Social Embeddedness on Fresh Milk Development Programs under Creating Shared Value concept

After 36 years, the complicated import policies in Indonesia are not yet helping government Indonesia to lower the import of milk products. Industries are still importing 80% of their annual dairy products requirement which will need solid and holistic dairy development programs. The complexity of dairy developments are involving layers of systematic problems. This article is focusing on the social embeddedness of dairy farmers who sit in the beginning of long business fresh milk supply lines whom voice may not yet recognized in the policy. Despite that the dairy supply development had been regulated since the leadership of President Soeharto, the change of government had created inconsistency of policies. The macro level inadequacy of consistent implementable regulations had created self-regulation of dairy farmers development programs initiated by industries which help them to survive in meso level. Creating Shared Value concept applied by a fresh milk manufacturing industry in East Java as part of rural development program which have increased the quantity and quality of fresh milk production from 25 liter per day in 1980s to 700 tons per day in 2021. However, the gap of fresh milk demand still must be covered with import. The social embeddedness process becomes essential for the implementation of dairy farmers development program to implement government policy and dairy farmers development on self-supply in Indonesia territory.