Abstract

The global water scarcity situation is a major issue of concern to sustainable development and requires detailed assessment of water footprints and water productivities in all sectors of the economy. This paper has analysed economic water productivities along the dairy value chain in South Africa. The findings reveal that the value added to milk and water as it moves along the value chain varies from stage to stage; with the highest value being attained at the processing level, followed by the retail and farm gate levels,.respectively. Milk production in South Africa is economically efficient in terms of water use. Feed production accounts for about 98.02% of the total water footprint of milk with 3.3% protein and 4% fat. Feed production is economically efficient in terms of cost and water use. Value addition to milk and economic productivity of water are influenced by packaging design. Not all economically water productive feed products are significant contributors to milk yield. Future ecological footprint assessments should take into account the value added to output products and economic water productivities along the products' value chain, rather than relying only on water footprint estimates. (C) 2017 Elsevier B.V. All rights reserved.

Keywords

Economic water productivity; Dairy industry; Water efficiency; Water footprint; Water policies; Value addition

Published in

Ecological Economics
2017, Volume: 134, pages: 22-28

UKÄ Subject classification

Economics
Environmental Management


Publication identifier

DOI: https://doi.org/10.1016/j.ecolecon.2016.12.020

Permanent link to this page (URI)

https://res.slu.se/id/publ/123634