Woah the rain in the South! Thinking of all the producers that have had a busy period getting crops in before this drenching rain. We, in the snow country and juggling calving cows and snow conditions right now!
A quick update from ORICoop. We have been head down with our ORCA capital raising over the past month and navigating bulk organic grain supply across our National producer and buyer network. Together with expanding the ORCA marketplace to better meet the needs of grain producers, buyers, manufacturers and key expanding grain markets in Australia.
ORCA Investment Opportunity
Have you completed your EOI for Phase 1 of the ORCA investment project? We are proceeding with our investment strategy based on the EOI’s received to date. We have identified key infrastructure opportunities – that will provide more options for the organic grain sector in partnership with some of our key producer members across Southern Australia. This means we will be able to manage and process organic grain more locally and efficiently and increase the diversity of crops that organic producers in the southern states can grow and sell. A win-win outcome!
We have also identified new markets for existing bulk grains which is super exciting for organic grain growers keen to expand their business! We will be in touch with our ORCA members directly regarding organic grain demand and planning for the next season based on this demand. If you are interested in being an ORCA supplier – make sure you contact us at carolyn@organicinvestmentcooperative.com.au (and join ORICoop!)
The three components of the ORICA Phase 1 investment project include:-
ORCA Brand market development
Grain infrastructure – including bespoke processing and storage capacity
ORCA online marketplace development
ORICoop Membership
Have you heard about ORICoop? We are ambitiously frustrated by the barriers across organic supply chains. For both producers and for buyers, manufacturers and those building strong organic brands. As a National Organic Cooperative – we believe that together we are stronger and can overcome these barriers through a more coordinated and sophisticated approach. Come and join our growing network of over 200 organic producer members. Across States, Commodities and different farming and business systems.
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.
We are writing to you as constituents, businesses and producers that are involved in the organic industry across Australia. We ask you to support the future of our country’s clean and green reputation, and the urgency in preserving our ecosystems and local food security. The organic industry provides a model for the rest of agriculture, that is localised, transparent and without the additional dependency or high externality costs of conventional agriculture. Our industry needs your support – and we look forward to adding your voice to our charter.
For too long Organics had been thought of as a niche market or component of Agriculture, but if one takes a world view instead of looking at the microcosm of Australia, we have entities such as the EU wanting to transition 25% of their Agriculture to Organics by 2030 via The Green Deal and Farm to Fork initiatives
Organic and regenerative farming systems can:
provide a neutral or positive environmental impact with added benefit of providing co-benefits to the environment and humanity
help to mitigate climate change and adapt to its impacts that are already proven by scientific publications
reverse the loss of biodiversity via organic standard provisions and verified by academia indicating 30% more biodiversity on organic farms
ensure food security, nutrition and public health, making sure that everyone has access to sufficient, safe, nutritious, sustainable food production systems that have been vetted by good science.
preserve affordability of food while generating fairer economic returns, fostering competitiveness of the international supply sector and promoting fair trade
In so doing Organics addresses triple bottom line objectives including:- – Organic Farming enables and accelerates the transition to a fair, healthy and environmentally friendly food system. Government investment is required to address deficiencies in advisory services, financial instrumentsand more importantly participatory research and farmer led innovation are needed instrumentally as they can help resolve tensions, develop and test solutions, overcome barriers and uncover new market opportunities.
Background
Value of the organic sector in Australia $3.65B(AU) and worldwide over $88B(AU)
Urgency of climate change and the direct impact on agriculture sector
Importance of biodiversity value and enhancement on private land
Synergy across different sectors including energy, agriculture, health
Rewarding land stewardship through ecosystem management outcomes
Pioneering industry and independent of Government (historically)
Established Net-Zero pathway for agriculture and business to transition
Key Requests from the Organic & Biodynamic Industry to the Federal Government:-
Endorse domestic regulation in Australia. Knowing it’s direct impact and barrier on domestic and international trade entrants and international equivalency markets
Rewarding producers for their ecological stewardship together with a simple mechanism to ascertain and transition carbon footprint beyond Net-Zero in agriculture and business
Ascertaining a biodiversity value on farmland and conversation area (private & public land)
State recognised Government bodies that support the growth of organic agriculture
Facilitate a Sensitive Site register provided by State Governments as part of ‘right to farm’
Endorse a roadmap in climate resilience, adaptation and long term business resilience planning for regional communities & local economies.
Invest in Research & Development for key biological outcomes across the agriculture sector
Provide regular and rigorous data capture through ABARES with tailored organic data for on-farm production, business, supply and export.
The time is now….
Agriculture in Australia is at a crossroads. Producers are attempting to increase their yields with reducing on-farm profitability while managing higher climate risk exposure than ever before. We need to capture premium markets (like organics) and empower producers with better business profitability and diversified income streams. Our Country needs best in class producers that are resilient against natural disasters and rewarded with better crops, profitable and diversified businesses, healthier and improved natural ecosystems. We need to review the existing farming model that reflects a more sustainable and resilient farming infrastructure that invests in the next generation of producers, better markets with full consideration of the impact on the environment.
Key Considerations:-
True cost of ecosystem services in our waterways, agricultural land, biodiversity and food production should be clearly understood and be a driver of change
Research and Education on the importance of carbon reduction, repurpose and offset to underpin regional resilience and transition agriculture beyond net-zero
Opportunity to strengthen cross sector links between health, education, agriculture & economics
Structures that underpin the food security of our country ahead of dependency on large scale, low value commodity markets that may be affected by external pressures
Add your name HERE to our growing list of supporters, so a bipartisan voice can advocate for healthy agriculture and business production systems for the long term.
