April 15, 2024

 

Brazilian cattle industry faces major financial risks without climate policies

The cattle ranching sector in Brazil, one of the world's largest, is under the microscope as a new report signals looming financial jeopardy if it fails to adjust to climate change and stricter deforestation policies aimed at preserving the Amazon, Mongabay reported.

 

According to a recent study from Orbitas, an initiative of Climate Advisers, Brazil's domestic beef production might plummet by a quarter by 2050. Governments and private entities are intensifying efforts towards climate action and forest conservation, urging the industry to swiftly adapt to avoid significant economic setbacks.

 

Niamh McCarthy, director of Orbitas, said the future landscape of the Brazilian cattle sector is poised to undergo substantial changes from its current state. Climate-related risks loom large, demanding urgent attention to uphold Brazil's GDP contributions.

 

With an estimated 232 million head of cattle, Brazil ranks second globally, accounting for roughly 20% of beef exports worldwide. However, this expansion has often come at the expense of vital ecosystems like the Amazon Rainforest and Cerrado biome.

 

Cattle ranching and feed agriculture emerge as primary drivers of deforestation in these regions, crucial for carbon sequestration in combating climate change. While Amazon deforestation saw a decrease to 900,100 hectares last year, clearing in the adjacent Cerrado biome is escalating.

 

The Orbitas report underscores the cattle industry's failure to adopt sustainable practices, exacerbating climate risks. Deforestation linked to ranching contributes to adverse conditions, jeopardizing cattle health and diminishing soil fertility essential for feed cultivation.

 

As global dietary preferences shift towards alternatives with lower carbon footprints, the industry faces pressure from evolving regulations, supply chain scrutiny, and shifting market dynamics.

 

Due to land constraints, expanding into forested areas isn't viable. Instead, the report advocates for investment in innovative technologies and management strategies to optimize existing ranching lands. This entails enhancing pasture quality, soil health assessments, and integrated agricultural-livestock-forestry systems to curb greenhouse gas emissions.

 

The report emphasises the imperative for meat producers to embrace sustainable practices, safeguarding pasturelands and bolstering resilience against pests and extreme weather events. By optimising land use and fostering technological advancements, Brazil can navigate the changing landscape of the global cattle industry while bolstering its rural economy for the long haul.

 

-      Mongabay