Sales and Marketing of Fresh Milk by Smallholder Dairy Farmers in West Java

Abstract

Abstract As a highly perishable product, sales and marketing are very important for fresh milk produced by dairy farmers. This paper aimed to analyze the sales and marketing of fresh milk done by smallholder dairy farmers in West Java. Data used in this paper is a part of the IndoDairy Smallholder Household Survey (ISHS) data collected during August–September 2017, covering 600 smallholder dairy farm households in Bandung, Garut, Cianjur, and Bogor Regencies. Descriptive statistic analysis using tabulation was employed to process the data. Almost all the dairy farmers sold fresh milk, except one in Bogor who sold milk in the form of processed milk. Almost all farmers (98 percent) sold their fresh milk to dairy cooperatives, showing dairy farmers’ strong dependency on the dairy cooperatives. The price of fresh milk received by the farmers ranged from Rp4,794/L (Bogor Regency) to Rp4,212/L(Cianjur Regency), giving an average of Rp4,459/L. Due to the strong dependency on the dairy cooperatives, it is important to strengthen dairy cooperatives’ management capacities to help dairy farmers improve their milk quality, and hence prices, as well as dairy farmers’ welfare.