OBE Organic, Media Release, 30 May 2022

Australia’s oldest organic beef company – OBE Organic – is putting sustainability in the spotlight ahead of World Environment Day this coming Sunday, June 5 with the release of a new report that details industry-leading practices in sustainable agriculture, supply chain management and human resources.

Rich with information and QR codes linking to videos for each section of the report, OBE’s ‘Flourish’ Report is the result of eighteen months of work and tracking more than six years of development. It provides an innovative insight into how food and agriculture businesses can grow and differentiate in global markets that are increasingly demanding sustainability across the board – from environment and animals, through to people and products.

Managing Director of OBE Organic, Dalene Wray, said that although many businesses have understandably been focused on crisis management throughout the pandemic, a renewed and urgent long-term commitment to sustainability is needed for the betterment of future generations and continued commercial growth.

“We know, from experience, that COVID-19 has caused many businesses to necessarily look just weeks and months into the future instead of years and decades. However, we continue to believe that investment in sustainability is the way forward,” Ms Wray said.

“Global consumers are becoming more and more discerning with how they spend their money; it is no longer enough to deliver on just one aspect of product, service or Corporate Social Responsibility. We know, for example, that we can no longer just be ‘organic’ without being ‘sustainable’. Nor can we be kind to animals and sensitive to the environment without also being ethical to/in our supply chain and the communities around us.

“Market competition and choice is higher than ever before, and consumers can easily perceive corporate lip service and box checking – and when they do, they’ll quickly go elsewhere. All elements of the sustainability picture matter – and that’s how we genuinely embrace and practice sustainability at OBE Organic.”

Ms Wray also noted the challenges the world faces to feed a rapidly growing population that is expected to reach nine billion people by 2050.

“Poor nutrition and ultra-processed foods are causing major health issues around the world. Food and agriculture companies have a key role to play in addressing these problems, and we know that consumers also want business leaders to talk more openly about topics like animal welfare, climate change and inequality,” she said.

OBE Organic’s sustainability journey

Founded in the 1990s on Kullilli country at Thargomindah in remote outback Queensland, OBE Organic pioneered Australia’s organic beef industry as the country’s first and only premium meat exporter that was completely dedicated to the production of organic beef.

Formed by a group of far-sighted pastoral families, OBE Organic’s founders had a vision to support farmers and producers who operate in the pure heart of Australia, while supplying the world’s best organic beef to restaurants and retailers across the globe.

In the more than three decades since, OBE Organic has grown to become one of Australia’s most respected producers of organic beef products, representing the interests of producers across seven million hectares in the Channel Country of inland Australia – and selling grass-fed organic beef locally as well as to the Americas, Asia and the Middle East.

Despite remaining a small business of only 10 employees, OBE Organic has long been seen as a sustainability pioneer in Australia’s beef industry due to its organic certification and network of family farmers who manage millions of hectares of land which have never seen chemicals or intensive agriculture. However, it was eight years ago that the innovative business began taking its investment in sustainability to the next level.

In 2014, OBE Organic became the first and only Australian beef company to adopt the United Nations Global Compact’s six Food & Agriculture Business (FAB) Principles. The FAB principles were launched as the first set of global voluntary business markers for the Food & Agriculture sector and aimed to establish guidelines for a well-functioning and sustainable global food supply system. In 2019, OBE Organic would also become the first and only Australian beef company to join the UN Global Compact as a Signatory – committing to principles on human rights, labour, anti-corruption and the environment.

In 2015, OBE Organic began formally managing sustainability through its ‘Flourish’ program, which is now based squarely on the UN’s 17 Sustainable Development Goals (SDGs) and a mission to help people lead better, healthier lives. This forms the ongoing basis for OBE Organic’s sustainability platform and 2022 Report.

“What we’re hearing from consumers around the world is that they want businesses like ours to focus on sustainability. There is no ‘one-size-fits-all’ approach when it comes to sustainability. Ultimately, what we do and how we report on our sustainability efforts, needs to be tailored to the unique needs, interests, and preferences of each stakeholder,” said David Brook OAM and OBE Organic Chairman.

Inspired by the desert flowers of the outback heartland that flourishes when conditions are right, OBE Organic’s ‘Flourish’ program aims to balance and manage the risks and opportunities arising from economic, environmental and social aspects, whilst helping everyone in the supply chain to flourish – especially family farmers.

