Economic sustainability of extensive beef production in South Africa

Thesis (MCom)--Stellenbosch University, 2020.

ENGLISH ABSTRACT: Satisfying the increasing and changing demands for animal food products, while sustaining the natural resource base (soil, water, and biodiversity) and decreasing Green House Gas (GHG) emission, is one of the major challenges currently facing agriculture in the world. Livestock production is said to carry a large carbon footprint compared with other foods, with cattle being a major contributing source of CH4 emissions which accounts for approximately 72.6% of the total livestock GHG emissions. A number of studies have concluded that extensive beef production has more environmental demand compared to intensive beef production. However, beef in South Africa is produced at different levels or by different categories of farmers which are commercial and small holders or communal farmers. Each farm has its own resources and differs from other farms in many aspects, and no two farms will exactly have the same factors affecting its performance the same way. The aim of the study was to measure environmentally sustainability of extensive beef production in South Africa, and to identify the category of farmers with more environmental demand relative to the other per kg of beef produced. To achieve these objectives typical farms were developed using secondary data and cost benefit analysis of the typical farms was performed. Indicators that were used to measure environmental demand were Green GHG emission, water use and biomass (fodder) consumption. Environmental demand was estimated for each production system (extensive commercial, extensive communal and feedlot beef production). Budget models of typical farms with three scenarios were developed with environmental demand expressed in monetary values and Cost Benefit (C/B) ratio was calculated to measure the environmental sustainability of each category of farmers. Production efficiency of different production categories of farmers was calculated to identify the farmers that are using resources efficiently (environmental costs per kg of beef produced). The results show that the total demand for GHG emission and biomass are higher in commercial farmers than in communal farmers. However, when measured per kg of beef produced commercial farmer demand less GHG and biomass compared to a communal farmer. A commercial farmer demands more water per kg of beef produced than the communal farmer. The developed budget models showed that both commercial and communal farmers have more environmental demand compared to benefits and commercial extensive beef farmers are employing resources efficiently than communal extensive beef farmers.

AFRIKAANSE OPSOMMING: Om die toenemende en veranderende vraag na diereprodukte te bevredig, terwyl die natuurlike hulpbron basis behou word (grond, water en biodiversiteit) en die kweekhuisgasse te verminder is een van die belangrikste wat boerdery wêreldwyd in die gesig staar. Lewende hawe produksie dra grootliks by tot koolstofvoetspoor vergeleke met ander voedselprodukte en beeste dra by tot CH4 vrystelling wat ongeveer 72.6% by tot die totale uitlating van kweekhuisgasse. Vele studies het die gevolgtrekking bereik dat ekstensiewe beesvleisproduksie ʼn groter bydra maak tot omgewings impak as intensiewe produksie stelsels. Beesvleis word in Suid-Afrika deur verskillende vlakke of kategorie van produsente produseer wat varieer tussen kommersiële en kleinboere. Elke boerdery het unieke hulpbronne kan verskil van ander boerderye en geen twee boerderye sal dieselfde uitkoms hê as dieselfde faktore dit beïnvloed nie. Die doel van die studie was om die omgewingsvolhoubaarheid van ekstensiewe beesvleisproduksie in Suid-Afrika te bepaal en om die kategorie van produsente te identifiseer wat die grootste impak op die omgewing toon in terme van kg vleis geproduseer. Om die doelwit te bereik is tipiese plase ontwikkel deur sekondêre data te gebruik en ʼn kostevoordeel ontleding te doen. Die omgewingsaanwysers wat gebruik is was groen kweekhuisgasse, water gebruik en voergebruik. Die omgewingsvraag is geskat vir elke stelsel (ekstensief kommersieel, ekstensief kleinboer en voerkraal stelsel). Begrotingsmodelle vir die tipiese plase is ontwikkel vir drie scenario’s wat die omgewingsimpak in geld waarde uitdruk en die kostevoordeel faktor is bereken om om die volhoubaarheid van elke stelsel te bepaal. Produksie doeltreffendheid vir die verskillend kategorieë van boerdery is bereken om die hulpbronne benutting te bepaal (omgewingskoste per kg vleis geproduseer). Die resultate wys dat die totale vraag na kweekhuisgasse en voedselgebruik hoër is vir kommersiële boere as vir kleinboere. Per kg uitset is die kommersiële boere egter meer doeltreffend. Kommersiële produsente se vraag na water is ook hoër as vir klienboere. Die modelle wys dat beide kommersiële en kleinboere se koste vir die omgewing hoër is as die voordeel en kommersiële ekstensiewe produsente benut beskikbare bonne meer effektief.

Masters