Who pays for methane reduction in livestock?

Reducing methane emissions from livestock farming, both meat and dairy production, is a central topic in discussions about sustainability and climate change. With global warming mitigation targets, especially those set by the Paris Agreement and the Global Methane Commitment, the question is: who should pay for these reductions? See the analysis based on the eDairy News article "GLOBAL COMMITMENT | MEAT AND MILK: WHO PAYS TO REDUCE METHANE?"

The Impact of Methane on Livestock

Methane is a major greenhouse gas, contributing to global warming. In livestock farming, methane emissions predominantly come from ruminant digestion (enteric methane) and manure management. Although solutions to mitigate these emissions are available, they often entail additional costs for producers, raising the question of how these costs should be distributed.

Source: UNFCCC 2022 - United Nations Framework Convention on Climate Change

Solutions and Costs

Among the most promising strategies for reducing methane emissions from livestock farming are the adoption of feed additives, improvements in feed efficiency, and the implementation of regenerative agricultural practices. However, each of these solutions has its own implementation costs and does not necessarily add value to the milk industry's sales price. The question then is: should these costs be absorbed by the producers themselves, passed on to consumers, or subsidized by government policies?

Shared Responsibility

The debate over who should pay for methane reduction involves everyone, so a collaborative approach can be key to success. Governments can implement subsidies and tax incentives to facilitate the adoption of methane mitigation technologies. Consumers, in turn, may be willing to pay a premium for differentiated products, as long as they are properly informed about the practices adopted in the production of the raw material. Producers, on the other hand, need technical and financial support to implement the necessary changes without compromising their competitiveness.

Conclusion

The question of who pays for methane reduction in livestock farming doesn't have a simple answer. It's clear that an integrated approach involving producers, consumers, and governments is essential to ensure sustainability goals are achieved without jeopardizing the sector's economic viability. Given that adopting sustainable practices in livestock farming is crucial, the responsibility for broad implementation must be shared among all stakeholders.

For a more detailed analysis, check out the full article on eDairy News: https://br.edairynews.com/carne-leite-quem-paga-reduzir-metano

Published on eDairy News by: Valeria Hamann

Source: Globo Rural

Authors Wagner Yanaguizawa and Andres Padilla

Wagner Yanaguizawa is an economics analyst at Rabobank and Andres Padilla is an industry and research specialist at Rabobank.