The Australian Organic Market Report(AOMR) 2023 was published last week and the ORICoop team would like to share some insight into the high growth and export potential for Australian organics – and particularly the massive potential of the organic grain industry in Australia
The Australia Organic industry contributes $2.6B to Australia and 22,000+ jobs
Organic Exports are forecast to grow by 29% annually from 2021-22 to 2026-27
Organic farming revenue is expected to nearly triple over the next 5 years.
Woolworths, Coles, and Aldi are responsible for 70% of organic sales
Largest certified land area in the world now exceeding over 53M Hectares (70% of organic farmland globally)
Key update from Organic and Regenerative Investment Co-operative (ORICoop)
ORICoop is fielding export inquiries and quotes of more than 125,000+ Tonnes ($100m+) of grain from Asia
The ORCA Brand is unlocking the export potential for Australian organic grain.
Female founder-led, regenerative and organic agriculture advocate, Carolyn Suggate.
ORICoop launching the first and largest marketplace for Australian Organic products, starting with grain.
Upcoming opportunities include new trade agreements through UK and China, and Asia-Pacific partners
ORICoop opened a capital raise of up to $2m for the ORCA Grain opportunity.
Producers ranging from the Riverina to the Western Australian wheat belt (over 29,000Ha of farmland)
ORICoop (Organic & Regenerative Investment Cooperative) has released the details of the ORCA investment project. A project seeded by 5 key organic producers in the Riverina. And has grown into a substantial National project incorporating producers from the Riverina, the Malle to South Australia and stretching to key producers in the Western Australian wheat belt. This has provided a significant understanding of the existing barriers and potential innovative solutions to relocalise organic, sustainable and regenerative grain, to lessen the footprint of grains across the industry and to understand the health benefits of organic food with more transparency and vitality for consumers and farmers alike.
ORCA is the first Farmer Owned organic grain brand. Led by ORICoop, a National Producers Cooperative, that seeks to do business differently. Farmer Led. Business Driven. With Sustainability front and centre in how to grow and diversify markets across the organic sector.
The Australian Organic Market report outlines the increasing demand for clean and green food. With the industry growing 14% year on year and with an increased opportunity to capture these strong markets that are health conscious, sustainably focused, and value the on-farm stewardship practices.
“Across southern Australia there are incredibly innovative grain producers. Managing a diverse climate ranging from highly productive irrigation land in the Riverina, to marginal light sandy country in the Mallee and the Western Australian wheat belt” shares Carolyn, ORICoop Executive Director. To enable these producers to capture the best markets these producers require a diverse mix of market opportunities from livestock feed through to high end premium grain markets. That enables producers to capture premium markets, spread their risk, and to work closely with manufacturers and bulk buyers that are seeking reliable, high quality Australian grown organic grains for their retail products, for a growing and lucrative market.
Through the ORCA seed project funded by Sustainable Table, ORICoop understands what is being grown, what the challenges to these markets are, and where there are better and more profitable markets from the farm gate. One of the key aspects of this project was to identify not just the market barriers – but also the physical barriers in terms of storage, processing and manufacturing capacity for organic products.
The project enables ORICoop to demonstrate how organic grain has specific requirements and why the existing commodity based grain supply chain doesn’t support organic producers. Both in terms of size, capacity and the interest in single origin or select organic grain types for domestic and export.
The next stage for the ORCA project is to co-design and build tailored bespoke infrastructure that is well suited for this mix of grain products that are in high demand from business. That reduces the footprint of the grain industry. And provides a higher level of sustainability and integrity from the farm to the end consumer.
‘‘Just this week we received another export enquiry – for over 50,000T of premium organic grain. That is more than is grown across the whole country currently!’ says Carolyn Suggate, Founder and Director of ORICoop. “What we need is a coordinated approach to sustainably build out the industry and to capture these strong domestic and export markets that value the clean and green food that organic producers are growing. And builds the capacity for more growers to expand their organic enterprises, increase their profitability while diversifying their risk with mixed crop selections.”
Investment into this area must be tailored to the needs of the industry. It is not one size that fits all. It’s bespoke infrastructure and technology, with catalytic capital that is innovative, patient and understands the downside risk of our dependence on large commodity based food and farming systems.
The Australian Organic Industry now covers more than 55M hectares of land, with more land certified in Australia than any country or continent in the world. And the Organic industry is valued at over $2.1B according to the latest market report.
As a National Producer Cooperative we are member based, and our values deeply align with producers and our end buyers. ORICoop invests back into the industry, providing business services to producers with the best potential for strong markets. And sharing the upside value of the supply chain with our network as a National Cooperative. To build out domestic and export markets, spread the risk and expand the opportunity for mutual collective benefit. That is a true Cooperative!
“The time is now for a new paradigm of investing, where growth is not the main indicator for success, but instead we see transformational ecological, social and cultural changes at the pace necessary to arrest the impact of climate.”
