June 3, 2019
Mitsui & Co. to sell premium milk in Indonesia by September
Japanese trading house Mitsui & Co is seeking to sell premium quality milk in Indonesia through a local subsidiary - an activity that could start in September this year, Nikkei Asian Review reported.
The company plans to breed close to 400 dairy cows brought from Australia and produce milk on a farm that it has operated in West Java Province since 2017. The milk will be processed using an extended shelf-life method that delays spoilage. Mitsui intends to begin supplying milk to local high-end supermarkets in September.
Indonesians consume just 12 liters of milk per year, on average, compared with 90 liters a year in Japan and 40-50 liters in Singapore and Malaysia. However, according to UK market researcher Euromonitor International, from 2013 to 2018, Indonesia's dairy market expanded 70% to $3.3 billion. The market for fresh milk doubled to $400 million over that period.
Many companies, including Ultrajaya Milk Industry & Trading Company, have started investing into extended shelf-life chilled milk. Mitsui will compete for a share of this growing market.
In addition, Mitsui has invested in Raffles Pacific Harvest, a subsidiary of Indonesian food processor ABC Group. Raffles Pacific Harvest has bred 1,500 dairy cows at its Java farm. The company has brought over 200 cows from Australia by air, with the rest to be sent in October.
Mitsui is also an investor in milk producer ABC Kogen Dairy. The company's plants are certified compliant with halal dietary practices.
Mitsui eventually hopes to export milk from Indonesia to Muslim countries in the Middle East and Africa.
- Nikkei Asian Review