An Investor's Guide to Cattle Farming and Red Meat Production in Indonesia

Productivity | Thursday, March 30, 2023

Cattle farming is a highly intricate endeavor that demands meticulous planning and preparation to ensure a prosperous outcome. Once the pre-operational phase of cattle farming has been completed, the next step is to implement operational preparations to begin farming via the cattle production model. This model is categorized into two primary business models: Cattle Breeding and Cattle Fattening. 


Cattle Breeding 

A production system that involves breeding and hybridization with several sub-business models in Indonesia, including the SISKA Breedlot, SISKA Extensive, Cut & Carry, and O pen Grazing. 

  • The SISKA Breedlot model involves cattle spending a part of the production cycle in a breedlot for a more supervised and overall better calving process. The cows and calves remain in the breedlot until they are robust enough to join the grazing herd in the plantation. They rotationally graze understory forages for the rest of the year. 
  • The SISKA Extensive model allows cattle to graze on large areas of land under palms, which presents significant commercial potential since the land is already purchased and in use for palm oil production. 
  • The Cut & Carry model involves working with farmer cooperatives who collectively own and manage cattle and facilities, a breeding system that has farmers cutting forage from their own land and carrying it to a breedlot where mating, calving, and growing occur. This system is used when grazing land is not available. 
  • Lastly, the Open Grazing model involves cattle grazing directly on pasture, both native and improved. Cattle can permanently graze in the fields or graze during the day but return to a barn at night. By-products and other rations can be fed to the cattle both in the field or in the barn. 

Cattle Fattening 

On the other hand, the feedlot sector represents an intensive production system with the goal of growing and/or fattening cattle until they reach slaughter weight. The feedlot sector can be further divided into growing (backgrounding) and finishing (fattening) phases.  


Aside from differing in general intent, these two business models also have different practices for facilities, feed, and cattle management. For example, the necessary infrastructure needed to support a Breeding system may not necessarily be applicable to a Fattening model, with both necessitating their own regulations and operational intricacies. To learn more about these practices, visit our Cattle Production Model overview.

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