Beef Production Integration and Development of Palm Oil in Rokan Hilir

Transcription

1 International Journal of Applied Business and Economic Research ISSN: available at http: Serials Publications Pvt. Ltd. Volume 15 Number Beef Production Integration and Development of Palm Oil in Rokan Hilir Pareng Rengi 1, Marnis 2 and Fitri State University of Riau 239 Abstract Some of the problems the beef industry in Indonesia is characterized by increasing the price of beef and beef demand, declining supplies of beef, as well as increased competition due to competition from imported meat. To anticipate this, we need a strategy for the availability of beef in Rokan Hilir in particular can be maintained, by utilizing the breadth of palm oil plantations. This study was conducted in Rokan Hilir in Riau province. This study uses the case study method, collection of field data held from September to December Data being collected in the form of primary and secondary data. The aim of research to determine the feasibility of developing the dairy farms and palm oil as well as a recommendation strategies and Development Policy Integration Ox and Palm Oil. Data analysis techniques used in this research is descriptive analysis, analysis of botanical composition and productivity of HMT, analysis Economic Analysis of Land Productivity and policy analysis (SWOT). The analysis showed that the maintenance effort breeding cattle with feed ingredients utilizing plantation waste and palm oil processing industry is worth doing because the NPV is positive. The total value of the investment is USD million. The total value of the present value gains (level df 14%) of Rp Keywords: Dairy farms, oil palm, integration strategy. 1. INTRODUCTION Food Security is the fulfillment of the conditions of food for households which is reflected in the availability of adequate food, both in quantity and quality, safe, equitable and affordable. The availability of food can come from domestic production and/or other sources. To measure food security in terms of independence can be seen from the national food supply dependence on food production in the country. The importance of food self-sufficiency motivated that food is an essential human needs. International Journal of Applied Business and Economic Research

2 Pareng Rengi, Marnis and Fitri Beef products is the second commodity after poultry (broilers). Contributions beef to the needs of national meat by 23% and is expected to continue to increase (Directorate General of Livestock, 2013). In general, beef demand is supplied by imports of beef and veal going. In aggregate Indonesia is a net importer of farm products, including beef products which tends to increase from year to year. This condition describes the lack of supply in national. From this condition will require a solution that can be taken into consideration in the issue of commodity meat, of course, accompanied by supporting data and the analysis of the problem. Cattle in oil palm plantations until now to make trouble between the negative effects and benefits. Live stock integration in oil palm plantations throught out many reasons such as less investment from the vehicle, the efficiency of labor, there is no depreciation, does not require fuel to operate, cheap maintenance and environmentally friendly operations (Puslitbangnak, 2008). More assessment of factors affecting the integration of cattle in oil palm plantations is needed to explain the benefits of this system. There are many factors that affect the system integration as factors of income, consumption/cost of production, the number of households/labor intensity of counseling, place of origin, level of education (Riswani et al., 2012) and also palm area of oil palm plantations and the age of the plant, the number of cows. A good explanation According to the Directorate General of Livestock national level of meat consumption is still very small at about 1.72 kg/capita/year (Directorate General of Livestock, 2013). According Dwiyanto et. al., (2003) of beef consumption in 2020 of Indonesia s population is expected to increase about 2-3 times that of the average current consumption of less than 2 kg/capita/year (Muladno, 2006) Beef cattle population that is now in Indonesia according to the Directorate General of Livestock statistics about 10.5 million head. Cattle farming in essence can be performed on all the land included in the agro-ecological zone (Jumin, 2002) and oil palm plantations is one of the agro-ecological zone that is suitable for raising cattle for oil palm plantations than as the main producer of crude palm oil (CPO) and palm kernel oil (PKO) as well as producers of waste and byproducts of the largest, such as waste leaf midrib of palm oil and palm kernel cake, slurry oil (sludge), fibrous fruit juice palm empty fruit bunches and shells (Parayitno and Darmoko, 1994) which can be used as ruminant feed material (Jalaludin et. al., 1991). Livestock has an important role in human life in order to live healthy, humans require animal protein, either in the form of meat, milk, and eggs. To realize the program of self-sufficiency in meat, the government must have the courage to make a breakthrough program that is significant in the development of cattle breeding should primarily be to revitalize and accelerate breeding with endorong to establish centers of breeding cattle and programs fattening in plantation palm oil by utilizing the byproduct of palm oil and palm mill palm as cattle feed in an integrated establishment, planned, holistic, and sustainable. Currently the beef industry in Indonesia is experiencing a very critical issue. It is characterized by the rising price of beef and beef demand, declining supplies of beef, as well as increased competition due to competition from imported meat. To anticipating this, we need a strategy for the availability of beef in Rokan Hilir in particular can be maintained, by utilizing the breadth of palm oil plantations. The aim of the development activities Integration Cattle and Palm Oil in Rokan Hilir are: 1. Evaluate the pattern of the applied current and analyze the potential for the development of cattle breeding in Rokan Hilir. International Journal of Applied Business and Economic Research 240

