Riau
Province Summary
Pekanbaru
Fishery, Forestry, Agriculture
Market
Supply (-)
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0
Heads
Import (-)
Cattle
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Heads
Export (-)
Cattle
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Heads
Market (-)
Size
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Tons
ESCAS Feedlot in
The Province (-)
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Feedlot
ESCAS Abattoir in
The Province (-)
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Abattoirs
Land Utilization (Ha)
Port Infrastructure
Port for Cattle
Sea Toll Route
UnavailableLoading Unloading Time (Days)
Regulation and Incentives
Feed
Feed Production
Support Systems
Breeding
Cattle
Import
Breeding
Fattening
Fattening
Trading
Cattle
Collector
Interprovince
Trader
External
Market
Processing
Abattoir
Processing
Strong sectors
Weak sectors
Province Overview
- Riau is a province with one of the lowest cattle populations in Indonesia.
- Palm oil industry plays a significant role in Riau, with plantations spread across almost all regencies and cities. This is reflected by the 40% approximate contribution of the palm oil industry to the provincial GDP. The vast area of palm oil plantations could be integrated with the cattle breeding business, lowering the cattle feed cost.
- Domestic Investment Realization in Riau reached 43 trillion IDR while Foreign Investment Realization reached USD 2.7 Billion in 2022.
- In terms of seaport infrastructure, Dumai seaport are the main port that have actively been utilized for cattle transport activities, both domestic and international.
- Overall, Riau holds a great potential for cattle breeding business due to its beef supply deficit and the abundant grazing area available. The value chain, however, will require improvements in various aspects to support the local breeding business.
Real-time update on Beef Prices in each Province
SIMPONI-Ternak is a digital tool developed by Indonesia’s Ministry of Agriculture in response to the high need for market information, covering real-time prices for multiple agricultural commodities in each province. For real-time beef prices in each province, please click the button on the right.
Provincial Macro-data
Riau GDRP (billion USD)
Riau population (thousand)
Riau minimum wage (USD)
Riau cattle population (head)
Investment Considerations
Stories from the Field
Success Story
- Palm Oil Farmers set up Cattle Production as Secondary Revenue Source for Post-harvest Period
To help palm oil farmers in acquiring revenue even though it is not harvest season for palm oils, PTPN V has set up a program to develop cattle fattening business within the area. For the long-term plan, they are planning to implement the SISKA model, where the cattle can find feed from the palm oil plantations but also provide manure as fertilizer.
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Lesson Learned
- Cattle auction in Riau are quite deserted because there were no qualified company
In order to increase cattle population in the area, the government conducted an auction so capable company could compete and provide best cattle to be supplied. The auction was conducted twice in 2019, but from 41 out of 48 cattle companies that joined there were no winner because none of those companies were qualified enough.
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Existing business model
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41,817
Definitions
- Commercial feedlots are legal business entities with the purpose of increasing the weight of the cattle (BPS, Large and Small Livestock Establishment Statistics 2022).
- Commercial breedlots are legal business entities which focus on raising livestock to breed and produce new, young livestock with inherited traits (BPS, Large and Small Livestock Establishment Statistics 2022).
Smallholders are small-scale cattle businesses, usually family owned, with varying cattle number per household. The average smallholder farmers' ownership in Indonesia is about 2 to 5 cattle per household, but it can reach 20 to 50 cattle per household in regions which cattle farming are a main source of livelihood, such as NTB and NTT (BPS STU 2014)
Below are the existing business model