently occurred.

"In this case, the Ministry of Cooperatives will coordinate with the dairy and IPS cooperatives to ensure production absorption," Budi Arie said in a press conference at his office as reported by ANTARA, Monday, November 11.

In addition, the Ministry of Cooperatives will improve the quality of milk cooperatives by increasing production standards so that they are in accordance with the factory's request.

Cooperation between factories, cooperatives, and breeders will be improved, including in terms of milk processing and storage technology. That way, excess milk production can be managed properly and meet high quality standards.

Budi Arie said the Ministry of Cooperatives had also ordered the Revolving Fund Financing Agency (LPDB) to provide financing for dairy cooperatives with the aim of increasing the volume and quality of production.

The condition of cattle breeders and dairy cooperatives has been in the spotlight recently after milk collectors in Boyolali Regency, Central Java complained about restrictions on the quota for milk absorption by the dairy processing industry.

Dairy collectors and breeders staged a protest in Boyolali Regency on Saturday (9/11) with a milk bath using milk that was not absorbed by the dairy processing industry.

Dairy production by farmers and milk collectors in Boyolali Regency reaches 140,000 liters per day, but recently IPS absorption is only about 110,000 liters per day. This means that there are 30,000 liters remaining per day that the factory does not absorb.

One of the cooperatives affected was KUD Mojosongo, which is the largest milk production cooperative in Boyolali Regency.

Similar conditions occurred at the Setia Kawan Cooperative in Pasuruan, East Java. The cooperative has difficulty distributing the milk that has been collected per day because the IPS is said to be stopping receiving milk from the cooperative on the grounds that there is engine maintenance.

Currently, there are 59 dairy producer cooperatives that are members of the Indonesian Milk Cooperative Association (GKSI), with a total cattle population in dairy producer cooperatives reaching 227,615 in 2023.

Meanwhile, modern cattle farming contributes with a population of around 32,000.

Of the total national milk production of 571,000 tons in 2023, dairy cooperatives contributed 407,000 tons, equivalent to 71 percent. The rest, namely 164,000 tons or 29 percent, is produced by modern livestock.