Fonterra Indonesia is focused on growing the local business, driven by consumer demand, including a commitment to supporting the growth of the local dairy industry through an annual dairy development scholarship programme. The goal of this dairy development initiative is to improve the livelihoods of small farmers and farming communities by increasing productivity, milk quality and profitability. This will be achieved by providing extension training and building local farmer learning groups to continue and share the development learning with the broader farming community.

The primary focus of this initiative is developing the capability of the small dairy farmers in Indonesia to lift the productivity and profitability of their farms whilst creating a sustainable local farmer network to drive long-term dairy development. The objectives of the extension training is to: o Improve overall farm productivity o Improve the quality and safety of the milk they produce o Improve the care of their animals o Improve the care of the environment o Increase their dairy farm income and profitability o Develop industry wide understanding of profitable dairy models for the nation Fonterra does not collect milk from these farmers, therefore a baseline report is created for each farmer participating in the scholarship programme and a follow up review is conducted to identify learnings they have gained and what benefits they changes have delivered.

The core part of the initiative is the scholarship programme which covers all aspects of extension training through on farm reviews, classroom training and a study tour to New Zealand. The extension training includes all aspects of farm management, animal husbandry, hygiene and quality, feed management, health and safety and caring for the environment. These services are provided by a global dairy development advisor and local dairy development senior manager based in Jakarta.

This initiative is governed under the Fonterra global dairy development executive governance group and the monthly Indonesian Dairy Development programme steering group. To guide us on implementation we work closely with key external stakeholders including the Indonesian and New Zealand Government plus other New Zealand industry experts. The programme delivery is led by a Fonterra Dairy Development Advisor, reporting to the GM Community Programmes, and is supported by a locally hired Dairy Development Senior Manager who reports into the Indonesian business management team.

Fonterra Co-operative Group Limited, Indonesian and New Zealand Government