5. THE TRANSPORT OF LIVESTOCK, LIVESTOCK PRODUCTS AND FEED IN INDONESIA - Argono R. Setioko and Yulvian Sani (Central Research Institute for Animal Sciences)

Argono R. Setioko and Yulvian Sani
Central Research Institute for Animal Sciences (CRIAS), Jl Raya Pajajaran, Bogor 16151, Indonesia

Improvements are required in the infrastructure used in the transport and handling of cattle, especially in the eastern islands of South and Southeast Sulawesi, Nusa Tenggara Timur and Nusa Tenggara Barat. These provinces currently supply a large part of this market. A good transport system for feedstuffs, livestock and animal products could improve the distribution of materials.

The main objectives of this chapter are to present information on the transport system in the livestock industry. These include the transport of feedstuff to Indonesia; the transport of animal feeds from the feed milling industry to users; the transport of live animals to the processing plants; and the transport of end products to the consumers/retail outlets. Since Indonesia is made up of more than 13,000 islands spanning about 5,000 km from east to west, information on inter island shipping of livestock will also be described.

TRANSPORT OF FEEDSTUFFS TO INDONESIA

The commercial feed industry has grown in parallel with the development of the egg industry and the poultry meat industry. Both of these industries make use of hybrid chickens. About 90 per cent of the output of the feed industry goes to the poultry industry, with the remainder being used in the pork, dairy, duck, fish and shrimp industries. The poultry industry is presently located around five cities - Jakarta, Bandung, Semarang, Surabaya (all of these cities are in Java) and Medan (in Sumatera). In 1996, the production of poultry feed had increased to 6.5 million tonnes, only to fall to 2.5 million tonnes in 1998 due to the economic crisis in Asia. About 60 per cent of corn, 90 per cent of fish meal and 100 per cent of soybean meal are imported. Whole rice bran and pollard are locally available.

There are 63 feed manufacturers in Indonesia and these are mainly located in Java and Sumatera (see Table 5.1).

Table 5.1. Location and number of feed manufacturers in Indonesia, 1997

Provinces	Numbers
DKI Jakarta	4
West Java	18
Central Java	8
East Java	16
North Sumatera	10
South Sumatera	1
Lampung	5
South Sulawesi	1
Total	63

In the past, the importing of soybean and fish meal was undertaken by the National Logistic Organization (BULOG), an agency of the Government of Indonesia. However, from 1995, BULOG lost its role as a controlling agent for importing feedstuffs, allowing private companies to freely import feed ingredients. Most soybean meal is imported from the United States, Brazil, Argentine, and India. Imports of soybean in 1997 were 830,000 t, valued at US$260 million (Table 5.2.).

Ships used to transport feedstuffs are classified as either large carriers (normally called “Panamac” ships) or small carriers known as “Handy” ships. The former group have a capacity of approximately 55,000 to 60,000 tonne while the latter group have a capacity of about 25,000 to 30,000 tonne. Ownership of these carriers is usually in the hands of non-Indonesians, but there are some ships owned by Indonesians. Jakarta, Surabaya, Gresik, Cilacap and Semarang are major ports in Java that are able to unload small carriers while Medan and Panjang (in Sumatera) are able to handle the small carriers. All of these ports are controlled by the government. Most imports of feed grains come through Jakarta and Surabaya. One port capable of handling large bulk carriers is Serang, located 60 km east of Jakarta and also called Cigading. It belongs to a private company, P.T. Krakatau Steel. The port is used to unload feed grains, especially from large carriers with 60, 000 tonne capacity. Most ports operate year round, except for Cigading Port. The government has spent millions of rupiah to improve or upgrade the port facilities.

At present in Indonesia there is no port with facilities for automatic loading or unloading grains (“pelabuhan curah”), although ports do have crane facilities capable of unloading 50 kg bags of feedstuff. Animal feed on the ships is put into 50 kg bags on ship by laborers. They are unloaded using the port’s crane facility and usually they are carried by trucks direct to the feed mill. For large feed mills, most corn and soybean is stored in upright silos. The cost for delivering animal feed from ports to feed mills varies from Rp. 30 to Rp. 50 per kg, depending on the distance. That cost includes handling, transport and import document clearance.

