Changing the Colour of Money

Changing the Colour of Money

ORICoop has been in deep conversations with our members, producers, supply chain businesses and investors that are interested in a more sustainable and resilient food and farming system.  We are keen to share our learnings – and to ask the question of the future of our food and financial systems.  And what is the true colour of money?

Right now –  Farmers around the country are innovating and transitioning quickly.  Quicker in fact than Governments and Industry bodies realise.  They are pressured by commodity prices, by wars overseas, by severe climatic events and rising interest rates.  Yet with the current rising inflation – producers are not being paid much more than they were 5 years ago.  Despite their costs increasing just like everyone else’s.  Perhaps this is our new normal as outlined by The Guardian recently.

The elephant in the room is the consumer.  The end buyer.  The supermarkets.  What  people are willing to pay for healthy, local nutritious food.  And has this split changed over the past 50 years – with regard to our lifestyles, work-life balance, debt and the priority of food over housing or other lifestyle choices.  The deeper realisation of the value of health and how nutrient dense food affects the cost of maintaining good health. 

wheat

What does this mean for farmers?  This means that many producers (dairy and grain growers are good examples) are being asked to grow more volume per hectare of land than ever before.  To the detriment of the nutrient density of the food and the land that it’s grown on.  With the ambition to increase our agricultural production to over $100B from the National Farmers Federation.  On land that is more expensive than ever in history with input and labour costs also at an all time high.  And yet – the end price producers are receiving at the farm-gate is not that different to 10 years ago.  In no way increasing comparative to the increased costs of food provided to consumers at the supermarket.  Or linked to the highly profitable returns of the major supermarkets.  The system is broken.

The farmer is the only man in our economy who buys everything at retail, sells everything at wholesale, and pays the freight both ways.” John F Kennedy

So, how do we change this paradigm?  Global Domestic Product measures the increase of our economy, yet does it attribute the true cost of this economic measure.  Or considering the profitability and productivity opportunity across Agriculture – if we measured this ‘true cost’ paradigm differently.  With increased labour costs, some of the highest in the world.  How can Australia sustainably grow food comparative to many other countries.  Yes with some of the largest swathes of land in the world.  Noting New Zealand has a subsidised Pacific Island labour program.  Europe has a heavily subsidised agriculture sector.  And the US has strong support for commodity based agricultural production systems.  Is Australia being left behind?  Should we have an incentivised land stewardship package?   Or is there a risk we will be priced out of the market? Or have we not demonstrated our clean and green image well enough to the rest of the world?   Should we be more focussed on feeding our population before selling into these larger world commodity markets that may actually be part of the overall problem. 

ORICoop with our ORCA ‘Farmers Own’ brand is on a bold mission.  To provide bulk organic products that streamlines a more efficient organic supply chain.  That provides healthier food economically to more people.   And ensures that producers are sustainably growing what the market is demanding.  Keeping the supply chain efficient, nimble and ensuring that the grower and end buyer understand the different parameters of a complex supply chain.

We are determined to build a stronger domestic organic market.  So food travels less distance to more people, is more affordable and has a stronger provenance story.  It can be healthier, grown and transported with less of a carbon footprint and more of a conscious understanding of how it was grown.  Organic products have market fluctuations based on seasons, based on the capacity to plant or harvest crops. It takes innovative producers to manage significantly different years – from 2019 (severe drought) to the last two years of abundant rainfall and flooding in some regions.  What producers need is markets that work with their capacity to grow and innovate.  And to ensure that products grown have the best opportunity into the market – not just the perfect looking apples, or premium 14% protein grains or only Autumn flush dairy milk.  We must get better at growing, manufacturing and utilising food in a truly sustainable way that ensures we are efficient, less wasteful and understand the planetary boundaries of truly sustainable agriculture.

What does this have to do with the Colour of Money?  For many years investors have invested into Agriculture as a straight property investment.  Not to underwrite our food security or support transition to better land stewardship practices.  What if we used ‘true cost accounting’ to reflect the invisible cost to consumers of ameliorating the cost of the externalities of the industrial food production system?  To reconsider the lucrative returns of 12-14% year on year.  With the plan to exit after 7-9 years with a real estate property acquisition that includes significant capital growth.  They call it ‘ethical impact’.  The reality is, most agricultural investments provide a low (3-5%) cash return on investment (ROI) annually with a higher proportion allocated to capital growth – in the range of 5 – 8% annually.  But is this model truly sustainable?  For our population?  Or for the planet? 

To underwrite our food security we need to measure capital differently.  One that views food security and land stewardship as critical to our very survival.  Economically but also metaphorically.  Did you know that producers pay a higher rate of interest on farmland (property) than standard interest rates?  Even though land is property with property security?  The front porch is not very palatable when you’re wanting something to eat, it is a question of priority?  Why are producers left to fend for themselves when markets fluctuate and do not always reflect the true cost of food production. If true cost accounting was used in real terms farmers would be considered to be slaves, when considering their net profit (outside of a real estate gain), comparative to other lucrative and increasing wage levels across essential industries.  Walden Mutual in the US is a leading example of how investment can be done differently.  We need models like this in Australia, urgently.

