Indonesian Political, Business & Finance News

MBG Programme Boosts Milk Demand, Local Production to Meet 20 Percent

| | Source: KOMPAS Translated from Indonesian | Agriculture
MBG Programme Boosts Milk Demand, Local Production to Meet 20 Percent
Image: KOMPAS

The MBG free nutritious meal programme is boosting national milk demand. Domestic fresh milk supplies are yet to catch up with demand.

GKSI Director Yusup Munawar stated that fresh milk production increased slightly in the first quarter of 2026 compared to the same period last year. This growth is driven by cooperative activities. Dairy cows from last year’s investment programme are also starting to produce.

“However, production growth is not yet significant. Meanwhile, national milk needs continue to rise, especially with the MBG programme,” explained Yusup on Sunday (26/4/2026) evening.

“National demand growth is progressing far faster than the capacity of domestic fresh milk production,” said Yusup.

Demand is expected to surge even higher if the MBG programme is fully implemented. Milk needs will increase on a large scale.

Imports are still required in the short term. This step ensures supply continuity.

Cooperatives remain the backbone of national fresh milk production. Most smallholder farmers channel their production through cooperatives.

Efforts to increase production continue. Cooperatives are enhancing capacity and milk quality.

“In terms of capacity, cooperatives continue to increase production volume and the quality of milk produced,” explained Yusup.

Digitalisation of the supply chain is beginning to be developed. Technologies for feed preservation and dairy cow reproduction are also being updated.

“In the medium and long term, import dependency is expected to decrease through adding productive dairy cow populations and improving the productivity of existing resources,” added Yusup.

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