MAKING A BUSINESS CASE FOR SUSTAINABLE DAIRY PRODUCTION

The report uses a case study of 62 South African pasture-based dairy farms to argue that sustainable management practices lead to higher gross margins and lower environmental impacts. Key findings indicate that optimizing milk production relative to cow size and land area, rather than maximizing production per cow, reduces carbon footprints and increases profitability. The study highlights a strong negative correlation between soil carbon and nitrogen fertiliser application, suggesting that healthy soils reduce the need for chemical inputs. Projections suggest that widespread adoption of these practices in the Eastern Cape and KwaZulu-Natal could reduce total carbon emissions by 10% and excess nitrogen by 27% over five years.

• There is a clear positive correlation between lower environmental impact and higher farm profitability, with higher gross margins associated with lower carbon footprints and more efficient nitrogen and phosphorous utilisation.
• To increase profitability and limit environmental impact, farmers should focus on optimising milk production (per hectare and per liveweight) rather than maximising production per cow.
• Healthy soils with optimal carbon levels are negatively correlated with nitrogen fertiliser application rates, as natural nutrient cycling reduces the need for chemical inputs.
• The case study farms generally exhibit lower environmental impacts than global averages; the low-impact group has a lower average carbon footprint than Oceania (1.31 kg CO2e/kg FPCM), while the global average in 2015 was 2.40 kg CO2e/kg FPCM.
• Farm-grown feed is a critical driver of sustainability; farms that produce more of their own feed tend to be more profitable, although drought years in the study period forced a higher reliance on bought feed.
• Geographic location, climate, and soil type do not act as absolute limits to sustainability, as rainfall did not significantly impact economic or environmental performance across the study groups.
• Extrapolating the case study results to all pasture-based dairy farms in the Eastern Cape and KwaZulu-Natal over five years could reduce total carbon emissions by 10%, excess nitrogen by 27%, and phosphorous excess by 19%.
• Increasing soil carbon levels by 0.2% across all farms in the Eastern Cape and KwaZulu-Natal could store approximately 15.75 million tons of CO2e over five years, potentially making pasture-based dairy farming carbon neutral.
• Key barriers to the adoption of sustainable practices include the misconception that productivity must be sacrificed for environmental friendliness, a lack of accurate information, and social pressure from peers.

APA

WWF South Africa (2021). MAKING A BUSINESS CASE FOR SUSTAINABLE DAIRY PRODUCTION. https://wwfafrica.awsassets.panda.org/downloads/wwf_nedbank_dairy_business_case_report_v2.pdf

Chicago

WWF South Africa. MAKING A BUSINESS CASE FOR SUSTAINABLE DAIRY PRODUCTION. 2021. https://wwfafrica.awsassets.panda.org/downloads/wwf_nedbank_dairy_business_case_report_v2.pdf.

Wikipedia

{{cite report |author=WWF South Africa |title=MAKING A BUSINESS CASE FOR SUSTAINABLE DAIRY PRODUCTION |date=2021 |url=https://wwfafrica.awsassets.panda.org/downloads/wwf_nedbank_dairy_business_case_report_v2.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wwfsouthafrica2021making, author = {{WWF South Africa}}, title = {{MAKING A BUSINESS CASE FOR SUSTAINABLE DAIRY PRODUCTION}}, institution = {WWF South Africa}, year = {2021}, url = {https://wwfafrica.awsassets.panda.org/downloads/wwf_nedbank_dairy_business_case_report_v2.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }