The Environmental And Economic Costs Of Brazilian Beef
Animal farming is responsible for greenhouse gas emissions, water pollution, and deforestation, in addition to other environmental costs. However, less is discussed about the economic threats of animal agriculture. Many countries rely on government subsidies, taken from taxes, in order to support and maintain their animal farming industry.
In 2017, Brazil had a herd of over 183 million cows raised for beef. This report focuses on the environmental and economic costs of this industry between 2008 and 2017. The authors considered the entire stretch of time from the birth of a calf to the human consumption of beef.
Between 2008-2017, the annual carbon dioxide equivalent emissions (CO2e) from Brazil’s beef trade were estimated to be 290 million tons, 14% of Brazil’s total emissions in that period. A further 22% of emissions came from the conversion of Amazon rainforest land into grazing land for cows.
One kilogram of beef in Brazil equates to 78 kg of CO2e. However, within the Amazon region, the footprint is closer to 145 kg of CO2e per kg of beef. Furthermore, an estimated 64 liters of water were used per kilogram of beef between 2008-2017.
The report points out that the beef industry also has considerable effects on the Brazilian economy. Because the process of farming animals is inefficient and not hugely profitable, governments in many countries use subsidies to support animal agriculture, including the Brazilian government. Subsidies are intended to prop up industries and stimulate economic activity.
From 2008 to 2017, the annual cost of the Brazilian beef trade to the public was R$ 123 billion (about $30.8 billion USD). Overall, almost 10% of the average price of a kilogram of beef came from taxpayer money. Of the taxes collected from the beef industry, 79% was given back to the beef industry through subsidies. In 2015 and 2016, this number exceeded 100% — in other words, taxes given to the beef industry exceeded taxes collected from it.
Given how much this industry relies on subsidies, it could be argued that it is not an economically sustainable business model. It may struggle to survive under normal market conditions without government assistance. The report even points out that these subsidies, funded by the taxpayer, may act as an incentive for deforestation in the Amazon, as land is cleared for cattle to graze. This contributes further to the environmental impact of the beef industry.
Finally, tax exemptions for certain industries result in lost finances for the government that it otherwise would have collected had these industries been taxed. In the case of the beef industry in Brazil, this came to around R$7.9 billion of lost taxes per year between 2008-2019. The report attributes 51% of these lost taxes to cow production, 42% to processing and retail, and 7% to production of “inputs” (e.g., animal feed).
Animal advocates in Brazil may consider raising awareness of how taxpayer money is used to prop up the beef industry, as well as lobbying the government and conducting other forms of legislative advocacy to end animal agriculture subsidies or change how they are allocated. Finally, those working with consumers should continue encouraging them to leave cow products off their plates for the benefit of animals, the environment, and their wallets.