E-update April 2019

Below are recent updates on the Partnership’s projects:
Project Updates
IACCB Update

IACCB has finalised the Phase 1 Completion Report. The report summarises progress, key achievements, challenges and lessons learnt from Phase 1 (February 2016 – January 2019). The report is available for download at http://iaccbp.org/investors/8/reports.The report highlights IACCB’s achievements in piloting three breeding models (integrated oil palm and cattle production (SISKA), semi-intensive grazing and smallholder cut-and-carry) in Indonesia. The program has distributed 1,315 heifers and 113 bulls to 8 project partners in 5 provinces; and produced 1,396 calves (as of 31 January 2019). 

On 11 – 14 March, IACCB conducted a business management workshop for their smallholder project partners in Bojonegoro, East Java and Solo, Central Java. The workshop was attended by local Dinas officials as well as representatives from SPR Mega Jaya,KPT Maju SejahteraPT Cahaya Abadi Petani. This workshop is part of ongoing support provided by IACCB and its implementing partner Gita Pertiwi, a capacity building service provider, specialised in supporting organisational change, business plan development and business management assisting the small-holders in running commercially sustainable business.

Projects under development

The Partnership has received 12 concept notes on proposed projects. It is expected that proposed projects will be evaluated after the design workshop and circulated for members comment prior to being submitted to co-chairs for approval.

Completed projects
Beef Consumption and Preference Trends Survey

The purpose of the study was to better understand Indonesian consumer and preference of beef products including processed goods. The study looks at consumption trends and preference of Indonesian in Jakarta and Medan using quantitative and qualitative methodology. Jakarta was chosen since it is Indonesia’s capital with a wide range of ethnicities and religions. Medan was selected since it was culturally distinct from Jakarta as well as having a different supply chain and being closer to Malaysia and China. The report covers findings on consumption patterns and beef purchasing habit. The report also identifies six significant clusters of demand for beef in Indonesia.

The report is available for download from http://redmeatcattlepartnership.org/reports.

Feasibility Study of Cattle Bonded Zone in Indonesia

This study looks at whether it would be viable to set up a beef feedlot and processing plant in a bonded zone in Indonesia. In theory, the bonded zone could enable the operator to leverage Indonesia’s low labour costs, consistent feed availability and high returns for beef co-products into a more competitive offering for the domestic market. This includes the potential for the enterprise to re-export some cuts from the fed cattle to third country markets. The study also looks at costs and benefits of establishing a bonded zone for cattle production and processing and key factors determining the ongoing commercial success of a bonded zone for the beef industry.

The report is available for download from http://redmeatcattlepartnership.org/reports.

Indonesia Supply Chain and Logistics Study

The study is a rapid analysis of (1) the international supply chain delivering live cattle to the port in Lampung and onwards to feedlots and abattoirs; and (2) the domestic supply chain transporting live cattle from farms in East Nusa Tenggara (NTT) to ports in Java and onwards to feedlots. The study comprised a literature review, on-the-ground observations and meetings with key stakeholders, with a focus on improving handling, logistics and animal welfare. Key findings and recommendations include key insights on an assessment of the macro supply chain environment; constraints to the supply chain; and recommendations relating to supply chain and logistics on capital expenditure, operational improvements, as well as regulation and compliance.

The report is available for download from http://redmeatcattlepartnership.org/reports.

Commercial Cattle Breeding and Management Training

Twenty participants (18 male, 2 female) from Indonesia’s cattle breeding industry are participating in the third batch of Commercial Cattle Breeding and Management Training in April 2019. The training will expose participants to various breeding models, including integrated cattle production with palm oil plantation (SISKA) and breedlot companies partnering with local smallholder farmers in Indonesia as well as extensive breeding operations in Australia.

The Indonesia component will run between 1 and 12 April, which includes classroom sessions and field visits to farms in Central Java, East Java and Central Kalimantan. The participants will then go to Queensland, Australia on 21-30 April to visit farms in Gympie, Murgon and Kaimkillenbun to learn about northern Australian breeding operations. At the end of the course, the participants will present their individual project plans outlining how they will apply what they learnt throughout the course upon returning to their respective workplace.

Partnership Administration Engagements
Seventh Partnership Meeting Communique

The seventh Partnership meeting was held from 21-22 February 2019. At the meeting, Members acknowledged the Partnership achievements to date and discussed the outcomes of the Partnership mid-term review and the Indonesia Australia Joint Industry Action Plan.  The communique has been released and is available at http://redmeatcattlepartnership.org/partnership-meeting.

Partnership Program Design Workshop

Following the 7th Partnership meeting, a program design workshop will be held on 11 – 12 April in Jakarta to re-evaluate priorities and the strategic direction of the Partnership through a design process that clearly defines the purpose and what we want to achieve and how are we going to do it.

For further information about the Partnership, please visit the website (http://redmeatcattlepartnership.org) and follow us on Facebook and Twitter (@IAredmeatcattle) to stay on top of the latest news and activities.

Upcoming Events
  • 10 April: Field visit to cattle breeding operations, Lampung
  • 11-12 April: Partnership design workshop, Jakarta
  • 15-16 May: Partnership visit to South Sulawesi