Hayley Morris, Chair, Sustainable Table, Executive Director, Morris Family Foundation
“The Australian Organic sector is a strong contributor to the Australian economy, representing 0.04% GDP and contributing $851M directing and over $2.6 flow on effects. Australia has 70% of the global land under certified organic management, boosting 53 million hectares and farming revenue expected to nearly triple in the next five years. Our organic sector continues to grow year on year and there is still so much more potential to be realized”
“Michael Coleman, the lawyer working with ORICoop on the investment, sees the ORCA fund as part of the development of more diverse options for investors interested in both profit and sustainability. “Institutional and professional investors are like all of us in seeing and generally welcoming the market’s shift towards technology, innovation and sustainability. Innovative investment options are cropping up everywhere, from retail superannuation funds to private syndicates to click-to-join carbon offset apps. ORICoop as a member-based, not-for-profit organisation is well placed to meet this demand. The ORCA fund is innovative, but it meets the fundamentals – it will own tangible assets that will be directly used by the organic producers the organisation exists to serve, and generate a return for both members and investors.”
‘The ORICoop ORCA project is tailor-made to bring together organic producers to develop an organic food supply chain that will benefit all Australians and overseas consumers. The development of ORCA seems very timely in a world where high quality, certified and healthy food is produced and delivered in a reliable and cost- effective manner.’
ORICoop represents businesses across Australia that are interested in tapping into the world of healthy, planet friendly, sustainable food and farming systems. Enabling food and agriculture to provide resilience and profitability in our regional economies. To lessen the footprint in our production systems. And to increase the profitability and market capacity for organic and sustainable food into domestic and export markets. We invite you to complete an Expression of Interest to get involved in our mission.
Located just north of the Great Eastern Highway, approximately 1.5 hours’ drive east of Perth, Jodi and Ian James have established a thriving farm with multiple species companion cropping in the golden outback town of Meckering. Located on the traditional lands of the Ballardong Nyoongar people, the township of Meckering derives its name from an Aboriginal language and means ‘place of water’ or ‘moon on water’, and it is precisely this substance that led to the expansion of farmland in the area. Ian and Jodi’s farm is called Whare Koa, a Maori name meaning ‘happy home’. Ian’s family were originally farming further north in the more marginal areas of the Wheatbelt, when as part of his farming education he traveled overseas on Agricultural Exchange to Sweden. While on exchange, he was badly injured in a severe car accident, totally disrupting his life. Ian spent a few years recovering overseas before making the decision to return home. At this time in the early 1990s, he first heard about the potential impacts of climate change in the early 1990s. Climate predictions indicated that weather patterns and temperatures were to get drier and hotter, with the frequency, intensity and duration of hot spells likely to impact the landscape and the human and agricultural systems dependent on it. In a candid conversation with his father, Ian explained, “if it gets any drier or hotter here, we’re done for. We’ve got to buy land south before it gets too expensive.” Shortly afterwards, the family purchased farmland in Meckering 200 km south, it was decided that Ian should settle on the Meckering farm while his mother and father would stay on the northern property for some years before later selling and retiring from farming. The Meckering landscape is largely comprised of sand plains, flat with rolling shallow broad valleys and peppered with creeks. Ian refers to the low inherent fertility of the sands as ‘light country’, lacking the nutrients necessary to produce a healthy strong crop with sufficient yields. This is typically addressed in conventional systems by applying considerable doses of synthetic fertiliser. However, the quick draining habit of sandy soils makes it hard for the soil to hold onto the fertilisers applied. “Fertilisers and chemicals are a mask. They’re just putting into the soil what the crop needs, but the soil is being robbed of what sustains it: organic matter and biological diversity,” says Ian.
When they first began farming in Meckering in the late 1990s, the James’ were following conventional best practice but they began to realise the limitations of this approach in such low-nutrient soil. By the time Jodi and Ian were married, it was becoming obvious that the intensification of land use under conventional cropping methods and long-term fertiliser application was depleting their soil further. Their farm lacked the scale to justify the investment in the large agricultural machinery and equipment necessary to support a conventional farming enterprise that would turn a modest profit. Yet their smaller equipment was turning their daily farming grind into a harder operation than it should be, and they were struggling to get through their routine farming activities. After experiencing a couple of consecutive dry seasons, Ian could no longer ignore the changes in climatic conditions and their impact on their farming system and finances. The hotter seasons were becoming drier, the wet seasons shorter, and their struggles intensified with the cumulative effects of drier conditions, poor-quality soils and the low resilience of plants. Neighbouring farmers imparted their advice, “you need to spend more money on fertilisers and chemicals.”
