Interview Synopsis

The growing fresh milk market of Indonesia

  • Multi Asset
  • Consumer
  • Greater China

On 17 May 2019, Third Bridge Forum explored the Indonesian dairy market with a director at Indolakto PT. The Interview covered market size and pricing trends across dairy categories, as well as the competitive landscape and market share dynamics within the industry. The transcript proved particularly popular among our equity and private equity clients who were looking for an update on the sector.

Fresh Milk Consumption on the Rise in Indonesia

The director outlined the competition in the Indonesian dairy market, discussing the shifts in consumer preferences that have occurred in recent years. He explained that consumption for fresh milk has increased as families have begun consuming more at home and school. He discussed how he thought the demand for dairy would develop in the coming years, noting that other dairy goods are also gaining popularity.

The specialist considered the fact that only 23% of raw materials for the supply of milk are produced locally, while the rest are imported. He explored the various factors that have contributed to a relatively inefficient milk production industry in Indonesia, including the cost of feeding for local farms. The director at Indolakto PT noted that the government was beginning to pay attention to these issues, but that there would be increased competition from international players headquartered in China, Vietnam and the EU. He concluded the Interview by discussing the barriers to entry for international companies, as well as advice to investors.

To access all the human insights from Third Bridge’s Indolakto PT. Interview, click below to view the full transcript.

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The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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