Integrated oil palm and cattle production


An estimated 10 million hectares of Indonesia is devoted to palm oil production, largely in Sumatra and Kalimantan.

Palm oil operations offer significant commercial potential because the land is already purchased and in use for palm oil production. Cattle breeding under palm can provide owners with an additional income stream, and may reduce production costs and increase productivity.

IACCB is testing these propositions in four locations:

The selection of 4 projects with quite different operating environments is allowing IACCB to identify the key challenges and solutions to commercial sustainability within the Integrated Oil Palm and Cattle Production model.

SISKA Partner Update

PT Buana Karya Bhakti, in South Kalimantan, has now established its SISKA Training Center and is offering field trips, training courses, and internship placement in its SISKA Plantation and Ranch. BKB is looking at expanding their herd and optimizing their economy of scale. Given their remote location they are however assessing the marketing potential of slaughter animals, given the limited market potential in South Kalimantan. BKB is looking into other pathways, including setting up their own meat shop. Additional investment is planned once theses marketing issues has been solved. It is expected that BKB can deliver one head a day to the local market.
 
PT Kalteng Andinipalma Lestari (KAL), The Ranch manager and the management of KAL visited BKB in a peer-to-peer learning visit. The visit streamlined plantation and ranch management at KAL with the view to increasing enterprise effectiveness, efficiency and profitability. Unproductive cows are now also being culled and replaced with pregnant heifers.
 
PT Bio Nusantara Teknologi (BNT), has ceased operations and has sold its cattle and plantation to third parties. Transport of cattle after sale was in accordance with ESCAS regulations.

PT Superindo Utama Jaya (SUJ), the semi-breedlot/semi-SISKA partner, has materials on-site, to construct a new cattle yard in its Nakau plantation to house its expanding herd of breeding cattle and their progeny. Expansion of the breeding business looks promising, due to the intensive management and the ready supply of low-cost quality feed composed of agricultural by-products from Lampung. Weaners and growers have achieved  consistent 0.7kg/day growth. Cost of gain is Rp 13,900/kg feed only and Rp 22,000/kg for feed and operations.