Abstract
Extensive livestock production is a major deforestation driver in the Brazilian Amazon. This study presents an assessment of the economic and environmental feasibility of sustainable livestock intensification in São Félix do Xingu municipality, a deforestation frontier with an area of more than 8.5 million hectares, and home to the largest cattle herd in Brazil. Proposed intensification was limited to approximately three animal units per hectare to avoid negative environmental impacts. Transition costs to sustainable cattle intensification were estimated for thirteen pilot farms taking into account adoption of good agriculture practices, pasture maintenance/restoration, and restoration of environmental liabilities. To move to sustainable intensification practices, a mean total annual investment of US$1335/ha ± US$619/ha would be necessary, varying from US$750 to US$2595/ha. Internal rate of return and net present value estimates indicated that the sustainable livestock intensification approach proposed was profitable in farms with more than 400 hectares of pastureland, but not in those where the pasture areas were smaller than 150 hectares. Livestock sustainable intensification also had the potential to promote social and environmental benefits, including a 54% increase in the number of contract workers, improvement of landowners’ managerial skills, and workers’ training, in addition to avoiding emission of 1.9 Mt CO2eq and sequestration of 0.36 Mt CO2eq. We conclude that the sustainable intensification of pasture areas has the potential to prevent further deforestation in the Amazon while generating social and other environmental benefits.
Highlights
Since the early 1970s, livestock production has been one of the main economic drivers to the occupation of the Amazon
Adoption of intensification practices entails high upfront costs to farmers and low returns during the period of transition, requiring a behavior change that can only be achieved if producers are convinced of the economic viability of intensification. Considering this and taking the environmental and socioeconomic importance of beef production in the Amazon into account, the objective of this study is to provide an empirical basis for assessing the feasibility of implementing sustainable livestock intensification in consolidated areas of the Amazon region
Our results indicate that the sustainable livestock intensification approach proposed is economically viable in medium to large farms located in a major deforestation frontier in the Amazon region, and can yield environmental and social benefits
Summary
Since the early 1970s, livestock production has been one of the main economic drivers to the occupation of the Amazon. Cattle ranching became widespread in small-sized properties, which followed the practices used in larger farms, based on successive processes of slash-and-burn of primary and secondary forest for the establishment of pastures [2]. The small herd found in smaller properties is often used for the production of dairy products, and for breeding and fattening of calves for larger farms, but overall productivity tends to be low due to both limited technical and financial capacity. Animal and overall farm management practices, traditional extensive livestock systems frequently experience a sharp decline in pasture productivity after 5–15 years of grazing, leading to the abandonment of large areas [4]. Despite a significant decrease in the rate of deforestation in the Amazon of about 80% in 2015 as compared to peak rates in 2004, forest conversion still persists, and cattle ranching accounts for part of this resilient deforestation [6]
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