The government of East Nusa Tenggara province in Indonesia plans to set up three medium-capacity (5000-15,000 tons/month) feedmills in Timor, Flores, and Sumba islands — three production centers of pig, poultry, and beef cattle. ARIEF FACHRUDIN writes that hope the new ventures, costing USD 2.7 million would revitalize the local feed industry.
“The construction for two of the feedmills is expected to start this year,” said Daniel D Kameo, Executive Advisor to the Governor of East Nusa Tenggara, adding that the province’s Livestock Agency is responsible for the the project.
“Their preparations are almost complete. They have surveyed the locations, the equipment, and other related things,” he said.
Once the feedmills are complete, the agency will work with the private sector to operate the plants under a revenue sharing system.
“Response from the private sector has been positive. Currently we have three candidates that have shown interest in being partners,” revealed Dr Kameo.
The feedmills are a start
The decision to build the feedmills was made based on a scientific study. Dr Kameo, who is also Professor of Development Economics at Satya Wacana Christian University, explained that their study found that feed production and breeding have the highest added value economically.
“For example, feed and breed account for 30% and 20% respectively of the total economic value of a pig. That’s why I recommended that we construct feedmills and breeding centers to develop the livestock sector in the province,” he explained.
Also from the study, the province’s demand for commercial feed in 2019 went up to 204,600 tons with a total value of USD 124 million.
Demand for pig feed was the largest at 76%, followed by demand for broiler feed (18%). The smallest demand was for beef cattle feed (0.01%).
Local supply could not meet demand, considering that the province only has one feedmill in Manggarai, with a capacity of less than 10,000 tons of pig feed a year.
“Unfortunately, the total feed demand in 2019 was met by imports from feed companies in East Java, South Sulawesi, and Bali,” said Dr Kameo. According to the study, nine feed companies regularly export their feeds to East Nusa Tenggara.
“The feedmill project aims to meet domestic demand. We don’t mean to dominate the market, but we want our livestock farmers, corn farmers, fishermen, and local fishmeal producers to prosper. The feedmills will have multiplier effects, such as creating new jobs and business opportunities,” he explained.
Feed market and raw materials
Dr Kameo said many farmers in the province raise their livestock semi-intensively and even traditionally. If the traditional farmers shift to semi-intensive farming and the semi-intensive farmers to intensive farming, demand for commercial feed would increase.
Therefore, with continuous technical assistance and training on feeding and farm management for local farmers, he predicts the province’s feed demand would increase to 300,000 tons in 2024 —a demand that can be fulfilled by the feedmills.
“This is a big market for the new feedmills that we will build. Plus, there is also potential to export the feed to Timor-Leste,” he said.
In addition, livestock population in the province is predicted to continue to increase. In 2019, the pig population was at 2.8 million heads (the biggest in Indonesia), commercial broiler at 7.4 million birds, native chicken at 10.9 million, and beef cattle at 1.1 million heads.
With such market potential, the three feedmills are projected to produce enough feeds for pigs, poultry, and beef cattle. There is also possibility to produce aqua feed.
To produce the feeds, Dr Kameo claimed the local supply of feed raw materials was abundant. “Around 70-80% of energy, protein and mineral source raw materials can be met locally,” he said.
In 2019, the supply of local feed corn was around 170,000 tons. In 2024, this volume is expected to increase to 1mt. For fishmeal, the production potential is 63,500 tons annually.
“Our corn supply is abundant, and we will prepare more land for intensification. For fishmeal, I have talked with two local suppliers, and they are ready to support,” said Dr Kameo.
He added that the province also has copra meal, sorghum, cassava, and plant protein sources (leucaena, moringa, and ulva) that can be used as alternative feed ingredients.
“Other than that, premix and feed additives, must be imported from other provinces,” he said.
To support the feed sector’s development, the provincial government also plans to set up breeding centers. The most important one is a pig breeding center to supply good quality genetics to pig farmers in the province. This project will be run by the province’s technical service unit.
Setting up a breeding center for commercial broilers is also important, said Dr Kameo, because demand for broiler DOC in the province is met by imports from other provinces.
For the next step, the province will develop breeding centers for beef cattle and goats.
“All these developments are aimed to increase our food sovereignty. With support from Governor Viktor Bungtilu Laiskodat, we believe we can make it happen,” Dr Kameo concluded.