The dominance of imported cow milk in the packaged milk industry in Indonesia

To accommodate the high demand for packaged milk and value-added cow milk from the national consumers, the Indonesian milk industry still has to rely on imported milk as the ingredient to produce the aforementioned commodities. The majority of the national cow milk manufacturers still have to source their fresh cow milk or milk powder from the major exporting countries such as Australia and New Zealand as the cow milk production from the national farmers is still rather low. Currently, the imported milk holds 80% of the total market share of cow milk in Indonesia, with the remaining 20% market share divided among the national milk farmers across Indonesia. It is projected that in 2021, the national milk industry will still have to heavily depend on imported milk as the demand is estimated to reach 3.5 MMT, which is a lot higher than the current national production capacity at 800 KMT/year.