A Business Case Study of Beef Cattle Farming and Fish Cultivation in Central Kalimantan

This case study by the Climate Policy Initiative (CPI) evaluates the feasibility of beef cattle farming and fish cultivation as alternative livelihoods for oil palm smallholder farmers in Central Kalimantan, Indonesia. The research focuses on diversifying income to mitigate risks associated with climate change, market price volatility, and the long productivity lead times of oil palm plantations.

• Beef cattle farming is a profitable alternative livelihood for smallholders, with a projected net profit of approximately IDR 2 million per month, which is near the provincial minimum wage of IDR 2.4 million. The business has an internal rate of return of 274.4%, though it requires high initial capital and access to bank financing to be viable.
• Cattle feed can be effectively supplemented using oil palm leaf waste. Research indicates that a feed mixture consisting of 60% palm leaf, 20% grass, and 20% rice bran allows cattle weight to grow at a rate of 0.50 kg per day.
• Fish cultivation is a feasible alternative that requires lower investment and less maintenance than cattle farming. Tilapia is more profitable than silver catfish, with a potential annual net profit of IDR 7.4 million based on an investment of IDR 3.8 million over three harvest periods.
• Fish cultivation in Central Kalimantan is challenged by the high acidity of peatland water, requiring farmers to use calcium carbonate and continuously monitor pH levels to ensure fish survival rates.
• Oil palm smallholders in Central Kalimantan face significant economic vulnerabilities, including a lack of technical assistance compared to 'plasma' farmers, long wait times for peak productivity (over seven years), and price control by intermediaries and mills.

APA

Haesra, A., Novianti, C., & Wijaya, M. E. (2018). A Business Case Study of Beef Cattle Farming and Fish Cultivation in Central Kalimantan. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2018/10/Empowering-Oil-Palm-Smallholder-Farmers-through-Alternative-Livelihoods.pdf

Chicago

Haesra, Alke, Cherika Novianti, and Muhammad Ery Wijaya. A Business Case Study of Beef Cattle Farming and Fish Cultivation in Central Kalimantan. Climate Policy Initiative, 2018. https://www.climatepolicyinitiative.org/wp-content/uploads/2018/10/Empowering-Oil-Palm-Smallholder-Farmers-through-Alternative-Livelihoods.pdf.

Wikipedia

{{cite report |last1=Haesra |first1=Alke |last2=Novianti |first2=Cherika |last3=Wijaya |first3=Muhammad Ery |title=A Business Case Study of Beef Cattle Farming and Fish Cultivation in Central Kalimantan |publisher=Climate Policy Initiative |date=October 2018 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2018/10/Empowering-Oil-Palm-Smallholder-Farmers-through-Alternative-Livelihoods.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{haesra2018business, author = {Haesra, Alke and Novianti, Cherika and Wijaya, Muhammad Ery}, title = {{A Business Case Study of Beef Cattle Farming and Fish Cultivation in Central Kalimantan}}, institution = {Climate Policy Initiative}, year = {2018}, month = oct, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2018/10/Empowering-Oil-Palm-Smallholder-Farmers-through-Alternative-Livelihoods.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }