Stagnant dairy cattle farming business


Dairy cattle farming business in Indonesia is relatively stagnant, according to Meddy Wijaya, Manager of Agri Servis Sakti, representative of DeLaval in Indonesia. In the past few years, he has seen that some medium-scale dairy cattle farming businesses (100-200 heads) collapsed.

“Poor milk prices and internal management problems were the causes,” he told Asian Agribiz. While small-scale farmers, he said, still survive because they do not add labour cost into their production costs. Mr Wijaya hopes the government can intervene on the price of fresh milk. “If the price of fresh milk is USD 0.45 per litre, farmers can expand their business. Their average production cost is USD 0.37 per litre.”


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