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Abstract
In the Mackay Whitsunday region, the dominant grazing based operations are small intensive
systems that heavily utilise soil, nutrient and chemical management practices. To improve water
quality entering the Great Barrier Reef, graziers are being encouraged to adopt improved
management practices. However, while there is good understanding of the management changes
required to reach improved practice classification levels, there is poor understanding of the likely
economic implications for a grazier seeking to move from a lower level classification to the higher
level classifications. This paper provides analysis of the costs and benefits associated with
adoption of intensive grazing best management practices to determine the effect on the profitability
and economic sustainability of grazing enterprises, and the economic viability of capital investment
to achieve best management. The results indicate that financial incentives are likely to be required
to encourage smaller graziers to invest in changing their management practices, while larger
graziers may only require incentives to balance the risk involved with the transition to better
management practices.