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Local and overseas investors should add rural interests to
their portfolios to slow the urban drift, boost the economy of country
towns and help educate and employ local people.
Plus get a decent return, and enjoy a better lifestyle, according to
Mohammed Koesnan, head of one of Indonesia's most successful
cooperatives.
"Too much money is going into city developments," he said. "Many have a
blinkered view of rural Indonesia. They're overlooking the
opportunities to be found in the hinterland.
"Farm produce is part of the chain of life. Quality food helps build
our children's health and intellects so they can better cope with the
future. That will benefit us all. I don't think money should be the
number one motive."
For a man who has not been driven by profit, Koesnan has done better
than most who have made amassing cash their goal.
In 2005 he was given a presidential medal for his pioneering skills in
making an East Java cooperative one of the most progressive in the
republic.
Last year his work was recognized by the Indonesian Livestock Industry
with a national award.
Appropriate, for in the past decade he has imported 5,000 dairy cattle
from Western Australia (WA) and Victoria. The ambition has been to lift
milk production and quality throughout Java, but particularly around
Nongkojajar in East Java.
This is a village on the western slopes of Mount Bromo, 2,000 metres
above sea level and about 80 kilometers southeast of Surabaya. It has
long been a major dairy center and its dominant building is the milk
factory. But, till recently, animal husbandry and processing systems
have been primitive.
Now the Setia Kawan (loyal friend) Cooperative has an Ultra-High
Treatment (UHT) plant producing packaged milk for the local market and
export to South East Asian countries. It runs 24 hours a day and takes
milk from five other cooperatives.
The co-op has also built a model dairy using modern milking machines
and an udder-to-vat piping system to avoid contamination. The idea is
to encourage farmers to upgrade. Workshops on cattle feeding and
hygiene are held most weekends.
The big changes started in 1992 when Koesnan was part of an Indonesian
farmers' group that visited WA.
On dairy properties, he was astonished to learn that big-bodied
Friesians were producing up to 40 liters of milk a day -- more than
four times the yield of Indonesian cows.
He bought a few pregnant Aussie heifers, but at first they did not
adjust well to the Indonesian way of doing things. With land scarce,
cows in Nongkojajar are stabled and grass brought to them. The
newcomers were used to broadacre grazing and ample exercise at lower
altitudes.
An Australian vet was brought in; he advised supplementary dry foods.
So a factory has been built to supply this need using waste products
from wheat milling. The cattle are now thriving and producing around 30
liters a day.
Koesnan was also surprised on his WA visit to meet potato growers who
budgeted for yields of up to 70 tonnes per hectare, compared with an
East Java average of 15 tons.
In 2000, he imported one container of Australian seed potatoes. Three
years later he was bringing in ten containers, and although numbers
have dropped as farmers have nurtured their own seeds, he is still
buying from WA.
Together with local farmers, he has 300 hectares under cultivation,
with the potatoes mainly sold to factories producing chips and crisps.
"We have limited space in the mountains so it's important that we learn
how to produce more using the resources that are available," he said.
"The co-op has 12,000 dairy cattle. This year, I hope we'll be able to
increase numbers by 850. This area has the capacity to run 15,000 cows.
We need a lot more milk."
Despite his honors, Koesnan prefers to keep his head below the skyline,
which is difficult when he is such a standout corporate success.
He does not speak English, so has relied on his instincts to judge
character when dealing with Australians. He likes to do business
direct, farmer-to-farmer, stay on properties and meet families. Despite
the vast cultural difference, he says he's found few problems.
He has sent his sons to study agriculture in New Zealand so they will
be aware of modern trends and be fluent in the international language.
His office is modest and has none of the show-off trappings normally
associated with big business. He is particularly keen to get mid-level
investors into agriculture and claims opportunities lie in supplying
local markets.
Fresh and UHT milk consumption in Indonesia is increasing by one or two
per cent every year. Although this sounds small, the quantities are
huge when measured against the population.
Before the UHT plant was built, the Setia Kawan Co-op sold milk to
other companies for powdered milk manufacture. Indonesians have long
favored this product for kitchen use and baby formula, while in most
other countries fresh milk is preferred.
The lack of refrigerated transport and domestic fridges has been a
principal factor. Now more households are getting used to the benefits
of liquid milk.
"Future prospects look good," said Koesnan. "This year, I'll bring in
apple trees from WA to improve local stocks and grow different
varieties better suited to changing tastes. I'm also importing tropical
vegetable seeds, including capsicums.
"There's a strong demand for cut flowers and plants, with the market
seeking new blooms. We're now looking at varieties from South Africa
and New Zealand, which have a much longer shelf life.
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