As a predominantly Muslim country, Indonesia’s demand for beef continues to grow year on year. Beef is a vital source of protein in their diets, as it is the only meat considered halal or permissible under the Islamic law. It also plays a significant role in their culture, as a frequently used ingredient in many of their most popular dishes. Despite the population’s increasing demand for beef, the local industry is only able to meet around 60% of the domestic market’s demand. As such, Indonesia’s beef market is highly dependent on imported feeder cattle from India, Australia, and Brazil.
With the constant demand for beef in Indonesia, investors should explore opportunities to tap into this market. When it comes to farming livestock, there lies a high reward, low risk business opportunity for investors. Most livestock mature in just a few years' time, which increases their value as assets at a faster pace, in comparison to other asset classes. Upon their maturity, livestock becomes a valuable commodity that can provide investors with steady returns. Coupled with the proper implementation of management practices, this could help investors maximize the return on investment on beef cattle.
Apart from presenting investors with a high reward, low risk opportunity, cattle farming is a business venture that has room for significant growth. Investors scale up their cattle farming businesses with relatively small amounts of capital, thus making it an attractive venture. All it takes for investors to take their cattle farming business to the next level is secure a few acres of land and sufficient feed supply. With these alone, investors can already expand their business, without shelling out too many resources.
Beyond meat production, cattle farming also provides investors with other sustainable revenue streams, such as the sale of live animals and by-products, like hides and offal. In Lombok, Indonesia, a cattle farm even began producing and selling compost made of cattle manure and other organic materials, which quickly gained popularity on the island. The profit they made from selling the compost helped them cover upkeep costs of the cattle farm’s operations. With proper management and strategically implemented breeding programs, cattle farms can offer investors multiple sources of income, which would in turn boost their overall return on investment for beef cattle.
Overall, the outlook on cattle farming is highly promising, presenting investors with many opportunities to maximize the return on investment on beef cattle. With the steady demand for beef in Indonesia, a low risk and high reward business model, the potential to scale, and alternative streams of revenue within cattle farming, there lies an attractive business opportunity for investors to capitalize on. Explore our Investor Toolkit to stay up to date with cattle farming investment opportunities.