THE use of medicated molasses blocks as a means of improving the performance of cattle and simultaneously reducing the amount of methane produced by livestock in Indonesia has received a major boost.
Australian company AgCoTech and ID Food (PT Rajawali Nusantara Indonesia (Persero) have signed a heads of agreement to establish a manufacturing and distribution centre in Malang, East Java, that will supply blocks to beef and dairy cattle as well as buffalo.
AgCoTech chairman Charles (Chick) Olsson said it was a big step forward to engage with ID Food on setting up a medicated molasses supplement factory using Australian technology in Indonesia.
"ID Food has a keen focus on food security throughout Indonesia, so our partnership is a natural fit, both of us keen to boost local beef production, helping local farmers while reducing methane emissions," Mr Olsson said.
"Its also worth thanking our friends at the Australian Department of Foreign Affairs and Trade and Austrade, the assistance and advice from the Austrade team in Surabaya and Jakarta being a much needed ingredient for the development and success of this project.
"It was a real pleasure to sign the MOU allowing us to all move forward to next stages of operational planning with the ID Foods team."
The innovative program also addresses a ranges of the United Nations' Sustainable Development Goals, including climate action, poverty, health and well being, gender equality, life on land, and partnerships.
AgCoTech has already established a factory at Luang Prabang in Laos, which has the capacity to supply the innovative greenhouse reduction blocks to about 300,000 cattle and buffalo.
Under the methodology registered with the Laos Government, blocks from the Luang Prabang factory are distributed for free to smallholder farmers.
To ensure the integrity of the independently audited program, each individually identified block is photographed with the farmer receiving the product.
AgCoTech retains the voluntary, high integrity carbon abatement credits, which it then sells to companies in developed countries seeking to offset their carbon emissions.
Research overseen by Emeritus Professor Peter Windsor from the University of Sydney shows improved performance of livestock in South East Asia is an effective method of reducing poverty in developing nations.
Initially funded by DFAT and continued by AgCoTech, the research over five years shows the regular consumption of the medicated molasses blocks led to improved weight gains and more marketable animals at a significantly earlier age.
Importantly, the molasses blocks reduced CO2e production by an average of 400kg/animal over 12 months.
Methane is considered one of the stronger greenhouse gases, up to 28 per cent times more potent than carbon dioxide.
Mark Phelps travelled to Indonesia as a guest of the Four Season Company.
