Indonesia’s cow milk industry depends on milk imports from Australia and New Zealand

Despite having a low consumption level of cow milk per capita, around 80% of the total cow milk supply in Indonesia still relies on imported fresh milk or milk powder from Australia and New Zealand. Data released by the Ministry of Agriculture showed that so far in 2020, the total consumption of cow milk in Indonesia has reached 4.33 MMT, which is far ahead of the production capacity of the national industry (which is at 2.8 MMT). Heading into 2021, the demand for cow milk is projected to increase roughly 20% compared to 2020 and it presents its own challenges for the national industry which is trying to improve both infrastructure and production output.