Supporting research outcomes to establish local

government policy on Bali cattle breeding

in west Nusa Tenggara Province

ACTIVITY COMPLETION REPORT

Submitted to ANTARA by:

Lembaga Penelitian Universitas Mataram

Authors:

Dahlanuddin, Project Manager and Team

Revised draft based on inputs from ANTARA-AusAID,

Date: 10th

August, 2010

Table of content

No Heading Page

1 General information 1

1.1 List of acronyms 1

1.2 Currency conversion 1

2 Basic activity data 2

2.1 Location 2

2.2 Delivery organization 2

2.3 Key dates 2

2.4 Table of the approved and actual costs of the initiative 2

2.5 Form of aid 3

2.6 Certification 3

3 Executive summary 4

4 Background 6

4.1 Request of the initiative 6

4.2 Context and rationale 6

4.3 Preparation arrangement 9

5 Implementation performance 10

5.1 Management and contracting arrangement 10

5.2 Activity objectives 11

5.3 Achievements 13

5.4 Development impacts 16

5.5 Gender 17

5.6 Procurement 17

5.7 Partner government 17

5.8 ANTARA-AusAID 17

5.9 Delivery organization 18

5.10 Sustainability 18

5.11 Phase-out/ exit strategy 19

6 Conclusions, recommendation and lessons learned 19

6.1 Conclusions and recommendation 19

6.2 Lessons learned 20

List of Attachments

No Title

1 Summary of project expenditure

2 Strategic Plan for Bali cattle breeding in NTB

3 Action Plan for Bali cattle breeding in NTB

4 Governor decree on Bali cattle breeding

5 Governor decree on price of Bali cattle

6 Bupati decree on collective housing system

7 Proposed budget of Dinas Peternakan dan Kesehatan Hewan NTB for 2011

8 Governor decree on Task force to develop policy on Bali cattle in NTB

9 Progress Report 1

10 Progress Report 2

1

1 General Information

1.1 List of acronyms

ANTARA Australia Nusa Tenggara Assistance for Regional Autonomy

ACIAR Australian Centre for International Agricultural Research

APBD Anggaran Pendapatan dan Belanja Daerah, district government budget

AusAID Australian Agency for International Development

Bappeda Badan perencanaan pembangunan daerah, Regional planning and

development agency

BPPT Badan Pengkajian dan Penerapan Teknologi (national agency for

assessment and application of technology)

BSS Bumi Sejuta Sapi (land of a million cattle)

DGLS Directorate General of Livestock Service

DPRD Dewan Perwakilan Rakyat Daerah, Regional People’s Representative

Council or Assembly

JICA Japan International Cooperation Agency

Lemlit Lembaga Penelitian (Research Institute)

Litbang Penelitian dan Pengembangan (institution for research and development)

M&E Monitoring and Evaluation

NTB Nusa Tenggara Barat (Province of west Nusa Tenggara)

Perda Peraturan Daerah (provincial regulation)

PSDS Program Swasembada Daging Sapi (beef self sufficiency program)

RAPBD Rencana Anggaran Pendapatan dan Belanja Daerah, government budget

plan

Renstra Rencana Strategis (Strategic Plan )

Ristek Riset dan Teknologi (institution for research and technology)

RPJMD Rencana Pembangunan Jangka Menengah Daerah (Provincial Midterm

Development Plan)

SADI Smallholder Agribusiness Development Initiatives

SK Bupati Surat Keputusan (local government decree signed by the district Mayor)

1.2 Currency conversions

1 AUD = IDR 17 July 2010 (inter-bank rate)

2

2 Basic Activity Data

2.1 Location

The project is Located in Mataram, NTB Province, Indonesia

2.2 Delivery organization:

Lembaga Penelitian (Lemlit) Universitas Mataram

Jl. Majapahit no. 62 Mataram 83125 Lombok, NTB, Indonesia

2.3 Key dates

Submission of concept note: Date: 8 October 2009

Project design mission: Date:

Contract Cardno Acil: Date: 17 December 2009

Commencement: Date: 17 December 2009

Project Review: Date:

Completion date: Date: 17 July 2010

2.4 Table of the approved and actual cost of the initiative

The table below shows the comparison of budget and spending per component and

category, based on the project contract. Details are provided in Attachment 1.

