RI to increase milk imports

JAKARTA (JP): Indonesia will increase milk imports to the equivalent of 570,360 tons of fresh milk in the first half of this year from 323,000 tons in the second half of last year to cater to growing demand.

The National Coordinating Team for Milk Affairs, milk processing firms and the Association of Indonesian Dairy Cooperatives said in a report demand for milk would reach 770,360 tons in the first half of this year from 493,000 tons in the second half of last year.

National output will be only 200,000 tons so Indonesia has to import the equivalent of 570,360 tons of fresh milk.

The three parties have agreed to reduce the milk import ratio for 1:2 to 1:1.7 for the first half of the year to encourage domestic production.

The new ratio allows milk processing firms to import the equivalent of 1.7 liter of fresh milk for every liter of fresh milk they buy from domestic farmers through cooperatives.

Association of Indonesia Dairy Cooperatives general secretary Salim Al Bakry said the association would supply milk processing firms with 895 tons of fresh milk daily or 161,995 tons in the second half of the year.

PT Indomilk will buy 155 tons of fresh milk daily from the cooperatives, PT Friesche Vlag/Foremost Ind. 240 tons, PT Ultra Jaya/Dafa 60 tons, PT Sari Husada 55 tons, PT Food Specialties Indonesia 422 tons. (jsk)