Improving herd productivity directly impacts profit AND reduces emissions intensity
Articles in global and local media are currently saturated with discussions about emissions. Navigating these can be overwhelming, especially with conflicting information and unfamiliar terminology. At Bush Agribusiness we work with our clients to focus on the things within their control, and be prepared (within reason) for factors outside of their control.
Reducing emissions is a popular narrative, with our industry and many individual companies setting short to medium term targets to address this. Emissions intensity (emissions per unit of production) is a common metric used to monitor and track individual or industry performance. While emissions intensity provides a valuable metric, herd productivity (Kilograms of beef produced per Animal Equivalent) encompasses a wider range of benefits. A more productive herd inherently reduces emissions intensity by maximising output. Data from The Australian Beef Report reveals that the three main productivity drivers (reproductive rate, mortality rate, and sale weight) explain over 75% of the difference in productivity between businesses. Additionally, productivity explains most of the difference in Gross Profit between businesses. Shifting the focus toward herd productivity directly impacts Gross Profit, while also reducing emissions intensity.
We have modelled the relationship between herd productivity (Kg Beef/AE) and emissions intensity (Kg CO2e/Kg Beef), which demonstrates the strong relationship between a productive herd and low emissions intensity. Businesses that are more efficient at converting grass to beef will have a lower emissions intensity.
Back to what we can and cannot control as beef producers. Table 1 displays the impact of small improvements in the three main productivity drivers (reproductive rate, mortality rate and sale weight), which accumulate to big differences in kilograms of beef over time.
Table 1: Productivity Drivers
A productive herd means healthier, faster-growing cattle and fewer losses due to disease or poor performance. Higher weaning rates and reduced time to market translate into stronger cash flow and economic resilience. In contrast, targeting emissions intensity alone may limit focus to compliance-driven changes, which could overlook broader efficiency gains.
Practical implementation requires accurate and reconciled herd inventory and weight by age records. In many operations, these drivers are already being monitored, meaning that measuring productivity improvements is more accessible than tracking emissions intensity in isolation.
Shifting the attention from emissions intensity to herd productivity is not about ignoring our emissions responsibility. It does, however, allow producers to focus on productivity (kg beef/AE) improvements without the distraction of complicated emissions calculations and have the confidence that their progress will result in both higher profit and lower emissions intensity.