Total approved budget (IDR) 847,775,000

Total spent until 17 July 2010 (IDR) 671,542,120

Categories Budget Actual

Workshops 105,000,000 109,141,900

Project Management 28,000,000 27,471,343

Travel (data collection) 26,475,000 19,056,977

Dissemination 4,500,000

Cattle Identification system 31,800,000 24,461,250

Cross visit to Bali and Sumba 58,250,000 53,807,800

Grading 14,250,000 10,225,000

Market information system and auction demonstration 60,000,000 17,127,150

Personnel (salary) 304,500,000 304,500,000

Technical Assistance 130,000,000 77,127,150

M&E 40,000,000

Finance Audit 10,000,000

Institutional Fee 35,000,000 28,120,200

Total 847,775,000 671,542,120

3

2.5 Form of aid

Type : Project Support

Delivery Mechanism : Indonesian Government Organization

2.6 Certification

This activity Completion Report has been completed in accordance with AusGuideline 5.1,

and AusGuideline 5.2, April 2006. This draft Activity Completion Report has been prepared

by the delivery organization and has been submitted to the ANTARA-AusAID Program

Director on 2 August 2010 in accordance with the contract between the delivery

organization and Cardno Acil PTY LTD.

Disclaimer:

This Activity completion report has been prepared by the Lemlit project manager and

project team. The views expressed are those of the delivery organization and partly also the

feedback of the stakeholder groups. The report does not necessarily reflect the views of

AusAID or the Australian Government.

4

3. Executive summary

Outline of the activity This Bali cattle policy development project was based on outcomes of a

series of ACIAR projects in central Lombok. The purpose of this project

is to establish a research based Bali cattle breeding program and

supporting local regulations to ensure the breeding program can be

implemented successfully.

Key outcomes

compared to

objectives

The key outputs of the project are strategic plan, action plan and three

local government regulations i.e. Governor decree on Bali cattle

breeding, Governor decree on grading and price incentives and Bupati

decree on collective housing system of Bali cattle. The policy developed

through this project is intended to improve farmers’ motivation to

produce high quality Bali cattle breeding stocks and to facilitate

conducive investment opportunity for private sector to invest on Bali

cattle breeding.

Development impacts There is no development impacts expected to emerge during this 7

month project implementation. However, when the strategic plan and

supporting regulations are effectively implemented by the local

government, the expected development impacts will include increase

production and quality of Bali cattle breeding stock, more transparent

marketing system, increase price of breeding stock based on grades

and eventually increase in farmers’ income. These are in line with the

vision of the local government initiative of NTB BSS with the aim

to increase the province’s contribution to the national beef

sufficiency (PSDS 2014) program. As part of the local government

development priority, improving income of Bali cattle farmers

will have significant impact on the effort to improve Human

Development Index in NTB through improving the spending

power of the rural community.

Sustainability Improvement in political and financial supports to cattle

development in NTB is a very valuable input to the sustainability

of this Bali cattle breeding program. Technically, this community

based breeding program does not rely on high technology but

utilize existing appropriate technologies and local wisdoms. In

addition, the benefits (such as increase in profit) due to

conducive farming atmosphere, attractive price incentive, more

transparent marketing mechanism and better access to

immediate assistance and financial support, will motivate

farmers to continue the better breeding practice. Therefore, it is

reasonable to expect that the program can be sustained.

Another positive sign for sustainability is the commitment of the

local government to upgrade the Peraturan Gubernur on Bali

cattle breeding, which has limited power, to Peraturan Daerah

(Perda) which has approval of the local house of representatives

(DPRD). Perda can ensure the commitment of relevant

government institutions to implement all proposed activities in

this program regardless any changes in personnel both at the

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planning board and executing institutions. This is beyond the

project’s responsibility but some of the project team members,

who are also members of the NTB BSS committee, will keep

reminding the authority on this commitment.

Conclusions Most of the program objectives have been achieved successfully.

The factors contribute to the achievements include the ability to

engage the main beneficiary and relevant stakeholders,

improved communication and interactions between the leading

institution (Dinas Peternakan dan Kesehatan Hewan) and the

planning board (Bappeda) to develop budget planning based on

the relevance and priority. These achievements also due to the

support of the cattle breeding and policy development specialists

in synergizing the policy developed through this program with

existing national policies.

Lessons learned Successful implementation of this project can be associated to

the following factors: a) the importance of the policy developed

in this project to the successful implementation of local priority

(NTB BSS) and national beef sufficiency program, b) The long and

active participation of the leading sector in a series of research

projects from which the policy was developed. c) The right

competency of relevant project team members and their

collective ability to identify, engage and work effectively with key

local government staff to achieve the committed project outputs,

d) Valuable inputs and facilitation of consultants, especially in

synergizing the policy with national program and priorities, and

d). Effective communications with ANTARA-AusAID personnel

whenever necessary to ensure that the project is progressing on

the right track

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4. Background

4.1. Request for the initiative

This initiative started from an informal communication with ANTARA as part of the

dissemination of the ACIAR-SADI project outcomes. This is part of the exit strategy of this

research project to sustain the practice change and the achieved outcomes. This informal

communication led to an idea of supporting these research outcomes into policy

development with an aim to scale out and scale up the practice change to wider areas in

NTB.

