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CHARACTERISTICS OF THE LIVESTOCK INDUSTRY

Indonesia had about 11 million beef cattle in 1995, and almost 12 million goats. Dairy cattle numbered approximately 330000. Over the period 1941 to 1997, and perhaps somewhat surprisingly for a Moslem country, the number of pigs increased more than seven times from 1296000 to over 9000000 (Figure 6).

Figure 6. Number of four footed animals, 1967 to 1997

The Indonesian government began to seriously pursue food self-sufficiency in 1964 (Soewardi and Atmadilaga 1982), and as noted already self-sufficiency in rice was achieved in the early 1980s. Improved practices developed at Bogor Agricultural University increased rice yields dramatically and led to the adoption of the Bimas or mass guidance program. A similar program was tried for livestock - the “Bimas of Livestock”. When first set up, this program focused on egg production and the fattening of beef cattle (Soewardi and Atmadilaga 1982). Indonesia has attempted to achieve its economic objectives through a series of five year development plans as well as longer term (25 year) plans that overlap with the five year plans. The timing of these and the livestock production associated with each are shown in Table 8.

Table 8. Meat, egg and milk production, 1969 to 1994

Five-year Plan


Year


Meat

Egg

Milk

(kt)

(kt)

(kt)

Repeleta I





1969

309.3

57.7

28.9

1970

313.6

58.6

29.3

1971

332.2

68.4

35.8

1972

366.2

77.5

37.7

1973

379.4

81.4

35.0

Repeleta II





1974

403.1

98.1

56.9

1975

435.0

112.2

51.1

1976

448.9

115.6

58.0

1977

467.7

131.4

60.7

1978

474.6

151.0

62.3

Repeleta III





1979

486.5

164.5

72.2

1980

571.3

262.6

78.4

1981

596.0

275.2

85.8

1982

628.5

297.0

117.6

1983

651.5

316.0

174.6

Repeleta IV





1984

742.2

355.3

179.0

1985

808.9

369.9

191.9

1986

879.0

437.2

220.2

1987

895.5

451.5

234.9

1988

937.0

443.1

264.9

Repeleta V





1989

971.1

456.2

338.2

1990

1027.7

484.0

345.6

1991

1099.2

510.4

360.2

1992

1239.2

572.3

367.2

1993

1378.3

572.9

387.5

Repeleta VI


1994

1492.9

668.6

426.7

1995(a)

1564.3

728.8

432.9

Notes: (a) preliminary figures
Source: Direktorat Jenderal Peternakan
When the First Development Plan (Repeleta I) was started in 1969, the livestock sector was traditional and meat production was about 309000 t. Eggs and milk production were 57700 t and 28900 t., respectively. Soewardi and Atmadilaga pointed out that increasing per person income levels in Indonesia, particularly since the beginning of the second Five year Development Plan in 1974, led to increased demand for livestock products. This increased demand resulted in the slaughter of many female cattle. The government allocated 5.1% of the total agricultural development budget to livestock in the second Five year Development Plan and 6.4% for the third Plan. In this plan, the government intended that the production of eggs, meat and milk should be increased to meet demand and that the population of ruminants should increase by 1% or 2% a year.

Kristanto (1982) argued that cattle are an important part of the Indonesian economy. As evidence, he cited the fact that in 1973 about 13% of Indonesia’s smallholders, accounting for 60% of the total population, were engaged in cattle production and crop raising. Twenty years later in 1993, about 5600000 Indonesian households or about 26% of rural households were in livestock production. All but 291000 of Indonesia’s livestock households were classified as rural households. The number of households in livestock husbandry in 1993 was almost 27% above the number in 1983. Provinces where relatively large increases occurred were Lampung (the province on Sumatera located closest to the heavily populated province of West Java and Jakarta), Maluka (between Irian Jaya and Sulawesi) and Timor-Timur (Table 9).

In general the farm households involved in livestock production practice mixed farming, combining crops and livestock. For small farmers, livestock can provide benefits through sale of product and improved nutrition through increased consumption of meat, milk and eggs.[3] Livestock are also used for ritual and ceremonial occasions, and recreation.[4] Larger livestock - cattle and buffalo - are liquid assets that provide a hedge against inflation and can be converted to cash when the need arises.[5] The Food and Fertilizer Technology Center (1995) explains that investing in livestock enables small scale upland farmers in Asia to spread their risks and to use profits from good years to help survive the bad years. Animals are also seen as a way of recycling nutrients for cropland areas.

