In the dynamic landscape of our horticulture industry, the concept of resilience has become synonymous with sustainability, a key pillar for ensuring the robustness of our food supply chains. Hon Jackie Jarvis, speaking at EvokeAg this month, highlighted the shift in consumer consciousness towards climate considerations, transforming their demands into a powerful force reverberating through the entire supply chain.
As consumers wield their influence, our horticulture sector faces evolving pressures, including access to water, carbon accounting, biodiversity concerns, rising input costs, employment complexities, and pricing pressures. Recognising the need for internal solutions, industry stakeholders must collaboratively work towards sustainable practices to build resilience. Communicating a narrative that resonates with consumers will ensure we retain our social licence as responsible stewards of our environment and food supply.
Backing our industry story with robust business and industry data not only enhances credibility but also instils confidence in our ability to address the challenges confronting our horticulture businesses. To foster resilience, it is imperative to address environmental, climate, social, and market pressures, mitigating risks by transforming them into opportunities.
Carbon accounting has emerged as a pivotal challenge, with implications for both legislative compliance, market access, and meeting consumer demands. While discussions about carbon were prevalent at EvokeAg, there was a noticeable gap in how to support the Australian horticulture industry in its ability to achieve net-zero emissions and derive benefits from measuring, monitoring, and reporting these efforts.
We advise business owners to get ready to account for the carbon their business emits and captures. We know that suppliers and customers will be asking for carbon data in the not-too-distant future. We advise businesses to proactively approach their suppliers, financiers, and customers. This will help shape the conversation and enable the development of business practices to capture the data that is relevant to our industry.
Horticulture businesses expose themselves to the risk of being excluded from markets and access to capital if they can’t account for the carbon emitted through their business activities. Whilst this may feel like yet another compliance activity – on top of everything else – businesses are advised to be proactive in addressing this significant business risk rather than wait for better methodologies, technologies, or policies to assist the process.
With risk comes opportunity.
Accounting for carbon emissions brings the opportunity to participate in new markets, including displacing competitors who can’t provide the data their customers require.
Understanding your scope 1, 2, and 3 emissions is a critical first step towards participation in existing supply chains and accessing vital export and emerging markets. The starting point involves comprehending your on-farm contribution to carbon capture and emissions, a process facilitated by tools like the University of Melbourne Horticulture Greenhouse Accounting Tool developed by Professor Richard Eckard.
Utilising such tools demands a thorough understanding of farm activities. Thus, it becomes essential to maintain records of business inputs. By doing so, we not only fulfill the requirements of reputable tools but also open avenues to leverage this valuable data for improving on-farm productivity and financial performance. This data allows us to gauge the efficiency with which inputs are converted into produce, ultimately ensuring the sustenance of our nation. Capturing data on key production activities enables continuous improvement within business activities directly improving operational efficiencies.
There is an urgency to establish base level carbon accounting because Australia is working towards emissions targets by 2030. This will capture every business either directly or indirectly through voluntary and legislated reporting requirements. The initial baseline data capture period is five years, so by starting now, your business will be ready by 2030. That’s only 6 seasons away so you must take action this season, so you have longitudinal data to support your business disclosures.
In conclusion, the horticulture industry stands at a crucial juncture, where embracing sustainability not only secures our place in the evolving market but also reinforces our commitment to meeting consumer expectations and global climate goals. By proactively addressing challenges and leveraging data-driven insights, we can build resilient businesses that thrive amidst the complexities of the modern agricultural landscape.
