Thinking about virtual water

What is virtual water? Virtual water is the water used to create the goods and services that we consume and use. The embodied water concept is illustrated in the diagram with a bowl of pasta, which may hypothetically contain 200 litres of virtual water, although only two litres of boiling water is used to produce it at home.

By Mike Muntisov

Thinking about virtual water can make us look at our water management systems in completely different ways. A detailed analysis of Victoria’s virtual water cycle shows that:

  • Victorians harvest around 25 per cent of the state’s total historic average stream flows;
  • Of this harvested water, around 40 per cent (2000GL) is exported out of the state as virtual water, mainly embodied in food products;
  • Victorians each consume about 0.8 ML of virtual water each year which is about eight times our direct water use

A breakdown of the virtual water consumption of Victorians is shown in the pie chart. Dairy products and red meat together represent more than a quarter of our total virtual water consumption. Indeed, Victorians’ virtual water consumption in the form of dairy products exceeds the state’s total direct household consumption of water.

A recent UNESCO funded study also found that Australia, the world’s driest inhabited continent, was the largest net exporter of virtual water in the world.

Why do Victoria and Australia export so much virtual water? The answer is that there is a lot of water embodied in our food export products. In comparison, our imports are dominated by manufactured products that generally have a low virtual water content; hence we are a large net exporter of virtual water. This tells us that water management and use is dependent on total economic activity, not just direct household water use.

As the economy grows so too will water use in the “business as usual” scenario. A simplistic 3 per cent per annum growth (The Australian average over the last 30 years has been 3.2 per cent per annum) would result in the need to harvest 100 per cent of the state’s historic average stream flows by 2050 (even earlier with climate change). So our water management paradigms and the balance of Victoria’s and Australia’s economic sectors will need to change.

We will need to ask ourselves whether the nation is getting the best value it can from its water resources. This may involve starting to look at strategic aspects of virtual water trade including reviewing our export product mix, importing virtual water-rich products from water-rich nations such as New Zealand, or moving the growth of water-intensive industries such as irrigation to the water-rich parts of Australia. An appropriate pricing policy and market framework will facilitate these changes.

Finally, thinking in terms of virtual water also shows that lifestyle choices at the household level can influence water management within the whole economy. For example, our diet choices affect virtual water consumption. Foods which some dieticians recommend eating in moderation have a high virtual water content (eg. dairy products, red meat, sugar). While those that are often recommended for increased consumption (eg. fruit, vegetables, grains, seafood) tend to be lower in virtual water. Indeed, a vegetarian diet has half the virtual water content of a standard meat-rich diet. And to answer a frequently asked question, beer has the lowest virtual water content of the common alcoholic beverages.

Ultimately, we may reach a stage where this is “watersmart” labelling on all household products. In a water conscious environment this will put pressure on producers across the whole production chain to reduce water consumption. “Low water use” products may appear beside “97% fat free” products on the supermarket shelves!

Thinking in terms of managing virtual water sources and demands provides an eight-fold greater impact on overall water management than simply focusing on household water consumption. It also provides a strong link between irrigation use and personal lifestyle – in other words, water management is not a problem for farmers alone.

Please click the link here to read the full report.

This article was published in Water – the journal of the Australian Water Association

Virtual Water

Virtual Graph

For further information, contact:

Mike Muntisov
Tel: 61 3 8687 8222
Email: Mike Muntisov

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