Economics of Greenhouse Gas Mitigation Strategies in a North-Eastern Brazilian Beef Production System

The state of Maranhão, Brazil, has been among the country’s fastest-growing cattle regions in recent years and it now faces important conflicts for beef production. Pasture degradation, low cattle productivity, and land-use changes due to agriculture and forestry expansion are key challenges. Additionally, beef production systems are a focus for emissions reduction, particularly in the context of increasing deforestation and its impact on global warming. A sustainable intensification of currently used pastures, enhancing economic viability and reducing environmental effects of beef production can help to mitigate the climate impact. Since economics is an important incentive in the decision-making processes of farmers, we analysed the effects of greenhouse gas (GHG) mitigation strategies on performance, economics and emissions in a representative north-eastern Brazilian beef production system. Improved pasture and herd management, feed supplementation and Silvopastoral Systems (SPS) were included. Based on a case study, we applied six strategies to the production system, covering the complete cycle from cow-calf (CC) to finishing cattle (FIN). We compared the improved production scenarios to the baseline representing the status quo of beef production in Maranhão. Our production-economic analysis shows a significant increase in land, labour and capital productivity, resulting in increased whole farm profitability. The scenario is long-term profitable, covering direct costs, depreciation and opportunity costs. Applying IPCC methodology, we found a reduction of GHG emissions per kg live weight added by 29 % in CC and by 45 % in FIN. Considering the increased stocking rate, enhanced carbon sequestration via SPS systems are necessary to counterbalance the increased emissions per land unit. Our results confirm the possibility to offset beef-production-related emissions by SPS. With regard to effects and economic implications, our findings contribute valuable knowledge on available, appropriate and feasible pathways for upscaling sustainable beef production

Integrating Agri-Environmental Programs into Regional Production Models: An Extension of Positive Mathematical Programming

Positive Mathematical Programming (PMP) has become a popular method for regional production models. The standard approach estimates cost (or production) functions for each land-use activity separately from each other. This means that the same crop grown under two technologies is treated as if it were two separate crops, which may lead to unsatisfying results, for example, if agri-environmental programs are modeled. We present an extended version of PMP that leads to more plausible results than the standard version in such cases. The extended method is applicable to other problems where differences in the elasticity of substitution between activities are important. Copyright 2003, Oxford University Press.

Thünen-Baseline 2015-2025: Agrarökonomische Projektionen für Deutschland

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