A concept note was then developed and discussed with ANTARA that eventually agreed to

be a worthwhile initiative to be developed further. At a later stage, some meetings were

held with ANTARA and ACIAR project team to discuss strategies to uptake the research

outcomes into policy.

A draft proposal and budget were then developed by the Lemlit Team and submitted to

ANTARA. The proposal was discussed and revised several times to accommodate inputs

and suggestions from ANTARA reviewers before being finalized.

4.2. Context and rationale

Around 30% of the current beef demand in Indonesia is met from imported live cattle

and frozen beef. To minimise the dependency on import, the national government has

launched the beef sufficiency program 2014 (Program Swasembada Daging Sapi, PSDS

2014) with an aim of meeting 95% of beef demand by 2014. To achieve the PSDS 2014

target, NTB province has an important role to supply Bali cattle breeding stock to other

areas of Indonesia. NTB has the comparative and competitive advantages to be the

major supplier of Bali cattle breeding stocks compared to the other 3 Bali cattle suppliers

(Bali, South Sulawesi and East Nusa Tenggara). These advantages should be optimally

explored by the local government by establishing effective policy to implement

community based breeding program for Bali cattle by utilizing research outcomes.

In its Midterm Development Planning (RPJMD 2009-2013), NTB decided to give high

priority on cattle besides maize and seaweeds. NTB’s priority to develop cattle industry

has been declared further by the program of NTB as the Land of a million cattle or well

known as NTB Bumi Sejuta Sapi (NTB BSS).

This initiative is in line with the country AusAID strategy and policy in Indonesia which

include strengthening local government capacity and poverty reduction. The policy

developed through this initiative is a form of regional autonomy in the governance of

cattle development and the outcome is to improve farmers’ income that eventually

reduces poverty.

The initiative also is very well connected with initiatives of other international agencies

that support the local government to improve Bali cattle productivity. ACIAR focuses its

support on research and development to increase calving rate, reduce calf mortality and

to improve live weight gain. JICA has also been actively involving in developing the

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capacity of the farmers to adopt technology, as well as providing supports for

infrastructure development.

Constraint and opportunities

Constraints

Breeding is the weakest segment in the Bali cattle production system of NTB. Private

sectors generally reluctant to invest on breeding program because breeding is not highly

profitable, has high risk and it takes long time to reach the breakeven point.

Consequently, the existing breeding programs and activities are conducted mostly on

government sites or breeding centres which have very limited capacity to improve

productivity of the majority of Bali cattle in the region. The smallholder Bali cattle

farmers, on the other hand, do not have established institution and technical capability

to carry out a structured and sustainable breeding program. Another constraint is the

lack of synergy between the regional research, extension and development institutions

involved in Bali cattle production.

There has been a national guideline for cattle breeding established by the Ministry of

Agriculture in 2006 but has not been implemented in NTB. This is probably due to lack of

capacity of the provincial leading sector (Dinas Peternakan dan Kesehatan Hewan NTB)

to translate this national guideline into a more applicable local guideline.

Opportunities

The national program of beef sufficiency program ( PSDS 2014) created an enormous

opportunity for smallholder farmers to produce breeding stocks, as the national

government requires 200,000 heads of breeding stocks per year. Historically, demand for

Bali cattle breeding stocks from NTB for development in other regions (especially eastern

Indonesia) has been increasing rapidly. In 2009, the demand reached 23,000 heads and

NTB could only provide around 8,000 heads. This gap between supply and demand

cannot be met due to lack of concerted effort to improve productivity and quality of Bali

cattle in NTB.

Results from a series of multi-year adaptive research projects carried out in central

Lombok with supports from the Australian Centres for International Agricultural

Research (ACIAR) and the Smallholder Agribusiness Development Initiatives (SADI) have

demonstrated that implementation of an integrated production system (controlled

mating with selected bull, mating the cows from 40 days after calving, mating the heifer

when reaching 180 kg live weight, weaning the calf at 6 months old, improve feeding

management, improving sanitation and improving capacity of the farmers and farmer

groups) can significantly improve production of high quality breeding stocks to meet the

increasing demands, and to improve farmers income. Similar results can potentially be

achieved in other areas of NTB through scaling out and scaling up of this change of

practice. The key to the successful achievement of the research outcomes have been the

ability to stimulate farmer participation, improve farmer capacity, facilitate decision

making process in the groups and to ensure sustainability of the practice change through

continuous support of well trained field officers.

