REPUBLIKA.CO.ID, JAKARTA - Indonesian dairy producers depend on New Zealand and Australia for the supply of fresh milk due to its shortage.

"High volume of import is caused by the lack of domestic supply and the price of imported milk is also cheaper," Director of Tobacco and Beverage Industries at the Ministry of Industry, Enny Ratnaningtyas, said on Friday.

National Milk Board (DPN), Teguh Boediyana, added that as many as 70 percent of milk import was from New Zealand and Australia, while the rest was from US and Europe.

Boediyana hopes government give incentive for local milk industry in order to absorb local material. He said that the implementation of import tax of raw milk would affect the competitiveness of milk industry. Meanwhile, the supplies from local farmers are insufficient.

Total need of raw milk is 3.2 million tonnes per year. The supply from local farmers is only 690,000 tonnes milk from 597,135 cows.

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