Central to this success is the technical support provided to 42 milk cooperatives across the region. Nestlé has deployed teams of field experts to train farmers in modern animal husbandry, focusing on hygiene, nutrition, and cattle health. These interventions have not only improved the quality of the milk produced—meeting stringent international food safety standards—but have also significantly boosted the productivity and income of rural households, turning traditional farming into a viable, modern business.

The economic impact of this partnership is reinforced by Nestlé’s substantial investment in local infrastructure. By establishing cooling centers and collection points, the company has minimized post-harvest losses and logistical hurdles for farmers. This infrastructure serves as a vital bridge, connecting remote rural producers to the Pasuruan Factory, which stands as a testament to Indonesia’s growing capacity for high-value dairy production. The stability provided by these long-term off-take agreements offers farmers a rare level of financial predictability in a volatile global market.

Sustainability and regenerative agriculture have become the new frontiers for this partnership. As the dairy industry faces increasing pressure to reduce its carbon footprint, Nestlé Indonesia is working with local cooperatives to implement environmentally friendly farming practices. These include waste management systems like biogas digesters, which convert cattle manure into clean energy for cooking and lighting. This holistic approach ensures that the dairy sector in East Java remains resilient and competitive in the face of evolving environmental regulations and consumer expectations.