Tuesday, February 12, 2019

When Palm Oil Plantations Are Integrated With Sheep Farms

When fertilizer consumption for palm oil plantations can be reduced and even eliminated and replaced with cheap organic fertilizer, the cost of producing palm oil can automatically be reduced. This is because the cost of fertilizer is one of the highest cost components of palm oil production. In addition to fertilizer for palm oil plantations not subsidized, and almost all use chemical fertilizers. This is the high cost factor, besides chemical fertilizers also damage the environment, especially for the long term.
When the cost of producing palm oil is high while the selling price of crude oil products or crude palm oil (CPO) low certainly makes the business of palm oil less attractive or less profitable. It has been recorded that in the past 10 years there have been high fluctuations in the selling price of palm oil fruit. The CPO selling price factor as a final product for most of Indonesia's palm oil mills also will to reduce the selling price of palm oil fruits from farmers. The latest info such as the European Union which rejects Indonesian CPO is a condition that complicates the sale or export of CPO.


In terms of production to reduce production costs is an increase in efficiency, especially reducing the high cost component, especially the non-subsidized chemical fertilizer. The integration of palm oil plantations and sheep farming is the solution. Lamb manure is used to fertilize palm oil plantations. With an area of ​​thousands of hectares of oil palm plantations, it can allocate 5-10% of the land area to the sheep farm. The more non-subsidized chemical fertilizers can be reduced, the lower the cost of production, but besides that sheep farming itself can bring more attractive benefits. Indonesia, which still has a meat deficit and low consumption of per capita to meat, can also be overcome by this farm. Some time ago there was a government plan to import 100 thousand tons of buffalo meat from India to cover the deficit, so that this should be overcome also with the farm. The sheep export market is also promising, such as Saudi Arabia, which requires around 2 million heads each year and a quarter (500 thousand) in the Hajj season. This sheep can also be the best Muslim property, more details read here.

With the vast Indonesian palm oil plantation reaching 12 million hectares, it is certainly possible to achieve meat self-sufficiency by integrating it with sheep farming. In addition, of course the government should strive for the progress of the oil palm industry as part of the welfare of its people. Of course with an accurate solution that can be done like trade attaches abroad can be instructed to promote Indonesian palm oil. And in the end the more efficient the production and the greater the demand for palm products, the higher the price of palm oil and palm oil products and the more attractive benefits for farmers and entrepreneurs.

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