If you would like more information or to be kept up to date please subscribe to our blog HERE
We look forward to speaking with you further about how you can support the organic industry more in your region.
The first fully Australian farmer-owned carbon credits, the Eco-Credit, have just been released – with tangible benefits to local farmers, business, communities and the environment.
The Eco-CreditTM scheme was created by the Organic and Regenerative Investment Cooperative (ORICoop), which aims to unite the food value chain and increase the uptake of organic and regenerative practices across Australia by increasing collaboration between farmers, businesses and consumers.
Each Eco-CreditTM represents 1 tonne of CO2 positive emission drawdown, validated annually through rigorous testing, and are provided by ORICoop’s organic, net-positive regenerative farmers who run diverse farm businesses including dairy, cropping, livestock and mixed farming systems.
ORICoop EO Carolyn Suggate said that the Eco-CreditTM concept was developed by ORICoop in conjunction with farmers looking to advance farm system approaches to provide safe, secure and affordable food with a regenerative ecological impact.
‘The scheme links those farmers to external buyers, be that corporate, small business or Mum’s and Dad’s keen to play a role and do their bit in fostering sustainable practices and reducing their own carbon footprints’ Ms Suggate said. To activate carbon drawdown urgently we need all contributors to be empowered to participate.
Victorian farmer Stephen Whitsed is the first ORICoop producer to offer Eco-CreditsTM to the market, and aside from the environmental benefits can see immediate environmental, CSR, and other economic benefits for businesses, producers and local communities.
”It’s an environmentally-friendly credit that rewards organic producers and builds stronger connections between businesses and our on-farm practices that enable carbon benefits to be exchanged. As organic producers we are looking forward to demonstrating our on-farm practices that are increasing carbon drawdown and legitimise better environmental stewardship for the long term,” Mr Whitsed said.
Mr Whitsed said the Eco-Credit process is straightforward for farmers and ‘definitely beneficial’ to his farm and environmental management, and hopes investors will benefit from their transition beyond net-zero and the planetary impact.
“The validation process is through soil testing every year, including GPS points to ensure we soil test in the same place every year. Following that we send the soil samples to a laboratory to be tested, and wait for the results,” he said.
Farmer and organic industry advocate and researcher, Greg Paynter, sees a range of benefits the Eco-Credit scheme will provide, including environmental and ecosystem functioning, farm viability and improved social and mental health outcomes for farmers where stress is alleviated by the additional revenue stream provided by the scheme as a reward for best practice land stewardship.
“It’s a dividend that doesn’t come from production output, it comes from a different stream, the productive and regenerative capacity of the land,” Mr Paynter said.
“In Australia, we are striving for $100 billion worth of production from agriculture annually, but our understanding of the research that comes out of Canada, a very similar country to Australia, is they produce that amount, but 98% of it goes into the cost of production or services to provide that production, so the net profit or return on investment of effort is not very high,” he said.
“But if you value land stewardship and make it worth something, the production of food or fibre you get from the land is a reward and you do it in a manner of organic and regenerative production systems, that conserves the basis of the production system into the future. There is talk of only 60 harvests left in some places in Europe and the soil will be destroyed, so we need to act with urgency – and what the Eco-CreditTM does is offer an incentive to do something whilst still maintaining a living.”
Fourth generation Western Australian farmer and agroecological farm system advocate Mr David McFall said the Eco-CreditTM project links businesses who want to do better, and rewards practices to adjust to the changing climate that are not seen to be outwardly ‘commercial’, especially natural capital management like tree planting, increasing biodiversity and soil carbon and water works for habitat and land cooling.
“This is one mechanism that is farmer-derived and farmer-led. It ticks the boxes in terms of accessibility and linking people who have capacity with people who want to do things in the landscape,” Mr McFall said.
“It’s a journey we’re doing for very practical reasons, there’s farmers like Stephen Whitsed and myself who want to do better, but the ‘do better’ that’s asked of farmers is not necessarily an upfront conventional outcome. So this mechanism takes the risk out of the investment and becomes a shared journey as it connects people who want to see good done, but are perhaps urban-based or don’t have access to land, develop partnerships with a farmer,” he said.
“Each farmer is motivated at different levels, and the intelligence behind this system is that it’s not just carbon, it’s approaching it from an ecosystems services platform – that’s embracing revegetation, and in time will embrace cleaner water and air, and keeps toxic substances out of our food and agricultural production systems.”
Iain Smale, of Pangolin Associates, feels the release of the Eco-CreditTM will be popular for businesses, providing alternative options for carbon credits. He also expects they will raise awareness of the growing organic and regenerative agricultural industry in Australia working to capture carbon and mitigate the key drivers of climate change, which is especially important given per-capita carbon emissions in Australia are amongst some of the highest in the world.
“With the Eco-CreditTM, you’re having a bigger environmental impact than just a carbon credit,” Mr Smale said.
“Australia as a nation in the developed world has close to the highest per capita emissions. Per person it’s around 23-24 tonnes, NZ is around half that, and a lot of Europe is less than half that. It’s because Australia has two main drivers – we’re heavily reliant on fossil fuel, coal and gas generation and it’s the tyranny of distance – people have a lot of transport miles, including for heavy transport, trains and trucks, and we don’t have any high speed rail, so much of our economy is based on fossil fuel,” he said,
** To follow the Eco-Credit journey of this and other farms click HERE
Eco-Credits is a nationwide scheme open to organic and biodynamic producers. Other ORICoop farmers will shortly be stating their pledges and looking to develop partnerships with businesses and processors associated with their farm.