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

The report evaluates two alternative income streams for oil palm smallholders in Central Kalimantan to mitigate risks from climate change and market volatility. Beef cattle farming, utilizing oil palm leaf waste for feed, is found to be highly profitable with a potential net profit of IDR 2 million per month, though it requires significant upfront capital. Fish cultivation, specifically tilapia and silver catfish, offers a lower-investment alternative, with tilapia providing a potential annual net profit of IDR 7.4 million. Both options are deemed feasible and scalable to help diversify rural incomes and support a green growth strategy in the region.

• Beef cattle farming is a highly profitable alternative livelihood with an internal rate of return of 274.4%, potentially earning smallholders approximately IDR 2 million per month, which is near the provincial minimum wage of IDR 2.4 million.
• Cattle farming requires high initial investment, totaling IDR 89.4 million for a six-cow operation, with calves alone costing IDR 70 million, making access to bank financing critical for success.
• Oil palm leaf waste can be effectively used as cattle feed, specifically a mixture of 60% palm leaf, 20% grass, and 20% rice bran, which results in a cattle weight growth rate of 0.50 kg per day.
• Fish cultivation is a lower-investment alternative to cattle, with tilapia being more profitable than silver catfish; tilapia requires an investment of IDR 3.8 million for a potential annual net profit of IDR 7.4 million.
• Silver catfish cultivation is less beneficial than tilapia due to a much higher investment requirement of IDR 20.2 million and a lower rate of return.
• Smallholder oil palm farmers in Central Kalimantan face significant vulnerabilities, including climate change, price volatility controlled by mills, and a lack of technical assistance compared to plasma farmers.
• The high acidity of peatland water in Central Kalimantan (pH 3 to 6) poses a challenge for fish cultivation, requiring the continuous use of calcium carbonate to modify pH levels and ensure fish survival.

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} }