There is a quest involving the Mayor of Cyseal's cat which requires pet pal to do.
To find the collar, you need to finish off the Black Cove and kill the pirate captain. Back in those caves there was an area that you walked in on a battle between orc and skeletons that had a huge door that was locked. You need to use the key and open the door and explore that area.
Getting to Hiberheim itself is easily miss-able. When I first went threw the area, it took me a very long time to figure out you had to
kill the talking mushrooms to take down the barrier around the witches house.
I pretty much cleared the Luculla map and made my way to Hunters Edge when I found out that I had to find the White Witch to continue. Going back, I was told by the mushrooms to find the wizard on a cliff. The cliff is a trapped lava pool and gets your party instantly killed off. There is a lever up at the top that when pulled, spawns lava all over. I purposely left this out of a spoiler tag as it totally pissed me off.
That is when I killed the mushrooms. There are two of them, use melee and ranged, no elemental attacks or spells as that makes them reproduce.