FrieslandCampina opened a major new factory in Jakarta, Indonesia, on Tuesday, July 2. This is the largest investment ever made by the company: €257 million has been invested in it.
The factory can eventually produce one billion kilos of dairy products per year. Current production capacity is 700,000 kilos of dairy products per year. One-fifth of the milk to be processed comes from 20 agricultural cooperatives in Indonesia to which 30,000 farmers are affiliated. The rest comes from the world market, and not from the Netherlands.
Production capacity and target market
The plant has 50 production and filling lines. Every day 300 tons of fresh milk is brought in from Indonesia itself. This will grow to 400 tons in the short term. Production is focused on direct consumption; ready to drink products such as milk and chocolate milk, and sweetened condensed milk, a form of dairy that is very popular in Indonesia. The outlet is primarily the growing consumer market in Indonesia itself, but the Cikarang plant is also becoming a hub for serving other countries in Southeast Asia. 10% of production goes there.
Op de achtergrond de nieuwe fabriek van FrieslandCampina in Indonesië. Inzet, één van de vele zuivelproducten die in Indonesië worden verkocht. – Foto: Johan Oppewal, beeldbewerking
Growth and sustainability
FrieslandCampina sees a major growth market in Southeast Asia and especially in Indonesia. Jakarta already had a plant of Frisian Flag Indonesia, the name under which FrieslandCampina operates in the country. This will remain in production. The new facility is on the outskirts of the ever-expanding metropolis, which makes it much more accessible. This is important in connection with the supply of milk. The industrial area of Cikarang near Jakarta is the largest industrial area in Southeast Asia. FrieslandCampina owns 95% of Frisian Flag Indonesia; a local family business is co-owner.
The new factory pays a lot of attention to sustainability. For example, there are solar panels and energy is obtained from biomass. For the production of the milk, FrieslandCampina has a special development program in which local livestock farmers receive support in professionalizing the rearing and increasing production.
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