Why this is important to Wisconsin businesses: Wisconsin’s strong dairy industry could find opportunities to market products, services, and even heifers there.
Indonesia wants to build its dairy industry.
Indonesia—made up of more than 17,000 islands in the Indian and Pacific Oceans—has 283 million residents and is the fourth most populous country in the world, behind India, China, and the U.S., according to World Economics.
With a young population and growing middle class, Indonesia is consuming more dairy products than in past years. The average resident drank more than 4 gallons of milk in 2023, up from 3 gallons in 2011, according to Business-Indonesia. While that’s still low, the report says domestic producers are struggling to keep up.
Most of Indonesia’s dairy farms are small, with only two or three cows. In 2023, only 20% of the raw materials for milk supply were produced locally, and foreign imports made up the rest. New Zealand was the biggest supplier in 2022, providing 47% of Indonesia’s dairy products, while the U.S. came in second, at 20%.
The government has presented plans to boost dairy production by encouraging investment in domestic operations and by importing more heifers.
Meanwhile, more international corporations—such as Fonterra, Arla Foods, Danone, Nestle, and FrieslandCampina—are opening dairy manufacturing operations in the country.
Indonesia does not produce skim milk powder, but it does blend imported skim milk powder with local milk to create reconstituted milk.
Business-Indonesia says consumers prefer sweet-tasting dairy products and the addition of chili or curry flavors to their cheeses.
Wisconsin companies interested in potential opportunities in Indonesia may also want to consider obtaining halal certification to show that their products conform to Islamic dietary laws in order to meet the needs of the country’s large Muslim population.