To develop the program, OBE Organic mapped its stakeholders and used the six UN Food and Agriculture Business Principles to assess, determine and manage the aspects that would have the greatest impact on the organisation’s long-term success. The program was then benchmarked against the UN’s SDGs and the Australian Meat Industry’s strategic priorities.

Because OBE Organic does not own any land or facilities, the ‘Flourish’ program’s greatest priorities have become controlling aspects of people, product and animals, as well as influencing OBE Organic’s value chain to manage the environmental risks and opportunities associated with organic beef production. These four pillars (people, product, animals and environment) are now supported through specific strategic actions across OBE Organic’s entire supply chain.

Sustainable people practices

“We believe that supporting our employees and people in our supply chain will build a stronger business for us, and a better life for them,” said Ms Wray.

“We care about sustainability, safety, resilience and diversity of our team, and have developed active partnerships and programs to support the needs of our staff members and farmers.”

The 2022 OBE Organic Sustainability report highlights several diversity and inclusion initiatives that OBE Organic has established including elevating women into senior leadership positions – with women making up half of OBE Organics employees and board, Employee Assistance and mental health programs, and launching a Reconciliation Action Plan (RAP) – the latter of which was only the fourth from an agribusiness to ever be endorsed by Reconciliation Australia.

Sustainable environment practices

As a business borne from the country, OBE Organic knows first-hand that landscapes are complex systems where everything is inextricably linked.

Good grazing management preserves vegetation which improves soil health, increases water retention, reduces erosion, and stores more carbon in vegetation and soil. As such, the organisation continually takes positive steps to go beyond organic certification and to help its producers further manage environmental risks and opportunities.

OBE Organic works only with producers who set aside a minimum of 5% of land on which they graze cattle for conservation or protection purposes.

To help mitigate climate change, OBE Organic livestock is not finished in energy intensive feedlots. Rather, carbon is naturally sequestered through grazing management in the rangelands.

The company has also commenced Carbon Measurements on some freight movements and earlier this month inked a new deal with Maersk ECO Delivery – becoming the first refrigerated meat exporter in the Oceania Region to decarbonise their exports to North America.

Sustainable animal practices

Animal welfare is a critical part of OBE Organic’s livestock program, and it believes that everyone in the supply chain has a collective responsibility to treat animals ethically and humanely.  Animal welfare is a key part of the 2022 OBE Organic Sustainability Report, and something the company believes will continue to grow in importance.

OBE Organic’s producers are Livestock Production Assurance  (LPA) accredited meaning they follow all of LPA’s requirements regarding food safety, animal welfare and biosecurity.

On all properties where OBE Organic livestock are sourced, annual inspections are carried out by a third-party to ensure that all producers have stocking rates appropriate for the region, taking into consideration feed production capacity, health, nutrient balance and environmental impact.

Key components of OBE Organic’s animal welfare strategy outlined in the Sustainability Report include developing processes to monitor performance using existing data; participating in industry animal welfare initiatives; and enhancing feedback loops to producers using behaviour theory to influence positive change.

The latter feedback loop is an integral part of OBE Organic’s bold vision to lead positive global change in rangelands animal welfare’ through a focus on modifying the behaviour, decisions and practices of people who interact with animals in the supply chain.

Recently, OBE Organic partnered with behavioural science experts, Evidn, to conduct research into fostering positive animal welfare behaviours within the supply chain. This evidence-based approach successfully secured funding through the Federal Government’s Entrepreneur’s Program to support implementation of the findings.

Sustainable product practices

OBE Organic beef passes stringent quality inspections before reaching consumers’ tables. The business ensures it produces nutritious, grass fed, certified organic beef through several traceability and quality assurance programs including the National Livestock Identification System (which allows for electronic lifetime traceability of every animal in Australia), as well as numerous legislative requirements, industry standards, processes and inspections by importing authorities.

As outlined in the 2022 Sustainability Report, OBE Organic also works only with the best distributors to ensure that its beef is of the same premium quality in every region and country it exports to. All produce is free of antibiotics, added hormones, and genetically modified feed, and raised on pastures free from chemical treatments

In addition, OBE Organic aims to reduce product wastage through maintaining yield and carcase utilisation targets, as well as analysing in-transit temperature data for customers to support quality and shelf-life assumptions.

Related article: Q&A with OBE Organic MD, Dalene Wray.