Fonterra Brands Indonesia and Padang Panjang City Government Form Dairy Partnership Cluster

The partnership to Increase Local Dairy Farmers’ Expertise and Basic Foundation of Dairy Industry

Padang Panjang, 12 March 2018 – Fonterra Brands Indonesia and the Government of Padang Panjang City have signed a Memorandum of Understanding to establish a Dairy Partnership Cluster.

In collaboration with Padang Panjang City Government and partnership with Marapi Singgalang Dairy Co-op, the Dairy Partnership Cluster aims to mobilize and support dairy farmers in the Padang Panjang region across the dairy value chain: improve production and milk quality, increase the population of dairy cattle in the district, create market opportunities, increase incomes, and improve the health and welfare of the surrounding communities.

The programme is expected to benefit up to 300 farmers, with the support of Dinas Peternakan Padang Panjang and leveraging Fonterra’s world-class dairying expertise.

Mr. Shekhar Rapaka, President Director, PT Fonterra Brands Indonesia, said, “The Dairy Partnership Cluster is the latest initiative as part of Fonterra Brands Indonesia’s continued commitment to developing Indonesian dairying capabilities and growing local supply through our Dairy Development programme, which includes our award-winning Fonterra Dairy Scholarship and its strong alumni programme, and our Women in Dairy network.”

Fonterra Brands Indonesia’s dairy development programmes in Indonesia have received strong support from farmers and the Government, particularly from the Ministry of Agriculture, Directorate General of Livestock and Animal Health Services (DGLAHS) – all of which enable Fonterra to help meet the growing demand for high quality dairy nutrition in the country.

Mr. Rapaka added, “We are excited to embark on the Dairy Partnership Cluster in Padang Panjang, Sumatera, building on the huge potential we see in the dairy farming industry here, and the local farmers’ enthusiasm to grow the industry.”

Mr. Chris Ward, General Manager Global Dairy Development, Fonterra New Zealand, said, “Fonterra is a global leader in dairy nutrition, with world-class expertise built on the legacy of thousands of farmers. We are committed to supporting local communities where we operate, and sharing our generations of dairying expertise is the vital first step to ensure the sustainable development of the dairy industry in Indonesia.”

Fonterra’s support, which is part of Dairy Development Programme, will take the form of dairying expertise in rearing and farm management, infrastructure construction, and dairy milk testing and cooling technology.

Irwan, S.Sos., MM, Acting Mayor of Padang Panjang City, said, “We appreciate Fonterra Brands Indonesia who has been actively helping our local farmers and the supporting groups to build an independent and strong dairy industry structure. Hopefully this partnership will be valuable to the farmers and help to increase their productivity and incomes.”

The program will run for approximately 36 months. Expected outcomes include the improvement of dairy production and quality, rearing output improvement, calf mortality reduction, animal welfare improvements, and the establishment of a female farmer discussion forum.

“We are hoping for all related elements in this partnership to come together and increase local farmers’ skills and empower them to produce better quality and quantity of milk. In the long run, we are looking to expand this programme outside of the city to neighbouring districts as well,” said Mr. Rapaka

Fonterra’s Dairy Development programme began with a short term training program for dairy advisors in 2012, which was the precursor of the award-winning Fonterra Dairy Scholarship, which started in 2013 and has since trained 64 dairy farmers and government dairy support officers. In 2016, more than 1,200 farmers and industry participants benefitted from training sessions and on-farm discussions held by the 2016 scholarship recipients.