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The NTB government have the right momentum to scale out and scale up the change of

practices already happened in the ACIAR study sites in central Lombok through the NTB

Bumi Sejuta Sapi (NTB BSS) initiatives. There have been some promising indications that

ANTARA’s support, to develop planning and supporting policies for community based

Bali cattle breeding in NTB, will help the local government to achieve the target of

meeting the increasing demands of high quality breeding stocks and to improve the

income of the smallholder farmers.

Rationale and activity logic

The PSDS 2014 will further increase the demands of local beef due to reduced imports in

the next 5 years. To meet the PSDS 2014 target, the need for Bali cattle breeding stock

will increase further and NTB, as one of the major supplier of Bal cattle breeding stock,

has the opportunity to meet this demands by adapting and replicating the established 36

groups through scaling out and scaling up to reach the majority of the regions of NTB.

This scaling out and scaling up process should be supported by well designed activities

according to the biophysical and socio-economical conditions of each location. In the

mean time, the local government should also effectively implement policy that facilitates

business enabling environment to support successful implementation of activities to

increase calving rate, reduce calf mortality and improve growth rate. In addition,

marketing system should be made more direct and transparent for example by

implementing direct auction system.

There have been several policies developed but most of them can not be implemented

effectively. The policy developed through this ANTARA-AusAID initiative can increase

motivation of farmers to produce high quality breeding stock. This is expected to happen

following implementation of the Governor decree that provides opportunity for the

farmers to benefit from the high demands of Bali cattle breeding stock. Farmers will

benefit from the establishment of price incentive (price based on grades), more

transparent and direct marketing system, improved facilitation and commitment to

retain (buy and redistribute) the best breeding stocks to improve quality of Bali cattle in

NTB.

Relevant activities of other institutions

The key stakeholder involved and to be supported in this ANTARA initiative is Dinas

Peternakan dan Kesehatan Hewan NTB which has sufficient human and financial

resources to carry out programs with support of national and provincial government.

Through PSDS 2014 and NTB BSS programs, Dinas Peternakan dan Kesehatan Hewan NTB

receives supports from several national institutions such as BPPT (Ristek) and Litbang

Pertanian. At regional level, the Governor has instructed all relevant agencies to support

the NTB BSS. The well established collaboration between BPTP and University of

Mataram can play an important role to help the implementation of this program. Some

international agencies such as ACIAR and JICA also give priority to Bali cattle

improvement. These agencies have been supporting the local government to improve

productivity of Bali cattle through research and development activities.

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There have been many programs planned and implemented regularly but there are still

some questions on the relevance, effectiveness and efficiency of these programs. The

lack of synergy between institutions involved has been another issue, so ANTARA’s

support to develop effective policy is expected to improve the relevance, effectiveness,

efficiency and sustainability of Bali cattle breeding program in NTB.

4.3. Preparation arrangements

• A concept note on developing strategic plan and supporting local government

policies for Bali cattle breeding was prepared by the Lemlit Team and

submitted to ANTARA (8 October 2009)

• The concept note was reviewed several times by ANTARA and independent

reviewer for revisions (10 November 2010)

• Several meetings with ANTARA staff were held in Mataram to discuss the

concept note and consult some stakeholders (6 and 7 October 2009).

• Lemlit team then develop a proposal and estimated budget based on

comments and suggestions from ANTARA and the independent reviewer (14

October 2009)

• After several revisions the proposal was approved and a contract was signed

(17 December 2010)

• The project team started to prepare a draft program to be communicated to

relevant stakeholders (19 December 2010)

• A planning workshop was held in Dinas Peternakan dan Kesehatan Hewan

NTB involving relevant stakeholders, to socialize the program (6 January

2010)

• A support team consisting of key personnel from local government

institutions was formed to help the Lemlit team to implement the program

(15 January 2010)

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5. Implementation performance

5.1. Management and contracting arrangement

The contract was arranged between ANTARA-AusAID and Lembaga Penelitian University

of Mataram. The contract was signed on December 17, 2009.

The activity type is program support to develop policy on Bali cattle breeding based on

empirical research outcomes.

All budget for this activity was provided by ANTARA-AusAID and no counter budget

provided by the beneficiaries or other stakeholders. However, Dinas Peternakan dan

Kesehatan Hewan funded some minor expenditures which were not budgeted in the

program i.e. :

- Transport and allowance of key local government personnel during the

auction demonstration

- travel of one Dinas staff to Jakarta for consultation of final draft with the

Director of Livestock Breeding and Director for Ruminant Production.

- Honorarium of the Directors of Ruminant Production and Director of

Livestock Breeding of the DGLS who provided significant inputs at the

dissemination workshop held in Mataram 13 July 2010.

