The economic aspect of cattle development in West Nusa Tenggara

Abstract

The importance of cattle development in West Nusa Tenggara lies not only in producing cattle for local meat consumption and draught animals but also in catering for the needs of the deficit regions in Indonesia and for exports to overseas markets. Consequently, the starting point was a review and assessment of production capabilities, particularly in the rate of cattle population growth, the level of meat production and feeding management. A projection of cattle population and meat production to the end of the Second Five Year Development Plan was undertaken. Secondly, an attempt was made to estimate the meat demand relationship for domestic consumption and the demand for cattle in the Hong Kong market. Thirdly, the existing cattle marketing system was discussed and suitable suggestions have been made to improve its structure and functioning. Finally, this study utilized a spatial equilibrium model which allows for the interaction between demand and supply forces as well as price levels in the different regions in Indonesia and overseas markets, with the objective of maximizing total revenue from meat trading in domestic and overseas markets.