Economic analysis of cattle fattening systems based on forage tree legume diets in eastern Indonesia

Keynote paper presented at the International Leucaena Conference, 1‒3 November 2018, Brisbane, Queensland, Australia. Research and government agencies in eastern Indonesia have identified 2 systems with potential to increase productivity and incomes of small-holder cattle producers: improved cattle...

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Main Authors: Scott Waldron, Johanis Ngongo, Silvia Kusuma Putri Utami, Michael J. Halliday, Tanda Panjaitan, Baik Tutik Yuliana, - Dahlanuddin, Jacob Nulik, Debora Kana Hau, H. Max Shelton
Format: Article
Language:English
Published: Centro Internacional de Agricultura Tropical 2019-09-01
Series:Tropical Grasslands-Forrajes Tropicales
Online Access:http://www.tropicalgrasslands.info/index.php/tgft/article/view/614
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author Scott Waldron
Johanis Ngongo
Silvia Kusuma Putri Utami
Michael J. Halliday
Tanda Panjaitan
Baik Tutik Yuliana
- Dahlanuddin
Jacob Nulik
Debora Kana Hau
H. Max Shelton
author_facet Scott Waldron
Johanis Ngongo
Silvia Kusuma Putri Utami
Michael J. Halliday
Tanda Panjaitan
Baik Tutik Yuliana
- Dahlanuddin
Jacob Nulik
Debora Kana Hau
H. Max Shelton
author_sort Scott Waldron
collection DOAJ
description Keynote paper presented at the International Leucaena Conference, 1‒3 November 2018, Brisbane, Queensland, Australia. Research and government agencies in eastern Indonesia have identified 2 systems with potential to increase productivity and incomes of small-holder cattle producers: improved cattle feeding practices through forage tree legumes (FTL); and the development of more efficient and specialized cattle-fattening systems. Extensive research has been conducted on production and technical aspects of FTL-fattening systems, but there is a gap in research on economic incentives for households to adopt the systems. This paper provides an economic analysis of a leucaena-fattening system in a village in West Timor. It draws on trial data from associated technical research projects and detailed semi-structured interviews with farmers and other stakeholders to populate a bio-economic model built for the research. Under all measures of profitability, leucaena-fattening systems in representative households are profitable in the wet season. Importantly, ’returns to person days’ are higher than off-farm incomes. The activity generates cash income, increasingly required to meet cash expenses in modern rural Indonesian society. However, returns vary considerably between households, are considerably lower in the dry season and, as would be expected, are sensitive to relative prices of feeder and finished cattle.
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spelling doaj.art-1c6caf0bebf544f98e0b96f7bc51f52e2022-12-22T03:07:59ZengCentro Internacional de Agricultura TropicalTropical Grasslands-Forrajes Tropicales2346-37752019-09-017443744410.17138/tgft(7)437-444295Economic analysis of cattle fattening systems based on forage tree legume diets in eastern IndonesiaScott WaldronJohanis NgongoSilvia Kusuma Putri UtamiMichael J. HallidayTanda PanjaitanBaik Tutik Yuliana- DahlanuddinJacob NulikDebora Kana HauH. Max SheltonKeynote paper presented at the International Leucaena Conference, 1‒3 November 2018, Brisbane, Queensland, Australia. Research and government agencies in eastern Indonesia have identified 2 systems with potential to increase productivity and incomes of small-holder cattle producers: improved cattle feeding practices through forage tree legumes (FTL); and the development of more efficient and specialized cattle-fattening systems. Extensive research has been conducted on production and technical aspects of FTL-fattening systems, but there is a gap in research on economic incentives for households to adopt the systems. This paper provides an economic analysis of a leucaena-fattening system in a village in West Timor. It draws on trial data from associated technical research projects and detailed semi-structured interviews with farmers and other stakeholders to populate a bio-economic model built for the research. Under all measures of profitability, leucaena-fattening systems in representative households are profitable in the wet season. Importantly, ’returns to person days’ are higher than off-farm incomes. The activity generates cash income, increasingly required to meet cash expenses in modern rural Indonesian society. However, returns vary considerably between households, are considerably lower in the dry season and, as would be expected, are sensitive to relative prices of feeder and finished cattle.http://www.tropicalgrasslands.info/index.php/tgft/article/view/614
spellingShingle Scott Waldron
Johanis Ngongo
Silvia Kusuma Putri Utami
Michael J. Halliday
Tanda Panjaitan
Baik Tutik Yuliana
- Dahlanuddin
Jacob Nulik
Debora Kana Hau
H. Max Shelton
Economic analysis of cattle fattening systems based on forage tree legume diets in eastern Indonesia
Tropical Grasslands-Forrajes Tropicales
title Economic analysis of cattle fattening systems based on forage tree legume diets in eastern Indonesia
title_full Economic analysis of cattle fattening systems based on forage tree legume diets in eastern Indonesia
title_fullStr Economic analysis of cattle fattening systems based on forage tree legume diets in eastern Indonesia
title_full_unstemmed Economic analysis of cattle fattening systems based on forage tree legume diets in eastern Indonesia
title_short Economic analysis of cattle fattening systems based on forage tree legume diets in eastern Indonesia
title_sort economic analysis of cattle fattening systems based on forage tree legume diets in eastern indonesia
url http://www.tropicalgrasslands.info/index.php/tgft/article/view/614
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