Analysis of Champion of Milk Cluster Industry in the Province of Central Java-Indonesia

Abstract

Development of milk cluster industry could promote regional economic development, by optimizing “diamonds” factors, which one of them are  rm strategy, structure and rivalry leading to high competitiveness (championship). This study was to analyze 18 small milk industries distributed through main regions of milk production in the province of Central Java-Indonesia. The capacity of districts to supply raw materials, implementation of GMP of each factory as well as championship factors were detected by a survey using multistage and multiphase sampling methods. The results indicated that 8 of them have rouled off and on industry, due to uncertainly supply of raw milk materials at the affordable price as well as lack of market place. From 10 enterprises, only 6 have presented the score of GMP implementation > 2.5/4. Among them have the score of championship values which are based on: added value, portion of local material supply, absorption of manpower and marketing system as well as four determinants of competitive advantage as followed: 1). Milk Cooperative Inderakila at Boyolali (cheese producer) 79/100, followed by Farmer group Tani Mukti-Wonosobo (pasteurized ice milk producer) 59/100 and Ent. Hongkong-Kudus (Ice cream maker) 57/100. It has concluded that among small milk industries could be promoted as a locomotive for regional economic development, while at once to improve their capacities.