Australia's largest cattle producer says the beef industry has reached a fork in the road when it comes to sustainability.
AACo boss David Harris says it will be increasingly harder to justify inaction on sustainability and it certainly can not be avoided on ideological grounds.
The latest reporting on how Australian beef is performing in areas like greenhouse gas emission reduction and land being actively managed for biodiversity outcomes is due at the big Beef Australia event in Rockhampton in May.
The 2024 Australian Beef Sustainability Update will be released at the event, reporting on 54 indicators across the themes of best animal care, environmental stewardship, economic resilience and people and the community.
At times, since its inception in 2017, the beef sustainability framework has drawn some pushback from producers who've argued it is kowtowing and bringing on more costs.
But that sentiment seems to have disappeared.
Mr Harris said at a basic level, cattle operations rely on nature, "so it makes sense that if we improve the nature that we operate in - if we can start to have a positive impact on nature - we will be more productive, more efficient."
With 2024 AACo's 200th birthday, the company is, by definition, sustainable but Mr Harris, the managing director and chief executive officer, said sustainability was about more than just financial resilience.
"AACo, and all of us, are at a point in time where we must adapt to survive," he said at the 2024 Wagyu Edge conference.
"Sustainability and/or ESG (environmental, social, governance) is the new challenge . . or is it an opportunity?
"Deforestation, emissions, biodiversity and nature, animal welfare, species and habitat loss and land degradation - how we respond to all these things will influence our ability to operate as well as market access both here and abroad."
AACo takes a holistic view of sustainability, Mr Harris said.
"Ultimately, we start with nature and for us it's about ensuring our cattle production system creates a positive outcome for the natural assets we manage and, of course, positive returns for the company," he said.
"Our cattle operations span over 6.5 million hectares of land and the focus in recent times is as much about how we are doing it, as it is what we are doing.
"We believe now that through how we operate we can be part of the solution to addressing nature related challenges, which will lead to a positive impact on climate.
"The two are not mutually exclusive.
"The parameters have changed, but so too has the technology, the science and the understanding of how we can make a difference over time. And we do want to make a difference."
Mr Harris said customers and consumers were increasingly expecting action in this space and "if we don't act, regulators will begin to demand it, finance will become harder to get, the media will challenge us and markets will begin to close to us."
"It's a challenge, but I honestly believe it's also one of our greatest opportunities," he said.
"New revenue streams will open to us through carbon and biodiversity markets. We can diversify and consider alternate uses for the vast land that we operate on that are symbiotic with our current cattle businesses, but it will still demand change."
Dr Tim Ault, the assistant secretary at the agriculture and non-tariff barriers branch of the Department of Foreign Affairs and Trade, agreed.
"Whether we like it or not, sustainability requirements are going to become more and more common," he said.
His department was pushing back against the ones it sees as unfair to exporters, he said.
"The European Union, for example, is taking a very EU-centric approach to trying to bring these issues into the global trading system," Dr Ault said.
"We need to respond in kind.
"The EU is a big subsidising country, and subsidies are one of the biggest, if not the biggest, distorting factors in global agriculture markets.
"The research suggests 60 to 70 per cent of subsidies are environmentally harmful.
"We've been trying for decades to get the EU and other subsidisers to reduce the amount of subsidies they are pumping into their ag sectors.
"We are now working on getting reputable organisations like the OECD to do some really robust research into the relationships between subsidies and environmental harm.
"The EU, facing a backlash from consumers, will have to do something about it then."
Shan Goodwin
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
Shan Goodwin steers ACM’s national coverage of the beef industry. Shan has worked as a journalist for 30 years, the majority of that with agricultural publications. She spent many years as The Land’s North Coast reporter and has visited beef properties and stations throughout the country and overseas. She treats all breeds equally. Contact 0427686187. E: s.goodwin@austcommunitymedia.com.au
