Rangeland profitability in the northern Gulf region of Queensland: understanding beef business complexity and the subsequent impact on land resource management and environmental outcomes

Abstract

The farm-gate value of extensive beef production from the northern Gulf region of Queensland, Australia, is ~$150 million annually. Poor profitability and declining equity are common issues for most beef businesses in the region. The beef industry relies primarily on native pasture systems and studies continue to report a decline in the condition and productivity of important land types in the region. Governments and Natural Resource Management groups are investing significant resources to restore landscape health and productivity. Fundamental community expectations also include broader environmental outcomes such as reducing beef industry greenhouse gas emissions. Whole-of-business analysis results are presented from 18 extensive beef businesses (producers) to highlight the complex social and economic drivers of management decisions that impact on the natural resource and environment. Business analysis activities also focussed on improving enterprise performance. Profitability, herd performance and greenhouse emission benchmarks are documented and discussed.

Elevated CO2 induces substantial and persistent declines in forage quality irrespective of warming in mixedgrass prairie

“…, Rolfe et al. ). Livestock managers contend with substantial year‐to‐year variability in forage production and quality, and often vary stocking rates and animal distribution in flexible ways to mitigate this variation (e.g., Derner et al.…”

“…Understanding how climate change will influence forage and livestock in semiarid rangelands is critical to the long-term sustainability of these agricultural systems, where economic margins are low (Dunn et al 2010, Rolfe et al 2016. Livestock managers contend with substantial year-to-year variability in forage production and quality, and often vary stocking rates and animal distribution in flexible ways to mitigate this variation (e.g., Derner et al 2008, O'Reagain et al 2014.…”

Beneficial land sector change in far northern Australia is required and possible – a refutation of McLean and Holmes (2019)

“…614) * Lack of financial literacy and business skill remain the biggest impediment to most pastoralists achieving financial sustainability in their businesses because while this impediment is in place, pastoralists lack the perception and ability to identify herd and whole business profit drivers for improvement (Holmes 2015;p. 615) Producers need to recognise the need for better business management practices and actively improve their skills to be successful in the modern business environment (Rolfe et al 2016;p. 270) Environmental sustainability * Tropical tallgrass communities are sensitive to grazing and can tolerate only relatively low levels of utilisation (Ash et al 1997;p.…”

“…. .Overgrazing, although rational for those maximising current earnings to ensure short-term survival, often occurs at the expense of maintaining the long-term productivity and capital value of the resource (Rolfe et al 2016;p. 271) * Rainfall variability is a major challenge to sustainable grazing management in northern Australia.…”

“….pastoralists are most likely to overstock when they are under severe financial pressure. Therefore, finding pathways to guide struggling enterprises back into the black should be a high priority for any program promoting sustainable natural resource management (Crowley 2015;p. 147; see also Rolfe et al 2016) Finally, it is important to appreciate that our focal study region incorporates significant Indigenous demographic characteristics which are not addressed by any of the McLean and Holmes pastoral enterprise studies -(a) rapidly evolving Indigenous interests in land where, currently, Indigenous people have legal tenure to 28% of the region (Russell-Smith and Sangha 2018), and share title (Native Title) with a further 28% (Sangha et al 2019); (b) outside of towns Indigenous people comprise a substantial proportion of the rural population, including about half in the Kimberley, Top End and Cape York, and more than 90% in very remote regions (Archer et al 2019). Indigenous people own and run several very profitable cattle enterprises (e.g.…”