Indonesia develops livestock feed production from palm oil by-products

Indonesia is stepping up the use of palm oil industry by-products to produce alternative livestock feed. The initiative is being implemented by the Plantation Fund Management Agency (BPDP) in cooperation with Universitas Airlangga to reduce livestock production costs and improve feedstock utilization. The main focus is on processing palm kernel meal, solid residues from palm oil production, and oil palm fronds into animal feed ingredients.

The development of this sector has significant potential given the scale of Indonesia’s palm oil industry. In 2025, the country produced around 47.24 mln tons of crude palm oil from plantations covering a total of 16.16 mln ha. Meanwhile, feed accounts for 60–70% of total livestock production costs, significantly affecting farm profitability. Using oil palm processing by-products could reduce farmers’ dependence on conventional compound feed and create additional revenue streams for the palm oil industry.

Some livestock farms have already demonstrated practical results from using alternative feed. In particular, a goat farmer from South Kalimantan uses fermented solid residues from palm oil production combined with forage and concentrated feed. During a 30-day trial, feed costs declined by 30–40% compared with the use of tofu production residues, while some animals gained 3–4 kg in weight. The availability of raw materials from nearby plantations provided an additional advantage.

Another promising area is the use of palm oil by-products in dairy farming. Research supported by BPDP has demonstrated the potential to process palm fatty acid distillate (PFAD) into calcium fats for dairy cattle feed. This feed ingredient could potentially help increase milk yields and improve milk quality. This is particularly relevant for Indonesia, where domestic milk production is still insufficient to meet local demand.

To support the development of this sector, a training program was held in Indonesia on October 20–22 for farmers and small businesses, focusing on fermentation technologies, feed formulation, product quality control, and safety standards. Participants were also introduced to financing opportunities and ways to establish their own feed production businesses. Wider use of palm oil industry by-products is expected to reduce livestock production costs, increase the added value of oil palm processing, and expand the domestic feedstock base for the animal feed sector.

Tags: Indonesia, palm oil, compound feed, livestock sector