Asian Agri, one of the businesses that make up the RGE Group of natural resources and agricultural products companies, is pleased to note that its Cows and Palm Oil project has benefited Indonesian cattle farmers in multiple ways. Since 2007, Asian Agri has provided farmers with the waste products from its palm oil tree plantations to use as cattle feed.
The waste comes from trees on the company’s plantation lands in the Pelalawan District of Riau Province on Sumatra. Because Asian Agri cultivates extensive tracts of land, repurposing such a large amount of its agricultural waste fulfills its goal of practicing good environmental stewardship. Established at a time when fertilizer costs were expected to increase, the program has saved farmers money and has assisted government efforts to foster self-sufficiency in meat production. Cattle farmers who have participated in the program have been able to upgrade their cars and homes, and to save money to send their children to college.
According to the head of Bukit Harapan Village, the ability to produce healthier cattle has created additional income streams for the farmers, who are able to diversify by using some of their land for purposes other than palm oil, in advance of the replanting season.
The leader of a local association of cattle breeders agreed, saying that Asian Agri’s regular supply of cattle feed has offered benefits for palm oil plantations, cattle ranchers, and the owners of family farming businesses alike. The consensus among all interested parties is that this partnership has the potential to increase over time in both the amount of land area covered and the quality of the collaboration.
The nonprofit Tanoto Foundation, overseen by RGE Group CEO Sukanto Tanoto and his family, supports the Cows and Palm Oil program by working closely with Asian Agri. The foundation has received wide recognition as a major force within Indonesia and abroad for funding an array of educational programs, academic scholarships, entrepreneur trainings, and social welfare projects.