Table 9. Number of households engaged in animal husbandry by province

Province



Urban

Rural

Total

Ratio of 1993/1983



1983

1993

1983

1993

1983

1993

(000)

(000)

(000)

(000)

(000)

(000)

DI Aceh

2

5

110

152

112

157

1.40

Sumatera Utara

10

14

174

231

184

245

1.33

Sumatera Barat

9

2

88

117

97

119

1.23

Riau

2

5

37

68

39

73

1.87

Jambi

1

1

40

47

41

48

1.17

Sumatera Selatan

6

4

75

124

81

128

1.58

Bengkuku

1

1

23

27

24

28

1.17

Lampung

3

3

90

196

93

199

2.14









DKI Jakarta

4

1

0

0

4

1

0.25

Jawa Barat

20

46

415

441

435

487

1.12

Jawa Tengah

31

58

692

848

723

906

1.25

DI Yogyakarta

4

25

97

128

101

153

1.51

Jawa Timur

50

72

1232

1454

1282

1526

1.19









Bali

5

10

161

195

166

205

1.23

Nusa Tenggara Barat

6

6

135

163

141

169

1.20

Nusa Tenggara Timur

3

6

184

243

187

249

1.33

Timor-Timur

0

1

33

59

33

60

1.82









Kalimantan Barat

2

4

98

140

100

144

1.44

Kalimantan Tengah

2

1

21

29

23

30

1.30

Kalimantan Selatan

2

1

35

58

37

59

1.59

Kalimantan Timur

5

3

18

34

23

37

1.61









Sulawesi Utara

3

4

72

87

75

91

1.21

Sulawesi Tengah

1

2

56

66

57

68

1.19

Sulawesi Selatan

9

9

306

301

315

310

0.98

Sulawesi Tenggara

0

2

23

40

23

42

1.83









Maluku

2

2

21

41

23

43

1.87

Irian Jaya

2

3

62

103

64

106

1.66









Indonesia

185

291

4298

5392

4483

5683

1.27

Source: Direktorat Jenderal Peternakan
About 30% of households in the livestock industries in 1993 had six or more family members, while 25.5% had fewer than four household members. The most likely age category for the farmer was 40 to 59 years, and few (10%) had been educated beyond primary school (Table 10). For those with another source of income, in 78.1% of cases it was likely to be agriculture (Table 11). The family plays an important part in livestock industries since much of the responsibility for looking after the animals is given to the farmer’s spouse and children. As Nari (1992) explains, children in a West Java study were found to prefer to manage small animals and poultry rather than join their parents in cultivating crops. Children collected grasses from roadsides and vacant land as they returned home from school. In the dairy industry, the farmer’s spouse and children are responsible for delivering milk to collection points and for much of the day to day care of the cow (Hutabarat, Riethmuller, Sayaka, Smith and Yusdja 1996).

Table 10. Characteristics of Indonesian livestock producers, 1993

Item

Number

Percentage

Household size

< 4

1377817

25.5

4 - 5

2401156

44.5

6 - 7

1224886

22.7

> 7

390409

7.2

Total

5394268

100.0

Age

< 20 years

18114

0.3

20 -39

1740276

32.3

40 - 59

2814542

52.2

> 59

821336

15.2

Total

5394268

100.0

Education

no education

1149056

21.3

not completed primary school

1833111

34.0

primary school

1874353

34.7

junior high

305691

5.7

senior high

210038

3.9

university

22019

0.4

Total

5394268

100.0

Source: Direktorat Jenderal Peternakan

Table 11. Main income source of Indonesian farmers, 1993

Source

Number

Percentage

Other agriculture

4215204

78.1

Mining and quarrying

54275

1.0

Industry/handicraft

87786

1.6

Trade

254098

4.7

Transport

78987

1.5

Services

334288

6.2

Income earner

110697

2.1

Other

228406

4.2

No other

30527

0.6

Total

5394268

100.0

Source: Direktorat Jenderal Peternakan
As mentioned already, the majority of households engaged in livestock production rely on other agricultural industries for income. Livestock play an important part in crop production since they provide draft power, manure and add value to crop residues. They also make use of seasonal labour surpluses, or underemployed family labour.[6] The contribution to farmer welfare of livestock varies regionally and with farm wealth. Oka, Widowati, Lubis and Holden (1992) say that in certain of the poorer regions of Indonesia, commonly those without natural resources and land suitable for irrigation, livestock play a more important role in the rural economy. They point out that livestock have been found to contribute a “greater proportion of household income in poorer families compared to similar wealthier families” (p56).

Now that a broad overview of the numbers of farmers involved in livestock production has been provided, the next part of this appendix will examine the industries making up the sector.


[3] Nari (1992) summarizes research that has investigated the improvements that livestock can make to farmers’ incomes in different parts of Indonesia.
[4] Ashdown (1992) describes how in South Sulawesi most ceremonies involve the sacrifice of animals, such as buffalo, pigs, horses or chickens. The slaughtering of buffalo at funerals for example is tied to the belief that the buffalo is “a vehicle to reach heaven” (p. 240). Ashdown’s view is that it is important for government workers to understand rural traditions since these may offer a reason for farmers adopting particular practices over others that may be more financially profitable.
[5] Patrick and Vere (1992) claim that “the market price of cattle and buffaloes is a minor consideration in the smallholder farmer’s perceived value of these animals” (p. 188).
[6] According to Kasryno and Suryana (1992), underemployment (working less than 35 hours per week) in rural areas was relatively high at around 57% in 1990. The corresponding figure for urban areas was about 41%.

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