Pilot Market Driven Organic Dairy Production in Indonesia (MDOD)


Indonesia’s dairy sector faces significant challenges, including low milk productivity, economic difficulties, animal welfare issues, and environmental concerns. The “Pilot Market Driven Organic Dairy Production in Indonesia” project aims to transform this landscape through innovative, market-driven, and sustainable organic dairy practices. By establishing the foundational elements of organic milk production -improved feeding protocols, enhanced animal welfare, and stringent organic certification – the project is poised to initiate substantial improvements in dairy farming. Farmers are enthusiastically embracing Good Agricultural Practices and organic principles, motivated by the prospects of higher-priced organic milk production, environmental sustainability, and increased income.

This collaborative initiative involves key stakeholders such as Mazaraat Cheese, Arla, Indolakto, Bina Swadaya, KPSP Setia Kawan, the Innovation Centre for Organic Farming, the Danish Agriculture and Food Council, and SEGES Innovation.

Primary objectives and aims

The primary goals of the project are to pilot organic dairy, boost milk productivity using best practices, enhance economic output by strengthening the dairy value chain, create meaningful employment opportunities within the dairy sector, and promote sustainability in alignment with Indonesian governmental priorities for organic milk production.

Project history

The project has navigated several challenges, including the COVID-19 pandemic and a severe outbreak of Foot and Mouth Disease (FMD) in East Java in 2022. Despite these setbacks, the project consortium has remained steadfast, adapting strategies to ensure continued progress and making significant strides toward their goals.

Achievements and milestones

Through comprehensive training programs, hundreds of farmers and trainers have gained expertise in good dairy practices, organic farming, animal welfare, and sustainable methods. These efforts have laid the groundwork for increased productivity and widespread organic conversion, with numerous farms already on the path to organic certification.

One of the most notable milestones was the launch of Southeast Asia’s first locally produced organic cheese on August 29, 2023. Mazaraat Cheese, operating the first organic dairy in Indonesia, has achieved multiple certifications, including Control Union, halal, and HACCP. This underscores the project’s commitment to quality, safety, and ethical standards. The organic cheese launch has been widely promoted across hotels, cafes, and restaurants, significantly boosting its profile and market reach.

In August 2023, the project established the Organic Dairy Value Chain Forum, enhancing dialogue and collaboration among stakeholders. This forum addresses critical issues such as organic feed and credit availability, as well as improved cow and barn management, ensuring a more resilient and efficient value chain.

Partnerships have played a crucial role in the project’s success. Close collaboration with SSC programs and the Ministry of Agriculture has influenced the adaptation of national organic standards and guidelines, securing vital government support and enhancing the project’s sustainability and scalability.

Impact on community and sector

The impact of the project on local communities and the broader dairy sector is significant. By providing better income opportunities and creating jobs, the project has the potential to significantly improve the quality of life for local dairy farmers. Economically, the project is driving growth by increasing productivity and profitability across the dairy value chain. Environmentally, it promotes sustainable and organic farming practices, contributing positively to ecological health.

Long-term goals

Looking forward, the project aims to expand activities in East Java and further extend the organic dairy concept to other regions of Indonesia. The focus will be on sustaining growth, building on existing achievements to ensure lasting improvements in productivity and economic output. Additionally, the project will continue to align with governmental objectives, supporting national goals for sustainable agriculture and organic milk production.


Administrative Partner SEGES - Danish Agriculture and Food Council
Key Commercial Partner Arla
Other Partners Bina Swadaya, Koperasi Peternak Sapi Perah (KPSP), PT Indofood CBP
Country Indonesia
Sector Agriculture & agro-processing
Open / Closed Open
Duration July 2021 - July 2026
Approval Year 2020