Beef Cattle Fattening (Feedlot) Based on Energy Plantation

The photo taken from here

Indonesia has the advantage of intensively fattening cattle. A number of factors such as the availability of agricultural wastes, agro-industrial wastes, forestry wastes and low labor costs, support these advantages. In addition to the price of seed cow, the feed factor is indeed the next determining factor. With these advantages, Indonesia can focus on fattening beef cattle. If this is done, it is not impossible for meat self-sufficiency or at least meat imports to be reduced. The increasing import of buffalo meat from India should be gradually reduced, in line with the readiness of the domestic beef cattle fattening industry. It takes time and effort is not simple, obviously but must be done.

Import of Seed Cows from Australia, photo from here

Ideally, seed cows are produced domestically, this is because Indonesia has the potential for this in the form of potential grazing areas in eastern Indonesia and palm oil plantations. But the fact is that the implementation is still very minimal or even those who are focused on working in this field do not yet exist. Based on a number of studies that cattle breeding is only effective and efficient in grazing areas. This is what makes Australia superior in the supply of seed cows. The large place and long time in the pasture are obstacles for Indonesia to be independent of seed cow. The export destination of seed cow from Australia is Indonesia and mainly supplied from northern Australia. This type of grass that lives in Australia is also not very suitable for fattening, so exporting it is one of the best options. Meanwhile, cattle fattening (feedlot) in Indonesia only takes 100-120 days with the use of limited cage space. The cattle population in Australia is quite large or almost the same as the total population or the ratio is 1 person to 1 cow, while in Indonesia it is much smaller. Cooperation in supplying seed cows from Australia to be fattened in Indonesia has also been going on for decades. There are efforts to reduce the import of seed cow, but it seems that it will still take a long time.

The development of energy plantation with the main objective of producing wood pellets or biomass fuel, has waste or by-product in the form of leaves. The leaves are very good for cattle feed especially with high protein content. With an area of thousands or even millions of hectares that has been declared, the by-products or leaf waste produced will also be very large, of course. With this alone, if Indonesia wants to focus on fattening, the opportunity to become a leader in the cattle fattening industry in Asia and even the world will be even greater. If that happens, the import of buffalo meat from India and beef from Brazil can be reduced or even stopped altogether. In addition, even when there is excess meat production, meat export is also very possible, including by processing the meat so that it provides greater added value.   

Opportunity to Export Animal Feed Protein Sources to Europe

Meat and milk are sources of protein for human obtained from animals, especially ruminants, then meat and eggs from poultry and meat from fish. Availability of sufficient animal protein is needed. Protein deficiency will be bad for health. The livestock industry plays an important role for the adequacy of animal protein today. To produce animal protein in the form of meat and milk, a protein source, namely vegetable protein, is needed in the feed source for the ruminant livestock. Gliricidia and calliandra leaves from energy plantations are a source of protein for the ruminants (sheep, goats and cows). The development of energy plantations should also encourage the livestock industry. This is important for the makers or entrepreneurs of the energy plantation to understand.

Learning from European conditions, according to a study conducted by FEFAC (European Feed Manufacturers' Federation), there is a protein deficit condition in the feed industry sector in Europe and for that they have made a number of efforts to obtain environmentally friendly feed protein sources and sustainable. Deficit is a condition where the consumption or use of protein for the feed has exceeded its production. This means that European production in the form of protein sources for animal feed is still far from its needs so that imports cannot be avoided as a result. Although it is estimated that they will not be able to replace 100% of feed protein sources by one mean alone, which as long as most are imported but reducing this dependence with local production of feed protein would be very helpful. Another motivation is to reduce dependence on protein sources from transgenic materials (GMOs), namely soybean.

Their first effort was the use of PAP (processed animal protein). The use of PAP is indeed high in nutrition, and the source of PAP for the feed is chicken and pork. Although a rule has been made that chicken PAP is not allowed to feed chickens and pork PAP is not allowed to feed pigs plus a tool to detect it, in practice this is difficult to be implemented. This is because feed mills that operate are generally multi-purpose feed so that it can be used for various types of livestock. Very few feed mills make specialty feeds. In fact, if it occurs, for example, PAP chickens for chicken feed and PAP pigs for pig feed, then a disease may occur in the livestock. An example is in the case of mammalian meat and bone meal (MBM). In 1996 with the crisis of Bovine Spongiform Encephalopathy (BSE) because it was related to feeding from MBM for ruminant feed. The BSE-infected meat causes Creutzfeldt-Jakob disease in humans, which poses a high risk to the human food chain. After the epidemic spread, the use of MBM in animal feed was banned. This regulation causes a high dependence on imported raw materials such as soybean meal for the continuity of the supply of meat, milk and eggs.