Table 5.2. The value of quantity of imported feed ingredients and their countries of origin, 1997

Imported feedstuff	Quantity	Value	Country of origin
	(t)	(US$000)
Hydrolyzed Feather Meal (HFM)	25288	10660.7	Australia, USA, UK, Italy
Corn Gluten Meal (CGM)	75111	33665.5	India, USA, Australia
Meat Bone Meal (MBM)	164751	62475.2	NZ, Australia, USA, Italy, Peru, Can
Soya Bean Meal (SBM)	829930	259527.4	India, Brazil, Argentine, USA
Canola Meal Pellets (CMP)	31750	6614.5	Canada
Wheat Pollard/Bran (WP/B)	63	37.8	USA
Meat Meal (MM)	6280	2596.2	NZ, Peru, USA, Chile
Fish Meal (FM)	48686	31526.6	NZ, Peru, USA, Chile
Poultry By Product Meal (PBPM)	18792	8757.1	USA
Poultry Meat Meal (PMM)	7136	3546.6	UK
Defatted Meat Meal (DMM)	2450	1065.6	Italy, France
Rapeseed Meal Extract (PME)	97097	13695.5	India
Groundnut Meal Extract (GME)	30787	6481.6	India
SM.-300	36	29.9	France
Yellow Maize/Corn (YM/C)	79007	14344.5	Argentine, China
Poultry Protein Meal (PPM)	1000	455.0	USA
Vegetable Protein (VP)	28	25.9	USA
Squid Liver Powder (SQLP)	149	63.8	Australia, USA, South Korea
Canary Seed (CS)	63957	22384.9	Canada
Fish Oil (FO)	36713	23083.3	New Zealand, Peru
Hypro Soy Meal Pellet (HSM)	63000	21152.3	Argentina, Brazil
Brown Flax Seed (BFS)	120	54.4	Canada
Sesame Seed Meal (SSM)	550	141.9	India
Hypro Sunflower Seed Extr (HSSE)	2420	496.1	Argentina
Scallop Liver Powder (SCLP)	54	67.5	Japan
Skimmed Milk Powder Replacer (SMPR)	19	11.5	Netherlands
Blood Meal (BM)	160	640.0	New Zealand
Oats	9	2.2	Australia
Feed Barley	8	2.0	Australia
Fish Soluble (FS)	18	13.1	Taiwan
Sunflower Meal (SFM)	3300	462.0	India
Poultry Grease (PG)	105	509.3	USA
Soybean Lecithin (SL)	15	12.8	USA
Krill Meal (KM)	5	8.0	Ukraine
Rice Bran Extract (RBE)	6767	622.6	India
Total	1596506	525256.6

THE TRANSPORT OF ANIMAL FEED BETWEEN DIFFERENT ISLANDS

Large mills acquire the major domestic ingredients, such as corn, copra meal, and rice bran through agents. The fishmeal that is produced by a fish oil plant on the west coast of Bali is mostly used by a large feed mill in Surabaya. Similarly, corn that is readily available in Lampung is transported by ship to Jakarta and other feed mills around the city. Inter island shipping of animal feed is common.

The price of imported soybean meal, fishmeal and corn tends to be set by the international market and includes transport and handling costs. Ports located in Java have an advantage over those located on other islands because of better facilities. About 70 per cent of the feed manufacturers are located in Java. Problems of inter island transportation arise mainly because of the inconsistency and low frequency of shipping, ship capacity, and the limited number of ships specially designed to transport animal feed. The use of feed containers to carry animal feed on ships is a possible solution but it increases total transport cost.

The role of private sector investment in improving the efficiency of the industry is important. In mid 1998, a special large port for handling feed grains was under construction in Bojonegoro, Serang, 70 km to the south east of Jakarta. This facility is being constructed with the support of the US government. It is here where the shipping of feed grains will be concentrated in the future, since facilities for the automatic loading and unloading of feed grains and silos will be available. When finished, it will be the only modern port for feed grains in Java. There are a series of government regulation that relate to inter island shipping, especially with regard to the safety of transported animals, disease control and penalties that are imposed by the government. Freight rates and the activities of companies participating in inter island shipping on the other hand are not controlled by government. So far the involvement of the private sector in improving the transport infrastructure has been very limited.

