Indonesia and Brazil are joining forces to enhance the dairy and meat industries through a $292 million agreement. Indonesia’s Asiabeef Biofarma will import 100,000 tropical dairy cattle from Brazil’s Agropecuaria 31 to boost local production and achieve self-sufficiency. This deal supports Indonesia’s policy to provide free meals to millions of schoolchildren and addresses the country’s current shortfall in dairy production.
In a landmark development for the dairy and meat sectors, Indonesia’s Asiabeef Biofarma has entered into a preliminary agreement with Brazil’s Agropecuaria 31. Announced on September 17, 2024, this strategic partnership aims to significantly enhance Indonesia’s dairy and meat production capabilities. The agreement, valued at approximately $292 million, will see Brazil exporting 100,000 tropical dairy cattle to Indonesia.
Asiabeef Biofarma, a prominent player in Indonesia’s agricultural sector, is collaborating with Agropecuaria 31, a major Brazilian agribusiness known for its expertise in livestock management and sustainable farming practices. This collaboration is a significant step towards Indonesia’s goal of achieving self-sufficiency in both meat and dairy products.
Key Aspects of the Agreement:
- Cattle Export: Brazil will export 100,000 tropical dairy cattle to Indonesia, which is expected to boost local milk production and improve dairy quality in the region.
- Investment: The $292 million deal represents a substantial investment in Indonesia’s agricultural sector, focusing on enhancing livestock health and productivity.
- Policy Alignment: The agreement supports Indonesia’s upcoming policy under president-elect Prabowo Subianto, who has pledged to provide free meals to over 80 million schoolchildren. This initiative is anticipated to create a significant demand for dairy products, necessitating an estimated 4.1 million tons of milk annually. Currently, Indonesia’s domestic production covers only 16% of its dairy needs, highlighting the crucial role of this partnership.
Indonesian Minister of Agriculture, Amran Sulaiman, stressed the importance of this partnership, stating that Brazil’s investment will be crucial in reducing the country’s reliance on imports and boosting local production. The deal also includes provisions for technical support and knowledge transfer from Brazil to enhance Indonesia’s dairy farming practices.
Deputy Minister of Agriculture, Sudaryono, noted that up to 40 companies have committed to importing 1.3 million live cattle to support the government’s free meal program. This influx of cattle and investment is expected to be pivotal in developing Indonesia’s underdeveloped milk industry and advancing the broader goal of self-sufficiency in meat and dairy production.
Expected Outcomes:
- Increased Dairy Production: The introduction of tropical dairy cattle is expected to increase milk output and improve dairy product quality in Indonesia.
- Economic Growth: The deal is anticipated to create new jobs and stimulate economic growth within Indonesia’s agricultural sector.
- Sustainability: The partnership aims to incorporate sustainable farming practices, aligning with both countries’ environmental goals.
With this significant agreement, Indonesia’s dairy and meat industries are set for substantial growth, driven by international collaboration and strong domestic policy support. This move represents a strategic effort to meet rising demand and ensure long-term food security for the nation.
