Feasibility of Integration of Cattle with Oil Palm Crops at Industry and Farmer Level

Firmansyah, Suparjo, Sri Novianti, Pahantus Maruli


This study analyzes the feasibility of the market, technical and technological, financial and social integration of the system at the industrial and farmer levels. The market aspect can be seen in the market potential in absorbing integrated products, technical and technological aspects refer to the Regulation of the Minister of Agriculture of the Republic of Indonesia No. 46/Permentan/PK.210/8/2015, and financial feasibility using investment criteria analysis and social feasibility including the response of the surrounding community. The driving factor for implementing the integration system for cattle and oil palm plantations at the industrial level is the benefits of integration, while the inhibiting factor is that the company still finds doubts about the negative impact of organic fertilizer on oil palm plantations. At the farmer level, the driving factor is the profit gained from integration, while the inhibiting factor is the limited market for selling organic fertilizer. Market and marketing, technical and technological, financial and social feasibility at the industrial level is feasible and not sensitive to changes in input-output, while at the farm level is feasible except for market aspects and sensitive to changes in prices and output volumes (compost). The novelty of this research is the driving and inhibiting factors for the implementation of the integration of cattle with oil palm plantations at the industrial and farmer level, and the comparison of aspects of the feasibility of integrating cattle with oil palm plantations between industrial and farmer.


Keywords: cattle integration system, oil palm plantation, farmers.



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