3 Beef Production Integration and Development of Palm Oil in Rokan Hilir 2. Estimating productivity and carrying capacity of forage fodder (HMT) based on the type that is in the palm plantation. 3. Analyzing the feasibility of integration of oil-cattle and the benefits obtained. Cattle are the main livestock grass food, usually forage availability is quite abundant in the rainy season but availability is quite difficult to obtain, especially in the dry season. To overcome this problem needs to be an effort to find alternative feed sources are inexpensive, economical, easy to obtain and do not compete with human needs, utilization of waste agricultural and plantation is the right choice to address the problems so that, expected to be used as alternative feed sources feed livestock (Riswandi et. al., 2012). Siregar et. al., (2005) ability to adapt cattle to land covers three main aspects namely; (1) biological, (2) the ability of the land to produce animal feed, rearing and capacity available area, (3) social culture that includes Harmony, Pleasure farmers, cattle herding skills. The formulation of the strategy is to identify opportunities and external threats, establish internal strengths and weaknesses and choose specific strategies to be implemented. Implementation of the strategy is often called the action stage management strategy by changing the strategy that has been formulated into an action. Evaluation of the strategy is the final stage of a management strategy to perform three basic kinds of activity to evaluate the strategy is reviewing the external and internal factors are the basis of strategies, performance measures and take corrective action (David 2002). The study of cattle for integrated production system with oil palm plantations such as ruminants (cattle, buffalo, deer, goats and sheep) have been conducted in Malaysia (Dahlan, 2009; Devendra et. al., 2007). Most work to date has determined that the integration of beef with oil palm plantations in Malaysia have shown the type of potential and great sustainable production system. The results of the study showed livestock development through integration with plantation crops such as oil palm, rubber, acacia and palm very promising (Sanchez, 1995; Dahlan, 2005). Location and Time Research 2. RESEARCH METHODS The location of this research activity throughout the administration area of Rokan Hilir, which consists of 15 districts. Making location based activities where palm trees almost evenly contained in every sub-district, which is divided into country estates, private estate and smallholder agriculture. In this activity, the target is people s plantation activities. The timing of activities, namely September to December Methods/Data Collection Procedures This study used survey method. Stages of this research is; (1) Preparation, (2) Stage. Survey/data collection, (3) Stage compilation/analysis of data. The data used in this study are primary and secondary data. The primary data are made directly to the farmer to obtain qualitative data/information integration palm-cattle, from the results of measurements made by each of the variables in the study, while secondary data obtained from government agencies in the scope of Rokan Hilir. 241 International Journal of Applied Business and Economic Research

4 Data Analysis Pareng Rengi, Marnis and Fitri 1. Population Ruminant: For the calculation of the percentage of the population of ruminants based on the age and type of cattle, buffaloes, goats and sheep used conversion value (percentage) each cattle children, youth and adults. 2. The composition of Botany and Productivity Foliage Food Livestock: The observation of botanical composition obtained in the palm plantation processed through Sofware approach Exel. Classification productivity 25-30% HMT category is mild, moderate 40-50%, 60-70%. Then calculated based approach Proper use the following formula: where: PUF = PROFER Use Factor a PUF = a 1 = a/m 2 is green before wrenched - b a 1 1 b 1 = b/m 2 is residual forage after wrenched 1 100% Carrying capacity of forage fodder fresh ingredients (DDHMT-BS) use the following formula: DDHMT fresh ingredients = Fresh production (tons/ha) 1st requirement (tons/year) 3. Capacity Enhancement Livestock Population: Calculation of population increase capacity ruminants, carried out by calculating the maximum potential (ST) based on land resources 4. Economic Analysis of Land Productivity: (a) Oil palm plantation productivity with the introduction of beef cattle, then the observed variables are as follows: (b) Oil palm plantation/ha without the introduction of beef cattle (c) Oil palm plantation with the introduction of beef cattle in the garden area oil palm 5. Analysis of Integration Development of Oil Cattle: Determination of the development strategy analysis based approach based procedures SWOT exposure David (2002), which includes internal factors using Internal Factor Evaluation matrix. 3. RESULTS 1. Maintenance Cow Pattern and potential development of cattle breeding in Rokan Hilir: Cattle farms in the study area generally is, side business/branch of the family business, which is done by the pattern of simple maintenance. Patterns maintenance is performedvariously namely: Removing in pastures and farm fields/oil palm plantations from early morning until late afternoon, then in the afternoon until the early morning cows stabled around the houses to keep livestock. International Journal of Applied Business and Economic Research 242

