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Spotlight / 2007

This article is based on Managing livestock-environment interactions, a report to the FAO Committee on Agriculture (COAG), which meets in Rome on 25-28 April 2007

Reconciling livestock and environment

Without major corrective measures, livestock's environmental impact "will worsen dramatically"...

A recent FAO study (details here) found that livestock production is one of the major causes the world's most pressing environmental problems, including global warming, land degradation, air and water pollution, and loss of biodiversity.

"The future of the livestock-environment interface," the study said, "will be shaped by how we resolve the balance of two competing demands: for animal food products on the one side and for environmental services on the other." In a report to the Committee on Agriculture (COAG), FAO outlines the major corrective measures urgently needed to address livestock's environmental impact which, it warns, "will otherwise worsen dramatically".

 1  Efficiency through adequate market prices

Current prices of land and water and of feed used for livestock production do not reflect true scarcities, leading to overuse of resources and to major inefficiencies. Policies to protect the environment must, therefore, introduce adequate market pricing for the main inputs - for example, through grazing fees and full-cost pricing of water. While a host of successful technical options are available to mitigate environmental impacts, their wide adoption and application will require price signals that more closely reflect the true scarcities of production factors, and

"Environmental externalities need to be explicitly factored into policies through the application of the 'provider gets, polluter pays' principle"
also correction of distortions that provide insufficient incentives for efficient resource use. Recent development of water markets in some countries is a step in that direction.

 2  Correcting for environmental externalities

Removing price distortions will greatly enhance the technical efficiency of natural resource use, but may often not be enough. Environmental externalities, both negative and positive, need to be explicitly factored into policies through the application of the "provider gets, polluter pays" principle. Livestock holders who generate positive externalities need to be compensated, either by the immediate beneficiary (such as downstream water users) or by the general public (e.g. for carbon sequestration from reversing pasture degradation). Taxation of environmental damage and incentives for environmental benefits may gain momentum in future, tackling first local externalities but increasingly also transboundary impacts.

 3  Accelerating technological change

A number of technical options could mitigate livestock's environmental impacts. For example, in intensive systems, good agricultural practices can reduce pesticide use and fertilizer losses in feed cropping and intensive pasture management, and extensive livestock production systems could make a contribution to biodiversity conservation by adopting silvopastoral approaches. Technological improvements need to focus on optimizing efficiencies in feeding, breeding and animal health. Research and management of feed crop production needs to aim at higher yields in more locally adapted eco-friendly production systems.

 4  Reducing negative environmental and social impacts of intensive production

The environmental problems created by industrial systems - which account for 80 percent of total livestock sector growth - derive mostly from their concentration in areas favoured

"Industrial livestock units need to be located as close as possible to cropland that can be used to dispose of the waste"
by market access or feed availability. Instead, industrial livestock units need to be located as close as possible to cropland that can be used to dispose of the waste. Policy options include zoning, mandatory nutrient management plans, financial incentives, and contractual agreements between livestock producers and crop farmers. Regulations are also needed to deal with heavy metal and drug residue issues at the feed and waste levels and the environmental impacts associated with intensive production of feed grain and other concentrate feed.

 5  Reorienting extensive grazing towards provision of environmental services

The opportunity cost of extensive livestock production is changing, as competition increases for other uses of grazing land, such as water-related services, biodiversity conservation and bio-fuels. Given the potential of the world's vast grazing lands to sequester large amounts of carbon,

"Competition is increasing for other uses of grazing land, such as water-related services, biodiversity conservation and bio-fuels"
mechanisms to use this potentially cost-effective means of addressing climate change need to be developed and deployed. A shift from current "extractive" grazing practices to environmental-service oriented grazing raises two critical issues: how to distribute profits from those services and how to deal with the large number of poor who depend for their livelihoods on extensive livestock. Not all the environmental services of sustainable livestock production will be easily paid for through immediate product pricing. Alternative employment generation and social safety nets - integrated into other rural development activities - are also needed.

Challenges ahead. The environmental impacts of the livestock sector are not being adequately addressed, the FAO report says: "The problem lies mainly with institutional and political obstacles and the lack of mechanisms to provide environmental feedback, ensure that externalities are accounted for and embed the stewardship of common property resources into the sector."

The first challenge is to raise awareness among stakeholders of the scale of the environmental problem, and of how corrective action must extend beyond protection of specific ecosystems. "The mobility of the livestock industry allows its relocation without major problems becoming apparent," FAO says. "For example, intensification may reduce pressure on grazing lands but increase pressure on waterways."


"The mobility of the livestock industry allows its relocation without major problems becoming apparent"
The fact that so many people depend on livestock for their livelihoods limits the options available to policy-makers, and involves difficult and politically sensitive decisions on trade-offs. Commercial expansion of the sector, benefiting from economies of scale and with upgraded food safety standards, creates barriers to smallholder producers. Likewise, distortions and externalities can be corrected, but the resulting higher input prices will have to be passed on to consumers.

Four lines of action. Given the planet's finite natural resources, and the additional demands being placed on the environment by a growing and wealthier world population, it is imperative that the livestock sector make far-reaching changes. FAO suggests four lines of action:

First, strive for further efficiency gains in resource use for livestock production through price corrections for inputs and the replacement of current suboptimal production with advanced production methods.

Second, accept that the intensification of livestock production is inevitable, but make this process environmentally sustainable through, e.g. waste recycling on cropland and application of appropriate technology, especially in feeding and waste management.

Third, adjust grassland-based production to include the provision of environmental services as a major purpose, and probably as the most important one in vulnerable areas.

Fourth, go beyond existing policy frameworks at the local, national and international level - strong political will is required to initiate action and investment in creative ways to avert the environmental risks of continuing "business as usual."

The report proposes that FAO create a specific programme to address livestock-environment interactions through high level consultations, assistance to countries in designing and implementing policy frameworks to address cross-boundary environmental issues, and preparation of guidelines, policy papers and decision support tools.

  • Read the full FAO report to COAG on Managing livestock-environment interactions (PDF, 115K)
  • See also in Spotlight: Environment and agriculture, Agribusiness boom, and Coping with water scarcity
  • Get the full list of COAG documents
Published April 2007
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