Understanding Critical Factors and Antecedents in Indonesian Small Dairy Industries

Small dairy farmers in Indonesia typically join dairy cooperatives in order to overcome the limited resources in maintaining fresh dairy products, especially milk. The higher the quality, the better the price paid by milk processing companies. This research aims to better understand the uncertainties that influence the quality of milk by identifying its critical factors and antecedents, using the system dynamics approach. Feed supply, equipment and milk hygiene, milk collection point cooling system, milk storage and transportation, storing time and operating time are the main focus of the simulation model developed in this paper. The main output data supporting the decision-making process are the percentage of the total solid relative to the number of microbes, which describe the stability of feed supply.