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High Disparity in Milk Price
Bandung - The price disparity between local milk in West Java and international is still high. Local milk is sold at Rp. 3,400 to Rp. 3,600 per kilogram, while internationally the price of milk is Rp. 4,250 per kilogram. Local farmers are demanding the milk processing industry to adjust the price.
The statement was released by West Java General Manager of the Indonesia Milk Cooperative Union, Yusup Munawar, during an event celebrating National Mild Day in West Bandung on Monday (31/5). The local milk price is the amount paid by the milk processing industry to cooperatives.
“What farmers get is even lower, ranging from Rp. 2,800 to Rp. 3,300 per kilogram. We want a price adjustment,” he said.
Yusup said that West Java produces 540 tons of milk per day. When calculated from that figure, farmers lose up to Rp. 270 million per day because of price disparity between local milk and imported products. The milk price is determined by the milk processing industry.
“Farmers don’t have a strong bargaining position; hence they could do nothing when their milk is underpriced. We hope the price of local milk and imported milk could be equal,” he said. Regardless of imported milk, even now the price given to farmers is still far from ideal.
Economic studies done by Padjajaran University, Brawijaya University, and Diponegoro University in 2009 indicate that farmers ideally should receive Rp. 3,875 per kilogram. This price would be sufficient if farmers at least had 7 cows, unfortunately most farmers in West Java only have 3 to 4 cows.
So far, the ideal milk price has never been achieved. The highest milk price was reached in 2007 to 2008 with an average of Rp. 3,700 per kilogram. Moreover, cow productivity in West Java is still low, only 11 to 12 liters per day. Good productivity is if a cow produces more than 15 liters per day.
Agriculture Minister, Suswono, said that domestic milk production is still far from meeting demands. Indonesia only produces 500,000 tons of milk per year, which only supplies 26 % of the national demand. The rest is provided through import.
Based on that alone, local farmers should have received a good milk price. Currently only the milk processing industry has laboratories to determine milk quality. Suswono said that independent laboratories should be established.
“If independent laboratories could be used, there will no longer be misunderstanding between farmers and the milk processing industry. The industry should be transparent about milk quality and milk price,” he said.
Plant Manager of PT Ultrajaya, M Muhthasawwar, said the main problem why farmers can’t get a high price is because their milk quality is poor. If the milk quality is very good, the price could reach up to Rp. 4,000 per kilogram. One indicator of good milk quality is a total plate count (TPC) less than 10,000 per milliliter.
Muhthasawwar said that to increase the quality of milk, the company has built the South Bandung Ultrajaya Farm in Pangalengan, Bandung district, in 2009. The farm provides training for farmers. (bay)
Source : Kompas