Social & business context
Consumption of dairy products is increasing in Indonesia but local production only supplies 25% of the country’s milk needs. Local farmers lack sufficient technical knowledge to run their dairy farms efficiently.
Danone Dairy Indonesia sources its milk from KPSBU, a dairy cooperative in Western Java which buys mainly from smallholding farmers. Danone wishes to secure the volume and quality of this milk by working with members of the cooperative in the Ciater region and supporting them in improving productivity and quality.
With the support of the Danone Ecosystem Fund, Danone Dairy Indonesia and its local partner Yayasan Sahabat Cipta co-created the “Dairy Development in Ciater” project to capacity-build among farmers in Indonesia. The project supports the construction of demo-farms all across the Ciater region. These demo farms then provide practical dairy farming training to all farmers in their area. Besides forming a network of skilled farmers, the project also supports smallholding farmers in Ciater with upgrading their in-house dairy farms with proper feeding (food and water) systems which directly impact the quality and quantity of milk.
Social & business impacts
The project creates jobs in the demo farms and increases farmers’ incomes and expertise. Milk yield per cow per day has increased significantly.
Danone Dairy Indonesia strengthens links with farmers, local communities and cooperatives and secures its milk sourcing.
This project contributes to developing the dairy industry in Indonesia and promoting sustainable farming practices.