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Australia’s agricultural sector is at a crossroads.
Agriculture is extremely vulnerable to the effects of climate change, facing prolonged droughts, floods, and shifting weather patterns that are already reducing yields and affecting livestock health.
At the same time, agriculture is among Australia’s largest contributors to greenhouse gas emissions, biodiversity loss, and water usage. Emissions are under increasing scrutiny, with methane from cattle and sheep accounting for more than 10% of Australia’s total greenhouse gas emissions.
Consumers, investors, and regulators are demanding that primary producers adopt more sustainable, transparent, and resilient production practices. Balancing these expectations, while also responding to growing demand for Australian beef and dairy products and maintaining profitability, can feel like an impossible challenge.
Fortunately, Australian innovators are stepping up with solutions.
FutureFeed is a CSIRO-led innovation that’s turning seaweed into a climate solution. Developed in collaboration with James Cook University and Meat & Livestock Australia, FutureFeed is a livestock feed additive derived from the red seaweed Asparagopsis. When added to cattle feed in small amounts, it can reduce methane emissions by over 80% without compromising animal health or productivity.
The seaweed contains a compound called bromoform, which inhibits the enzyme responsible for methane production during digestion. Trials have shown not only a dramatic drop in emissions, but also potential gains in feed efficiency and weight gain.
While FutureFeed is a breakthrough, it’s not a silver bullet. Its application is currently best suited to intensive systems like feedlots and dairies, where feed intake can be controlled. A farm with extensive grazing systems would likely face logistical challenges.
One of the main challenges in sustainable agriculture is aligning innovative technologies with real-world business needs. Farmers are understandably hesitant to invest in new tools without clear benefits. This is where an adviser proves invaluable.
At RSM, our advanced financial modelling enables us to deliver robust cost-benefit analyses for agribusiness clients. We can identify which clients would benefit most from innovations like FutureFeed and help them quantify and report their reduced emissions to access carbon credits or sustainability funding. We also assess additional advantages, such as meeting incoming sustainability reporting requirements, which are increasingly demanded by major buyers. Failing to reduce emissions can harm market access and product value.
We also guide clients towards other initiatives that offer strong operational and environmental benefits.
Sustainability is now recognised as both a significant business risk and a valuable opportunity. Initiatives like FutureFeed demonstrate the remarkable outcomes achievable when research, industry, and investment work in harmony. Beyond feed additives, Australian innovations in methane capture and climate-smart farming practices are increasingly making an impact. Nonetheless, it is essential to assess the return on investment and practicality of these solutions. Advanced systems for measurement, reporting, and verification also play a critical role in driving meaningful change.
At RSM, we have the expertise to help you maximise the benefits of sustainable agriculture, whether that involves ESG reporting, leveraging carbon market opportunities, or adopting new technologies. For further information, please reach out to your local RSM adviser.
At RSM, we have the expertise to help you maximise the benefits of sustainable agriculture, whether that involves ESG reporting, leveraging carbon market opportunities, or adopting new technologies. For further information, please reach out to your local RSM adviser.
This article was first published on ACM Farm Weekly.
