Grain Producers Australia notes the recent decision by six Canadian grains representative groups to withdraw from a high-level, government-led process on sustainability.
The groups issued a joint statement to media citing concerns about the cross-agricultural strategy’s lack of alignment with practical measures, relevant to their needs, and outcomes that are not science-based or market-driven, with supporting benefits for the environment. HERE
This development sends a clear warning about emerging trends in the development of agricultural sustainability schemes, where multiple stakeholders are crossing over, to accommodate competing policy priorities, and commercial demands.
In particular, it shows these schemes can’t afford to be hijacked, or dominated by others with competing conflicts, allowing commercial interests and government policy to be reverse engineered onto producers – basically acting as convoluted cost shifting mechanisms.
GPA has been actively involved in the development of an industry sustainability scheme in recent years, engaging in collaborative design processes, but with a laser-like focus on serving the best interests of Australian grain producers, to ensure it ultimately delivers pragmatic outcomes, and adds value.
This approach reflects GPA’s core values in providing legitimate representative roles for all levy-paying Australian grain producers including; independent oversight of RD&E investments; stronger biosecurity protections; and boosting grain product integrity, market access and value.
GPA Chair, Barry Large, said his group would continue to provide input into sustainability schemes to ensure they are pragmatic and deliver better value and returns for grain producers.
“GPA will ensure grain producers are not burdened by the imposition of schemes that ultimately seek to shift more costs and regulations down the line back, onto growers to pay,” he said.
“GPA will continue to prioritise better initiatives and outcomes that genuinely increase value for grain producers. This means protecting against the imposition of mechanisms that may seem credible on the surface, but if you dig into the detail, the true costs are exposed.”
In February 2022, GPA welcomed the release of a new report showing Australian grain producers are already producing high quality, low emissions intensity grains; especially compared to other competing countries in global markets, including Canada, the EU, USA, Russia and Ukraine. HERE
The Grains Research and Development Corporation commission the CSIRO to conduct the report, ‘Australian Grains Baseline and Mitigation Assessment’, in seeking to establish a greenhouse gas emissions baseline for the Australian grains sector and explore mitigation opportunities, to maintain or increase profitability.
At the time of the report’s release, GPA RD&E Spokesperson and Southern Grower Director, Andrew Weidemann, said:
“This report gives us the basis to send a clear message to global grain markets that we are efficient in growing the maximum amount of grain from every mm of rain. It also says we maximise our carbon footprint in producing food more efficiently than other competing countries and as Australian farmers we need to ensure we continually strive to improve our marketing of grain to maximise returns.”
Australian grain producers are the catalyst to an industry, valued at more than $31 billion in 2022-23, which also supports the delivery of multiple shared public good benefits, including for the environment, national economy and rural communities.
In 2023-24, the Australian grains industry’s share of gross agricultural production was 26.5 per cent of the $81.8 billion total, which equates to $21.67 billion. This value was derived from national grain production of 51 million tonnes, with 43.7 million/tonnes exported. For the same reporting period, the value of grain exported was valued at $21.8 billion.
GPA Chief Executive, Colin Bettles, said his group also acknowledged the announcement, by Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King, of new funding to support the development of a domestic Sustainable Aviation Fuel (SAF) industry. HERE
“GPA understands the vital role grain producers can and do play as feedstock providers; not only in the production of the SAF industry, but other liquid fuel sources into the future,” he said.
“Getting the policy settings right, with genuine commercial incentives for grain producers, is vital to the establishment and long-term success of a domestic liquid fuels industry in Australia.”
The funding announced last week by Minister King will see the Australian Renewable Energy Agency (ARENA) provide $6.1 million to GrainCorp for one project that will study/investigate the establishment of an oilseed crushing facility, for SAF production. HERE
Mr Bettles said GPA’s policy priorities are echoed in recent submissions to other consultation processes for the development of domestic liquid fuel industries; especially reinforcing the need to incentivise grain producers as feedstock providers, to ensure genuine and lasting solutions.
GPA has also joined other groups in writing jointly to Minister King, and other senior government ministers, to support the development of domestic agriculture-based renewable fuel industries.
GPA’s position, in support of the opportunities to incentivise local production of liquid fuels, includes proper recognition of evidence, such as the CSIRO report, showing Australian grain producers are already world-leaders, in the production of sustainable grains.
But high-volume exports such as canola are currently being used as feedstocks for renewable industries that involve production targets and sustainability goals, set by other governments in those export markets.
“Rather than exporting our high-quality sustainable Australian grains thousands of kilometres across the globe to provide these benefits for other countries, it makes more dollars and sense to utilise them here in Australia first, as feedstocks in the production of local renewable fuels,” he said.
“Locating production facilities with logistical alignment to grain producing regions and existing supply chain infrastructure can help deliver other significant advantages and benefits, including increased employment, and reduced emissions and costs, in the grains transport supply chain.
“Government policy settings need to recognise the critical and pivotal role that grain producers play in supplying these feedstocks that go into producing these renewable fuels and meeting growing demand in future, by ensuring the proper incentives are in place.”
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