Mr. Paul Boon, the Partnership Strategic Advisor, drew on lessons learned from the five-year Indonesia Australia Commercial Cattle breeding program (IACCB), which completed in February this year. He outlined the strong commercial potential of SISKA in Indonesia.
He revealed SISKA production costs were less than imported feeder cattle prices, on a per kg basis and the Internal Rate of Return (IRR) was 12.22 % at year 10. This was without the cost savings from reduced weeding and fertilizing and increased oil palm production, due to cattle grazing. These benefits were backed up by recent Papua University research. The IACCB team estimated that positive cash flow starts by the third to the sixth year of SISKA implementation. Mr Boon also explained that as cattle production occurs in palm operations, a SISKA business has the benefit of easy access to additional feed sources, including palm kennel, palm sludge oil and palm fronds.
He also explained that for IACCB SISKA partners, feed management is key to financial success. Another key lesson learnt from the 5 years of IACCB was that success was very dependent on the commitment of the oil palm company management to support cattle operations and synchronise it with oil palm production.
Mr. Wahyu Darsono, from PT. Buana Karya Bhakti, an IACCB partner, echoed these findings and provided examples of good field practices including on production management, pasture development, human resources management, and synchronization of palm and cattle production. A representative from PT. Medco Papua Hijau Selaras also outlined the additional benefits in terms of fertilizer production and supporting local farmers.
The Indonesian Forage Scientist Association/ Himpunan Ilmuwan Tanaman Pakan Indonesia (HITPI) recommended the use of a grass species- Indigofera - for pasture development in Papua. They also proposed further research and exploration on endemic Papuan species.
The webinar, attended by the Director for Processing and Marketing of Horticulture Products, Ministry of Agriculture, and the Governor of West Papua, Drs. Dominggus Mandacan, had 323 participants (211 males, 112 females). For complete webinar presentation materials, please follow this link: https://bit.ly/PPTPapua.