Amelia Naim Indrajaya
IPMI International Business School
Amelia Naim Indrajaya
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Gunung Sewu Group is a group of Indonesian companies that was founded by Go Soei Kie (Dasuki Angkosubroto) in 1953. It covers various areas of business like insurance, mining, real estate, consumer goods and agriculture that employ more than 25,000 people.
Two of their companies, the Great Giant Pineapple Company (PT GGPC), one of the largest pineapple growing and processing operation in the world, and PT Great Giant Livestock (PT GGL), one of the largest ox cattle feedlots in Indonesia, have developed a re-generative, circular relationship. The waste generated by the feedlot is used to grow pineapples and the waste from the pineapple operation provides a continuous supply of high quality ox food.
PT GGPC cans more than 500,000 tons of pineapples annually and exports 11,000 canned pineapple containers to more than 60 countries. With such a big production capacity it generates huge amount of waste causing a problem for the environment.
PT Great Giant Livestock was formed in 1990, representing one of the biggest ox cattle feedlots in Indonesia. At this time PT GGL has a capacity of 30,000 oxen per cycle (time required for every cycle is 120 days). They produce 100,000 oxen annually. PT GGL operates within the pineapple plantation area of PT Great Giant Pineapple using a tight standard of animal welfare in order to reach a high level of product quality.
PT GGPC developed a process to use the pineapple skins combined with other crops such as grass, cassava and sorghum, grown on the plantation to keep the soil fertile, to create high quality ox food. The food is superior to the green leaves used by other operations and increases the yield weight of the oxen.
In turn, the waste generated by the feedlot operation is composed into quality organic manure for growing pineapples. And, though still in development phase, the animal dirt also will be converted into methane gas as the source of alternative energy in order to reduce the need for fossil fuel.
The journey of Gunung Sewu Group started as a commodity trader that later spread its wings to a real estate business. In 1979, with the confidence that Indonesia as a country had a big potential in agriculture, it started the pineapple business by planting Cayenne pineapple seed. That was the beginning of PT Great Giant Pineapple which has been operating for more than 36 years and has become one of the three biggest canned pineapple producers in the world with 17% market share.
Gunung Sewu Group realized that their plantation farm is a very valuable asset. So to keep the continuation of environment is a very important matter that must be done to maintain the sustainability of their business. For that purpose, besides planting pineapple as their raw production materials, and various crops to take care of the fertility of land, PT GGPC also plants bamboo trees alongside the drainage basin to prevent erosion and act as water reservoir.
GCP does not see waste as burden but as a valuable and advantageous opportunity.
Turning the waste from one enterprise into a valuable product for the other enterprise has created a circular relationship that benefits the environment and increases the profitability of both.
In addition, the company has started the plasma inti system to create a synergy with other traditional breeders who supply cattle to the feedlot. PT GGL works together with groups of local breeders to become mutual partners in the ox feedlot business. PT GGL acts as the inti (core) and the partner breeders act as plasma. There are 2423 plasma breeders who merged into hundreds of groups and joined this program. They are spread over 40 districts in the Lampung Province. Every year more than 7000 oxen are produced by these breeders.
The breeders benefit by having greater availability of ox seed which is normally imported at a higher cost. They also gain the sponsorship of PT GGL to guarantee the capital needed for their operations. The high quality feed from the pineapple operation is used and they get training in livestock management that assures they operate in alignment with PT GGL’s standards for animal welfare.
For PT GGL the canned pineapple production waste provides a solution to problems faced by traditional ox breeders who often find difficulties in fulfilling their livestock food supply. Traditional ox breeders usually feed livestock with green leaves. This feed does not increase the weight of the oxen as quickly. PT GGL and its partners have established a market advantage that increases everyone’s profits.
Gunung Sewu Group through PT GGPC also managing a green strategy, that reduces their need for fossil fuel by 30% and to produces 40% of inorganic manure needed to increase the pineapple production by 50%. In addition, turning the waste from the pineapple operation into high quality feed increased the production of the feedlot operation by increasing animal weight more rapidly, thereby decreasing cycle time and increasing the amount earned without increasing the size of the facility. Finally their plasma inti system of working with surrounding breeders increased the economic security for all involved.
They treat the environment with respect using organic crop rotation to increase soil fertility and developing a circular benefit between their feedlot and agricultural operations.
In 2004 GGPC won award from KEHATI (Indonesia’s foremost environmental organization) for sustainability effort in going green. In 2006 GGL won Nastiti Budidaya Satwa Nugraha for cow processing based on the principles of environmentally friendly commodities. In 2014 GGPC won GOLD in Best Environmental Excellence at Global CSR Summit & Award 2014.
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