Oil Palm Industry Economic Journal Vol. 2 (1) March 2002 p. 34-44

A Financial Study of Cattle Integration in Oil Palm Plantations

Jusoh Latif and Mohd Noor Mamat
Received:    Accepted:    Available Online:


In the context of government efforts at reducing beef imports, integrated cattle rearing in oil palm plantations is a useful method for producing cattle locally. FELDA and ESPEK and some other organizations are recent participants of the cattle-under-oil-palm programme. Oil palm plantations with trees of seven years or older can produce 500 kg per hectare per year of dry matter, which is sufficient to justify grazing by cattle. One animal requires about 2.5% to 3% of its body weight in grass uptake and an animal which is one to two years old, requires about 3 ha of oil palm area for grazing. This animal is controlled from straying about by electric fencing. Each enclosure of about 4 to 6 ha requires two workers to manage.
This study shows that, in the cases of three estates that were studied, cattle rearing under oil palm can be pursued successfully. The average weight gain of cattle aged between one to two years old was 250 g to 300g per head per day. The calving percentage was more than 50%, while the mortality rate was below 5%t. The average cost of maintenance was low. An average price of RM 5.50 per kg live weight was obtained during normal times but increased to RM 6.50 per kg during festive seasons.
Prices of RM 4.00/kg, RM 4.50/kg and RM 5.00/kg live weight were used to account for the final stock value, depending on the age and sex of the animal. The IRRs obtained from integrated cattle rearing in oil palm plantations, ranged from 25% to more than 50% and the reduction in the cost of weeding ranged from 17% to 38%. That was an additional benefit from the production system adopted.

About Post Author