Costs for some activities were inaccurately estimated due to insufficient information at

the time of budget was prepared. Expenses for workshops were under estimated due to

difficulty in estimating number of workshops required and number of participants. On

the other hand, expenses for other activities are under spent because these activities

were reduced as the outputs have been achieved. These include number of trips of

technical assistant, data collection and cattle grading. Some budget items have not been

used due to delay in execution of the activities. Budget for market information system

(sms center, price publication through leaflets, livestock market, radio and newspapers)

mostly unspent to date because this activity cannot be carried out before the Governor

decree on cattle price is signed by the Governor and declared effective. Budget for

monitoring and evaluation, and for finance audit have not been spent due to delay in

execution of these activities.

During the preparation of project planning, a series of consultation with Dinas

Peternakan dan Kesehatan Hewan NTB (the main stakeholder) was conducted to assess

the relevance and benefit of the program to the local government and Bali cattle farming

community. Further consultations with relevant stakeholders were also carried out

throughout the project implementation stages.

The responsibility to implement the activities was mostly carry out by the project team

which consists of 6 scientists of different expertise, 2 finance assistance, 1

administrative assistance and 1 data entry staff. The project team received professional

advice from two specialists (cattle breeding and policy development) at intermittent

basis. The project team was also assisted by 11 key government staff from relevant

institutions who were assigned by the Governor to provide necessary input and

11

suggestion to ensure the program outputs are relevant and beneficial to Bali cattle

development in NTB. Collection of some data and information (cattle weight and body

dimension, cattle identification) required to produce cattle identification, and to

establish the grading system, were carried out with collaboration with scientists and field

personnel outside the project team.

5.2. Activity objectives

There are three objectives aimed to be achieved in the program i.e.:

a. Implementation of government policies by relevant institutions to support cattle

breeding programs (change in functioning)

b. Farmers improve breeding stock quality (Change in circumstances)

c. Farmers use price grading in transactions at local market and on farm (Change in

Attitude)

These objectives were decided after several consultations with ANTARA-AusAID reviewer

and no changes made during the project implementation.

These objectives are very relevant to the effort to achieve to goal of the national PSDS

2014 program and the NTB BSS program. The activity logic to achieve program output

and impact can be illustrated in Figure 1.

Figure 1. Schematic presentation of program and policy implementation to achieve

program objectives

Strategic plan for Bali

cattle breeding

Governor decree on

Bali cattle breeding

Demand for

breeding stock

increases

Productivity

of Bali cattle

improves

Volume of

cattle sale

increases

Farmer income

increases

Quality of Bali

cattle breeding

stock improves

Price of Bali

cattle

increasesReinforcement of

cattle identification

Auction

demonstration

Program

implementation

Policy

implementation

Bupati decree on

collective pens

Intervention Results Impact

Farmers sell

breeding stock

based on grade

BLUE PRINT NTB BSS

BLUE PRINT PSDS

2014

Bupati decree on

grazing area

Governor decree on

price of Bali cattle

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There are several existing programs and regulations in place but some of them are not

effective. An example is the regulation to ban slaughter of productive females that has

been issued for several years, but the slaughter of productive females remains

increasing. The problem for this regulation is that farmers have to sell their productive

females due to urgent needs, so it is difficult to stop this practice because there is no

solution yet to solve the immediate needs of the cattle owner.

Policies developed in this initiative are therefore aim to stimulate better farming

practice, better investment environment and develop price incentives to encourage

farmers to improve productivity and quality of their Bali cattle. A microfinance scheme

and increased price based on grade are expected to prevent selling (and slaughter) of

productive females due to increased motivation of farmers to retain females in order to

improve cattle number.

Strength and weakness

Successful implementation of programs and policies depend on the internal

management of leading institution (the main beneficiary of this ANTARA initiative),

support of other relevant institutions and non government stakeholders especially cattle

traders. The strengths include the strong commitment of the Governor to successfully

implement the NTB BSS. This is indicated by the decree (Surat Keputusan Gubernur) that

assign a task force from relevant institutions to work with Lemlit team to develop the

strategic plan and supporting policy (see Attachment 8). The formal involvement of the

key personnel from relevant stakeholders is expected to stimulate better awareness and

understanding on the objective and impact to be achieved through this collaboration.

Strength is the active participation and support of the Director for ruminant production

and Director for animal breeding of the Directorate General of Livestock Service (DGLS)

in the dissemination workshop conducted on 13 July 2010. The presence and messages

delivered by the two directors at the dissemination workshop is expected to further

disseminate the program objective, strategies and expected impact to all relevant

stakeholders who attended the dissemination workshop. Being the first province to

establish policy on Bali cattle breeding, NTB is expected to receive more support from

the DGLS.