Cultivating opportunity from crisis Ian and Jodi were already spending more money on chemical inputs than what they were earning, sliding deeper into debt with each passing year. A particularly bad year placed them on the precipice of financial ruin while their input bill had blown out beyond viability. Farming to the very brink of possibility and liability within a conventional agricultural system and failing to get sufficient yields in return, Jodi decided to explore a way in which to farm without the added cost of increasingly expensive inputs. Coming close to crisis instigated an ongoing pursuit of knowledge for organic and regenerative agricultural techniques and soil biology. “It was tough at first, but we were committed to learning. We adapted, trialled and discovered new techniques,” recalls Ian. With an imperative to secure the future of their farm, Ian and Jodi selected methods to improve soil health and fertility and reduce reliance on chemical fertilisers. Conversion to organic became a process of experimentation, observation, learning and reflection. “Every year, our farm is improving, and it’s improving exponentially. Every year we see this low-fertility country getting stronger and stronger naturally. And we can see it visually: it darkens with the carbon. Organic soil carbon is the foundation of soil fertility.” This experiential knowledge of building natural soil fertility was key to reducing their farm’s exposure to volatile input prices and ensuring their farm’s survival. “One by one, farms around us were sold,” recalls Ian. The issues he had noticed affected the whole industry. “Many families in the district left farming and were gradually replaced by bigger operations, but we’re still here. Many of the farmers who said to me that we were going to go broke [pursuing organic agriculture] are now gone.” Together, Ian and Jodi are continuing and improving the regeneration of their farming landscape. They employ multi-species cropping methods, planting grass crops, plus oats, rye, wheat, and also lupins and approximately three or four other species of legumes. Planting diverse and beneficial plants provides a food source for a broader range of soil biology, lifting the resilience and fertility of the land, improving the soil function, structure and water-holding capacity and continuing to value-add to the productivity of the landscape. “The soil was pretty highly degraded because of past practices, but it has responded amazingly to biology and lupins love it. We worked out organics suits light land farming, and lupins in particular as part of a multi-species cropping program are the key to it. Lupins are yielding about twice as much as grass crops.”
For the love of lupins- the real regenerative legume With over 200 species, lupins are grown in a wide array of regions across the globe, ranging from the Mediterranean to the southwestern United States, northern Mexico to both eastern and western parts of Australia. Two varieties of lupin are most commonly grown in Australia, with the majority of lupin production occurring in the winter/spring rain-fed parts of southwestern Western Australia. As a high-protein grain, it is commonly grown and harvested for human and animal consumption, yet it also holds many advantages in both cropping and mixed cropping–livestock farming systems. Lupins produce a significant nitrogen contribution for subsequent crops and can increase the availability of phosphorus in soils. They provide a disease break for cereal crops and can help control grass weeds within cropping sequences. Other benefits include improved soil structure, increased water use efficiency of subsequent crops, and increased yields of cereals following lupin crop rotation, particularly when grown in sandy soils. “Lupins are a fantastic tool for an organic farmer, because chemical nitrogen, although widely available and fairly cheap, is not an organic substance. It kills biology and basically destroys sustainably. Whereas lupins create a perfect environment for other crops to grow, like grass crops,” notes Ian.
A member of the pea family, lupins produce an assorted palette of pea-like flowers with bold spikes of vibrant purples, pinks and blues, rich reds and yellows, or crisp, clean whites. When the lupins come into bloom on Jodi and Ian’s farm, the whole paddock is transformed into a sea of brilliant white. When pulled from the ground, the symbiotic relationship between lupins and the nitrogen-fixing soil bacteria rhizobia is visually evident in the small nodules that form around the plant’s roots. The increase in microbial activity and associated improvement in soil structure also maximises the retention of moisture in the soil, an important element in building the adaptive capacity of their farm in light of shorter wetter seasons and climatic variability. In addition to a healthier farm, Ian and Jodi are now spending a lot less on (organic) farm inputs while receiving a price premium for their organic products. Ian estimates that a conventional farmer would have to produce roughly four times their yield to make the same profit.
Finding solutions to systemic industry problems While Ian and Jodi have generated many on-farm improvements, limitations in existing organic industry structures and networks made it difficult to access markets within Australia to sell their lupins. While a few organic dairy farmers within Western Australia were purchasing their lupins to form part of their animal feed, Western Australia has a relatively small organic domestic market when compared to the eastern states. Ian discovered that the supply chain for many organic products is relatively undeveloped, particularly for many broadacre products, and there are significant problems relating to a lack of scale in the handling of grains. Freight costs to the eastern states were also proving to be prohibitively high, particularly with the additional financial pressure points that COVID-19 and the energy crisis have added. Ian and Jodi were looking at a freight bill that amounted to two-thirds of their total farm gate price for their lupins, making it non viable to sell their product into the Eastern States.
