Milk is one of the important foods for fulfilling nutrition needs. There is
a wide gap between milk production and consumption. In 2002-2007, fresh milk
production only grew by 2 percent; but the consumption rose by 14percent. This
paper uses a descriptive analysis to explain policy and program needed by the
government to develop a milk development plan. In addition, it provides material
for improving coordination among government institutions. On farm level, farmers
need technical assistant through government programs and Corporate Social
Responsibility (CSR), facilitation grass fields, and import facilitation of cows. On
marketing level, government plays a very important role in creating a captive
market for spreading domestic fresh milk market, evaluating the possibility of
milk processing industry to be obliged to purchase domestic fresh milk, improving
capital access, and improving mutual cooperation among farmers, and among milk
processing firms.
Key words: fresh milk, consumption, milk development policy
Buletin Ilmiah Perdagangan, Vol. 5 No 2, Desember 2011