The document discusses the organization of milk collection in Indonesia. It notes that the dairy industry involves over 69,000 farmers and 211,000 employees, allowing farmers to earn a daily income. It then outlines the key organizations involved in the dairy industry, including government ministries, universities, dairy farmers groups, and private companies. Charts show that 92% of dairy cattle are located on Java island and discuss trends in dairy cattle populations and milk production over time. The process of milk collection, from farmers to collection points to cooling centers to processors, is described along with current challenges around milk quality. Recommendations are made around improving milking management, infrastructure, and incentives.

1. Organization of Milk Collection
in Indonesia
Dr. Idat G. Permana
Bogor Agricultural University – Indonesia
Email: permana@ipb.ac.id
Workshop on Competitive Dairy Value Chains for Southeast Asia
Muak Lek, Thailand, December 8 & 9, 2010

2. The Advantage of Dairy Industry in
Indonesia
Village based industry
Involves 69,300 farmers and 211,000
employees
Allows farmers to get daily income
Improves nutritional status
Utilize local resources
Support sustainable agriculture

3. DAIRY INDUSTRY IN INDONESIA
RESEARCH STATION:
• Animal Res. Station
• Veterinary Res. Station Ministry of Agriculture
• Embrio Transfer Unit Ministry of Cooperative
• Breeding Center
Funding Funding
& Policy
UNIVERSITY Technology
DAIRY
Technology
Funding Feed
FARMERS Milk
Process Treatment Technical
Breeder Advice
Ministry of
National Education Dairy
Ministry of Research
& Technology Dairy Farmers Group Industry
Source: Toharmat et al. (2007)

4. Dairy Cattle Population Indonesia
Java : 92%
Outside Java : 8%
Outside Java:
- No milk processor
- Small market
- Fresh and pasturise milk

5. Dairy Cattle Population Indonesia
Source: General Directorat of Livestock (2010)

6. Dairy Population & Milk Production
In 2010 dairy population is 407,767 head,
mainly in Java
Milk production is 682,120 ton/year
Almost 90% of milk is distributed to big
dairy industries, only 10% distributed to
small milk processor.
Local milk production is only 20-25% of
total demand

7. Milk Processing
Demand of fresh milk products increase
Major dairy industries in Indonesia:
Nestle,
Friesien Flag,
Indomilk,
Ultrajaya,
Sarihusada, and
Danone
Major problem is low milk quality

8. Current Condition
Low milk quality:
Low fat and protein due to low feed quality
TPC > 1 millions
Milking management
Milk handling
Quality of cooling unit
Other reason:
The distance between farmer to cooling is some time
far
Sometime found the poor road conditions
Transportation condition

9. Milk Collection
From Farmer to Milk Industry
Dairy
Farmer
Dairy Milk transport
Farmer Collection
Point
Dairy
Farmer
Milk transport Milk Industry
Collection
Dairy Center
Farmer
Dairy Milk
Farmer Collection transport
Point
Dairy
Farmer

10. Milk collection point
There are several
hundred milk
collection point
Farmers take their
milk to the milk
collection point
There are alkohol and
density cheking
Milk is tranported to
cooling center by
truck

11. Milk collection center
Every cooperative
has cooling center
There checking for
quality
Total solid, SNF, Fat,
Protein, density
Transported to the
factories with tanker

12. Technical Guidlines
Milk Collection Center:
Walls and floors should be water-resistant
(porcellen)
The ceiling is made of materials that do not
pollute the milk and covered
Door and window can close itself freely and
widely shutters maximum 15% of floor area.
Has good ventilation
Milk Cooling Unit
Tank spesification
Cooling unit (Refrigerator unit)

13. In the future:
Improve milking management and milk
handling
Equiped by portable milking machine
Improve road infrastructure
Build small cooling unit in vilage
Milk price insentives

14. Thank You