Potential constraints (weakness) include lack of coordination in planning and executing

of budgets between the leading institution and other supporting institutions.

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5.3. Achievements

5.3.1. Achievement of project outputs

Output Objectives Target output indicator Achievement (%) Remarks/ deviation

Output 1.

Specific Bali Cattle strategic plan

produced

The Strategic plan finalized and signed

by Head of Dinas Peternakan dan

Kesehatan Hewan Prov NTB.

100 Attachment 2

Output 2

Detailed Action Plan produced

The Action Plan finalized and

submitted to Dinas Peternakan dan

Kesehatan Hewan Prov NTB.

100 Additional output produced in

a one month no-cost

extension (Attachment 3)

Output 3.

Bupati decree signed off on

district government commitment

to purchase and distribution of

selected bulls

Governor decree on Bali cattle

breeding finalized and signed

100 Upgraded to Governor decree

because it concerns all

districts (Attachment 4)

Output 4

Governor’s decree on cattle

grading and pricing system

produced

Governor decree on price of Bali cattle

finalized and signed

100 Upgraded to Governor decree

because it is related to

Governor’s authority to sell

cattle to other province

(Attachment 5)

Output 5

Bupati decree signed off on legal

support to sustain collective

animal pens

The Bupati decree on collective

housing system finalized and signed

100 Attachment 6

Output 5

Bupati decree signed off on cattle

identification system.

Incorporated into the Governor decree

Bali cattle breeding.

N/A Provincial government does

not have authority to conduct

registration. Provincial Dinas

will issue a decree and

technical guidelines to make

registration effective in all

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districts

Output 6

Design and trial of cattle

identification system (pilot

project)

a) 36 farmer groups implementing

cattle identification system

b) 2500 cattle identified

a) 100

b) 90

a) All farmer groups

participated

b) Only 2300 cattle remained

in the 36 groups

Output 7

Market Development

Auction pilot project

a) 1 demonstration of market

development identified and

piloting (team auction established,

auction market demonstrated and

evaluated)

b) Market information system

developed.

a) 100

b) 0 (delayed)

Market information

delayed until Governor

decree on cattle price is

effective

5.3.2. Achievement of project outcomes

Outcome Objective Target indicator Achieved results Remarks

Implementation of

government policies by

relevant institutions to

support cattle breeding

programs

Better planning for Bali

cattle breeding

The Strategic Plan and Action Plan have

been used as guidelines for action in

2011. The local government consider

these documents as operational

documents for NTB BSS Blue Print

Increased budget allocation

for Bali cattle breeding

Most of the activities in the Action Plan

have been accommodated in the Budget

proposal for 2011

Proposed budget for 2011

in Attachment 7

Supporting policies on Bali

cattle breeding are

functioning

The local government are committed to

implement these policies to increase the

price of Bali cattle breeding stock and to

retain best breeding stocks

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Farmers improve breeding

stock quality

Percentage of high quality

breeding stock increases

The survey results show that grades I, II

and III of the breeding stock in the

demonstration area (36 farmer groups)

are 5, 14 and 30% respectively

The percentage is expected

to increase progressively in

the next 5 years due to

implementation of better

breeding practice

Farmers use price grading in

transactions at local market

and on farm

Use of grading for breeding

stock (grade I and II) in

transactions

Farmers were very enthusiastic to sell

their breeding stocks though auction and

ask the local authority to conduct auction

more frequently.

The middle men mostly

resistant to this auction but

the local government have

committed to make this

auction as the mechanism

of selling breeding stocks

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5.4. Development impact

The expected development impact of this initiative is the increase of farmers’ income. This can be

achieved by effective implementation of the programs and policy that is expected to improve

productivity and quality of Bali cattle breeding stock and improve farmers’ understanding on

quality and value of their cattle. Improvement in number of cattle sold (due to improved farmer

capacity to produce better breeding stock to meet the increasing demand) and increase in price

(due to better quality of breeding stock and implementation of more transparent marketing

system) are expected to improve farmers’ income.

As one of the five major suppliers of Bali cattle, NTB is the first province to establish strategic plan

and policy on Bali cattle breeding. The planned activities and the policy developed were based on

empirical research outcomes so they will have higher success rate in implementation to wider

areas.

Successful scaling out and scaling up of the 36 farmer groups that currently being established to

be a community based breeding centers (initial model of village breeding center, VBC) into 360

groups in 5 years is an obligatory mandate of the Strategic Plan that should be implemented by

the leading institution. All activities have been developed participatory with all beneficiaries so

they should have very good understanding on the program objective and outcomes to be

achieved.

