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Bringing Quality Cheese Product to the Market to Improve the Bottom Line of the Dairy Farmers and Reduce Poverty Rate in Pacet

25 August 2020

Bringing Quality Cheese Product to the Market to Improve the Bottom Line of the Dairy Farmers and Reduce Poverty Rate in Pacet

Project leader: Mr. Indra Cahyadi

Level of education and university: Doctor of Philosophy, Victoria University

Collaborating Organisations: -

Project Location: Jawa Timur

Activity Type: Knowledge and technology transfer

Sector: Trade, Small and medium enterprise development

Project Rationale:

Results from last project show that there is a buoyant market for Koperasi Dana Mulya's cheese product. The KUD members and dairy farmers have good potential to further develop as a cheese producer. There are a number of factors that make this follow-on project proposal very important.

  1. Limited use of cheese production technology. On average, approximately 70 percent of milk production is processed into pasteurised milk sold to Nestle Indonesia, 20 percent is sold as raw to a local distributor and 10 percent is sold as raw milk to urban/local consumers. However, the lack of technology to increase cheese production capacity has revealed the KUD's inability to cope with the market demand and to reduce their losses from unsold milk. This problem has impeded the dairy value chain’s development in the region.
  2. Limited use of good manufacturing practice. The dairy produce process requires special handling and special attention to ensure that the product is hygienic and safe for consumption. The KUD members have followed general rules of producing cheese as a processed food, even renovating one of their unused buildings into a clean kitchen/cheese storage facility.
  3. The calcium intake rate in Indonesia is considerably low. The average calcium intake is still less than 300mg per person per day, much lower than the recommended amount of 1000-1200 mg per person per day. In this follow-on project, the higher volume of cheese produced by KUD will help promote cheese as a delicious calcium-high food for high nutrient intake.

Project Beneficiaries:

50 dairy farmers and 50 koperasi members

Priority Development Area:

Economic institutions and infrastructure

Link with Australian organisation: -

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