BKB will procure 30 pregnant heifers in 2019 to bring the original herd back up to 300 cows. They plan to keep, after selection, most heifers born in year one. Within one year, BKB is planning to procure another 300 (pregnant) heifers, seeing their total herd numbers grow to 1,000 head. IACCB has provided animal health and pasture development support, including the development of 45ha of ex-mining land. The new productive pastures have increased access to cheap green fodder supply, whilst BKBs crude palm oil and palm kernel oil mills provide access to the necessary feed concentrate.
BKB owners and management see value in cattle breeding, their commitment to the business is strong, the plantation and the cattle ranch management has sound knowledge of the business drivers, herd condition is good and overall herd performance is excellent. Overall, a very positive picture.
Our other SISKA Partners are also expanding with a focus on achieving better economies of scale in their cattle breeding businesses. Kalteng Adinipalma Lestari -KAL is keeping all their cattle progeny, which will require significant investment in facilities. KAL is also expanding the grazing area in the plantation from 1.200 to 2.200ha to accommodate their expanding herd. They are also conducting a feedlot trial with 25 growers ensuring they can benefit from the higher sales prices around Idul Adha.Bio Nusantara Teknologi is sourcing a business partner to expand their herd to 750, from the current 250 herd while also keeping the majority of female progeny. Superindo is moving their own breeding herd to the plantation area to increase their current herd population of 200 to about 800 in the coming years.
Overall, results to date suggest a strong and viable commercial future for the SISKA model.