OPINION: NM playing role in expanding Indonesian dairy market

With extensive evidence underscoring the importance of good nutrition during the early years of life, it’s important to come together to ensure today’s children have reliable access to the nourishment they need no matter where they live. The U.S. Dairy Export Council (USDEC) is working to support global health and wellness for children by promoting the accessibility of nutrient-dense dairy foods worldwide. By working hand-in-hand with stakeholders around the world to strengthen local dairy production and build new markets for dairy products, we’re increasing the availability of nutritious dairy options for those who need it most.

We know that proper nutrition plays a key role in brain, body and immune development during the first 1,000 days (from conception to a child’s second birthday), and is critical for lifelong health. During this period of rapid growth, both maternal and infant diets must provide essential nutrients to support optimal development. Dairy foods like milk, cheese and yogurt are particularly valuable, supplying seven of the 14 key nutrients identified by the American Academy of Pediatrics for early brain development. With research confirming dairy’s ability to promote strong bones, immune health and overall well-being, its role in early childhood nutrition is undeniable.

In Indonesia, President Prabowo Subianto has recognized the vital role milk plays in child development with a pledge to provide nutritious meals and milk to all Indonesian school children, pregnant mothers and young children. The Indonesian government’s Free Nutritious Meals program includes an initiative to give free school lunches and milk to an estimated 83 million students at more than 400,000 schools across the country to support their growth and overall health.

USDEC has positioned the U.S. as an eager partner to Indonesia in this program through support of Indonesia’s own farmers. In January, we launched a new training program for farmers in Bogor, Indonesia. The training marks a key milestone for the U.S.-Indonesia Dairy Partnership Education project, a joint effort launched in November 2024 between USDEC, the New Mexico Department of Agriculture, the Wisconsin Department of Agriculture, Trade and Consumer Protection, New Mexico State University and the University of Wisconsin, together with Indonesia’s Institut Pertanian Bogor University and Indonesian dairy representatives.

As we focus on partnering with Indonesia to help meet the milk needs of its school meal program, including through the use of imported milk powder, the U.S.-Indonesia Dairy Partnership Education program is a valuable opportunity to build on the commercial relationships USDEC and its members have long established in this vital market. That partnership advanced further earlier this month when USDEC, the National Milk Producers Federation and the Indonesian Chamber of Commerce and Industry signed a memorandum of understanding to enhance cooperation in support of promoting sustainable dairy trade and advancing Indonesia’s national goals to improve nutrition, particularly by incorporating school milk into the Free Nutritious Meals program.

The farmer training project centers around helping small- and medium-scale dairy farmers in Indonesia boost milk production and improve milk quality. With an average herd size of just two or three cows, most Indonesian dairy farmers are focused on subsistence farming, providing milk for their own households. Dairy sales in the country increased an estimated 7% in 2024, according to the U.S. Department of Agriculture, and is forecast to rise by more than 5% this year, boosted by economic growth and rising disposable incomes. That kind of growth creates a huge opportunity for both U.S. and Indonesian farmers to meet Indonesia’s dairy needs.

The training will help farmers adapt to specific challenges they face, such as limited land resources and an ongoing outbreak of foot-and-mouth disease. It emphasizes four key areas of best practices: farm management, dairy animal nutrition, improving quality and increasing yields, and animal health. A combination of in-person and virtual instruction will enable even the most remote farmers to participate.

These resources will help equip Indonesian farmers with the tools they need as local demand for dairy continues to grow. The program aims to train hundreds of dairy farmers this year to improve dairy industry production and, in turn, access to high-quality nutrition throughout Indonesia. Participating farmers have already said they find the training to be very beneficial, and that they are implementing changes to enhance their farming practices.

At a time when the United States is examining its trade relationships, including with Indonesia, this program illustrates how USDEC is focused on creating win-win opportunities that can benefit both the U.S. and local dairy industry in this key partner.

Moreover, the U.S.-Indonesia Dairy Partnership Education project is a prime example of how we’re working across the globe to support the healthy growth and development of children during the first 1,000 days. We applaud the country’s goal of better nourishing their children through the school meals program, and are proud to help support local farmers in meeting the expanded dairy demand the program will create.

The future of dairy is bright in Indonesia. By building partnerships in key markets such as this to cultivate dairy demand and trade, we can deliver sustainable nourishment to countries that lack an abundance of dairy in their diets, while creating mutually beneficial growth for the dairy sectors on all sides.