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Economic Water Productivities Along the Dairy Value Chain in South Africa: Implications for Sustainable and Economically Efficient Water-use Policies in the Dairy Industry

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  • Owusu-Sekyere, Enoch
  • Scheepers, Morné Erwin
  • Jordaan, Henry

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.

Suggested Citation

  • Owusu-Sekyere, Enoch & Scheepers, Morné Erwin & Jordaan, Henry, 2017. "Economic Water Productivities Along the Dairy Value Chain in South Africa: Implications for Sustainable and Economically Efficient Water-use Policies in the Dairy Industry," Ecological Economics, Elsevier, vol. 134(C), pages 22-28.
    • Handle: RePEc:eee:ecolec:v:134:y:2017:i:c:p:22-28
    DOI: 10.1016/j.ecolecon.2016.12.020
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    References listed on IDEAS

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    7. Molden, David, 2007. "Water for food, water for life: a comprehensive assessment of water management in agriculture: summary," IWMI Books, Reports H039769, International Water Management Institute.
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    Cited by:

    1. GhassemiSahebi, Fakhroddin & Mohammadrezapour, Omolbani & Delbari, Masoomeh & KhasheiSiuki, Abbas & Ritzema, Henk & Cherati, Ali, 2020. "Effect of utilization of treated wastewater and seawater with Clinoptilolite-Zeolite on yield and yield components of sorghum," Agricultural Water Management, Elsevier, vol. 234(C).
    2. Pier Paolo Miglietta & Domenico Morrone & Federica De Leo, 2018. "The Water Footprint Assessment of Electricity Production: An Overview of the Economic-Water-Energy Nexus in Italy," Sustainability, MDPI, vol. 10(1), pages 1-14, January.
    3. Enoch Owusu-Sekyere & Awudu Abdulai & Henry Jordaan & Helena Hansson, 2020. "Heterogeneous demand for ecologically sustainable products on ensuring environmental sustainability in South Africa," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 22(1), pages 39-64, January.
    4. Ayanda M. Ngxumeshe & Motshekwe Ratsaka & Bohani Mtileni & Khathutshelo Nephawe, 2020. "Sustainable Application of Livestock Water Footprints in Different Beef Production Systems of South Africa," Sustainability, MDPI, vol. 12(23), pages 1-13, November.

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