GKSI Stops Milk Supply to Sari Husada
Bisnis Indonesia, page T4, 2006-01-04
The Federation of Milk Cooperatives (GKSI) in East Java has stopped the supply of milk to PT Sari Husada (Yogyakarta), following the price hike in the purchase of milk which has not yet been agreed upon.
GKSI is also in the midst of negotiating with other milk manufacturers such as PT Frisian Flag Indonesia (FFI) to hike the price of the cooperative’s milk. So far, FFI has had 20 tons supply of milk per day with a price of Rp.2,460 plus transport fee of Rp.50 per kg.
PT Nestle Indonesia has hiked the price of its milk since January 1 to at an average of 8.16 percent
Nestle Helps Cow Breeders Rp.15 Billion
Bisnis Indonesia, page T4, 2005-09-05
PT Nestle Indonesia has prepared a budget in the sum of Rp 15 billion to loan to milking cow farmers to help them increase the quality of their production tools so they can fulfill the quality standards. If not, the milk produced by the farmers will be of low quality and produce a bacterial content of up to 3 million units per mililiter. With this help, the quality of the milk produced by the farmers keeps going up. This increase in quality is shown through the maximal bacterial content of one million per mililiter of up to 12 percent, and as much as 80% under two million per mililiter.
PT Nestle needs more than 510 tons of milk a day as a basic commodity. However, the 30,000 cow farmers in East Java are only able to supply around 490-490 tons of milk a day. This lack in milk pushes them to import milk from Australia, whose quality is guaranteed to be good with a bacterial content of less than one million per mililiter.
The loan is an agreement between Nestle Indonesia and 28 corporations representing more than 30,000 cow farmers in East Java. They have also agreed to increase the price of milk by 2 percent - 2.5 percnet from the original price of Rp. 2,000 per liter, for quality one milk with a bacterial content of maximum one million units per mililiter. Nestle imports less than 40% worth of milk for its product needs.