To change this paradigm, investors must passionately support a fairer food and farm transition with a deeper lense, beyond just a philosophical idea.  Investors that are patient and driven by ethical, sustainable and reasonable returns that considers farmers, and the health of the land and the food we eat.  Investors that are looking for a co-beneficial relationship that revolutionises food and farm systems in a sustainable and earth centric manner.  To invest into food systems that are innovative, multi-layered, diverse and resilient for food, farming and community benefit.  Food systems that have short supply chains and are not commoditised for the benefit of the large agri-business sector – but are driven by the needs of our communities.  First and foremost.

Field of sunflowersThe ORCA investment Phase 2 is opening for investment shortly.  This is an exciting step for ORICoop.  It provides opportunity for larger investors to participate in supporting infrastructure investment into localised organic supply chains – infrastructure that enables grain to be processed within shorter distances.  Including grain that is grown in a more regenerative and sustainable manner – that includes cover crops, legumes and specialty grains (lupins a prime example).  Rather than a commoditised wheat, oat and barley focus that depletes the carbon and nutrient bank in the soil if not managed well, and is significantly affected by world markets.  This limits the growth of the organic sector that has much capacity to flourish and expand into these premium niche markets.  Australia has more than 55M hectares of farmland that is certified organic farmland.  That is more than half the world’s total certified land area.  From that land our organic sector is worth more than $3.6B (according to the Australian Organic Market Report), noting the US market has just exceeded US$60 Billion for the first time in history (from less land area).  The Australian market is growing at 12-14% annually.  What if this increased to $5B annually, or by 20% year on year these dividends were reinvested to improve on-farm knowledge, supply chain knowledge and efficiency with strategic market development?  Whilst addressing climate change mitigation, adaption and addressing biodiversity loss as additional dividends.  Australia can be a leader in supplying Asian markets and the Middle East for quality organic food and fibre.  While looking after our land and our regional communities.  

What the food and agriculture sectors need is a new Colour of Capital.  One that is driven by urgency, yet patient and compassionate to the seasonality of agriculture and food systems in a changing climate.  That understands we are all in this together.  Australia must get better at growing and processing local food at scale.  Like our forefathers and mothers did.  To rebuild and scale efficient and local processing capacity, and to re-energise food production that enhances regions for their climatic and farming strength.  And to build and value community driven food systems for the better.  To have an innovative investment capacity that exemplifies our strength of markets, our capacity to grow large volumes of product in a sustainable manner, our seasonal diversity and access to land.  

The world needs a different Colour of Capital that builds long term impact for the better.  If you are interested in finding out more you can complete the EOI here. 

Written by Carolyn Suggate,
Executive Director of ORICoop

E – Carolyn’s email

** Photo Credit – David McFall

ORCA Investment Project

ORCA Investment Project

Greetings to all ORICoop Subscribers,

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.

grain field

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!

Organic Investment Opportunities

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!)

And make sure you have completed the EOI for the ORCA Investment project.

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

grain in trucks

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.  

You can join HERE – https://www.organicinvestmentcooperative.com.au/membership/.  And include your business in our Member Directory.

As an ORICoop member you get access to:-

  • Our ORICoop online member meetings
  • Product and market updates
  • Supply, market and product options through our ORCA organic brand
  • Access to our knowledge network of experienced producers and growers
  • A united producer voice for the industry
  • Benefit from our key partners that provide economical and independant services to our members

Any questions regarding ORICoop membership please email admin@organicinvestmentcooperative.com.au.  

You can keep up with our latest news via our blog here – https://www.organicinvestmentcooperative.com.au/blog/

Until next time,

The ORICoop Team

Growing with the Grain: The Ungers’ 25+ years of Organic Experience

Growing with the Grain: The Ungers’ 25+ years of Organic Experience

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.

DiaryAt 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.”

sheepConventional 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

Meet ORCA, the new organic producer brand.  Farm Direct.  Transparent.  Trusted.

Meet ORCA, the new organic producer brand. Farm Direct. Transparent. Trusted.

ORICoop (Organic & Regenerative Investment Cooperative) is excited to announce the launch of ORCA, the newest fully producer-owned organics brand in Australia.

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

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

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

Organic Sunflower in the Field – Wiseman Organics

   

 *For more information, or to register your interest bulk produce from local ORCA producers, click here.

*To discuss your specific bulk grain requirements contact ORCA directly – admin@organicinvestmentcooperative.com.au

*To join ORICoop as a producer or to find out click HERE

*Producers are invited to join our Regenerative Cropping day on October 24th in the Riverina

 

 

Transparency and technology the key for organic grain producers

Transparency and technology the key for organic grain producers

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.

daughter holding wheat

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

Story written by Amanda Sproule

The ORCA project is grateful for the seed funding from The Sustainable Table Fund.

oat field newly sowed

Organic Oats. Last lap of sowing. 16th April 2022

oat field enjoys rain

2022 Organic Oats. Enjoyed the rain and also the next sunny warmer days.