Building a powerful and cost efficient dairy cooperative in Kuningan

Dairy cooperative KPSP Saluyu Kuningan was established in 2006 as a result of bankruptcy of large dairy cooperative, called Dairy Sri, in Kuningan region. The cooperative split up in three smaller groups of which two cooperatives and one farmer group. The competition is fierce. Milk collection centers are lined up all three next to each other. Farmers also use this to try to get the "best" deal. Competition is mainly about the milk price, relation with the vet/paramedics and loan facility. The cooperative produces good quality milk due to e.g. the good infrastructure with cooled milk collection centers. Payment system is transparent with clear overviews produced on a monthly basis during payment. Also each cooperative member receives financial overview of the cooperative before the GAM. Challenges of the cooperative are on the strategy to be followed. Aim is to build a strong financial stable cooperation which operates cost efficient. As the current infrastructure with cooling tanks requires larger volume to make it more cost efficient. As both board and staff haven't received any training, except for some government trainings, financial knowledge could be further improved. As on the financial side, the board is operating on an executive level, the role of the supervisors is very important. Guidance in the role as supervising is recommended, but carrying out an independent financial audit will also support them.