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Gross energy and crude protein balances of cattle in traditional systems and ranching in eastern Botswana have been estimated. The calculations show that ranching is more productive on a per animal basis while traditional systems are more productive on a per hectare basis. Ranching appears to be more efficient than traditional systems in terms of animal gross energy produced per unit of gross energy used for maintenance. Traditional systems, on the other hand, appear to be more efficient in terms of animal gross energy produced per unit of plant energy produced, and in terms of food chain efficiency. The same conclusions were drawn when crude protein balances were considered. The risk of pasture degradation might be greater at the higher stocking rates found in traditional systems, and feed shortages might occur more often, but lower stocking rates and ranch-type changes in product allocation in these systems would most probably lead to lower productivity per hectare. Consequently, this would lead to lower food production and less employment on a national scale. A socio-economic analysis at a national level is urgently needed to be able to weigh the advantages and disadvantages of the development of ranching at the cost of traditional systems.