The ORCA project endeavours to unlock some of these barriers by looking at better market opportunities for organic producers that allow more resilient profitability and increase the transparency of these grains direct from farm to end processor. The wider connections and network facilitated by the ORCA project allowed Ian and Jodi to interact with other producers and processors to tap into demand for their lupins and organise a shipping chain that was affordable and viable. ORCA has now facilitated its first shipment of over 100 tonnes of organic lupins from Western Australia to Melbourne and Brisbane. And the original ORCA Riverina project has been expanded to include ORCA producers in Western Australia thanks to funding from the Sustainable Table Fund
Another barrier endemic to the Western Australian organic industry is a lack of processors suitable for organic grains. Western Australia only contributes around 10 percent of the total Australian production of organic livestock, vegetable, fruit and grains, so the current demand is not high enough for processors to warrant the costs associated with organic management and certification for processors. Whereas organic agricultural production and demand are much higher across the Eastern States.“Through ORCA’s assistance, we’ve managed to tap into that processor capacity which is available in the east,” says Ian. He believes these supply chain bottlenecks can be overcome through greater collaboration and investment. “We need to band together as organic farmers in an organised manner to share and leverage our capital and asset base and share the costs and organisational capacity to set up processing and storage capacity and store grains in a way where our premium organic product is not going to deteriorate.” “We have to be able to attract government assistance and strategic investment, get organised, and work together to set up suitable infrastructure and put the structures in place, so we can delegate management to people who hold expertise in these [processing and value-adding] techniques and skills and put those people into places, so we (producers) can get back to the business of farming. ORCA enables us to do just that”
The future lies in farmer-to-farmer knowledge exchange Ian believes that local farmer knowledge is a valuable resource to reorient modern agriculture towards more sustainable and resilient paths of development and draw in the next generation of farmers. A lot of this knowledge has been lost over time with the spreading of the conventional agricultural paradigm and the standardised, highly industrialised external input solutions it puts forth. Rebuilding formal and informal knowledge exchange and learning between farmers is central to strengthening agricultural sustainability and resilience. Innovative farmers like Ian and Jodi are using high-performance organic and regenerative landscape management methods and fighting the trend of the continued degradation of the landscape and soil through conventional agricultural methods with their heavy reliance on external inputs. They are demonstrating sustainable, regenerative practices on their land, as are many organic, biodynamic and regenerative farmers across Australia. With relevant policies and incentives, these practices could be extended successfully and quickly to involve a significant number of Australia’s current and next-generation farmers. Whilst there are always opportunities to learn more, enough is already known to take action now. “The real wealth we have is our knowledge. And we can share that with the next generation and with current farmers that are frustrated by their lack of market access and price premiums. That’s what we should be doing as farmers. That’s how we can capture the value of organic farming: by focusing the energy into teaching the next generation and current farmers.”
Written by Eva Perroni as part of the ORCA project
Located on Wiradjuri Country in Peak Hill in Central New South Wales lies two farms belonging to seasoned biodynamic farmers Ray and Judi Unger. Named Waratah and Marylyn, these farms feature unique characteristics that make them suitable for different forms of agricultural activity. Marylyn is formed of heavy clay loam soil packed with rich minerals, making it the perfect medium to grow cereal crops like spelt, wheat, oats, lupin and pasture.
The fenced tree lines border most of the paddocks on Waratah and create wildlife corridors, reduce wind erosion, attract bird life and provide fodder to stock during droughts. Waratah comprises a lighter red ironstone soil type more suited to running their livestock of Merino sheep for wool and White Suffolk cross for lambs as well as Hereford cattle stock. These distinct but complementary farm types allow Ray and Judi to run a diversified mixed-farming broadacre enterprise that offers long-term climatic resilience.
“We have 3,500 acres, and we could nearly crop all that, but we never do,” says Judi. “We only ever crop about a third as the maximum every year because we do crop rotations, so we try to crop about one [rotation] every eight years, so we’re sparing the country, we’re not flogging the soil in the process of growing healthy biodynamic crops and pastures. We’re trying to build up the organic matter and put it into the pasture phase and use it for grazing. It’s all quite entwined.”
When Ray’s father bought the farm several decades ago, farming systems were rather exploitative and heavily reliant on chemical inputs, extracting a considerable toll on the already marginal agricultural land.
“The farm was heavily impacted by cropping and heavy stocking rates,” recalls Judi, prompting the Ungers to consider ways in which they could improve the quality and health of their land and in turn, their crops and livestock.
At a conference in Cowra in 1993, Ray heard an organic farmer speak about organic principles and practices and was immediately drawn to the concept. Organic agricultural methods could help produce high-quality agricultural products in a way that protects and improves the natural environment while safeguarding the health and welfare of all farmed species. Without hesitation, Ray and Judi decided to “go cold turkey” on synthetic fertilisers, insecticides and herbicides in the mid-90s and start the journey towards organic certification and farm management. “I felt this immense weight off my shoulders; we were now in charge of our own destiny,” says Judi.
