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. The
cooperative invest in cooling tank to increase the milk quality and improve the
improve the cost efficiency. 
As both board and staff haven’t received any training, except for some
government training, financial knowledge could be further improved. As a result
They have been adopting knowledge got from Agriterra about governance,
finance and cooperative. They have also been adopting specific applications:
zahir for financial system and access for database management.
In 2018, The cooperative has ambition to
develop new business mozzarella. The annual margin growth is stagnant, so that
they expected that this strategic initiative will improve its margin. As the
raw material to produce the mozzarella requires higher quality of milk, the
quality improvement of the milk is also their focus this year.

During the assessment the board, supervisory board and management seem very open in providing the information. It was clear that they would like to move forward and wanted to make a success of the cooperative. Although most of them are linked to the previous/former cooperative, they seemed to have learned from this and do whatever they can to make the cooperative transparent. 
 One of the criteria from Agriterra for support is that the cooperative should have minimal 1,000 farmers. Although this is not the case for Saluyu, it was decided beforehand that this criteria in this case should not be taken into account, in view of the relation with Friesand Flag. 
  
The project plan implemented since May 2015 to be directed to improve their management system, improve cost efficiency, and increase quality of milk.
  
In 2018. The cooperative has ambitions to improve its margin by developing new-product of mozzarella and increasing the quality of milk and its consistency. To realize it, Agriterra give recommendations to the cooperative to:
  
- conduct audit financial year 2017
  
- develop business plan of mozarella 
  
- explore the access to finance
  
- conduct internal capitalization training
  
- develop marketing plan of mozarella
  
- conduct milk tester training
  
- continue the establishment of youth council
  

1.
Increase quality of milk
2. Establish mozarella production unit and
its market access
3. Updated strategic plan
4. Increase income of farmers members
5. Improve management system (especially on
finance and members management)
6. Youth council operationalize