Indonesia: Dairy and Products Annual
Fully integrated dairy operations are leading growth in Indonesia’s dairy sector. Less efficient small scale dairies (cooperative producers) operate the majority of Indonesia’s dairy herd, but are struggling to keep pace with Indonesia’s growing demand for dairy. Food manufacturers, faced with limited supplies from Indonesian cooperatives, seek low-cost dairy ingredient substitutes. Despite the need for imports, nonfat dry milk and whole milk powder imports are stagnant due to food manufacturer’s price sensitivity. As a result, whole milk powder and nonfat dry milk powder imports are relatively unchanged in 2016 and 2017.
