Based on the results of rapid assessments conducted in three cooperatives, it has been identified that capacity building is important for both cooperatives and farmers. One of the main challenges at the cooperative level is the limited capacity in financial management. Meanwhile, at the level of dairy farmers there is still limited knowledge of financial management for the business being run. On this basis, one of the interventions carried out in the Local Milk Sourcing (LMS) project is to provide counselling, training, and assistance related to aspects of management and management of human resources at the cooperative and farmer level.

At the farmer level, limited capacity in managing finances for the business being run has resulted in farmers having limited access to financial resources to develop seeds, cages, and also feed. Based on findings in the field, there are still many breeders who do not have good financial planning and management at the family level. Some of the obstacles experienced by breeders include:

• The impact of PMK has caused the productivity of dairy cattle to decrease from previously 12-15 liters per day to 5-6 liters per day, resulting in reduced income and an impact on the financial flow of the farmer’s family;
• Farmers are still not used to planning and recording;
• The absence of consistent recording results in cash flow that cannot be measured properly, resulting in zero savings;
• The absence of emergency funds causes a lot of out-of-planned livestock business expenses such as AI (Artificial Insemination), medical/mainly livestock health costs, and vitamins.

On the other hand, increasing capacity and knowledge in financial literacy for cooperatives can be a way to assist their members in managing family finances. Yayasan Rumah Energi (YRE) collaborated with Sarihusada, Danone Ecosystem, and PRISMA through the LMS project to provide training and assistance for cooperatives to be able to increase their capacity regarding financial literacy. Training of Trainers (TOT) or Training for Financial Literacy Trainers is given to administrators and managers in three cooperatives, namely the Central Java Puspetasari Cooperative, Samesta Cooperative, and UPP Kaliurang. It is hoped that in the future these TOT alumni can be relied on to assist breeders as members of the cooperative, particularly in managing family finances and the breeder business directly, to significantly increase the income and welfare of breeders.