In line with the national policy on beef sufficiency and the local government initiative of NTB BSS,

political and financial supports to develop Bali cattle in NTB have been increasing dramatically.

Before the NTB BSS was declared, the development budget of Dinas Peternakan dan Kesehatan

Hewan NTB was less than Rp. 3 billion (2008). Since 2009 financial year, the development budget

increased to more than Rp 10 billion annually. With the increase in internal management

(governance) of the local government, increased political and financial support, it is logical to

assume that the scaling out and scaling up process will continue beyond 2015 and reach the

majority of cattle farmers in NTB. If all the preconditions and assumptions used in developing the

policy are valid, then the Road Map (see Action Plan, Attachment 3) to achieve the program vision

“NTB farmers become the major supplier of high quality of Bali cattle breeding stocks” can be

achieved.

The vision statement of this program is in line with the vision of the NTB government. Increasing

farmer income is part of the local government effort to improve the spending power of the

community. As a component of local government development priority, improving Bali cattle

farmer will have significant impact on the effort to improve Human Development Index in NTB.

To achieve this development impact, Dinas Peternakan dan Kesehatan Hewan NTB and all

relevant stakeholders should ensure effective implementation of the strategic plan and

supporting policy. Some short term actions that can be take include:

a. Develop technical guidelines to translate the program and conduct systematic

capacity building for operational staff and farmers who will run the activities on the

ground.

b. Design dissemination materials to specific target groups to ensure the program is

correctly understood by the community. Facilitate involvement of traders / private

sectors in the breeding program.

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c. Facilitate participation of extension agency, BPTP and University to involve in

program implementation, monitoring and evaluation

d. Conduct outcome based monitoring to ensure outputs and outcomes are achieved

or to develop alternative strategies if there is any problem in implementing some

activities.

5.5. Gender

This project provides benefit to women. Among the 10 project team members, three are women.

The main counterpart in Dinas Peternakan Hewan is also a woman (Chaidar Indiana). The

beneficiaries of the project include women farmers. They are not formally involved as the farmer

group members or participate in group meetings, but they play essential roles in farming activities

(cattle feeding and watering) and decision making (cattle selling and use of money).

5.6. Procurement

No major procurement expenses in this project. The procurements were mostly in the form of

consumables for workshops, office maintenance and a set of calf weighing scale. However, the

project hired two consultants to help the team with technical and policy inputs. The consultants

were recruited by outsourcing suitable candidates with relevant skill and experience. The

recruitment was based on term of reference (ToR) developed by the project team and ANTARA.

The final decision on selected consultants was made by Lemlit with approval from ANTARA.

5.7. Partner government

The local government issued a decree for involvement of the key personnel from relevant

institutions to work closely with the project team (Attachment 8) . The project also received very

valuable support from relevant officials of the local government institutions in terms of supply of

secondary data, existing regulations and quality inputs during workshops and team meetings.

Involvement of stakeholders has been very good. In all workshops, representatives from relevant

government institution always participated actively. Cattle traders and farmers representative

also contributed in the process of decision making such as determination of price of breeding

stock based on grades. The local government has also fulfilled its obligation to sign the policy

documents. The 36 farmer groups currently managed by the ACIAR research project have been

decided to be the model of Village Breeding Centers (VBC) which will receive long term supports

from the government. In terms of financial and program support, Dinas Peternakan has allocated

budget to improve sanitation in 27 of the 36 farmer groups with total investment of Rp. 540

millions.

5.8. ANTARA-AusAID

ANTARA has been very supportive of this program since the design to the implementation of

project activities. The project manager always consulted ANTARA for clarification on eligibility of

certain expenses or asking for suggestion to solve some administrative problems and the project

team always received prompt responses from relevant ANTARA officials. The role of the local

ANTARA staff has been very critical for the project team by providing guidance especially to the

administrative and finance staff.

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5.9. Delivery organization

The project was regularly supervised by the director of Lemlit to ensure that the implementation

is on the right track. The project was managed according to contract and made regular progress

reports (Attachments 9 and 10). There were some inaccuracy in budgeting and planning so some

adjustment and no-cost extension were made. However these planning problems did not affect

the overall budget and the extension has resulted additional outputs (Action Plan and a

dissemination workshop). The project team members were highly committed to achieve program

objectives. Interaction between the project team with local government counterparts and

ANTARA has been reasonably intensive to establish conducive working environment.

5.10. Sustainability

The programs developed do not rely on high technology but more a development strategy to

utilize existing appropriate technologies and local wisdoms. Therefore, all it needs is consistent

and persistent support from the local government to maintain motivation and to encourage

participation. Once the farmers enjoy the benefits (such as increase in profit) due to conducive

farming atmosphere , attractive price incentive and better access to immediate assistance and

financial support, the change of practice can be sustained.