“We didn’t need an agronomist. We didn’t need people telling us what chemicals need to be applied and when and where.”
Instead, by adopting the organic philosophy and mindset, Ray and Judi committed to learning and observing their land, soil and biology to grow healthier food more sustainably. Following the completion of a TAFE course in organic agriculture, the process of conversion took the Ungers three years, becoming fully accredited with Australian Certified Organic in 1996 and receiving A-grade certification for the crop they grew that year. Shortly afterwards, they began looking into biodynamic practices.
Founded on similar principles to organic agriculture, biodynamic agriculture is a holistic, whole-systems approach to bring plants, animals, soil, ecosystems and people together. Biodynamic systems aspire to generate their own on-farm fertility through practices such as crop rotation, composting and integrating animals to enhance on-farm biodiversity, nurture soil fertility and enable greater farm resilience against extreme weather events. The Ungers have been practicing relatively consistent methods for more than 25 years.
But the agricultural sector has changed significantly over this time. The deregulation of agricultural markets, fluctuating government support and investment, the privatisation of infrastructure and agricultural services, rising costs for fuel and machinery, and increasing consolidation amongst farms and across the entire food chain have reshaped Australian agriculture.
“It’s changed a lot in the 28 years we’ve been doing it,” says Ray. “A lot more dairy farmers have gone down the organic track, but then dairying has retracted; there are fewer dairy farms around because they got bigger, just how most farms got bigger. Cost of production has certainly increased, as has machinery. We probably wear more machinery out than conventional farmers. They can spray 1000 acres in a day and I can plough 100 acres in a day. We’ve had lots of problems, but conventional farmers have had lots of problems too.”
Conventional and organic farming methods have a range of different impacts on soil fertility, biological diversity, livestock health and the health of the farming enterprise. “We don’t have issues that conventional farmers have with bloat and worms. They’re in a situation where they go into town to buy something to fix their problem and basically they’re told, “If you don’t use this stuff, the sky is going to fall!” says Ray.
“Well the sky doesn’t fall. I can look back now and see we’ve been used by the chemical companies. I couldn’t even tell you what Round Up costs anymore.” Fluctuating climatic conditions, from the intensifications of droughts and floods, to unprecedented bushfire conditions, have created increasing pressure on Australia’s agricultural systems and can restrict growing seasons or wipe out entire harvests.
“The current market has been tough. There are more organic grain producers around and we’ve had a couple of good years so there’s plenty of organic grain about,” says Ray. “It’s supply and demand: the current prices [for organic wheat] aren’t enough to cover your costs. In comparison to the droughts of ‘18 and ‘19, where [demand was high and] it was very difficult to buy organic grain to feed livestock. That will happen again when there’s another dry spell.”
Ray and Judi have subsequently invested in sealed storage and silos for grain as a form of on-farm insurance. It grants the ability to store grain in good years and to carry that through to market when climatic conditions may impact production, and there is less supply of organic grain. It’s another way in which the Ungers can take control of when and where they market their grain, and into which market they sell.
While grain crops such as cereals, pulses, legumes and oilseeds make up a small percentage of total organic production in Australia, the organic grain industry has a significant opportunity to expand with the right market development and indicators. Demand for organic products in Australia and abroad has been rising over recent years, as consumers are increasingly considering the health benefits and environmental effects of their food choices. This rising demand is also motivating manufacturers to make organic food more accessible to mainstream markets.
The Ungers have been considering new ways to add value to their business and tap into this rising demand, but need to consider the added costs carefully, whether that be in time, machinery, or labour of value-adding activities. Cleaning, processing, growing special items, packaging, milling, storage, or distribution operations can all be considered as “value-adding” to basic farm commodities like grain.
“I’ve looked at trying to value-add products; to clean grain and bag it,” says Ray. “But you’d need a fair amount of capital to get that all organised; you’d need to set up sheds, buy machinery and you’d need to employ someone possibly to run that side of the business. But that comes with more risk.”
“We’re good at what we do, whether that’s wool or sheep or cattle or grain, but we’re flat out running the farm as we are. So there’s no opportunity without spending a lot more money and employing more people to go and value-add.”
The Organic and Regenerative Cooperative Australia (ORCA) pilot project seeks to determine the best and most profitable products for organic grain farmers like Ray and Judi, together with identifying the market, processing and access barriers that could be resolved through better collaboration, producer representation or investment in storage or processing facilities.
“If ORCA was able to set up a plant to clean grain and then bag it, hopefully, we could get a better return and share in the profit from that operation,” says Ray. Increasing the availability of local abattoirs for the organic industry is another opportunity for investment that Ray believes will help farmers in the region. “30 or 40 years ago there used to be an abattoir in most towns, but now there aren’t enough abattoirs,” says Ray. “Sometimes our stock, our lambs and our cattle, as well as our wool, goes into the conventional market.”
