Price of fresh milk up

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)