The second effort is protein production from insect farming. Although it can be done and a number of insect species have also been approved, the fact is that currently there are very few insect farms there, so it will still take a long time to produce sufficient volumes as a source of protein in animal feed. The source of protein from these insects is mainly for fish feed. The third effort from energy plantations is from rapeseed trees. Rapeseed meal is another source of vegetable protein. But the availability of rapeseed meal depends on European biofuel policy. Canola oil is the raw material for biodiesel in Europe. The European biofuel policy is contained in the Renewable Energy Directive 2020-2030 where the contribution of biofuels from plants for the target use in the transportation sector is up to a maximum of 7%.

The fourth effort from the rejected and expired products of the food industry. The rejected and expired products of the food industry it’s mean from the food and food ingredients industries, such as the biscuit industry, instant noodles, chocolate bars, pasta and so on. But what is meant is not food waste from restaurants, or catering. EFFPA, the European Former Foodstuff Processing Association estimates that in the European Union around 3.5 million tons of food waste is processed into animal feed every year. The European Union encourages the use of rejected and expired food, including issuing guidelines to reduce food waste to become feed, because it is not fit for human consumption. They have also discussed protein sources from micro algae or single-celled plants, but they are not a priority at this time due to quality and some limitations. 

The importance of realizing the potential as well as improving the vision for optimizing the energy plantation. GMO problems, for example, the use of gliricidia leaves can be the solution, for more details read here. “Quality protein” is important because not all proteins are equal. Several parameters for protein quality are the amino acid profile and the absence of anti-nutritional substances. For example, soybean meal has high scores for all protein quality parameters including palatability, digestibility and safety. A case that can also be used as a reference, in 2007 there was a withdrawal of pet food because it was contaminated with melamine and cyanuric acid (which is high in nitrogen content and identified as crude protein) in protein elements that cause kidney failure. 

The use of nitrogen from the above chemical is also carried out in agricultural products and has also led to the withdrawal of agricultural products from China in South Africa, the European Union and the United States. Even America ordered the USDA to inspect all agricultural products from China. In 2008 and 2009 China focused on eliminating the problem of counterfeiting or mixing and the effects of the crisis. In 2010 a revised version of the feed and feed additive regulations was published to further ensure quality and safety. Even though China is the largest feed producer in the world, the need for feed raw materials still relies on imports, especially flour/soybean meal to support food needs in the form of meat, milk and eggs for around 1.3 billion people.

From a number of efforts by the European Union to plan for self-sufficiency in feed protein sources, it turns out that the source of protein from rapeseed energy plantataions has become a European priority at this time. Meanwhile, with Indonesia's condition which has a large area of land, there are many energy plantations that can be created, even the Ministry of Environment and Forestry has planned 12.7 million hectares for energy plantations as an effort to support the cofiring program at coal power plants in Indonesia more detail read here. Energy plantation by-products will also be abundant. The production of this leaf can be used as an export commodity to Europe, because the need is large. Animal feed production in Europe is estimated at 160 million tons per year or 16% of the world with 5000 units of feed factories. With the consumption of protein in the feed in the range of 30%, the need will reach 48 million tons. When the domestic feed industry has not been able to absorb it, export is the best choice.

 

Ruminant is herbivore so that their diet comes from plants, the case of MBM in Europe can be a valuable lesson that feeding from mammals actually creates new problems. Moreover, if the food category is najis, then the livestock will become jalalah which are prohibited (haram) to be consumed. Meanwhile, the case of mixing with hazardous chemicals that occurred in China with melamine and cyanuric acid is only to trick the protein content so that it looks high and is also harmful to the health of the human body. Islam is very concerned about food or food issues, even in the Qur'an Letter of 'Abasa: 24, Allah commands humans to pay attention to their food. The food that enters our stomach must be halal and thoyyib (good). Foods that contain harmful substances that can poison the body are not thoyyib foods. And one of the consequences of haram (prohibited) food is a barrier to prayer being answered.        

