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Project Goal

"To increase milk supply (quantity and quality) by 25% by 2020 for at least 3,000 dairy producers in West Java and North 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 Center 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 Sumatera face 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

1.  Identify and recommend strategies and policies to support development of sustainable, profitable and smallholder-inclusive dairy supply chains in North Sumatra and West Java.

2. 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.

3. Develop, pilot and evaluate best-bet dissemination to improve adoption of innovative dairy management practices by smallholder farmers in West Java.


Funding Agency

The Australian Centre for International Agricultural Research (ACIAR)

Commissioned Organisation

The Centre for Global Food and Resources (CGFAR), The University of Adelaide

Australian Partner Organisation

Subtropical Dairy Ltd

Indonesian Partner Organisation

Business School, Bogor Agricultural University (SB-IPB)

Indonesian Partner Organisation

The Indonesian Center for Animal Research and Development (ICARD)

Indonesian Partner Organisation

The Indonesian Center for Agricultural Socio Economic and Policy Studies (ICASEPS)