Benefits of On-Farm Cheese Production:

In many European countries, a significant portion of milk production is dedicated to cheese production, reflecting the region's deep-rooted cheese-making traditions. The specific percentage can vary between countries depending on factors such as domestic demand, dairy farming practices, and the types of cheeses produced. On average:

- European Union (EU): Around 40-50% of milk produced in the EU is used for cheese production. Some EU countries, particularly those with a strong tradition of cheese-making (e.g., France, Italy, the Netherlands, and Switzerland), may use even higher percentages of their milk for cheese.

- France: Approximately 50% of milk produced in France is used for cheese, reflecting the country's extensive cheese production industry, which is one of the largest in Europe.

- Italy: Italy also uses a significant portion of its milk for cheese production, especially given the popularity of cheese varieties like Parmesan, Mozzarella, and Pecorino. Around 40-50% of the country’s milk is turned into cheese.

- Germany: Germany’s cheese production uses about 30-40% of its national milk production.

- Switzerland: Around 40% of Switzerland's milk is used for cheese, with Swiss cheese varieties like Emmental and Gruyère being central to the country's dairy industry.

The percentage is influenced by factors such as the size of the country's dairy sector, the variety of cheese produced, and market demand both domestically and internationally.

On-farm cheese production offers several benefits for Indonesian dairy farmers and the broader agricultural economy. These include:

1. Increased Revenue and Profitability:

- Cheese production adds value to milk, allowing farmers to generate more revenue per liter of milk. Milk is a relatively low-value commodity, but cheese is a higher-value product, leading to better financial returns for the farm.

2. Diversification of Income:

- On-farm cheese production allows farmers to diversify their income streams. Instead of relying solely on selling raw milk, they can sell a value-added product that may have more stable pricing, especially if they produce artisanal or specialty cheeses.

3. Higher Profit Margins:

- Cheese production can significantly increase profit margins. While milk prices may fluctuate, cheese, particularly aged varieties, can offer a more consistent or even increasing return over time.

4. Reduced Dependency on Market Prices:

- Milk prices can be volatile, but cheese, especially if aged, can be sold over a longer period, smoothing out income streams. This provides farmers with a buffer against the inherent volatility in milk prices.

5. Value Addition to Local Economies:

- By producing cheese on the farm, local economies benefit from additional processing, job creation, and potentially attracting tourism (such as farm visits and cheese-tasting experiences).

6. Improved Sustainability:

- On-farm cheese production may be more sustainable in terms of reducing food miles. Cheese production on-site can reduce the need for transporting raw milk, which helps lower the carbon footprint. Additionally, small-scale, artisanal cheese production can often have a smaller environmental impact compared to large-scale, industrial dairy processing.

7. Niche Markets and Premium Products:

- Farmers can create unique, artisanal cheeses that cater to niche markets. For example, cheeses made from grass-fed or organic milk, or specific regional varieties, can be sold at premium prices.

8. Control Over Quality and Production:

- Farmers have direct control over the quality of their product. From milk production to cheese aging, they can maintain higher quality standards, resulting in better products and higher customer satisfaction.

9. Direct-to-Consumer Sales:

- On-farm cheese production allows for direct sales to consumers, either through farm stores, local markets, or online platforms. This reduces dependence on middlemen and may increase profits for farmers.

10. Cultural and Culinary Heritage:

- Many European farmers engage in on-farm cheese production as part of a long-standing tradition. This helps preserve local food culture and culinary heritage, which can have cultural and marketing benefits.

11. Reduced Waste:

- Cheese production allows farmers to make use of milk that might otherwise go to waste or fetch a low price if sold as raw milk. By turning it into cheese, they can prolong its shelf life and potentially increase its value.

Overall, on-farm cheese production can be a rewarding strategy for dairy farmers looking to maximize the value of their milk, manage risks, and build a more profitable and sustainable operation.