Muhammad Risky
Esa Unggul University
Jl. Arjuna Utara No.9, Duri Kepa, Kec. Kb. Jeruk
Jakarta Barat
Phone: 0812-****-9107 Email: nothingspecial220803@email.com
November 17, 2024
Dr. Rudi Hermawan
Director of Agricultural Policy Department
Ministry of Agriculture
Jl. Harsono RM No. 3, Pasar Minggu
Jakarta Selatan, 12550
Subject: Proposal for Strategies to Improve the Welfare of Local Dairy Farmers in Facing the Impact of Milk Import Policies in Indonesia
Dear Dr. Hermawan,
I hope this letter finds you well. I am Muhammad Risky, a student of Economics and Business at Esa Unggul University, and I am writing to propose strategies aimed at improving the welfare of local dairy farmers in Indonesia in response to the increasing milk import policies.
Indonesia’s reliance on imported milk, accounting for approximately 80% of its milk needs, has created a significant challenge for local dairy farmers (Wulandari & Bowo, 2019). These imports often come at lower prices, putting pressure on local producers who face higher costs of production. As a result, many small and medium-scale dairy farmers are struggling to maintain their operations.
Although there was an increase in milk consumption in 2018, domestic milk production has not been able to meet domestic demand, leading to reliance on imports. Data shows that the volume of milk imports in Indonesia tends to increase, peaking in 2013. However, Indonesia's milk production has fluctuated and still falls short of fulfilling domestic market demand, resulting in dependency on imported products (Nata Putri & Karmini, 2023).
To address this issue, I propose the implementation of the following strategies:
1. Subsidies and Financial Support for Local Farmers: Providing financial aid in the form of subsidies for local dairy farmers to help reduce the cost of production. This would allow them to be more competitive against imported milk products and improve their financial stability.
2. Capacity Building and Training Programs: Organizing regular training and workshops to help dairy farmers improve their farming practices, increase milk production, and optimize the health and welfare of their livestock.
3. Access to Modern Technology and Equipment: Ensuring that local dairy farmers have access to modern farming technology and tools that can increase their efficiency and productivity. This includes milking machines, cooling systems, and modern feed technology.
4. Improved Marketing and Distribution Channels: Assisting local dairy farmers in finding better markets for their products, both domestically and internationally, while helping them with branding and marketing strategies to compete with imported milk products.
5. Policy Advocacy for Protection of Local Producers: Encouraging the government to enact policies that protect local dairy farmers, such as implementing tariffs or taxes on imported milk to level the playing field and ensure fair competition.
By implementing these strategies, we can increase the competitiveness of local dairy farmers, reduce their dependency on imported milk, and improve their welfare. Furthermore study from (Treurniet, 2021) indicates, these measures will contribute to a more sustainable and resilient dairy industry in Indonesia. Subsidies can reduce production costs, making local milk more competitive. Regular training programs will help farmers improve their practices, increasing both productivity and livestock welfare. Access to modern farming technology, such as milking machines and cooling systems, will boost efficiency. Additionally, improved marketing and distribution channels can help local dairy products reach a wider market, both domestically and internationally. Policy advocacy, such as implementing tariffs on imported milk, will level the playing field for local producers and create fair competition.
A study conducted in China, where similar strategies were applied, showed a marked improvement in the productivity and income of local dairy farmers. The policy changes and support led to an increase in milk production by 20% and a 15% increase in farmers' (Mishra et al., 2022). I believe that similar strategies, tailored to Indonesia’s context, could bring about significant improvements.
Thank you for considering this proposal. I would be honored to discuss these ideas further and explore how we can collaborate to strengthen the welfare of local dairy farmers in Indonesia. I look forward to your response.
Sincerely,
Muhammad Risky
Esa Unggul University
References
Mishra, P., Matuka, A., Abotaleb, M. S. A., Weerasinghe, W. P. M. C. N., Karakaya, K., & Das, S. S. (2022). Modeling and forecasting of milk production in the SAARC countries and China. Modeling Earth Systems and Environment, 8(1), 947–959. https://doi.org/10.1007/s40808-021-01138-z
Nata Putri, N. P. N. P., & Karmini, N. L. (2023). Analisis Faktor-Faktor yang Mempengaruhi Impor Susu Sapi di Indonesia. Ganaya : Jurnal Ilmu Sosial Dan Humaniora, 6(2), 469–482. https://doi.org/10.37329/ganaya.v6i2.2475
Treurniet, M. (2021). The Potency of Quality Incentives: Evidence from the Indonesian Dairy Value Chain. American Journal of Agricultural Economics, 103(5), 1661–1678. https://doi.org/10.1111/ajae.12176
Wulandari, S., & Bowo, P. A. (2019). Pengaruh produksi, konsumsi dan harga susu sapi nasional terhadap impor susu sapi. Economic Education Analysis Journal, 8(3), 1130–1146. https://doi.org/10.15294/eeaj.v13i2.35717