7 Largest Animal Feed Factories in the World

Since animal feed became a trade commodity or commercial product starting in the early 1800s when the means of transportation and propulsion of agricultural equipment mainly used horses and donkeys, a number of animal feed providers began to emerge such as Cargill, ADM, Purina and Ridley. In that era, the science of animal feed nutrition became a scientific discipline, starting in 1810 a German scientist named Albrecht Daniel Thaer developed the first animal feed standard by comparing the nutrients of various types of hay. Around 1900 the hammer mill was first used followed by the horizontal batch mixer in 1909. The early 20th century saw many advances in the use of technology for animal feed but the most noticeable and dramatic progress was when Purina introduced feed pellets in the 1920s. With this pelletization, the powder is less favorable to livestock (unpalatable), the different densities become easier to use and increases uniformity. This pelletization technique was quickly in demand by many feed producers so that in 1930 there were a number of feed factories that specialized in the production of these feed pellets. In 1944 L.A. Maynard published a table of nutritional requirements for livestock and laboratory animal husbandry. The table of nutritional requirements then becomes the world standard for feed formulation to date including ruminants such as sheep, goats and cows. In the late 1950s progress and specialization continued in the feed industry. In addition, the production capacity is also getting bigger, even in the 1970s the range of animal feed factory capacity was between 200 - 500 thousand tons per year. Currently there are about 30 thousand feed factories around the world with a production of more than 1 billion tons every year, and the 7 giant animal feed factories are as follows: 

1.Charoen Pokphand (27 million tons / year)   

Charoen Pokphand's business started in 1921 when two Chinese brothers Chia Ek Chor and Chia Siew Whooy set up a Chia Tai Chueng shop and did business in plant seeds and vegetables from China and exported pork and eggs to Hong Kong. Currently, Charoen Pokphand, based in Bangkok, is the largest Thai conglomerate and also one of the largest conglomerates in the world. The company has 8 business lines covering 13 business groups including the largest retail business in Southeast Asia (Seven Eleven), telecommunications (True), hypermarkets (Siam Makro) and automotive (Dayang Motor). By 2020 this business group has invested in 21 countries. Charoen Pokphand's animal feed production began in 1978 and is currently the world's largest producer of animal feed and shrimp products, as well as the world's top three for poultry, pork and a number of agricultural products. 

2. New Hope (20 million tons / year)

New Hope was founded by Liu Yonghao in 1982 and is also the current managing director. Before founding New Hope Liu Yonghao was a teacher at a technical school and with his three siblings started farming quails and chickens. Today New Hope is China's largest animal feed producer. Apart from New Hope, Liu Yonghao also does business in banking and is the founder of a shareholder in China Minsheng Bank. Currently, New Hope is mainly engaged in the agricultural, livestock and food processing sectors, with a production of 20 million tons of animal feed, processing 1.3 billion chickens and 8 million pigs annually. The company operates in 30 countries including Vietnam, Philippines, Bangladesh, Indonesia, Cambodia, Sri Lanka, Singapore and Egypt. 

3.Cargill (19.2 million tonnes / year)

Cargill was founded in 1865 or about 156 years ago in the United States by William W. Cargill with headquarters in Minnetonka, Minnesota. A year after his birth, his brother Sam joined to form W.W. Cargill and Brother. In 1875 another of James's brothers joined the company. In 1898, John H. MacMillan, Sr., and his brother, Daniel, began working at W. W. Cargill. MacMillan later married William Cargill's eldest daughter, Edna. Today Cargill is still a family company, with the descendants of the founders (from the Cargill and MacMillan Families) owning 90% of the company and is Cargill's largest private company by revenue in the United States.

Some of Cargill's main businesses are trading, purchasing and distributing grains such as wheat and other agricultural commodities, such as coconut oil; trade in energy, steel and transportation; livestock breeding and feed production; as well as producing food ingredients such as starch and glucose syrup, vegetable oils and fats for use in instant food and industry. Cargill also has a financial services business, which manages Cargill's financial risk in commodity markets. Cargill operates in 66 countries and is the largest poultry producer in Thailand. 

