Arla backs Indonesian dairy development project to launch first-ever locally-produced organic cheese

(Image Credits: Arla, Seges Innovation).

01 Sep 2023 --- Indonesia’s dairy sector has achieved a milestone this week by launching the country’s first locally-produced organic cheese. The cheese is the result of a collaboration between local producer Mazaraat Artisan Cheese and a Danish-funded project that aims to promote organic dairy farming and improve the efficiency of local dairy farmers.

The partnership was established after several visits to Denmark in 2018 and 2019 by Indonesian officials and farmers, who learned about the best practices of organic dairy production from Danish experts.

The cheese will be sold locally in hotels, cafés and restaurants. Furthermore, Mazaraat Artisan Cheese has already inked its first export agreement with Singapore.

“Introducing the first ever organically produced cheese in Indonesia is something we are proud of and being part of this project is a fantastic opportunity. An opportunity for us as dairy producers to learn and collaborate with some of the best and as an Indonesian business to help develop our industry and put Indonesian organic dairy on the map,” says Jamie Najmi, business owner, at Mazaraat Artisan Cheese.

Local producers are keen to improve their efficiency and quality, as the demand for dairy products in Indonesia is expected to grow by 6% in 2023 and, right now, most of the supply comes from imports.

Mazaraat Artisan Cheese has already inked its first export agreement with Singapore. (Image Credits: Arla, Seges Innovation).Moreover, the Indonesian government also has plans to boost the share of organic food production from the current 2% to 20% by 2024.

Arla’s collaboration
The project began by training and assisting the local dairy farmers, who switched from conventional to organic farming methods.

The project also benefits from the support of European dairy cooperative Arla Foods. Arla Foods shares its knowledge and experience in processing and marketing organic and artisanal cheese.

“With a direct line from increasing yield and quality at the farm level to the dedication and manufacturing skills at Mazaraat Artisan Cheese, this business case has all the components needed to succeed and spearhead the further development of organic dairy production in Indonesia and we are proud to contribute with our expertise,” says Vytautas Petronis, managing director at Arla Foods in Indonesia.

Seges Innovation, a Danish innovation company and ICOEL, provided the training. The project also received support from LeSOS, an Indonesian organic certification body, Bina Swadaya, a local NGO and the KPSP dairy cooperative.

“In this project, we are combining the expertise and data acquired over decades with local players bringing an entrepreneurial spirit and market knowledge to accelerate the journey toward reaching national targets to the benefit of the whole Indonesian dairy sector,” says Jeppe Søndergaard Pedersen, international chief consultant at the Danish Agriculture and Food Council.

Indonesia’s first organic cheese is made from certified organic milk from the KPSP cooperative, which Mazaraat Artisan Cheese processes at a new plant in the city of Malang.

The plant currently produces 60 liters of milk per day but plans to increase its capacity to 250 liters by the end of the year and to 6,000 liters by 2026. Indonesia plans to boost the share of organic food production from the current 2% to 20% by 2024.

“Converting the first smallholder farms in Indonesia, with only three to five cows, from conventional to certified organic dairy production represents a significant step forward,” underscores Lisbeth Henricksen, director of innovation at Seges Innovation.

“The Indonesian organic standards have to reflect the local context where many of the farms are located in villages and without fields surrounding the barns, but we have outlined the basics of organic milk production in terms of animal welfare, feed and concentrate production,” she explains.

Not an easy path
As the partnership was established in the last few years, the alliance had to overcome some roadblocks due to the COVID-19 pandemic.

“It is a very joyous occasion to see the production commence. With the pandemic, a local outbreak of Foot and Mouth Disease and supply chain disruptions, this project has been hit with several challenges along the way,” says Hanne Søndergaard, executive VP of agriculture, sustainability and communication at Arla Foods.

“But with the determination of all the partners involved and with the support from the Indonesian government, we have been able to deliver on this very impactful project, underlining Arla’s commitment to creating the future of dairy and supporting sustainable dairy production around the world,” she concludes.

Edited by Marc Cervera

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