Analysis of the impact of the agroecological transition on gross margins - case study of two livestock farms in the Walloon region

Details

Supervisors

Mossay, Emmanuel

Faculty

Louvain School of Management

Degree label

Master [120] : ingénieur de gestion, à finalité spécialisée

Abstract

Agroecology is an emerging science and a set of practices which seek to reconcile agriculture with nature. It is increasingly being promoted as a potential solution to the limitations of the conventional agriculture system. However, the analysis of its economic implications is only starting, and scientific documentation on the topic is still limited. Our research proposes to contribute to this question by analyzing the evolution of gross margins in two livestock farms in the Walloon Region, one who has been applying agroecological practices for more than 20 years, and the other who transitioned recently. In these two case studies, the farmers adopted strategies focused on autonomy, resilience, and continuous improvement, with measures such as stopping the use of fertilizers and phytosanitary products, limiting the size of the herd to a level suitable for self-sufficiency in feed, or using natural methods to improve the quality of feeding and the health of the livestock. Over time, overall costs were reduced or stayed stable, while revenues remained stable or increased. As a result, gross margins were improved, and the farms became less vulnerable to external conditions. Our research revealed the deep interconnections between the various practices implemented in an agroecological farm, and the difficulty to isolate the economic impact of each specific action. There is therefore a need to develop management accounting systems designed with a systemic mindset, with the objective to optimize the farm system as a whole, rather than to maximize production volumes as is often the case in conventional agriculture. We conclude by indicating several paths for future research on the economic viability of agroecological practices.