Livestock production accounts for 15% of global greenhouse gas emissions, with methane emitted by cows through burps and farts accounting for a significant portion. Not only did New Zealand announce plans to impose a "cow fart tax" at the end of last year (2022), but the Netherlands and the European Union have also introduced pollution control measures for livestock farming. Will these policies accelerate the transformation of the livestock industry or lead to a shift in meat and dairy sourcing to less regulated regions? This presents new challenges for farmers.
The EU, New Zealand, and the Netherlands are tightening regulations on livestock farming.
Methane is the second most powerful greenhouse gas after carbon dioxide. According to the International Energy Agency (IEA), cattle are the main source of agricultural methane emissions, which reached 142 metric tons in 2022, three times the amount emitted by the oil industry.
To combat climate change, more than 150 countries have signed the Global Methane Pledge, which aims to reduce atmospheric methane by 30% by 2030. In a first-of-its-kind move, the New Zealand government plans to impose a tax on farmers, often referred to as a "cow fart tax," based on factors such as the number of livestock they raise, the fertilizer they use, and their energy efficiency.
Separately, the EU is considering amending its Industrial Emissions Directive (IED) to impose emissions limits on farms across its 27 member states. This is expected to reduce livestock numbers and spark a backlash from farmers in Italy and Germany, which together produce more than a quarter of Europe's beef.
The Industrial Emissions Directive is the EU's primary regulation for pollution from industrial facilities and intensive livestock farms, covering the control of nitrogen oxides, ammonia, methane, and carbon dioxide. Farms must operate within their permits and use best available techniques (BAT). The European Council reached a consensus on a revised version of the law on the 16th. Under this version, extensive farms will be exempted from the regulations, with controls starting with large-scale farms. This amendment will require further discussion with the European Parliament before finalization.
The Netherlands also adopted a new policy at the end of June last year (2022), stipulating that the nation must reduce its emissions of pollutants such as nitrogen and ammonia by 50% by 2030, with a 95% reduction in protected areas (Natura 2000). Most of these emissions come from animal husbandry, necessitating a reduction in livestock numbers. Farmers' livelihoods have been severely impacted, leading to large-scale street protests.
The livestock industry is transforming, and the consumer market is also facing changes.
Reducing greenhouse gas emissions is an important international trend. Major international dairy and meat manufacturers have long been investing in research and developing technologies that can inhibit methane emissions. "Zero-carbon beef" or "carbon-neutral beef" has also begun to be sold on the market, and the plant-based meat business opportunities have also risen.
According to Reuters, Dutch chemical company DSM and New Zealand dairy company Fonterra have developed feed additives that can reduce the frequency of burping in dairy cows, while French dairy giant Danone has separated solids from liquids during milk production, which can reduce methane emissions by more than one-fifth. However, these methods are not applicable to every farm and are expensive.
The impact of the regulations is still uncertain. Farmers worry that the "cow fart tax" will make New Zealand milk more expensive, prompting importers to turn to countries like Saudi Arabia. Small livestock farmers and manufacturers may find it more difficult to survive this wave of challenges.
While there are many plant-based meats on the market, according to the nonprofit Good Food Institute, plant-based meats cost about twice as much as regular steak. Some believe that rising meat prices will help narrow the price gap between meat and plant-based meats, encouraging consumers to switch to alternatives with lower carbon emissions.
Source: Environmental Information Center (https://e-info.org.tw/node/236390)