4.Purina Animal Nutrition (12 million tonnes / year)

Purina Animal Nutrition was founded in the United States by William H. Danforth in 1894 with the production of a variety of animal feeds under the name Purina Mills. The animal feed produced at that time included horses, dogs, cats, rabbits, pigs and monkeys. In 1902, William H. Danforth with Webster Edgerly, a university professor who founded Ralstonism, who at that time produced breakfast cereal, founded the Ralston Purina company. In 1986 Ralston Purina sold the Purina Mill, the animal feed business for the American market, to British Petroleum and retained its international pet feed and animal feed businesses. In 1993 Sterling Group purchased Purina Mill and in 1998 it was purchased by Koch Industries, but the U.S. the bankruptcy court canceled all of Koch's rights to manage the survival of the company. Lastly Purina Mills was purchased by Land O'Lakes in 2001. 

5.BRF (11 million tons / year) 

BRF S.A. is a Brazilian company which is a merger between Sadia and Perdigao, the two main feed companies in Brazil. Currently BRF is one of the largest feed companies in the world with more than 30 brands in its portfolio, including Sadia, Perdigao, Qualy, Paty, Danica and Bocatti. BRF products are marketed in more than 150 countries in the world. BRF has more than 50 factories in 8 countries namely Argentina, Brazil, United Arab Emirates (UAE), Netherlands, Malaysia, UK, Thailand and Turkey. In Brazil, BRF has more than 30 factories and 20 distribution centers, while overseas operates 9 factories in Argentina, one unit in the UK, one unit in the Netherlands, five in Thailand, one in Malaysia, one in the UAE, and five in Turkey. with the support of 27 distribution centers. The animal feed products produced by BRF are for chickens and pigs. 

6.Tyson Foods (10.3 million tonnes / year)

Tyson Foods is a public trade company from the United States whose main business is in the animal feed industry with headquarters at 2200 Don Tyson Pkwy., Springdale, Arkansas. Tyson Foods is also the world's largest company and marketer after JBS S.A based on chicken, beef and pork. The company was founded by John W. Tyson in 1935 and from its founding until his death in 1967 he served as its managing director. Tyson started out in the chicken market when he heard that chicken in northern America was more expensive than where he lived in Arkansas. In 1936 Tyson brought 500 chickens from his home to Chichago, Illinois and made quite a fortune. Since that success he started raising chickens and making feed for them. Currently Tyson Foods operates in 10 countries with products spread across five continents in the world. 

7.COFCO (8.3 million tons / year)

COFCO (China Oil and Foodstuffs Corporation) is a Chinese state-owned company which was founded in 1949 and is the largest food processor and marketer in China today. COFCO is also one of the leaders of the Asian agribusiness group alongside Wilmar International. Between 1952 and 1987 (35 years), COFCO was the sole importer and exporter of agricultural products under the direct control of the central government. COFCO has a number of production sites in China, as well as in countries such as Japan, the United States, United Kingdom, Australia and Canada.

Soon it is estimated that the era of bioeconomy will become a trend and lifestyle in the world so that the issue of sustainability becomes very important. Bioeconomy itself can be defined as knowledge-based production and using biological resources or living things to produce products, processes and services in the economic sector within the framework of a sustainable economic system. With a Muslim majority population, Indonesia should have developed many bioeconomic models that are in line with Islamic values. This is because bioeconomy will also be related to food and clothing issues which in Islam are very clearly related to the issue of halal and haram. Not only that, of course, the model is also optimized so that it can bring prosperity to the people as much as possible and provide solutions to a number of major problems faced. Islamic economics that have not become mainstream in Muslim-majority countries is one of these big problems. Practically feed and animal husbandry products must be in line with the halal industry so as to provide blessings in the life of the world and the hereafter, not only seeking profit but justifying any means.

World Animal Feed Production Approximately 1 billion tonnes / year and Potential Gliricidia Leaf Feed Pellets

World animal feed production is currently estimated at 1 billion tonnes per year. As a chain to fulfill human food needs, especially meat, animal feed production is very important and strategic. The major countries for producing world animal feed, namely China with a share of 19.6%, followed by a number of countries, namely America with 17.4%, Brazil 6.8%, then countries such as Mexico, Spain, India, Russia, Japan and Germany as well. are major producers of animal feed. the rest by countries around the world. Or with a combination of China, the United States, Europe and Brazil, accounting for more than 60% of world animal feed production with almost half of the feed production being poultry feed. It is estimated that there are more than 8,550 feed factories in China with a production of 179 million tons, 6,012 feed factories in America with a production of 173 million tons, 1,556 feed factories in Brazil with a production of 68 million tons. With an estimated human population in 2050 reaching 9.6 billion, it is estimated that the need for feed will be huge.