The ORCA project endeavours to unlock some of these barriers and to enable strategic investment into facilities and technology that will lead to better prices for producers. ORCA investigates market trends and opportunities while providing farmers with the technology and data they may need to thrive in the organic grain farming industry. Through a tailored online platform, producers can achieve the transparency and traceability of organic produce now demanded by processors and consumers, as well as achieve fairer pricing along the entire supply chain.
Research, education and innovation are key areas that Ray and Judi believe will help them manage their farm more efficiently and profitably and the long-term sustainability of the organic industry more broadly. They suggest that agricultural drone systems, for example, have an unrealised potential to assist with microbial applications for crops or to support and surveil cattle, all while minimising fuel costs and further impact upon the soil.
Due to the rural isolation that many farmers face, Judi believes that current information and education systems must evolve to meet the needs of organic growers and younger farmers wishing to enter the industry. Different knowledge-transfer activities that are organised by and targeted at the organic farming sector, will help increase knowledge and skills on organic plant and animal production, processing and marketing.
“Organic farming is a process of continual learning,” says Judi. “Part of it is experimentation and trialling new techniques and being able to demonstrate what works. It would be great to get a uni student out on the farm to do a case study and have that research published.”
Judi believes that harnessing the in-depth knowledge acquired through decades of practical experience and translating this into an evidence base that can be shared throughout the organic industry will strengthen the sector. Testing new approaches and technologies, building and compiling rigorous evidence about what works, and disseminating this knowledge widely to farmers, researchers and policymakers can help improve economic and environmental outcomes for producers. Judi also believes that such education is key to equipping future generations of farmers with the skill sets required to prosper in the sector and take full advantage of innovation.
Ray and Judi are taking part in the ORCA project alongside other organic farmers in the Riverina agricultural district in NSW. Together, these farmers are sharing their experiential knowledge, insights and networks to collectively grow together and to diversify and build a better and more resilient organic market. The vision is to strengthen and sustainably grow the entire organic value chain, with shared benefits for farmers, manufacturers and consumers. By collectively working through some of the common barriers faced by organic farmers and unlocking opportunities for greater on-farm profitability, ORCA is committed to improving and amplifying the benefits of organic, regenerative and biodynamic farming across the Riverina and the country.
Written by Eva Perroni, as part of the ORCA project
The carbon credit ledger that is actively supporting local producers?
A new type of carbon credit has taken off in Australia, with the first set of credits quickly being snapped up by buyers keen to reduce their carbon footprint, and know the story behind each of the credits generated.
Eco-CreditsTM are the very first fully farmer-owned carbon credits in Australia, representing not only one tonne of carbon drawdown per credit, but the tireless efforts of local farmers actively improving their on-farm biodiversity and local ecosystems as a whole.
Victorian organic dairy farmers Stephen & Jo Ellen Whitsed and family have produced the first set of EcoCredits sold by ORICoop, and are already seeing the benefits they can bring not only to themselves, but fellow producers.
“The more credits sold, the more that assists farmers in their transition to better, which means more money directly into farmer’s pockets,” Stephen said.
Eco-CreditsTM can be sold anywhere in the world, so that has its own bonus as well.”
While Stephen and his family had already been focusing on increasing the carbon levels in his soil, he believes the income from Eco-CreditsTM could encourage those new to the organic, regenerative agricultural space to improve their farming practices even more.
“We were farming that way anyway, we bought a Soil-Kee Renovator, we were using that to increase multi-species planted into our soil, while also increasing carbon for the overall benefit of our soil,” Stephen said.
“If you’ve got higher carbon levels, you’ve got a better soil, you hold more moisture in your soil for longer so you don’t need to irrigate as often. That’s a big cost savings for us especially this year when we start to irrigate with the increased price of diesel. We were heading down the path of improving our soils even though we were organic, and increasing our carbon, and when the opportunity came to get paid for our carbon credits, well we were doing it anyway and it’s a great opportunity, so we jumped at it,” he said.
“If we could potentially diversify our income from selling carbon credits we may not milk as many cows, because we currently milk 160 cows on 160 acres, so we’re pushing our country especially under an organic method. So we may reduce our stock levels back a little bit which in turn helps your soil with your farm anyway. And for the person that’s just starting afresh, it’s certainly something that you’d change your farm practice and head that way.”
Stephen & Keenan Whitsed – with one of the tools in their farm management system
Stephen has four soil dedicated testing zones on his properties in the region, which undergo annual soil testing. By design, Eco-CreditsTM avoids many of the greenwashing and double-dipping claims made for some conventional carbon credits. They are also future-proofed for potential soil carbon changes due to seasonal variation, or natural disasters such as the flooding, fire, and debris from storms faced by Stephen on his family farm based at the headwaters of the Murray River.
