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There's a lot more to it, besides even if livestock were changed and water usage in CA dropped from 50% to like 40%, it's still a completely unsustainable amount of water....and it goes way beyond that. Also in the US (I'm from Canada actually) 50% of all land used by humans is for livestock. The numbers are really shocking there, and globally - take a look at some of the info on this blog post: http://blog.thevictoriavegan.com/2014/10/humane-meat-its-not-humane-for-nature.html - it's insane.. =(
I would imagine replacing cattle with sheep and goats would be a bit less water, but a whole lot of new infrastructure would have to be developed...and to supply the amount of meat wanted by people, it would probably only drop the amount of water by a few points...and to use your earlier point, won't people used to beef only appeal to a small fraction of the population?
Given the scale, I don't think switching animals is really a solution, but a delay (since demand will only continue to increase, unless another attitude is instilled.)
Livestock are the culprit, and 50% of all water in CA is used for animal agribusiness. The total agriculture sector is 75% (including almonds). It's insane to not talk about this, here are more details: veganstart.org/almonds.
Just think about it: already the majority of land used by humans is dedicated to livestock, and is a leading cause of deforestation. You'd have to cut down even MORE forests to make room for what he's talking about. It's an utterly ridiculous concept, and if he had his way could be arguably as bad as his slaughter of elephants. This guy is a quack of the highest possible degree.