5 Beef Production Integration and Development of Palm Oil in Rokan Hilir Provide pastured their flocks cut-and-carry by taking from the field, but the cow is released in the paddock grazing at half time, ie, before noon to the desert city days later under a common grazing dominated by reeds, then afternoons under to cage and given HMT. Pastoring cows from morning until afternoon then put into the cage. Grazing cattle in the area since the early morning oil palm plantations in rotation/semiplanned in some locations oil palm plantation area, then in the afternoon until morning and then taken to the palm plantation that has been lined (spring cage). Extensive maintenance management system needs to be fixed into intensive or semi-intensive namely through: (A) management of HMT administration and formulation; (B) management of cage and grazing; (C) improved quality of cows/cattle procurement; (D) an increase in services animal health; (E) counseling. In areas other than HMT palm, palm leaves which are consumed by livestock. Palm frond quite a lot and are available all the time for pruning palm midrib (prunning) is a routine event but has not been used as animal feed ingredients, 2. Productivity and carrying capacity of forage fodder (HMT) based on the type that is in the palm plantation: At the location of the study there were 2352 hectares of palm folk years old with a production capacity of HMT tons/year capacity livestock carrying capacity of ST (4.2 ST/ ha), and oil palm plantations in Rokan Hilir 248,389.1 hectares with a total production capability HMT 1,139,329.6 tons/year, equivalent to the capacity of tamping ST. Based on the development of oil anaman age, the production of HMT (cover crops) changing botanical composition and production quantities are landless, so that the capacities of the average for oil crops production (1-25 years) is approximately 2:24 ST/ha means in Rokan downstream has a capacity of 556,391.6 tamping ST. Part of the palm trees that can be used as HMT is one source of leaves and palm fronds sufficient nutritional value, but not taken by farmers in Rokan Hilir. A byproduct of palm tree leaves and fronds form a high potential for livestock feed. According Sitompul (2003), each palm tree produces 22 midrib/year with the average weight of 2.2 kg midrib (after the peel ready to be served). The amount is equivalent to kg (22 midrib 128 trees/ha/year 2.2 kg = kg). Leaves produced each frond is 0.5 kg, so every palm tree is capable of producing 11 kg/ year/tree, every 1 hectare of oil will produce forage as much as 1,430 kg/year/ha. Based on this, then in Rokan Hilir There 248,389.1 hectares of oil palm plantations (CBS, 2014), which has a production capability of feed ingredients such as frond production 1,538, tons/year, equivalent to the capability = 1,370, ST. This calculation is based on the assumption of 1 ST = 300 kg body weight withmconsumes 10% of body weight cattle. 3. Feasibility integration efforts palm-cattle and benefits obtained: Feasibility analysis conducted during the economic life the cow is 10 years. The economic analysis is performed by calculating the difference between the reception and the annual cost for the economic life of the cow. Because the new activities will be carried out means that the flow of costs and revenues will occur in the future so that the calculation using the concept of present value with level df 14%. 243 International Journal of Applied Business and Economic Research

6 Pareng Rengi, Marnis and Fitri The calculations show that the maintenance effort breeding cattle with feed material using waste plantations and palm oil processing industry worthy done for Net Present Value is the difference between total the value of investments with a total value of advantages over the present value the economic life of the cow is positive. Total value of investments is USD million. The total value of the present value gains (level df 14%) of Rp Strategy and Policy Integration Development Ox and Palm Oil: The entire formulation of strategies resulting from the analysis using SWOT matrix in principle is very important to support the development of agribusiness cattle in Rokan Hilir. 8 (eight) the resulting strategy interrelated strategies that one with strategy more. The order of priority of Strategy Formulation is based on the total attractiveness score highest to lowest value. From the results can be determined as many as six (6) priority of short and medium-term strategy that will be recommended to be implemented in order implementation of the system integration cattle-palm plants as follows: (a) Livestock genetic quality improvement strategies (b) Strategy formation of a common perception among farms and estates (c) Strategy cattle farmer cooperative formation (d) Forage improvement strategies. (e) Facilitation strategy providing capital for farmers/institutional farmers through government credit program (f) The development strategy of Nucleus Breeding Farm While the four (4) long-term strategic priorities recommended to be implemented in order supporting the implementation of the system integration cattle-palm plants is: 1. The development strategy of infrastructure, facilities and infrastructures. 2. Strategy facilitation of partnership with the private sector 3. Strategy supporting infrastructure optimization 4. Strategy fulfillment of the quality/standard of farm products Integration cattle to oil palm plantations and agribusiness in the system was developed with the approach of Low External Input Agriculture System (Leias) where there is a dependency between the activities of plantation crops and livestock will benefit in both sub-sectors. Therefore, program integration between palm and ruminants should be supported by the application of appropriate technology/appropriate. Plantation waste byproducts can be used as animal feed, with the integration patterns of cattle and oil palm growers will not be harmed as seen in the chart of Figure 1 4. CONCLUSION Based on analysis of the feasibility of raising cattle breeding by utilizing waste feed ingredients plantations and palm oil processing industry is worth doing because the Net Present Value which is the difference between the total value of investments with a total value of present value advantage over the economic life of the cow is positive. The total value of the investment is USD million. The total value of the present value gains (level df 14%) of Rp International Journal of Applied Business and Economic Research 244