TRANSPORT OF ANIMAL FEED ON THE MAJOR ISLANDS

The location of feed mills is usually in the area where port facilities are available for importing feed ingredients. In addition, the location of feed mill also considers the availability of local ingredients such as corn and rice bran since these might be the main ingredients for animal feed. About 50 per cent of feed ingredients comes from corn and about 10 to15 per cent from rice bran. Most animal feedstuff transported between the major islands is in 50 kg bags. Normally trucks and ferries are used to transport feedstuff from Java to Sumatera, Bali, and Madura islands because of the relatively close distance between those islands and the availability of large ferries to carry trucks. However, transport of animal feed to Kalimantan, Sulawesi and Irian Jaya is by small carriers that belong to local companies. These small carrier usually carry timber from Kalimantan or Sulawesi to Java, and on the return trip they carry feedstuff for the poultry industry. In Java, 90 per cent of the feed ingredients are transported by truck, 10 per cent goes by ship, and none by train. Deliveries of fishmeal to the factory gate are normally by trucks owned or controlled by the agents. Ingredients, such as rice bran and other milling products produced by factories located near the feed mill, are collected by the feed mill using its transport equipment. Feed companies generally rent trucks to carry feed ingredients to the feed mill, as only about 5 per cent of feed companies have their own trucks. Large farms use their own trucks to transport feed bought directly from the feed millers. No foreign companies are interested in developing local transport for animal feed in Java.

Special trucks have not been designed for the delivery of animal feed in Indonesia and most of the trucks used in the animal feed industry are also used to carry other commodities. Often these are not particularly involved with the animal feed industry. The size of trucks varies in capacity. Small trucks, with a capacity of 5 tonne (locally called Colt Diesel), bigger ones with 15 tonne capacity, or double trucks with a capacity of 30 tonne are used to transport animal feed. The operating cost of these trucks varies with the distance, and the cost is usually calculated based on weight load. On average, the cost of transporting feed by truck between Jakarta and Sukabumi (about 60 km) is Rp. 20 per kg, while the cost from Jakarta to East Java (about 800 km distance) is Rp. 60 kg per kg. There is no special regulation to prevent trucks from operating in different provinces and they operate across the provincial administrative boundaries. All trucks are required to follow the general public transport safety regulations, and have to be inspected regularly every six months by the government road traffic authority for safety against engine and other equipment failure. Old trucks are usually kept for short distance operation because of the risk of engine problems. The charges for which the truck operator is responsible consist of the cost of a clearance permit and a fee (or “retribution”) for the local government. Before the trucks can be operated, the owner must obtain a certificate of clearance from the office of the local road traffic authority (DLLAJR). They need also to pay a fee (“retribution”) to the local district government and other fees during transportation. The overall fee varies from location to location and depends on the size of the truck.

The development/improvement of roads in Indonesia is a government responsibility. For example, in Java where around 60 per cent of the population live, a higher priority is placed on road development than is the case for the other islands. The priority attached to road improvement also takes into account the industrial and investment growth of the regions.

TRANSPORT OF LIVE ANIMALS TO THE PROCESSING FACILITIES

Live animals are transported between island by ship while trucks or trains are used for inter province movement on a particular island. There is no special carrier for livestock for island to island transportation, although the number of live animals transported has been relatively high in recent years. The absence of a particular carrier is due to the variability from one year to the next in the number of animals that are transported, in the timing of the movement of animals, and the destination of the transported animals. Data for 1997 indicated that around 180,000 cattle were transported from one island to another using local carriers. Around 500,000 cattle were moved from one province to another in Java by truck or by train, or through the use of ferries to provinces located on other islands. These other islands include Sumatera, Bali and Madura.

Transport of live animals to the local market is the responsibility of small farmers. Over a short distance (less than 10 km), the farmer usually walks the animals. For longer distances (over 10 km), they are normally carried by a truck that belongs to a trader or is hired from another company. Small farmers seldom bring their animals directly to the abattoir. They generally sell their live animals to the traders or butchers and the animals are then taken to the slaughterhouse. There are two types of trucks used to transport cattle/buffaloes to the slaughterhouse. “Fuso” trucks have a capacity of 13 to 15 head while “Colt Diesel” trucks carry seven to eight head, depending on the size of the animals. The average time spent by animals on trucks varies from two to 24 hours and this depends upon the distance to be traveled. Prior to their slaughter, the animals must be given a rest for at least 12 hours. There is no incentive paid to the truck drivers who deliver animals to the slaughterhouse with little or no bruising or no reduction in weight. However, the driver will be penalised when animals are lost or die due to carelessness on the driver’s part. The death of a transported animal is very rare. To reduce losses from bruising, the number of animals in each shipment is kept low, and the layout of the truck is usually designed in such a way to minimise losses. The handling involves careful arrangement of the animals, especially during loading and unloading; a well designed gangway; and the placement of the animals on the truck to minimized the movement of the animals. Small cattle traders usually don’t have good facilities. Thus, for them, some bruising at times can not be avoided.

