Price of fresh milk up

JAKARTA (JP): The Union of Indonesian Dairy Cooperatives (GKSI) and local milk-processing industries have agreed to raise the price of local fresh milk from cooperatives to processing industries by 21 percent to Rp 850 per liter from Rp 702 per liter starting Feb. 1.

GKSI chairman Nurwindo said Wednesday the decision was made due to the current monetary crisis in the country and also to anticipate the government's commitment to the International Monetary Fund to liberalize the import of dairy products.

"The new price will be imposed on fresh milk with total solids of 11 percent. The price might rise to Rp 900 because good quality fresh milk can contain total solids of 11.6 percent," he said.

He said he was optimistic that local dairy products could still compete with imported milk in face of the price increase, due to the high price of imported milk caused by the rupiah's sharp depreciation against the U.S dollar.

He said the price of imported fresh milk, based on the current exchange rate, was Rp 1,100 per liter. The price of imported milk would be equal to local products at an exchange rate of Rp 6,000.

He said local demand for dairy products was more than 1.2 million tons last year, only 30 percent of which could be provided by local producers. (gis)