Agriculture Value Chain In A Bind Over Emissions Targets

The agriculture value chain faces the prospect of being held to sectoral emissions targets over which it has little control.

The agricultural business chamber, Agbiz, in its comment on the draft sectoral emissions targets set under new climate legislation, points out that the sector cannot meaningfully reduce its carbon footprint from the combustion of liquid fuels unless the transport sector shifts towards electric vehicles and rail for freight transport.

Carbon contributions through fuel use include the combustion of liquid fuels on farm as well as through the transport of inputs to the farm and agricultural products to processors and markets.

Agbiz also points out that electricity use is the third-biggest contributor to the sectors emissions for irrigation, cold storage and processing, but electricity reforms fall outside the department of agriculture, land reform and rural developments purview.

Governments draft sectoral emissions report notes that agriculture accounted for 11% of South Africas total emissions, and of those emissions, 68% came from enteric fermentation in livestock.

However, the report does not fully recognise the sectors contribution to carbon sequestration, says Agbiz, noting the sector is able to annually offset 60% of its emissions through carbon sinks.

Carbon sequestration can also be improved through regenerative agriculture practices, but more research is required on how to transition to these techniques in a cost-effective manner.

Best-practice livestock health, feed, manure, and breeding management can eliminate 19% of annual emissions, while sustainable land and fertiliser management and integration of renewable energy to meet energy demand can eliminate 17% and 19% of annual emissions, respectively.

Agbiz also warns that the sector targets should be set at a level that still allows for new entrants in the sector, as agriculture is deemed an important future source of employment as other carbon-intensive industries wind down.

It points out that companies affected in the value chain may straddle the policy focus of several government departments. The chain includes the manufacturing of inputs such as fertiliser and feed, transport, retailing to the farming market, primary production, transport to storage and consolidation points and transport to domestic or foreign markets. Suggested policies and measures mentioned in governments draft report, however, only address primary agricultural production.

Furthermore, it is not clear whether the sectoral emissions target includes the industrial agricultural commodities sugar and poultry, as the master plans for these reside under the department of trade, industry and competition.