Building a balanced Australian Lamb Industry - Focussing on moving towards a low carbon economy

We all produce emissions, whether driving a car, getting on a flight, or brushing our teeth. So why does it matter?

This paper will investigate some of the key solutions and tools available for adoption to achieve a low-carbon production model for a grass-driven, prime lamb farm operation. Specifically, this will be isolated to a breeding operation, looking to turn off finished lambs ready for processing. Based on evidence and insights from my Nuffield travels. I will also examine how a prime lamb business can move towards a low-carbon future and the further research it inspired through sustainable practices, data capture, benchmarking, innovation adoption, market access, policy approaches and the impact of globalization.

In response to increasing global pressures, we are starting to see the regulatory environments change around emissions. Countries are looking at implementing a carbon tax, or regulation that puts a limit to emission outputs. These strategies should align with on farm productivity and profitability goals to support future protein demand and enable a strong future in the lamb industry.

If done well, policy and government regulation have the potential to create engagement and adoption of strategies of new and existing strategies to reduce emissions worldwide. This is evident through the strong leadership and industry support, as seen in the US, who have bolstered a substantial government stimulus to fund innovation and adaptation. These efforts aim to enhance productivity and reduce emissions. However, when these initiatives are poorly executed, there are significant risks and consequences, leading to low adoption of change and strong push back from farming communities.

As a net exporter of lamb, Australia needs to appreciate the driving incentives of global consumers and supply chain expectations. Without exports, the Australian sheep flock would be a fraction of the size, at potentially only 30% of current numbers, or 23M sheep, taken from Meat and Livestock Australia’s 2024 projections. Therefore, Australian farmers should care about positioning their production systems toward a low-carbon economy, while balancing this goal with economic concerns.

Out of the 100 largest economies in the world committed to reducing emissions, 69 of them are companies and 31 are Countries stated in a Global Just Now report in 2016. Proving that it is industry driving this global transition to a low-carbon economy. For Australia to continue doing global business, it will need to align Australian farm businesses with the market. 

Despite what many may think, reducing emissions doesn’t need to be a zero-sum game. One key underpinning to this market alignment, is the mutually beneficial way of looking at carbon intensity. Through analysis of the carbon intensity of a grazing system, individual farm businesses can find opportunities to optimise their output. Ultimately, it is a dual benefit that results from producing more with the same or fewer resources, reducing waste, and maintaining profitability through an efficient cost structure.

Through travelling to several countries, such as Ireland, the United States of America, New Zealand, Israel, the Netherlands, and Denmark, I have developed a global perspective on what is one of the agricultural industry’s greatest challenges. With Livestock being the weighted average of on farm emissions, chasing efficiencies is the first step. The exciting aspect I discovered, is that we have so many different minds and capital being diverted to this challenge around the world,  which will result in multiple solutions and practice changes. Research projects in Ireland, New Zealand, Europe and Australia, are in support and will work toward positive change to support this transition to a reduced emissions economy and lamb industry .

This paper investigates where policy settings currently sit concerning various extremes in climate policy through a global lens, and the perspectives of producers and agricultural industry professionals as a result.

Furthermore, I will explore what emissions are in relation to a prime lamb farming landscape, and the different types of emissions within a grazing system. Through reflecting on diverse farming systems globally, I will highlight the importance of re-evaluating the entire farming process to optimize production. This ensures that emissions reduction isn't the sole focus and it is done with a balanced approach of profitability and productivity. A key metric to this balanced approach is looking at carbon intensity. Identifying carbon intensity will ensure you are implementing the most efficient production system you can from the resources you have.

Further to this, looking at the whole farm system and introducing legumes was a pivotal step towards improving carbon intensity. Finally, I will explore some of the exciting carbon research, abatement, and mitigation strategies I have encountered during my global travels. These are still mostly a working progress, but will provide supportive practice change in the future to enable emissions reduction in a lamb production system.

If producers embrace change and receive well-planned and executed guidance from industry and government to foster innovation, adaptation, and transformation, we can progress towards a low-emission production system. This system will continue to yield valuable protein, preserve the environment, enhance livelihoods, and align with market demands.