Hugh Killen, Managing Director & CEO
It has been a whirlwind few weeks on the speaking and networking circuit, evokeAG one week, Suits to Wilmot the next, and culminating at Wilmot Field Day. If there’s one recurring theme that has dominated discussions, it’s the growing interest in natural capital and its undeniable link to farm profitability and resilience.
And while it’s hard to sum up one of the most agenda-setting weeks of the year in just a few words, one thing is clear: the conversation is shifting from theory to action.
Farmers, investors, and policymakers alike are recognising that valuing natural capital isn’t just a feel-good exercise, it’s a commercial necessity that will shape the future of agriculture.
I see a farm’s natural capital accounts as its second balance sheet, an often-overlooked but critical measure of long-term success. Operating at the intersection of agriculture and natural capital, Australian farmers are among the best in the world. They have to be. Managing 55% of the country’s landscape, they juggle production, market, and environmental risks daily. And with 86% of all Australian agricultural exports destined for countries with trade-enshrined net zero commitments, the ability to adapt is no longer optional, it’s imperative.
Yet, the numbers paint a sobering picture. Since 1970, we’ve lost 60% of global biodiversity. Over half of the world’s GDP, $58 trillion, is directly dependent on nature. The financial risks of ignoring natural capital are simply too significant. But equally, the investment opportunities in this space are profound. Natural capital investments, whether in soil health, biodiversity restoration, or sustainable land management, can deliver both financial returns and ecological benefits at scale. It’s why global corporate giants like PepsiCo, Walmart, Kering, Mars, General Mills, Unilever, and McCain are embedding regenerative agriculture into their supply chains. The momentum is building.
This brings me back to Wilmot Field Day. Alasdair MacLeod’s opening remarks hit home, offsets will play a crucial role in the near term if we are serious about decarbonisation. Research suggests that Australian farms could sequester up to 20 million tonnes of carbon annually through improved land management. Yet, despite all this potential, we are still missing one fundamental piece of the puzzle: the value ascribed to Australian-grown food and fibre.
THE RED MEAT CONUNDRUM
Take red meat, particularly beef, a sector I know well. Supermarkets dominate the Australian retail market for beef, controlling 81% of fresh meat sales. The Australian Meat Processing Corporation (AMPC) recently released its 2024 report on competition in the red meat processing sector, concluding (somewhat controversially) that there are no competition issues in the industry. However, when you consider that supermarkets control 80% of the home brand red meat supply chain, the power dynamics are clear. The lack of competitive tension in the processing space means supermarkets dictate what consumers can access and at what price.
For regenerative products, this is a significant barrier to market entry. Supermarkets favour large-scale suppliers who can meet their stringent cost and volume demands, leaving little to no room for service kill space for regenerative beef. The result? Farmers investing in regenerative agriculture struggle to find a viable route to market. Without dedicated processing capacity or alternative sales channels, the promise of premium, sustainably produced beef is stifled at the gate.
This issue was front and centre in a panel I hosted on the first day at Wilmot, where we delved into the route to market challenge with Richard Heath (Zero Net Emissions Agriculture CRC) Joe McMeniman, Group Manager, Sustainability at MLA and Adam Coffey, Deputy Chair Cattle Australia. The conversation struck a nerve, eliciting a strong response from producers in the room. Their frustration was clear, without fair and accessible processing options, the promise of regenerative beef remains just that: a promise, not a commercial reality.
Regenerative farming isn’t just an environmental win, it’s a commercially viable, climate-positive solution. But unless we address the bottleneck in processing and market access, farmers will continue to face an impossible choice, sustainability or survival. If Australia is serious about leading in nature-positive agriculture, we must act now, whether through investment in independent processing, policy reform, or alternative supply chains, before the supermarket giants make the decision for us.
And here’s the emerging thought, food grown in regenerative systems isn’t just about fetching a premium, it’s about securing a place on the shelf. The real opportunity lies in identifying and communicating its unique attributes, linking it back to nutrition, provenance, and health benefits. Consumers deserve access to food that is not only better for the land but better for them. If we fail to build that bridge between regenerative agriculture and the mainstream food system, we risk leaving both farmers and consumers without choice.
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