The government controls the transportation of animals at the borders of the provinces or districts. Government control procedures are concerned with the number of animals being transported; the origin of the animals; enforcement of existing regulations, such as a prohibition on the slaughtering of productive female animals; and the requirement that the animal have a suitable health certificate. When livestock are moved across borders, their owner has to pay a governmental fee that varies between locations. For example, at the West Java boundary the charge is Rp. 1500 per head, while at the Lampung boundary, the fee is Rp. 10000 per head.

A study conducted by Soedjana, et al. (1993) indicated that live animals transported from Nusa Tenggara Timur to Jakarta made use of four different transportation systems. First, animals are transported from the village to the quarantine area at Teno in Kupang using a small truck - the “Colt Diesel” mentioned earlier -with a capacity of seven to eight animals. They have to stay in the quarantine station for about seven days. Second, the animals are then transported from the quarantine area to Kupang Port also using a small truck. Third, they are transported from Kupang Port to Surabaya Port in East Java. They are transported using a small carrier equipped with semi-permanent stalls made of bamboo. This facilitates the feeding and watering of the animals during transport. The design of the stalls also takes into account the comfort of animals and is influenced by their size and the carrying capacity of the truck. In East Java, they are kept for at least four hours in the city of Tandes. Finally, the animals are put on a train to Jakarta for the 970 km trip which takes about six hours. On trips such as this, the animals are fed on grasses and straw and given water. The train stops at Cikarang (30 km east of Jakarta), and they are then brought to Tambun for sale in a Bekasi (livestock market). There are some buyers in the market who regularly purchase livestock from Nusa Tenggara Timur. The animals are then taken to a slaughterhouse.

The total cost of transporting livestock is made up of the following:

• a fee at their place of origin;
• the cost of delivery, loading and feeding;
• a charge for the labor involved in looking after animals during travel and their time in quarantine;
• equipment costs such as for rope and bamboo, and animal medicines;
• a fee for the holding yard; an
• a contribution to the Indonesian Association of Livestock Traders (PEPEHANI).

The study of Soedjana et al.(1993) reported that transport costs from Kupang (Nusa Tenggara Timur) to Jakarta varies from Rp. 76000 to Rp. 78000 for cattle and Rp. 91000 per head for buffalo, depending on the distance from the village of origin of the animals. The cost of transporting animals from various locations by different types of trucks is presented in Table 5.3.

Table 5.3. Average cost of transporting animals from various locations using different truck types

Distance	Type of Truck
	Fuso (13-15 heads)	Colt Diesel (7-8 heads)	Tronton (11-12 heads)
	(Rp. per head)	(Rp. per head)	(Rp. per head)
Sukabumi to Bogor (40 km)	125000	75000
Sukabumi to Bandung (100 km)	200000	150000
Sukabumi to Jakarta (80 km)	175,00	150000
East Java to Jakarta (800 km)			600000
Central Java to Jakarta (450 km)			400000
Lampung to Jakarta (250 km)			400000

Source: DGLS, (1998)

The spread of disease is a concern with the movement of cattle from one province to another. There are government regulations that strictly forbid transporting animals from, or to locations, where an outbreak of diseases has occurred. The role of the Livestock Examination Post located at the boundary between provinces is important since its role is to prevent the spread of disease. The future development of cattle transport will emphasize the development of quarantine facilities, especially for imported cattle.

TRANSPORT OF PROCESSED PRODUCTS TO THE RETAILERS/CONSUMERS

Meat from the slaughterhouse is transported locally using vehicles that belong to butchers, transport companies or the private sector. There are two types of slaughterhouses: Type B process meat for inter provincial distribution and Type C for inter-districts. For inter provincial meat distribution, the facilities should include chilling or freezing facilities. The transport cost for carcasses varies according to the distance. For example, the cost from Jakarta to Irian Jaya is Rp. 1,850 per kg while from the Cakung to Jakarta it is Rp. 7,500 per carcass. Cakung is 40 km from Jakarta.

