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.