First of all, an obvious factor is that an animal can either be raised for meat or for its manure capabilities, but it is quite a stretch of the imagination to attempt to implement a cycle where it accomplishes both tasks. At some point, a cow or chicken raised for meat will have to be slaughtered and then its manure producing capabilities are cut off. It makes more sense to pick one or the other and go with it.

Second, animals raised to produce manure still have to be fed, and grazing may not be available all year round, so grain and feed will have to be imported, which is both economically and ecologically expensive. It is of course best to have local feed available for your animals, but it is not always possible.

Thirdly, animals raised for meat also have to be fed, and this is usually imported from a great distance so while meat itself is sustainable, non-sustainable resources may be being used for production of this meat. Grass fed meat is becoming more and more popular, but industrially produced meat is still the majority of the beef and chicken on the market today.

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http://www.nytimes.com/2012/04/13/opinion/the-myth-of-sustainable-meat.html?_r=1

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