Carbon neutral beef brands emerging across the world

While nothing is stopping carbon-neutral beef coming to a supermarket near you, there remains big questions as to who will actually cough up for it.

Climate-neutral beef is being tested in the market as processors look to reduce their supply chain emissions.

But the true cost of lower emission beef may be being absorbed by processors as they look to promote the environmental aspects of their product.

Carbon-neutral beef is again a hot topic in the agriculture world. Picture: Dannika Bonser

Rabobank’s Angus Gidley-Baird said low emission and climate neutral beef brands were starting to be seen on shelves across the world.

Locally, North Australian Pastoral Company launched Australia’s first carbon neutral beef brand Five Founders in 2019 and Coles launched its certified carbon-neutral brand in April.

“We are starting to see companies take the next step,” Mr Gidley-Baird said.

“They are initiating and advancing programs to establish supply chains for and verify progress on reducing supply chain emissions and to help them meet stated commitments.”

Mr Gidley-Baird said the timing of launching low or zero emission beef brands was not ideal, given the high prices already for beef around the world.

“It is not an easy time to translate sustainability and emission commitments into action,” he said.

“In our view, the full cost of production (sustainability initiatives aside) is not currently being passed onto consumers.

“Consumers’ willingness and ability to pay is likely to be tested in 2022 as inflation levels climb around the world.”

Mr Gidley-Baird said he questioned whether the market was able to offer a premium for net-zero-carbon beef.

“Several of the first movers in the carbon-neutral beef space are utilising offsets to generate their carbon-neutral status,” he said.

“These offsets add to the costs of the supply chain.”

Moving away from offsets to saving emissions directly within the processing industry also came at a cost.

“Most major meat processing companies around the world have a statement on the environment and a commitment to reduce emissions, and in many cases to reach net-zero emissions by a specific time frame,” Mr Gidley-Baird said.