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Australia eyes Indonesia dairy push under $45bn nutrition programme

October 27, 2025

University of Adelaide study highlights scope for Australian dairy cattle exports to support Indonesia’s Free Nutritious Meal Program and strengthen bilateral agri-trade.

ADELAIDE / Australia, 27 October 2025: Australia’s livestock industry is assessing growing opportunities in Indonesia’s dairy sector as Jakarta rolls out an ambitious $45 billion Free Nutritious Meal Program aimed at improving child health, nutrition and education outcomes by 2029. The initiative seeks to support 82.9 million children, along with pregnant and breastfeeding women, while strengthening domestic agriculture and job creation.

The University of Adelaide’s Centre for Global Food and Resources is leading a study titled Australia-Indonesia Dairy Cattle Trade Insights (AI-DCTI) to understand market needs and guide Australia’s live export industry. The research, commissioned by the Livestock Export RD&E Program and supported by LiveCorp and Meat & Livestock Australia, will provide strategic recommendations by early 2026.

Project lead Dr Rida Akzar noted that the initiative offers significant prospects for Australian exporters as Indonesia scales up dairy cattle imports to meet rising demand for milk and dairy products. Collaboration between the two nations already includes shared work in sustainable livestock production and animal welfare, and researchers expect this partnership to deepen.

Indonesia imports around 81 per cent of its dairy requirements while local production remains dominated by smallholder farmers managing two or three cows each, compared to an average of 342 cows per Australian farm. Productivity gaps also persist, with per-cow output significantly lower than Australian levels. The AI-DCTI study will explore measures such as farmer training, access to veterinary services and better feed, along with improved cold-chain systems and market incentives for smallholders.

The project will identify avenues for cooperation in genetics, feed systems, animal health expertise and dairy supply chain management. Researchers will also assess links with Australia’s red meat, grains and feed export sectors to build long-term resilience in Indonesia’s dairy industry.

Dr Akzar emphasised that the goal lies beyond short-term cattle supply, focusing on a mutually beneficial partnership that enhances Indonesia’s dairy productivity while generating new trade and knowledge-sharing opportunities for Australian breeders and service providers.

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