Thorough planning and preparation are essential for the establishment of a profitable cattle farming operation. Prospective cattle farmers must meticulously evaluate their investment options to ensure success in the industry. In Indonesia, there are two types of investments available for cattle farming: domestic and foreign.
Those who plan to tap into the country’s growing market can explore joint ventures and local partnerships to maximize their investment in Indonesia’s cattle sector. The continued growth of Indonesia's middle class and the ongoing development of infrastructure in the country are expected to sustain a long-term increase in demand for Australian live cattle and boxed beef.
Foreign Investment in Cattle Farming
Indonesia imports around 500,000 heads of cattle from Australia annually. The rise in cold chain services and the growth of the foodservice industry in the country are driving the demand for Australian beef, and investments can be in the form of cattle breeding or cattle fattening.
One successful investment in Indonesia’s cattle sector started from an Australian company. Consolidated Pastoral Company, or CPC, launched a joint venture with Indonesian investor Dicky Adiwoso to unlock opportunities in the country’s red meat and cattle sector. They established PT Juang Jaya Abdi Alam (PT JAA), which now operates two feedlots in Indonesia. These are located in Lampung and Medan on the island of Sumatra. They are known for high-quality equipment and facilities and dedication to animal welfare.
In 2006, CPC expanded its investment by partnering with PT Agro Giri Perkasa, and they established a cattle breeding program in the Lampung feedlot of PT JAA. It began with an initial export of 5,000 pregnant Brahman cross cows, which were then distributed throughout Indonesia to support the increase of the country’s local cattle population.
Today, PT JAA is known for its large feedlots with enclosures that have a capacity to hold 30,000 heads of cattle. They also developed various corporate social responsibility (CSR) programs for surrounding villages which include organic farming, infrastructure, clean water, and financial assistance.
Successful Cattle Investments
Successful investments in cattle farming in Indonesia require high standards of cattle management as well as strict compliance with protocols to prevent diseases and instances of animal cruelty. Familiarity with cattle behavior, nutrition, healthcare, and management practices are essential.
Keeping up to date with industry trends, best practices, and technological advancements can also help improve efficiency and profitability. Investing in cattle farming can be rewarding, but it also comes with risks and challenges. To learn more about foreign investments in Indonesia’s cattle sector, visit our Investor Toolkit.