Dairy farmers complain about low price of fresh milk

Dairy farmers complain about low price of fresh milk

By Agus Maryono

PURWOKERTO, Central Java (JP): People might think that since
the price of milk powder in grocery stores has soared threefold,
dairy farmers must be enjoying robust business.

That thought is wrong. Dairy farmers are complaining that they
are barely making ends meet.

There are at least 500 dairy farmers in 75 farmers' groups in
Banyumas subdistrict, Central Java, who are suffering this ironic
fate. These farmers must sell all of their dairy products to
Koperasi Pesat, the dairy farmers' cooperative, on Jl. Raya
Utama, between Purwokerto and Tegal.

The cooperative buys the milk for Rp 850 (9 U.S. cents) per
liter. Two months ago, the price was Rp 650 per liter. But
obviously, even with the increase, the price is not high enough
to cover the production costs.

Nasihin, a struggling farmers, said the price of the main
cattle feed concentrate had increased from Rp 280 per kilogram to
Rp 400. He said every cow needed at least five kilograms of
concentrate a day. Without the concentrate, the cow would not
produce sufficient milk.

"I also have to spend Rp 5,000 per day for other feed like
tofu waste and certain leaves," he said.

Nasihin, 35, said that of his eight cows, only three were
productive. Two others have not yet reached maturity and three
others he intentionally keeps in a nonproductive state because he
cannot afford to buy the concentrate for them.

In such difficult times, Nasihin said he preferred to spend
the money to buy milk for his baby or other basic needs for the
family rather than spending it on concentrate for his three cows.

He said that 20 liters of fresh milk was worth the same as 400
grams of instant milk powder. "My doctor says that dairy milk is
not suitable for babies' needs," he said.

According to the doctor, fresh milk has a high bacteria
content which might harm a baby's stomach.

At a local department store, a can of 400 grams of instant
powder costs about Rp 14,000.

Ahmad Syafei, another farmer, shares Nasihin's misery.

"We can't afford the concentrate, but without it the cows will
not be productive," Syafei said.

He said that many of the farmers had to borrow the concentrate
from the cooperatives and later pay for it with their fresh milk
reserves.

The farmers can make more money if they sell the milk to
"illegal buyers," who give higher prices for dairy products.

But if the cooperative executives find out, the farmers will
be in trouble as they will not be allowed to buy the concentrate,
which is only available through the cooperative.

These illegal buyers are fresh milk vendors in hotels and
motels at the Batu Raden tourism spots. Nasihin said they pay Rp
1,000 per liter.

Nasihin and many other farmers admit to resorting to such
transactions to survive.

"What else can we do? I don't think that (doing such things)
is a sin," Nasihin said.

The 50-year-old Syafei, who is the head of a farmers' group,
said that he felt bad about having reneged on his agreement with
the cooperative.

"But I cannot stand to see my fellow farmers live in misery.
We're always put in a losing position. That is why I let them do
such transactions as long as they are alert to the danger.

"Maybe I have committed a sin against the cooperative, but not
against Almighty God," Syafei added.

The head the cooperative, Siswadi, admits the farmers are
facing difficulties.

"But we're also in a dilemma here. Imagine, the prices of feed
materials and the materials to preserve the milk have soared way
above our budget," he said.

According to Siswadi, the 500 dairy farmers in Banyumas
produce 13,000 liters of fresh dairy milk for the cooperatives
every day.

The milk is then sent to the Indonesian Association of Fresh
Milk Cooperatives in Boyolali, Central Java, which sends it on to
Sari Husada Milk Industry, which produces powdered milk.

Siswadi said that the basic price of a liter of fresh milk was
Rp 831.69 per liter, but the farmers only received Rp 670 because
of the nine levies imposed by the cooperatives, the association
and the industry.

"I've heard that the association plans to discuss the levies.
I hope they will reduce the levies or revoke all of them at
once."

The farmers also hope that the levies will be eliminated. "The
association and the cooperative are supposed to help us. But on
the contrary, they have become a burden," Syafei said.

He also said that the current price of fresh milk -- Rp 875
per liter -- is not enough. Syafei said the price should be
increased to Rp 1,000 per liter, without any levy imposed. "Only
then would we be able to cover our production costs," he added.