The Role of Cooperative in The Milk Value Chain in West Bandung Regency, West Java Province

  • Y. Resti Diploma Program of Bogor Agricultural University
  • R. Baars Van Hall Larenstein University of Applied Sciences, PO Box 9001, 6880 GB Velp, the Netherlands
  • M. Verschuur Van Hall Larenstein University of Applied Sciences, PO Box 9001, 6880 GB Velp, the Netherlands
  • G. Duteurtre UMR SELMET CIRAD-INRA-SUPAGRO, Campus International de Baillarguet, Montpellier Cedex 5, 34398, France
Keywords: dairy farmer, cooperative, milk quality, milk value chain, value chain governance


The objective of the study was to evaluate the capacity of Northern Bandung Dairy Farmer Cooperative (KPSBU) to support farmers in producing good quality milk within the milk value chain in West Bandung Regency, West Java. The study used qualitative research strategies including desk study, case study, and focus group discussions. The study compared the involvement of three milk collecting actors that were classified into large cooperative (KPSBU), small cooperative (KUD Puspa Mekar), and private company (Bina Kitri Bersama). A total of 18 dairy farmers, 3 milk collecting actors, 2 milk processors, and one livestock officer were interviewed. Three focus group discussions were conducted. The large cooperative performed better in services, milk collection, and milk quality assessment compared to other milk collecting actors. Members’ commitment, inconsistent milk quality, and shortage of good quality fodder were the hindering factors that influenced the collection of good quality milk in the large cooperative. In conclusion, the large cooperative had better performance in service provision, it also had better infrastructures in milk collection and milk quality assessment compared to other milk collecting actors. Increasing the milk quality standard by milk processing companies affected the milk price since 2000. 


Download data is not yet available.

Author Biography

Y. Resti, Diploma Program of Bogor Agricultural University
Technology and Management of Animal Husbandry Program


Achchuthan, S. & R. Kajananthan. 2012. A study on value chain analysis in dairy sector Kilinochchi District, Sri Lanka. Glob. J. Managem. Busin. Res. 12: (Issue 21, version 1.0).

Borda-Rodriguez, A. & S. Vicari. 2014. Rural co-operative resilience: the case of Malawi. J. Coop. Organiz. Managem. 2: 43-55.

DJPKH (Direktorat Jenderal Peternakan dan Kesehatan Hewan). 2013. Statistik Peternakan dan Kesehatan Hewan. Kementerian Pertanian Republik Indonesia, Jakarta.

Eaton, C. & A. W. Shepherd. 2001. Contract farming. Partnerships for growth. FAO Agricultural Services Bulletin 145. Rome.

FAO (Food and Agriculture Organisation). 2014. Developing Sustainabile Food Value Chains - Guiding Principles. Rome.

Foreman, I. & B. de Leeuw. 2013. A Quality Based Milk Payment System. A Guideline for Implementation. SNV, The Netherlands.

KIT & IIRR. 2008. Trading Up: Building Cooperation Between Farmers and Traders in Africa. Royal Tropical Institute (KIT) and International Institute of Rural Reconstruction (IIRR). KIT publishers, Amsterdam.

Mangnus, E. & B. D. S. Piters. 2010. Dealing With Small Scale Producers: Linking Buyers and Producers. Royal Tropical Institute (KIT), KIT publishers, Amsterdam.

Morey, P. 2011. Dairy Industry Development in Indonesia: Report for International Finance Corporation (IFC), Final Report - May 2011, Morelink Asia Pacific, 57 p. .

Moustier, P., P. T. G. Tam, D. T. Anh, V. T. Binh & N. T. T. Loc. 2010. The role of farmer organizations in supplying supermarkets with quality food in Vietnam. Food Policy 35: 69–78.

M4P. 2008. Making Value Chains Work Better for the Poor: A Toolbook for Practitioners of Value Chain Analysis. Version 3. UK Department for International Development (DFID). Agricultural Development International. Phnom Penh. Cambodja.

Nguyen V. K. & V. D. Tran. 2014. The dairy industry in Vietnam: A value chain approach. Int. J. Managing Value Supply Chains 5: 1-16.

Nugroho, B. A. 2012. The relevance of a rules-based fresh milk price structure policy in East Java : an evidence-based assessment. Intern. J. Rural Stud. 19: 1-7 (Article 3).

Prihutomo, S., B. E. Setiani & D. W. Harjanti. 2015. Screening sumber cemaran bakteri pada kegiatan pemerahan susu di peternakan sapi perah rakyat Kabupaten Semarang. Jurnal Ilmu-Ilmu Peternakan 25: 66-71.

Priyanti A. & T. D. Soedjana. 2015. Indonesian dairy industry perspective within the ASEAN economic community. WARTAZOA 25: 159-170.

Sembada, P., G. Duteurtre, B. P. Purwanto, & Suryahadi. 2016. Improvement of milk production performances of smallholder farms in West Java (Indonesia). Tropical Animal Health and Production 48:793-799.

Tallontire, A., M. Opondo, V. Nelson, & A. Martin. 2011. Beyond the vertical? Using value chain and governance as a framework to analyse private standards initiatives in agri-food chains. Agric Hum Values 28: 427–441.

Trebbin, A. 2014. Linking small farmers to modern retail through producer organizations – Experiences with producer companies in India. Food Policy 45: 35-44.

Wongtschowski, M., J. Belt, W. Heemskerk & D. Kahan. 2013. The Business of Agricultural Business Services: Working with Smallholders in Africa. Royal Tropical Institute, FAO, and Agri-ProFocus. Amsterdam, Rome and Arnhem.

Wouters, A.P. 2009. Dairy Sector Development Indonesia: Options for Cooperation with The Netherlands. Animal Sciences Group, Wageningen University and Research, The Netherlands.

Zheng, S., Z. Wang, & S. Song. 2011. Farmers’ behaviors and performance in cooperatives in Jilin Province of China: A case study. Elsevier Journal. The Social Science Journal 48: 449–457.

Zott, C. & R. Amit. 2010. Business model design: An activity system perspective. Long Range Planning 43: 216-226.