The water-economy nexus of beef produced from different breeds of cattle
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Date
2018
Authors
Mare, Frikkie Alberts
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Journal ISSN
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Publisher
University of the Free State
Abstract
Beef production is well documented to have a very high water footprint (WF), leading to
recommendations that consumers should eat less beef in order to decrease the pressure on the
scarce freshwater resource. Given the importance of beef production to the South African economy,
in the context of severe freshwater scarcity, it is important to understand the water-economy nexus
of beef production in order to ensure the ecological stewardship and economic prosperity of the
sector. The primary objective of this research was to analyse the WF and economic value added
(VA) of different breeds of beef cattle, produced through the same production method, with the aim
of identifying the breed with the best economic water consumption (EWC) figures in terms of beef
production. A bottom-up approach was followed to analyse the WF and economic VA for the
different links along the value chain. Seven different cattle breeds (Afrikaner, Brahman, Bonsmara,
Simbra, Angus, Simmentaler, and Limousin) were used for the analyses to determine the EWC for
each breed for an extensive cow-calf production system, a feedlot, and an abattoir, representing
the complete value chain of beef production.
The WF approach was followed to estimate the green, blue, and grey WF of each breed for every
step in the value chain in order to quantify the freshwater consumption. Economic VA, as the
difference between the total revenue and the cost of those intermediate production factors, of which
the WF was not included in the total WF of the production process, was used as the economic
indicator for every step in the value chain. The EWC of the different breeds was then expressed as
the total WF per unit of economic VA in litre/R. The EWC for a kilogram (kg) of beef for different
beef cuts was then estimated according to the value factor (VF) of each cut in relation to the total
value (TV) of the slaughtered animal. In order to treat all the breeds the same, a simulation model
was used for the extensive cow-calf enterprise that simulated the feed intake and reproduction data
of each breed according to the breed’s average performance data. The feedlot data were gathered
through an experiment whereby 35 bull calves from each breed (245 in total) were fed according to
their profit-maximising feeding period (PMFP), while the processing (slaughter and deboning) data
were collected when the fattened calves from the feedlot were slaughtered and processed.
The results show notable differences between the different breeds in terms of their WF, economic
VA, and EWC. It was interesting to note that while the Angus had the lowest overall EWC for the
whole value chain, it was not the breed with the lowest EWC for any of the individual stages in the
value chain. The Bonsmara revealed the lowest EWC in terms of the extensive cow-calf enterprise,
while the Limousin and Simmentaler exhibited the lowest EWC in terms of feedlot fattening and
abattoir processing respectively. Similar contradicting results were also found when comparing only
the WF or the economic VA of the different breeds for the whole value chain to that of the separate
links along the value chain. These contradicting results showed the benefit of a bottom-up approach
compared to a top-down approach when estimating the WF, economic VA, and EWC of beef.
The results further showed that there is a large difference in the WF of different cuts of beef, with
the high-value cuts having a much larger WF than the lower-value cuts. As such, the results show
that a consumer can decrease his/her overall WF by consuming lower-value beef cuts.
The conclusion from this research is that the calculation and reporting of the WF, economic VA,
and EWC, especially for products with more than one value chain link, is much more complicated
than a top-down analysis based on the whole value chain. By estimating only one value for each of
the abovementioned factors for the whole value chain and then making recommendations on that
value, one could easily be guilty of the fallacy of division since the recommendations may have a
negative influence on some links in the value chain. Each link in the value chain should therefore
be assessed individually to identify problem areas in the WF and economic VA context that can be
improved by recommendations for the specific value chain link. It is further important to keep the
water-economy nexus in mind and analyse the WF and economic VA in a holistic framework as
recommendations to decrease the WF of a product may lead to a less desired economic situation
and vice versa. The estimated WFs of the different beef cuts provide new knowledge and can be
used to create awareness among consumers, but even if consumers switch to cheaper beef cuts
with a lower WF, it will not help to improve the overall WF of beef. It is thus concluded that the
optimisation of production from the available freshwater sources for each link in the value chain
should be prioritised as it will decrease the overall WF of the product, increase the economic VA,
and improve the EWC.
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Keywords
Beef cattle, Beef production, Breeding, Thesis (Ph.D. (Agricultural Economics))--University of the Free State, 2018