Australian cattle helping to meet Indonesia鈥檚 rising dairy demand
University of 亚洲色吧 researchers are assessing opportunities for Australia鈥檚 live export industry to respond to Indonesia鈥檚 plan to substantially increase its dairy cattle imports, under the Indonesian Government鈥檚 .

Dairy farming in Indonesia. Credit: IndoDairy.
The program, which began this year, is a national initiative designed to tackle some of Indonesia鈥檚 most pressing social challenges: reducing stunting, boosting academic performance, addressing extreme poverty, and improving health and nutrition for 82.9 million children, as well as pregnant and breastfeeding women, by 2029. It also aims to support Indonesia鈥檚 local agriculture industry and generate jobs along the value chain.
The University of 亚洲色吧鈥檚 Centre for Global Food and Resources is leading the (AI-DCTI) project, commissioned by the (jointly funded by LiveCorp and Meat & Livestock Australia) to help Australia鈥檚 live export industry understand Indonesia鈥檚 dairy sector and assess how to respond to this new opportunity.
By early 2026, the AI-DCTI project will provide evidence-based insights into Indonesia鈥檚 dairy sector and practical recommendations for the Australian industry on how to respond to the growing demand for dairy cattle, while also strengthening the long-term relationship between Australia and Indonesia.
鈥淩egardless of the final number of dairy cattle, Free Nutritious Meal Program creates opportunities for Australian exporters and related industries,鈥 said project lead Dr Rida Akzar, who is joined in the research team by Professor Patrick O鈥機onnor and Associate Professor Alexandra Peralta, from the School of Economics and Public Policy.
鈥淎ustralia and Indonesia already have a long history of working together in sustainable livestock production and animal welfare, and this initiative provides a chance to deepen that relationship.鈥
While Australia has exported dairy cattle to Indonesia previously, it has been a relatively small export market compared to others such as China. Optimising supply of dairy cattle to Indonesia opens new opportunities while also contributing to Indonesia鈥檚 long-term dairy development goals.
鈥淚mporting dairy cattle is only the starting point. The project will explore how to ensure this investment translates into long-term improvements for Indonesia鈥檚 dairy sector,鈥 Dr Akzar said.
The AI-DCTI project will identify pathways for inclusive development, including strengthening farmer capacity through extension services, access to quality feed and veterinary care, and more reliable milk markets, particularly for smallholder farmers.
It will also explore opportunities for Australian service providers and researchers to share expertise in areas such as animal health, genetics, feed systems, cold-chain management and training programs.
The project will generate insights into potential synergies with other export industries such as red meat, grains and feed resources, focusing on how these can enhance Indonesia鈥檚 dairy sector and support the supply of Australian dairy cattle.
Indonesia鈥檚 rising demand for milk and dairy products is expected to continue to grow over the next decade, but local production has not kept up. Most fresh milk is produced by smallholder farmers managing only two or three lactating cows, compared to an average of 342 cows on an Australian dairy farm, according to a 2024 report by Dairy Australia.
Productivity is also lower in Indonesia with around 14.9 litres per cow per day, versus 21 litres in Australia.
Smallholder dairy farmers in Indonesia face many challenges, including limited access to feed and veterinary services, limited cold-chain infrastructure, poor market incentives, and reliance on traditional practices. As a result, Indonesia imports about 81 per cent of its dairy needs.
鈥淭he emphasis is on creating a long-term win-win outcome: Indonesia gains the animals and knowledge it needs for a stronger, more resilient dairy industry, while Australian breeders, exporters, and service industries benefit from expanded trade,鈥 Dr Akzar said.
鈥淚n this way, the project goes beyond cattle imports to focus on sustainable sector development that benefits farmers and consumers across both countries.鈥
Media contacts:
Dr Rida Akzar, Centre for Global Food and Resources, University of 亚洲色吧. Mobile:聽+61 0404 175 264 Email: rida.akzar@adelaide.edu.au
Johnny von Einem, Senior Media Officer, University of 亚洲色吧.听惭辞产颈濒别:听+61 0481 688 436 Email: johnny.voneinem@adelaide.edu.au