Improving milk supply, competitiveness and livelihoods in smallholder dairy chains in Indonesia


The overall project goal is to increase milk supply (quantity and quality) by 25% by 2020 of at least 3000 dairy producers in West Java and Northern Sumatra.

The Government of Indonesia (GoI) is investing substantial resources into the nation’s dairy sector, aiming to increase domestic production. The high priority the Indonesian government has placed on dairy industry development aligns closely with Australian Centre for International Agricultural Research (ACIAR) research priorities related to strengthening livestock management and marketing systems in Indonesia as well as improving smallholder access and competitiveness in rapidly transforming markets. The dairy farmers in West Java and Northern Sumatra face a multitude of challenges ranging from economies of scale, limited forage availability and quality, lack of knowledge in animal welfare and health practices, and business management skills. This situation has created a need for identification of whole of chain issues and capacity building exercises for the benefit of dairy farmers to ensure growth and sustainable development of the sector.

Project objectives

  • Identify and recommend strategies and policies to support development of sustainable, profitable and smallholder-inclusive dairy supply chains in North Sumatra and West Java.
  • Identify barriers to adoption of profitable management practices and farm business models and develop strategies to inform development of extension programs in West Java and North Sumatra.
  • Develop, pilot and evaluate innovative extension approaches in West Java that improve on-farm profitability of smallholder farmers in the areas of herd nutrition and feed management, animal husbandry and reproduction, milk quality and farm business management.

Project activities

IndoDairy policy roundtable discussion

The IndoDairy project has led a number of important research activities which has developed new knowledge about the dairy sector in West Java and North Sumatra. These activities include:

  • A smallholder household survey
  • Value Chain Analysis
  • Analysis of Policies
  • Opportunities and Business Guidelines for Dairy Heifer Importation in Indonesia

In addition, the IndoDairy project has commenced an extension and technology dissemination study with five dairy co-operatives in West Java.

The aim of the IndoDairy Policy Roundtable Discussion is to review findings of the IndoDairy project and discuss policy options to support the sustainable development of smallholder dairy farmers in West Java and North Sumatra.

Project materials


IndoDairy Smallholder Household Survey (ISHS) factsheets (English):

IndoDairy Smallholder Household Survey (ISHS) factsheets (Bahasa Indonesia):

IndoDairy Essential Farming Facts

To support extension activities delivered under the IndoDairy project, this series of technical factsheets was developed to support the project’s Village Level Researchers (VLRs) as well as extension officers and service providers in the following areas:

Nutrition: nutritional requirements of calves, weaned heifers, milking cows; production of high-quality forages and silage making

Husbandry and reproduction: calf health and rearing, breeding adult cows, animal heath, heat stress management, housing dairy stock and body condition scoring

Milk quality and hygiene: mastitis and its prevention, and producing quality milk

Business management: how to calculate profit

The project has their own website with materials in Indonesian and English:

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