“Around half the EcoCredits we’ve produced are kept in our buffer reserve in case our carbon levels decrease in a specific year. The Eco-Credits are verified each year, and the footprint of each farm is factored into the number of credits that are released to the market. This ensures that each farm considers it’s footprint before releasing any credits to the marketplace. The environment certainly plays a part in it or if something happens and you have a drought or a fire or a flood or whatever it might be, there is potentially a concern as to reducing carbon levels” Stephen said.
For more information, or to purchase EcoCredits to meet your business offset goals whilst supporting local organic producers bettering their communities and the environment, click here. Or contact ORICoop directly for more information.
Featuring the high-quality bulk organic grains of our Cooperative members, ORCA is already providing direct benefits to local farmers like Ruth and Ray Penfold as well as addressing some of the issues faced by organic producers, processors, and consumers such as sustainable pricing, transparency, and authenticity of produce.
Over 350 tonnes of bulk organic grain has already been sold under the ORCA brand since its launch. Ruth and Ray were among the first producers to sell their organic barley under ORCA, and the Riverina farmers are excited to see how the brand and its innovative technology will help them and fellow producers in the future.
“Absolutely this is a game changer, especially for someone new coming into the market,” Ruth said.
“Understanding what the buyers want and having that communication there is only a positive. It’s helping them maintain retailer shelf space and prominence for the broader industry knowing they can get reliable and quality supply, it’s a big plus,” she said.
Carolyn Suggate, Executive Director of ORICoop, said creating ORCA was about ‘Connecting the missing pieces’.
“We embarked on this ambitious ORCA project as we knew that with this support, our producers could grow more organic product, achieve better on-farm profitability and we could improve the trust and transparency in organic produce sourced directly from each of these farms,” Carolyn said.
“Given we are a Producer Cooperative, the farmers and their business sustainability is the key to all we do.”
Abundant sunflower crop
Technology is at the forefront of helping producers achieve the transparency and traceability of organic produce now demanded by processors and consumers, as well as achieve fairer pricing along the entire supply chain. The tailored online platform ensures every product from every farm is fully traceable on the blockchain, and will also help producers manage their on-farm grain seeding, harvest and storage more efficiently.
“The whole paddock to plate is incredibly important for the transparency of the industry, and it is the way everything is moving. Where traceability and ORCA supply chain connect is having sustainable and transparent prices on farm for producers, and the buyers paying fair prices, landed at their business, and that’s the only way we’re going to have a sustainable industry moving forward for the long term,” Ruth said.
“Our two big things are transparency, and understanding the story of the buyer, the feel-good warm fuzzy moment of knowing you’re selling to a mum-and-dad dairy farm down the road, but then also knowing what the processors want and that you’re able to produce what they’re after, and knowing you have a saleable product,” she said.
“I like the fact we can send grain directly to the farmer, and you’re also dealing with another farmer on the buyer’s side who is also trying to have a sustainable business for their kids moving forward as well.”
ORICoop Director Maroye Marinkovic said the Cooperative is aiming to bring big-corp benefits to the mostly smaller family farming operations who are part of the ORCA brand.
“There are many points of differentiation for ORCA produce. Every grain, or drop of milk, can be traced back to the farm – a farm that has a powerful story to tell. ORCA is connecting farmers to a set of tools and approaches that make this possible for organic producers of any size. Thanks to digital technology,” Maroye said.
“In addition to provenance and traceability, as ORICoop members, ORCA farmers also have the opportunity to join the EcoCredit program, which enables a detailed set of data points that cover everything from soil health, biodiversity, water quality, and even native species,” he said. This builds their farm profile and determines the on-farm sustainability, natural capital and the true cost and footprint of the food that is produced. An absolute game changer,” he said.
Strategic On-Farm Storage – Wiseman Organics
“Having end-to-end traceability along with rich on-farm and post-farm data, certifications, test results, supply chain proof points, chain of custody – are typically things that only highly efficient corporations could achieve. ORCA aims to make this available to producers of any size, and share the upside benefits with our members.”
Maroye also sees ORCA as a way for both farmers and processors to bring the benefits of ethically and environmentally-friendly grown and processed produce to consumers.
“ORCA isn’t just about building farmer capacity, tools, and storytelling – it will go way beyond that. The vision is to strengthen and sustainably grow the entire organic value chain, with shared benefits. Farmers and manufacturers can plan together, and grow together, and bring those shared benefits to the consumer,” he said.
“There is an increasing demand for high quality, healthy and organic produce, with a transparent view of how it was produced, and where. Not only the consumers want this, but the food manufacturers, as well. Ethically sourced, environmentally friendly produce is definitely better but traditionally, the barriers were scale, price and availability of organic supply. ORCA was created to tackle these challenges, whilst improving and amplifying the benefits of organic, regenerative and biodynamic farming.”
