Integrasi Perkebunan Kelapa Sawit dan Peternakan Sapi Potong di Provinsi Riau : Analisis Ekonomi dan Keberlanjutan

Abstract

Smallholder oil palm plantations (PR) require special attention because they provide a living for over 2.66 million farming households. The productivity of oil palm varies between PR and large plantations. The productivity of PR palm oil is 3.44 tons/ha/year, which really is lower than the national productivity. PBN and PBS have annual rates of 3.81 tons/ha, 4.23 tons/ha, and 4.04 tons/ha, respectively. Efforts to encourage PR to increase oil palm productivity and income can be accomplished by implementing business diversification, especially with livestock. Farmers who have to use integrated agricultural practices, particularly smallholder oil palm plantations with cattle, can influence economic, social, and environmental conditions. In the context of developing integrated oil palm-cattle farming, it is essential to assess farming success in managing and going to generate value from the resources used. This study aims to: 1) analyze the technical and economic relationship between farming branches on oil palm-cattle integration in Riau Province; 2) analyze the determinants of the adoption of the oil palm-cattle integrated farming system in Riau Province and its impact on the use of external inputs and household labor allocation; and 3) analyze the sustainability status of oil palm-cattle integration in Riau Province. From February to July 2021, the study was conducted in five districts of Riau Province. The sample included 165 farmer households engaged in beef cattle farming activities that were integrated with oil palm plantations and 135 oil palm farmers who did not integrate. In 2020, cross section data will be collected using a questionnaire as a research instrument for farming data. The production function analysis is carried out using the stochastic frontier analysis method with the Cobb-Douglas production function model for oil palm farming and the stochastic input distance function for integrated farming. Analysis of the production function can calculate both efficiency and technical inefficiency. The logistic function measures the factors influencing adoption in two categories, namely integrated and non-integrated farming. The role of household workers and the market dependency ratio (MDR) of farming are indicators of internal input productivity. The sustainable value added (SVA) approach was used to analyze the sustainability of integrated oil palm-cattle farming, and the Linear Program was used to estimate farming optimally. The research showed that the integration of oil palm and cattle farming in Riau Province had not been carried out optimally. This is due to the fact that the only input resource used is livestock manure, which is used for fertilizing oil palm or for sale. Farmers do not provide animal feed that is expected to come from palm oil frond waste because farmers can still provide forage animal feed from natural grass. The number of plants, the use of labor outside the household, the use of pesticides, and the use of labor within the family all influence the use of production factors in oil palm farming. Non-integrated farmers, on the other hand, are only affected by the number of plants.

Integrated oil palm-cattle farming is a profitable farming method that benefits the households of integrated smallholder oil palm plantation farmers. Integrated farmers benefit more than non-integrated farmers. Integration farmers spend 13.43 percent less on fertilizers for oil palm plantations than non-integrated farmers, without affecting oil palm production, and the level of technical efficiency achieved by integrated farmers is an average of 94.49 % comparison to non 82.40 %. Oil palm and cattle interaction is still in dis-synergy. This demonstrates that competition exists in the use of inputs by integrated farmers. Farm income is affected by the input factors of land area and livestock number. The availability of cattle operational costs will be affected by the oil palm area. This implies a strong relationship between oil palm income and farmer needs for cattle operational costs. Cattle presence has a significant impact on farm income from oil palm. Farmers' decisions to integrate oil palm-cattle are influenced positively by the time of involvement of the head of the household in oil palm plantations, the extension received by farmers, the income of farmers from oil palm, and the dependent ratio of the household. Meanwhile, formal education and participation in farmer groups/cooperatives are factors that encourage farmers not to integrate oil palm-cattle. Family labor productivity tends to be low in farming systems with livestock as a component, indicating the labor-intensive nature of the livestock business. Integrated farmers have a lower market dependency ratio than non-integrated farmers, implying a lower reliance on input markets. Integrated oil palm farming has not been able to achieve sustainability in terms of land, capital, labor, and fertilizer resources. Technical efficiency, oil palm plantation area, nitrogen residues, and cattle production are all factors that influence sustainability efficiency. Oil palm-cattle integration farmers use livestock waste as fertilizer for oil palm plantations, which is processed into solid compost and liquid compost. The greater the ownership of oil palm plantations, the greater the utilization, so that farmers are using all of the compost produced by their livestock production. Farmers with 1-2 ha of land have higher farm productivity than farmers with land area of >2 ha to 8 ha, but with more land (> 8 ha), integrated farming activities can achieve higher incomes than farmers with land area1-2 ha. With increased oil palm area, PR's management of oil palm-cattle integration will improve. Effective counseling and training are still required to improve farmers' ability and insight, particularly for husbands. To achieve optimal farming, farmers need to increase the number of cattle, use livestock waste and allocate family labor.