Modelling the circular bioeconomy in the palm oil industry: Emerging approaches to address cattle feed shortages in Indonesia

Indonesia is presently ranked as the first crude palm oil producer in the world. However, the palm oil industry faces significant challenges, including extensive criticism related to environmental degradation and social impacts. The circular bioeconomy concept emphasises sustainable production and consumption through the repurposing, recycling, and regeneration of resources to address these challenges. Integrating palm and cattle farming represents a promising approach to enhancing resource efficiency and sustainability in agricultural systems. This study employs a system dynamics analysis to model the circular bioeconomy in the palm oil industry, with a specific focus on addressing cattle feed shortages. The results demonstrate that utilising oil palm biomass can yield a total of 21 204.52 tonnes of feed and generate a yearly revenue of USD 317 020.14. Key findings indicate that integrating palm by-products into cattle feed not only addresses feed shortages but also reduces waste and enhances overall farm productivity. The implications of this study suggest that adopting circular bioeconomy practices in the palm oil industry can promote more resilient and sustainable agricultural practices.