Sustainable branding is in demand

Strong uptake in sugar and cotton

THE pressure on primary producers to demonstrate sustainable credentials is mounting – from government and consumers alike – but does it ‘pay’ for farming businesses to participate in voluntary sustainability accreditation programs?

Addressing this question is a recently released report, Does Accreditation Pay? Weighing up the value in sustainability accreditation.

The report says capturing value in sustainability accreditation is not as easy as charging a higher price for the commodity, but that participation in some voluntary sustainability schemes is increasingly expected, as sustainable production practices become more mainstream.

The report says with consumers and government increasingly wanting verification that food and other agricultural commodities are produced without harming the environment, the number, variety and market coverage of voluntary sustainability standards within agriculture is growing, and more producers across a number of commodities are taking part.

While all commodity sectors are under increasing pressure, Rabobank commodity analyst Georgia Twomey said the sugar and cotton sectors, in particular, have a number of sector-specific standards at not only a local level, but also globally.

A recent survey of 1000 Australian farmers, commissioned by Rabobank, found sugar and cotton producers had the highest level of engagement in sustainability accreditation programs.

“Across surveyed commodities, it was found that 42%of Australian farmers are either accredited or considering accreditation in the next five years, but this rose to 68% in the sugar industry and 49% in cotton,” Ms Twomey said.

In the sugar industry, the survey found compliance with industry and government regulation to be the main driver of growers’ uptake of voluntary sustainability standards while cotton was the only surveyed commodity sector to identify price premium as the most prominent motivation to get involved.

“For sugar and cotton, it is sector-based standards that now dominate their sustainable commodity space at both a local and global level, and this has driven an approach of connecting on-farm best management practice programs here in Australia,” Ms Twomey said.