Markets

CBH, Wide Open Ag launch carbon-neutral grain project

Grain Central, July 10, 2020

WA is preparing to test the market for carbon-neutral grain. Photo: Wide Open Agriculture

WIDE Open Agriculture (WOA)  and CBH Group are set to explore certification, marketing and global distribution of carbon-neutral grain.

Under a non-binding memorandum of understanding, WOA and CBH will look at the feasibility of sourcing, certifying, marketing and distributing Western Australian barley, oats and lupins produced in the current winter-cropping season.

WOA and CBH  said the project could lead to one of the world’s first carbon-neutral certified products for buyers seeking sustainably grown grain.

Carbon-neutral certification has been identified as a possible verification tool to support and differentiate WA grain from other origins, and the project will also consider the potential for regenerative farming practices.

CBH is Australia’s largest exporter of grain and WA’s biggest bulk handler by far.

As Australia’s largest cooperative, CBH is owned and controlled by WA growers, and is one of the world’s biggest grain exporters.

CBH chief marketing and trading officer Jason Craig said Australian grain already benefitted from a reputation as being “clean and green”.

“We are also seeing growing demand for sustainably produced grain, so we look forward to working with WOA to explore the market opportunity for carbon-neutral grain in the international
marketplace.”

“WOA have developed a deep understanding of regenerative farming systems and are transitioning the company towards carbon neutral certification across all products,” WOA managing director Dr Ben Cole said.

“Developing grain products with a clear understanding of their environmental impact from farm to customer could provide new market access and potential premiums for growers.”

Ready for new crop

The agreement’s Carbon Neutral Grain Project plans to identify the potential supply of commercial tonnages of oats, barley and lupins that meet carbon-neutral specifications.

The project will work with five leading WA growers to test the feasibility of supplying to a carbon-neutral grain program.

It will also investigate the potential processes and costs related to providing carbon neutral certification support services, carbon reduction programs, regenerative farming transition support and carbon offsetting services.

CBH’s role will be to look at export marketing opportunities for the grain in terms of volume and premium pricing.

The project also aims to create a framework for positive environmental outcomes on-farm on top of direct economic benefits for participating growers.

If both parties agree that the certification, marketing and distribution of carbon neutral and regeneratively grown grain is feasible, WOA and CBH may progress to a commercialisation
phase.

WOA is an ASX-listed company, and is already a supplier to the domestic and export market through its Dirty Clean Food brand, which sells lines including beef, lamb and oats.

Source: CBH, WOA

 

 

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