This paper evaluates three decades of innovation by a leading beef producer in the Barkly region of the Northern Territory. The case study represents a rare published analysis of changes in production, greenhouse gas emissions and land condition metrics for a commercial livestock business. Thirty years ago the property was under-developed and had poor livestock productivity by today’s standards. Between 1981 and 2013, the business has increased carrying capacity through water point development, and achieved a >50% increase in herd size, a 46% improvement in weaning rate, an 82% reduction in breeder mortality rate and an improvement in land condition. Annual liveweight turn-off has increased from 75 kg to 128 kg per adult equivalent (AE) carried. All of this has been achieved while using recommended stocking rates. In contrast, two additional analyses reflecting other management approaches being taken by some north Australian beef businesses resulted in poor productivity, economic, emissions and land condition outcomes. Total greenhouse gas emissions have increased on the case study property since 1981 as a result of increasing herd size. However, the intensity of emissions per tonne of liveweight sold has declined by 43% due to the improvements in livestock productivity. The potential for generating carbon revenue from this emissions intensity improvement was explored. We found that for >95% of northern beef enterprises, current project transaction costs would entirely negate carbon revenue at a carbon price of < $25 tCO2e–1. At $5 tCO2e–1, the minimum herd size needed to cover the project transaction costs would be in excess of 35 000 AE. Although substantial carbon profits appear unlikely at present, the management practices evaluated can deliver substantial economic, emissions and land condition benefits to individual businesses and the wider industry. The paper concludes that cost-effective investment to concurrently increase herd size and livestock productivity per head, in conjunction with safe stocking rate management, is a proven path to economic and environmental sustainability in the north Australian beef industry.
The effect of cooperation in groups of agricultural producers from the perspective of transaction costs. Case study