FrieslandCampina Indonesia supports Dairy Village Program

22 November 2013

Royal FrieslandCampina, together with PT Perkebunan Nusantara VIII and Koperasi Peternak Sapi Bandung Utara (KPSBU) Lembang, today signed a memorandum of understanding to support the Dairy Village Programme. The programme should help the Indonesian government to increase the national fresh milk supply by fifty percent in 2025, thus reaching the country’s goal of self-sufficiency in fresh milk. The signing ceremony took place at the FrieslandCampina plant in Ciracas in the presence of Sharon Dijksma, the Dutch Minister of Agriculture, Nature and Food Quality, and her Indonesian colleague Dahlan Iskan, the Indonesian Minister of State-Owned Enterprises.

Two main issues
The Dairy Village Programme addresses two main issues: limited access to arable land and limited investment opportunities. Limited access to arable land prevents small land holders from expanding their farms and aspiring dairy farmers from setting up farms because, as a result, feed supply is poor and production revenues are low. In addition, the small farm size, limited labour and few investment opportunities make it difficult for small land holders to secure loans. These issues can be resolved by providing small land holders with sufficient arable land and by supporting them in seeking strategic cooperative partnerships with other small land holders so as to allow them to secure access to finance and to invest in housing and mechanisation.

Sustainable Business
Facility and Food Security Programme The Dairy Village program is supported by the Sustainable Entrepreneurship and Food Security Program (FDOV) of the Dutch Minister of Foreign Trade and Development Cooperation and is a partnership between Royal FrieslandCampina and its subsidiary Frisian Flag Indonesia, KPBS Pangalengan, KPSBU Lembang, The Friesian, DLO/Wageningen Universiteit and Research centre and Agriterra. The FDOV was launched in Lembang in July 2013, enabling more than 10,000 local dairy farmers to boost their dairy production, improving both quantity and quality.