OTHER ISSUES

Inter-island movement of live animals supplies beef cattle from potential areas such as Nusa Tenggara Timur, and Sulawesi to Jakarta. Recently, this movement of cattle has slightly declined due to imports of cattle. The number of cattle and buffaloes shipped from other islands to Java is shown in Table 5. 4.

Figure 5.1. Marketing of cattle and buffalo in Nusa Tenggara destined for Jakarta

Source: Madamba, (1997)

Table 5.4. The movement of cattle and buffaloes from other islands to Java, 1991-1997

Livestock	1991	1992	1993	1994	1995	1996	1997
	(000)	(000)	(000)	(000)	(000)	(000)	(000)
Cattle	494	545	554	577	502	619	453
Buffaloes	96	63	77	78	73	60	53
Total	593	608	631	655	575	679	506

Increased income tends to be associated with increased meat consumption especially beef and buffalo beef. The increase in demand and the limited number of cattle/buffalo in Indonesia has increased imports of live cattle and meat (Table 5.5).

Table 5.5. Imports of cattle and meat, 1991 - 1997

Product	Unit	1991	1992	1993	1994	1995	1996	1997	Average % increase per year
Cattle	head	12298	22903	55999	118352	246890	378316	349469	82.71
Meat	t	5532	20330	8897	12708	24100	15773	n.a.	34.16

Notes: n.a. = not available

Companies from Australia, Denmark and the Philippines are the main ones involved in importing of cattle from Australia and New Zealand. The facilities for handling these animals in Indonesia are very limited, and infrastructure such as disease investigation laboratories and quarantine facilities need to be improved.

Imports of trucks are permitted based on the Ministerial Decree of Industry and Trade No. 230/MPP/Kep/7/97. There are two types of imported trucks - completely built up (CBU) and completely knock down (CKD) trucks. Both types follow the Indonesian National Standard (Standard Nasional Indonesia/SNI) for vehicle identification number (VIN) and are controlled by the Ministry of Trade and Industry. Imports of truck parts are not restricted, but the importer has to pay a certain amount of import tax.

Increases in fuel prices automatically affects the transport sector, especially its operational costs. In the recent economic crisis, transport costs increased due to the higher prices of imported spare parts.

CONCLUDING COMMENTS

In the future, the transport of livestock, animal feed, and livestock products should be improved and developed. Without good facilities, livestock, animal feed and animal products will not be properly distributed since Indonesia consists of many islands. However, there are several constraints in the development of transportation facilities.

Animal feed

• Not all of the major islands in Indonesia have suitable harbour facilities to handle imports and to allow feed and feed ingredients to be transported from one island to another.
• There are many illegal fees that are paid by the transport company. Hence, operating cost will become expensive.
• The schedule of inter island feed transporting is uncertain, and sometimes the ships have to wait until they are fully loaded. This could reduce feed quality.
• There is no special ships for feedstuff. Hence, to avoid contamination, the feed is placed in a container. This increases transportation cost.

Livestock

• There are no special ships to carry livestock. Therefore, inter island transportation of cattle/buffaloes very much depends on other commodities being transported.
• Transport of animals sometimes results in overloading of trucks and this may affect the bruising losses of animals.
• Government officers levy illegal charges at the interprovincial boundary on livestock being trucked from one province to another. This creates problems.

Livestock products

• A very limited number of companies own refrigerated trucks for transporting carcasses or meat. As a result, most traders use ordinary transport facilities to carry meat and this can cause sanitary problems.
• Illegal fees may be charged for inspections at the destination despite the inspection already having been done at the place of origin.

REFERENCES

Soedjana, T.D., Bamualim, U., Umiasih, U., and Semali, A (1993) Studi transport Ternak Potong dari Nusa Tenggara Timur dan Jawa Timur ke Jakarta. Pusat Penelitian dan Pengembangan Peternakan, Badan Litbang Pertanian. Jl. Raya Pajajaran, Bogor.

DGLS, (1998) Sistem Transportasi Pakan Ternak, Ternak dan Produk Hasil Ternak di Indonesia. Direktorat Jenderal Peternakan, Jakarta.