Collaborative Extension: The Key to Empowering Local Dairy Farmers in Indonesia

Local dairy farmers in Indonesia are currently grappling with significant challenges. These include low productivity, milk prices that do not match production costs, and intense competition from imported products. These factors collectively contribute to imbalances in the national milk supply chain, directly affecting the welfare of small-scale farmers.

According to data from BPS-Statistics Indonesia, in 2021, per capita milk consumption in Indonesia for  2020 reached only 16.27 kilograms. This figure is far below the minimum standard set by the FAO, which is 30 kilograms per capita per year. Meanwhile, as of 2024, national fresh milk production stood at 927,874 tons, while national demand reached 4.6 million tons. This indicates that approximately 80 percent of the demand for milk is still met through imports.

The current level of milk production is primarily attributed to the small-scale nature of most dairy farming enterprises, which usually engage only two to five cows per farmer, along with the continued use of conventional farming techniques. The national milk productivity is set at 10 to 15 liters per cow per day, which significantly lags behind countries like New Zealand, where productivity can reach up to 30 liters.

The problems do not stop there. In many regions, farmers sell milk to cooperatives at prices ranging from IDR 3,400 to IDR 5,600 per liter, while market prices can reach IDR 8,000 to IDR 10,000 per liter. This price disparity makes it difficult for farmers to cover essential expenses such as feed, animal health, and operational needs.

So, what is the solution?

One promising approach lies in empowerment-based communication through agricultural extension. In this context, extension services go beyond simply transmitting technical information; they aim to raise awareness, build skills, and foster independence among farmers.

A successful example of this approach is the collaborative program between the Polytechnic of Agricultural Development (Polbangtan) Bogor and Mercy-USA, which provides dairy agribusiness training. This program educates farmers in business management, instills an entrepreneurial spirit, and supplies resources to enhance productivity. The initiative has become a model for extension programs in the Bogor area, incorporating environmentally friendly practices to promote sustainable farming.

Not only are the government and NGOs playing a role, but business actors and SMEs are also getting involved. For instance, the SME Susu Mbok Darmi actively purchases milk directly from farmers at more equitable prices and provides cooling tanks to maintain milk freshness during distribution. This practice not only preserves quality but also increases farmer income. Data from the Village Cooperative Unit (KUD) Cepogo in Boyolali Regency shows that in 2019-2020, dairy farmers owning an average of five dairy cows earned a gross monthly income of around IDR 5,25 million (USD 345). After deducting operational costs of IDR 4,1 million (USD 270), farmers still take home a net income of IDR 1,15 million (USD 75) per month. This is a positive development, especially for small-scale farmers.

PT Nestlé Indonesia has also shown a strong commitment to farmer empowerment by partnering with over 27,000 local farmers and 32 dairy cooperatives in East and Central Java. Nestlé sources fresh milk from these farmers to process at its facilities, including the Bandaraya Plant in Batang, Central Java. This partnership offers farmers a stable market and fosters local economic growth.

Such collective efforts must be further improved. By forming partnerships among extension agents, cooperatives, entrepreneurs, and farmers, the dairy farming sector can achieve greater self-reliance, sustainability, and—most importantly—profitability for all stakeholders. This is clear evidence that collaborative extension is no longer optional but necessary.