Beef Industry Development Project, Aceh Besar

Industrial Area

Beef Industry Development Project, Aceh Besar

Property Description

To develop this potential, the Aceh Government has prepared a Master Plan for the Development of livestock areas which is divided into three development areas, namely the Industrial Center Area, the Fattening Center Area and the Breeding Center Area. The main activities in this project are infrastructure development, building irrigation and grazing land, construction of feedlots, breeding room and cattle fattening. Aceh beef development project strategies includes: Development of farms with a nucleus-plasma scheme, building a cattle breeding management system (grazing or feedlot), building a feedlot in each district with halal beef processing and meat distribution. Targets for initial development: Aceh Besar, Pidie, Bener Meriah District, Aceh Tengah, and Nagan Raya.

Market Opportunity

Opportunities to maximize the economic potential of Aceh cattle were still quite high. The opportunity factors include the high demand by the community, the existence of the “Meugang” tradition in Aceh local society, and Aceh cattle as sacrificial animals for religious purposes. The “Meugang” tradition is the tradition of slaughtering goat or cattle, which is done three times a year (1–2 days before Ramadhan, Eid al-Fitr, and Eid al-Adha). The main threats faced by the Aceh cattle business included difficulty in Aceh cattle breeding, so the price of the calves is relatively high; competition with other cattle breeds that have higher productivity; and the decrease of purchasing power of the consumer.

Financial Estimation

Total Estimate:
$33.147.500 USD IRR/NPV/BEP:
$33.147.500 USD