To ensure the sustainability of this project, the local government authority should improve the

capacity of farmers and farmer institutions so that the farmers are able to maintain good

breeding practice in order to benefit from the high demands of breeding stocks and price

incentives based on grades. A well established farmer group with self agreed norms (awig-awig),

for example, can be a powerful institution to introduce new technology or deliver development

package with low risk of failure.

The local government should also establish Bali cattle breeders association which will help

improve farmers’ bargaining position against traders or brokers. The association will help farmers

with better access to price information, government support and establish mutual agreement

with private sectors to develop partnership in production and marketing of high quality Bali cattle

breeding stocks.

One possible constraint is the inconsistency of support for long term programs. Change in key

personnel dealing with the budget planning and program execution can create disintegration of

the long term commitment and thus activity sustainability.

The positive sign is the commitment of the local government to upgrade the Peraturan Gubernur

which has limited power, to Peraturan Daerah (Perda) which has approval of the local House of

Representatives (DPRD). Perda can ensure long term commitment of relevant government

institutions to implement all proposed activities in this program regardless any changes in

personnel both at the planning board and executing institutions.

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5.11. Phase-Out/Exit Strategy

To ensure that the program can be successfully implemented beyond this collaboration, the

following actions have been taken by the Lemlit:

a. Involve key personnel from the local government from planning to implementation of the

project. This is expected to improve their understanding on the project outcomes

b. Facilitate budgeting of the proposed program and activities with the leading institution and

the provincial planning board. This is to synchronize the proposed activities with the

budgeting system and ensure that the proposed activities can be funded.

c. Conduct a dissemination workshop involving all stakeholders, including national decision

makers. This is expected to result in good commitment of both local and national government

to implement the established policy and activities.

d. Facilitate communication between the project team members with the leading institution

beyond this collaboration

e. Encourage the team members provide advice to the leading institution whenever required,

even when the project has been concluded.

Strenght and weakness

The strengths of the proposed exit strategy includes availability of experienced staff of Dinas

Peternakan dan Kesehatan Hewan, well established collaboration with BPTP NTB and Faculty of

Animal Science University of Mataram and strong commitment of national and local government

on Bali cattle breeding. The potential constraints are the unclear roles of extension agency to

support Dinas Peternakan dan Kesehatan Hewan in implementing NTB BSS and weak coordination

with district institutions which supposed to be the main implementing institutions due to the

regional autonomy.

6. Conclusions, recommendations and lessons learned

6.1. Conclusions and Recommendations

Most of the program objectives have been achieved successfully. The factors contribute to the

achievements include:

a. The ability to engage the main beneficiary and relevant stakeholders both at provincial and

district levels.

b. The ability to facilitate better communication and interactions between the leading institution

(Dinas Peternakan dan Kesehatan Hewan) and the planning board (Bappeda) to develop

activity and performance based budget planning

c. The involvement of cattle breeding and policy developments specialists in synergizing the

policy developed through this program with existing national policies.

To sustain the achievement of this program, it is recommended that the leading institution to:

a. Build better communication and advocating activities with the legislative (DPRD) to facilitate

comprehensive understanding on the importance of the program and thus ensure sustainable

funding

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b. Reinforce the local government commitment to upgrade the Peraturan Gubernur to

Peraturan Daerah to ensure the program will be sustained despite any change of the high

ranking local government decision makers

c. Foster better communication with relevant national authorities to ensure consistent support

for the program

6.2. Lessons learned

This project was implemented in a very short period (about 7 months) but able to achieve the

outputs successfully. This is due to:

e. The project identified the real need of the local government which is in the process of

improving beef cattle production though its NTB BSS program. This project provides necessary

strategies to support the local government to achieve its BSS goal and to improve its

contribution to the achievement of the national PSDS 2014 program.

f. The programs developed were based on outputs of research projects in which the relevant

stakeholders (Dinas Peternakan dan Kesehatan Hewan and Dinas Pertanian dan Peternakan

central Lombok) are part of the collaborations in the last 10 years.

g. The project team managed to engage key personnel in the local government to participate

actively in all meetings and workshops. These key personnel were assigned by the Governor

decree.

h. The project team comprised of scientists from relevant disciplines with vast experience in

working with the local government counterparts.

i. The project team received professional supports from two national specialists who are

experienced in establishing breeding programs and policies. Their role in synchronizing the

programs with national policy is of particular importance to the successful implementation of

the project.

j. Frequent communications with ANTARA-AusAID personnel, especially in clarification of

project outputs, administrative details and project timelines, have been very helpful in

ensuring that all activities were carried out in the right sequence and on time.