Why consumers have a beef with paying for sustainability

MLA boss Jason Strong says consumers are not yet demonstrating a willingness to pay more for carbon-neutral beef at the checkout.

Australia’s red meat industry may be spending millions to prove its carbon credentials - but few customers are asking for proof.

Meat and Livestock Australia managing director Jason Strong told The Weekly Times he had seen “nothing more broadly” when it came to both international and domestic demand for beef produced in a carbon-neutral manner.

“There is not a lot of indication at the moment about that being a requirement,” Mr Strong said.

“What we have seen for a couple of years is brands making credential claims about carbon neutrality, but we haven’t seen anything more broadly across the industry.”

Mr Strong said Australia’s red meat industry was at a point where he was “not sure how that will be executed on a broader whole of industry basis”.

“One of the challenges is we are still working out so much of this,” he said.

MLA has recently launched a carbon calculator on its website, to help producers start to understand how their farming practices affected their carbon position.

Mr Strong said this would allow producers to be better prepared if their carbon status ever was raised.

Meat and Livestock Australia Managing Director Jason Strong. Picture: Sarah Marshall

And while consumers indicate they are interested in the production system of their red meat, Mr Strong said the industry needed to be careful how much weight was put on this.

“So we know that consumers are very interested in climate and very interested in what is happening in the supply chain,” he said.

“What I don’t think it is very clear yet is how that is connected to buying decisions.

“We are definitely seeing that, on the meat side, there is an absolute increase in the interest about sustainability but consumers largely still see it as someone else’s responsibility.

“There is a level of interest and awareness that they would like to understand and see more information, but we are still not seeing that broader, pull-through from consumers saying this is what we want.”

Mr Strong said there were a handful of brands that had carbon neutrality claims in Australia but was unsure of the proportion of total beef consumption this entailed.

And while customers were not demonstrating their willingness to pay for carbon neutrality, Mr Strong said the industry was ready to satisfy demands.

“It is important for us to start by demonstrating our credentials than convincing ourselves that someone that is going to demand more from us,” he said.

“The chances are that when a customer says they want sustainability, we are probably doing what they need anyway and will be able to satisfy their requirements.”