Much of the land in Sulawesi and East Indonesia is ideal for this system.
Opportunities to establish projects in these regions were somewhat limited, due to difficulty of delivery of Australian cattle to the sites. However, two IACCB partners were selected. They are:
Open Grazing - a potential alternative land use model
A well-managed open-grazing ranch is proving to have good commercial potential as it can produce feeder cattle (average 320 kg) at a lower live-weight cost than the cost of imported Australian BX feeders. Imported Australian BX feeders costed between Rp.40,000-45,000/kg liveweight whereas our open-grazing partner CAP produces them at a cost of about Rp.33,900/kg. CAP uses previously under-used land and the production cost does not include land leasing costs.
Graph 2: Local Feeder Production Cost vs Australian Imported Feeder (320kg)
The graph above shows a comparison of production costs of feeder cattle in different IACCB tested models i.e. Open-Grazing, SISKA grazing (cattle in oil-palm estates), Semi-breedlot/semi-SISKA and Cut-and-Carry (small-holder breedlot). Production costs differ significantly with Open-grazing producing feeder cattle at about Rp.33,900/kg liveweight, SISKA at Rp.35,100/kg liveweight whereas cut-and-carry has an estimated cost of Rp.38,100/kg. The semi-breedlot/semi-SISKA model has currently the highest cost at Rp.43,300/kg but is still competitive with imported feeder cattle.
The daily cost for the cows in open grazing is about Rp.7,000/head whereas daily cost for growers is about Rp.6,500. Open-grazing total production costs for CAP can still be lowered as several key-performance indicators have not yet reached their targets. This is due to below optimal management resulting in average calving rates of only 50% and Average Daily Gains around 0.26kg/head/day. Currently the total feed and operational costs /head/day of open grazing system are the lowest among all systems. If the cattle enterprise is properly managed, the IRR can reach 10% by end of year 10, an impressive figure.