7 Beef Production Integration and Development of Palm Oil in Rokan Hilir Figure 1: Model Integration Cattle and Palm Oil The key to success is the key factor/determinant of the success of the integration system of cattle and palm oil in district Rokan Hilir, namely: (a) Applying the integrated system of cattle and palm oil district Rokan Hilir in building the plant. (b) Improving meat production through increased population, livestock productivity and a decrease in cases animal diseases. (c) Improving the application of appropriate farm technologies environmentally friendly. (d) Improving farm product processing business efficient and competitive in order to guarantee livestock product safety. Recommendation 1. In the aspect of farming, to spur the production needs to be done (a) expansion of the business district at a specific location, (b) improved quality of seeds and reproduction, (c) improved cultivation, and (d) improving post-harvest, which aims to improve efficiency farming and processing. 2. In the aspect of technology, research needs to be done continuously to acquire technological innovations in breeding, feeding, reproduction, health, and aquaculture management to improve the performance of beef cattle into the leading commodity can then be disseminated to users. 3. In the aspect of value creation, the activities that need to be done include the expansion of the network of farm roads and transportation facilities, as well as the renovation of slaughterhouses in the area of production source so as to provide cheaper meat, increasing employment opportunities, and promote economic development in the region. 245 International Journal of Applied Business and Economic Research

8 Pareng Rengi, Marnis and Fitri 4. Government policy needs to be developed include capital system, institutional, infrastructure, collaboration both inside and outside the country, as well as the development of common units and information systems. This policy can give effect to stabilize the price of live cattle and beef and efficient marketing. References The Central Statistics Agency (BPS), Rokan Hilir in Figures 2014 Rokan Hilir. David FR Strategic Management Concepts. Seventh Edition. Pearson Education Asia Pte. Ltd. And PT Prenhallindo. Jakarta. Dahlan, I. (2005), Deer-Acacia integrated production system: Estimation of ecological carrying capacity", In Proceedings Ahat/BSAS International Conf. Nov , 2005, Khon Kaen, Thailand. Integrating livestock-crop systems to meet the challenges of Globalisation. Vol. 2, p.131. Dahlan, I. (2009), Integrated Production Systems", In: Management of agricultural, Forestry and Fisheries Enterprises. Vol. II. UNESCO-EOLSS.e-book. 7 pages. Devendra, C., Shanmugavelu, S. and Wong H.K. (2007), Eds. Integrated Tree Crops-ruminants Systems. Workshop on integrated tree crops-ruminants systems, Academic Science, Malaysia Directorate General of Livestock Statistics Ranch, Dwiyanto K, Dapot S, M Isaac, I-Wayan M, Soentoro Assessment Systems Integration Business Development Oil Palm-Cattle. In the Palm Oil Systems Integration - Livestock. Proceedings of the National Workshop; Bengkulu, 9-10 Sep 2003, p 11. Jalaludin, S, Z.A. Jelan, N. Abdullah`and Y.W.Ho, Recent Development in the Oil Palm By-Product Feeding of ruminants based System. Proc. MSAP, Penang, Malysia pp Jumin, H.B Agroecology A Physiological Approach. PT. King Rafindo Persada Jakarta Muladno, The need for and availability of human resources in realize Sufficiency Livestock Meat Handbook of National Seminar on Development of Cattle Breeding Crop-Livestock Integration Patterns to Support sufficiency of Meat, 2010, Monday, August 14, Parayitno and Darmoko, Prospects of Industrial Raw Materials Solid Waste oil palm in Indonesia. News Palm Research Center Medan. North Sumatra. Riswandi, et. al., Increased Production of Cattle with Ammonia Fermentation Technology (Amofer) Rice Straw In the village of Tanjung Pering District of North Indralaya Ogan Ilir in South Sumatra. Journal of devotion Sriwijaya PB Sánchez, M. (1995), Integration of livestock with perennial crops", World Animal Review, Vol. 82, pp Siregar Z.; Hasnudi.; S. Umar., I. Sembiring Tim Department of Animal Husbandry, Faculty of Agriculture USU. In cooperation with PTPN IV in order to establish fodder plant-based waste oil. International Journal of Applied Business and Economic Research 246