Imported Milk Floods Indonesia Tax-Free, Farmers in Tears as Trade Shifts Dramatically

"Tax-Free Imported Milk Floods Indonesia, Farmers Devastated"

Indonesian farmers protest against zero tariffs on imported milk, urging the government to renegotiate trade agreements favoring local dairy production.

Siti Rahmawati13 November 2024Last Update : 1 month ago

Peternak Nangis Susu Impor Masuk RI Bebas Pajak, Wamendag Bilang Gini

www.cnbcindonesia.com

On November 13, 2024, Indonesian dairy farmers are raising alarms as imported milk enters the market duty-free. This situation has left local producers struggling to compete, prompting calls for changes to the ASEAN-Australia–New Zealand Free Trade Area (AANZFTA) trade negotiations. How will this impact the local dairy industry?

6 Key Takeaways

Import dairy products enter Indonesia duty-free.
Farmers protest against competition from imports.
Government negotiations on trade agreements ongoing.
Local milk production struggles against cheaper imports.
Free trade agreements impact local dairy prices.
Farmers resort to dumping unsold milk.

Fast Answer: Indonesian dairy farmers are protesting against the influx of duty-free imported milk from Australia and New Zealand. This situation threatens local producers, who are unable to compete with lower prices. The government is currently reviewing trade agreements that may affect this issue.

Indonesian Dairy Farmers Demand Change Amidst Rising Imported Milk

How can local farmers survive when faced with cheaper imports? The recent influx of imported milk has sparked protests among dairy farmers in East and Central Java. Many are calling for the government to reassess the current trade agreements that favor foreign products over local production.

Warning! The current trade situation poses a serious threat to local dairy farmers. Without intervention, many may face financial ruin.

Impact of Free Trade Agreements on Local Dairy Production

The free trade agreements with Australia and New Zealand have significantly affected the Indonesian dairy market. Local farmers are struggling to keep up with the prices of imported milk, which are often 5% lower due to the elimination of import duties. This has led to a decline in local milk sales and production.

Key Factors Affecting Local Dairy Farmers in Indonesia

Several factors contribute to the challenges faced by Indonesian dairy farmers:

Duty-free imports from Australia and New Zealand.
Local milk production unable to compete on price.
Protests from farmers, including milk dumping to highlight their plight.
Government negotiations on trade agreements with other countries.

Future Prospects for Indonesian Dairy Farmers

What does the future hold for local dairy producers? As the government navigates international trade negotiations, the fate of local farmers hangs in the balance. Farmers are hopeful that the government will consider their concerns and take action to protect the local dairy industry.

In conclusion, the ongoing trade negotiations and the rise of imported milk pose significant challenges for Indonesian dairy farmers. The outcome will not only affect local producers but also the broader agricultural landscape in Indonesia.