Organic Sunflower in the Field – Wiseman Organics
*For more information, or to register your interest bulk produce from local ORCA producers, click here.
Ray Penfold and his family Jessie (7), Matilda (11), Quade (10), Amanda (11).
Location: Quandialla and Condobolin, Central West NSW
Produce: Certified organic oats and barley, conventional cropping and livestock (Merino sheep, Hereford-Angus cross cattle)
Ruth and Ray Penfold and their families have been farming for generations. Their current business structure has been in operation since 2011.
Following severe drought, they moved to certified organic cereal cropping in 2021 and have just delivered their first harvests this year. However, even within their conventional operations, Ruth and Ray already farm in a fairly regenerative manner, avoiding sprays wherever possible, using certified organic and natural fertilisers. They also focus heavily on soil health to boost crop production and improve the quality and diversity of feed available for their merino sheep and Hereford-Angus cross cattle.
“Fundamentally we want to farm in a better way so that our kids have got a viable business moving forward, and if you can look after your soil, it grows the grass for your livestock, it grows your crop for your grain, so you have to look after it,” Ruth said.
As newcomers to organic farming, they have joined ORICoop, a National Organic Producers Cooperative, that enables producers to build more resilient markets while enabling investment into supply chain barriers. Ruth and Ray have taken part in the ORCA project, which has received funding from Sustainable Table Fund, to understand the barriers for new and experienced organic grain producers across the Riverina, and to identify strategic pathways to a more transparent and profitable outcome for producers.
“I like the fact we can send grain down direct to the farmer, and you’re also dealing with another farmer on the buyer’s side who are also trying to have a sustainable business for their kids moving forward as well,” Ruth said.
“I really like what ORICoop and ORCA is looking to achieve, and we’ve already sent a few loads through the new process. From an organics producers’ mind, the feed market is such a big industry, and where do you start if you don’t have the contacts as a beginner? Through conversations and a workshop, I got in touch with Carolyn from ORICoop, and understood what ORICoop is trying to achieve through the ORCA project. This is a game changer especially for someone new coming into the market.”
Ruth and Ray live in a marginal area, so they need to be mindful of what they grow and when. And make the most of each market.
1st certified organic wheat grains held in our daughter’s hands.
“We’ve been fully certified since 2021, last year’s crop for us was our first certified crop. We had a good growing season, above average rainfall. We are in a marginal area in central NSW you get more dry years than wet years, and last year was just unbelievable as far as the rain that fell, the rain continued when we were ready to harvest, there were a lot of downgrades,” Ruth said.
“We are open to trialing different crops should there be a market for specific crops that also align with seasonal conditions.’ Cereals, particularly wheat, oats and barley, are well-suited to our rotation. Our oats and barley are very easy to grow, and if you’ve got a failed crop you’ve got options, particularly when you are a mixed enterprise, you’ve got livestock to graze off or hay for either stockfeed or sale. Sunflowers would be on our radar if seasons permit, however with sunflowers they aren’t multi purpose they only have one purpose – sale. That’s why we’re just with the cereals at the moment, and we’re also new to the organic industry, we need to find our feet, establish a network and diversify our risk.
ORCA is also undertaking grain storage and processing potential for organic farmers in the Riverina region, which Ruth sees as being important to addressing some of the other key challenges organic grain and cereal producers face.
“The biggest downfall with being certified for us is grain storage, you have to have good grain storage, and it has been an achilles for us, so we have invested in on-farm storage this year. If ORCA are able to provide grain storage it would certainly help – we would still invest in further on-farm storage in due course, but instead of having the capital outlay of $200,000 to $300,000 in the short term, it gives producers the ability to keep growing and expanding or being able to capitalise on good seasonal conditions.” Ruth said.
“Definitely for us, the storage facility would encourage us to increase our certified country, knowing that we can then transport our certified grain to the storage site in southern NSW, it’s closer to the end market. The additional storage site would be of benefit to our business in the immediate future. If we were to diversify into other crops, like sunflowers, then the processing side would also be a big benefit to us. We also know other producers in the Riverina, where the processing side would be of benefit to them as opposed to the storage, so the combination of the two is fantastic.”
A key part of ORCA is transparency, ensuring consumers and buyers are getting high quality, ethically-grown products, as well as ensuring farmers receive fair pricing for their produce.
“The whole paddock to plate is incredibly important for the transparency of the industry, and it is just the way everything will go,” Ruth said.
“Our two big things are transparency, and understanding the story of the buyer, the feel-good warm fuzzy moment of knowing you’re selling to a mum-and-dad dairy farm that are trying to do the same as you, provide a cleaner product and future for your kids. Being able to understand the processor’s requirements and then being able to grow that grain, knowing you have a market for your product just makes good business sense.”
To enquire about bulk organic grain requirements you can contact ORCA directly or via email admin@organicinvestmentcooperative.com.au