The role of a dairy development project in affecting the milk value chain in Merapi through promoting an inclusive business model



Pria Sembada(1*), Guillaume Duteurtre(2), Arief Daryanto(3)

(1) Sekolah Vokasi, IPB University (Bogor Agricultural University)
(2) CIRAD, UMR SELMET CIRAD-INRA-SUPAGRO Campus International de Baillarguet, Montpellier Cedex 5, 34398, France
(3) Sekolah Vokasi, IPB University (Bogor Agricultural University)
(*) Corresponding Author

Abstract


A dairy development project funded by private company in collaboration with
government, university, NGO, cooperatives, and other stakeholders was carried out to
revitalize the dairy sector in Merapi area. The project started in 2012 in order to help dairy
farmers who were affected by big eruption of Mount Merapi in 2010. Some challenges occured
during the implementation of the project such as the low milk productivity, the low milk price,
the animal health (Brucellosis), the low experience in dairy farming activity and the uncertainty
of capital endowment (in particular cows) leading to a critical situation. Together with formal
and informal farmers’ leaders, the project management then changed the project activities by
promoting, implementing and supporting an inclusive business model (in phase 2). The study
aimed at understanding the role of the dairy development project phase 2 in 2016 to 2017 in
affecting the milk value chain through an inclusive business model. The data were collected
from the focus group discussion and the in-depth interview with 35 farmers, project
management, NGO, private sector, community leaders, and other stakeholders. Qualitative and
descriptive analysis were performed to understand the situation. The result showed that there
was a change in milk value chain in the area. Initiated by beneficiary farmers, a new milk
cooperative was established with more transparent and professional management. What is
attracting farmers in joining this cooperative was the higher and the individual milk price given
by this cooperative in order to have more profitability. Led by a vet and experienced farmers,
cooperative members believed that this cooperative could bring more happiness not only for
farmers but also for the cows. To conclude, the study underlines the importance of project
activities in affecting milk value chain through promoting an inclusive business model.


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