Meat is an important source of protein for humans. But for Muslims consuming meat does not only depend on the protein content of the meat, but the type of livestock, slaughtering, and processing it until it is ready for consumption must comply with Islamic law. The prohibited livestock animals cannot be farmed or even consumed because the law is haram (prohibited) for Muslims. Based on a country's animal feed production, it can also be seen what kind of livestock and meat they consume. For example, the Netherlands with about 75 feed factories, the production of animal feed reaches 12.2 million tons per year, the distribution of 5 million tons of pig feed, 3.7 million tons of beef and dairy cattle, 3.1 million tons of poultry and 0.4 million tons other livestock. Meanwhile, Turkey recorded animal feed production of 10.5 million tons with a composition of 4.2 million tons of feed for dairy and beef cattle, 4.6 million tons of poultry, and 1.5 million tons of other livestock. While globally the composition is as follows: poultry feed production is ranked first with a portion of 45%, followed by pig feed at 11%, three ruminants 10% and the rest, such as fish, domesticated and horse feed. Indonesia with a majority Muslim population should also prioritize developing a halal-based animal feed industry so that it is in line with Islamic law. Halal issues are an important and fundamental problem for Muslims in matters of food.

Sources of feed, especially its availability, are vital for animal feed production. A number of countries even have to import various raw materials for animal feed. Even in Europe and America leftovers are also used as a source of raw material for animal feed, which is estimated at 60% in Europe and 50% in the United States. Although world animal feed production reaches around 1 billion tonnes every year, basically the world's major feed producers who dominate production are not much. Currently, it is estimated that there are around 31 thousand feed factories worldwide, with a distribution of one thousand in Africa, 13 thousand in Asia, 5 thousand in Europe, 3 thousand in Latin America, 6 thousand in North America and 288 in the Middle East. Charoen Pokphand (CP), a company based in Thailand, is among the top 10 global feed mills with a production of around 27 million tonnes / year. Furthermore, the China-based company New Hope with a production of 20 million tons / year, then the American company Cargill ranks third with 19.2 million tons, followed by another American company, namely Purina Animal Nutrition with 12 million tons. Other large companies, BRF (Brazil) 11 million tons / year, Tyson Foods (USA) 10.3 million tons / year, COFCO (China) 8.3 million tons / year, Ja Zen-Noh (Japan) 7, 5 million tons / year, Shaungbaotai Group (China) 6.6 million tons / year, and Wen's Food group (China) 6.5 million tons / year.

The era of bioeconomy, which is getting closer and closer, is increasingly encouraging the use of renewable materials for various human activities such as energy, packaging, clothing and so on. The demand for sustainability is an obligation for various industries in this era, including the animal feed industry. A number of locations in Indonesia have created and launched energy plantations to welcome and be in line with the bioeconomy era. Energy or biomass plantations with the main focus on wood utilization, but have not yet utilized the potential of leaves as a by-product of these plantations. Gliricidia is a plant species that is widely used because it is a fast growing and short rotation coppice crop so that in addition to the fast harvest time there is also no need to replant until a certain time. Gliricidia leaves have high nutrition, no less protein content than palm oil cake, soy bean meal and so on, so they have the potential for animal feed production, especially feed pellets. A number of studies mention the use of gliricidia leaves as animal feed for ruminants or fish, but it is not suitable for the type of poultry.

The availability of safe, quality and affordable feed will encourage intensive livestock business. Currently, we still encounter a number of livestock that are fed in the form of municipal waste in landfills, which of course the resulting meat is not suitable for human consumption. The feed factory also indirectly encourages the improvement of food quality from meat and milk produced from livestock business. Tens of thousands and even hundreds of thousands of hectares of gliricidia plantations will produce abundant leaf waste that can be used as raw material for these feed pellets. Typical feed mill capacity is also proportional to the capacity of the farm or its consumers and also the availability of raw materials, for example in Turkey about 60% of feed mills with a capacity of less than 10 tons / hour, about 25% capacity 11-20 tons / hour and the rest with more capacity. of 20 tons / hour. In the end, it is hoped that with the advancement of livestock, it will be easier and more affordable to get halal meat, improve the quality of food and can be reduced and even eliminated the circulation of haram meat on the market.