Industry leaders discuss sustainable malting barley and its growing importance for Asahi’s supply chain at the PURE Grain Field Day, with goals for net zero emissions by 2040.
Sustainable Grain at the Forefront: Insights from PURE Grain Field Day and Asahi’s Commitment to Net Zero by 2040
Earlier this month, the PURE Grain Field Day in Pallamallawa brought together leading voices in the Australian grain and beverage industries, including Barrett Burston Malting’s Dean Ganino, Nuveen Natural Capital head Kristina Hermanson, Asahi Beverage’s Dave Engel, and Boolah Director Matthew Durack. These industry figures gathered to discuss the growing value of sustainable grain production, particularly focusing on malting barley, and the steps companies are taking toward sustainability.
With the 2024-25 barley harvest underway, beginning in Queensland and northern New South Wales, and an anticipated national crop of 12.16 million tonnes (Mt), Australia is well-positioned to meet domestic demand and produce a healthy export surplus. However, yield losses due to frost and drought conditions in Victoria and South Australia could potentially lower the national total below 11Mt. While the quality of this year’s barley crop remains uncertain, the increasing focus on sustainability within the industry offers hope for the future of malting barley and the wider agricultural sector.
The Importance of Sustainability in Barley Production
At the PURE Grain Field Day, the emphasis was firmly placed on sustainable farming practices, particularly in the production of malting barley, a key input for the brewing industry. PURE Grain, the event organizer and parent of Boolah, works to grow crops as sustainably as possible for supply to Barrett Burston’s malting plants, including their facility at Pinkenba, Brisbane. The reliable supply of sustainable barley to Barrett Burston ensures that Asahi, one of Australia’s largest beverage producers, meets its stringent environmental goals.
Dave Engel, regional head of raw materials procurement at Asahi Beverages, outlined the company’s commitment to sustainability, sharing their target of achieving net zero carbon emissions by 2040. Engel highlighted that sustainability is not just a business goal but a growing consumer demand, with many consumers now making purchasing decisions based on environmental considerations.
Asahi’s Commitment to Sustainability
Asahi’s raw material sourcing strategy is a key part of its sustainability efforts, with 85% of the company’s inputs—including barley, hops, fruit, and sugar—sourced from within Australia. Engel noted that while Asahi does not currently have a target for sustainability certification of raw materials, it is a goal likely to be mandated by the company’s parent, Japan’s Asahi Group. Barley, as one of the most critical ingredients for the company’s operations, is expected to be among the first materials to undergo this certification process.
Barrett Burston, the primary supplier of malt to Asahi’s Yatala brewery, is also committed to sustainability. Dean Ganino, supply chain director at Barrett Burston, shared that the company aims to source 80% of its barley from sustainably accredited growers by 2030. As of 2024, they are already sourcing around 40-45% sustainably accredited barley, with the potential to exceed their target ahead of schedule. Ganino also revealed plans to replicate the successful PURE Grain supply chain model in Western Australia, expanding sustainable practices to the state’s barley production.
Australia’s Barley Harvest: A Challenging Season
Australia’s barley industry is closely watching the 2024-25 harvest, which is underway with promising initial yields in Queensland and New South Wales. However, challenging weather conditions in Victoria and South Australia, including frost and drought, have raised concerns about the overall yield and quality of the national crop. These factors have led to some crops being cut for hay, which could reduce the national total below the 11Mt mark, a notable drop from the initial forecast of 12.16Mt.
Despite these challenges, Australia’s malting barley industry remains well-positioned to meet both domestic demand and the requirements of its export markets. With an average annual production of 11.4Mt, around 3.3Mt of barley is typically selected for malting, with 1.2Mt used domestically to produce malt for the brewing industry. The remaining volume is exported, ensuring a healthy surplus for international markets.
Sustainability and Innovation in the Brewing Industry
Sustainability is not just a focus in barley production but also a key concern for the brewing industry as a whole. Trevor Perryman, principal at Kardinia Group Consulting, highlighted the considerable efforts being made by both independent maltsters, such as Coopers, and multinational brewers like Lion, Heineken, and Asahi to integrate sustainability into their supply chains.
Asahi Beverages, in particular, has taken a leading role in promoting sustainability within the brewing industry. The company’s efforts include reducing its reliance on fossil fuels and transitioning to renewable energy sources. As part of this initiative, Asahi has already made significant progress in addressing its Scope 2 emissions by investing in solar energy projects, such as the Karadoc Solar Farm in Victoria, which powers a significant portion of the company’s operations.
However, Engel noted that Asahi’s biggest challenge lies in reducing Scope 3 emissions, which account for 93% of the company’s total emissions. Scope 3 emissions stem from Asahi’s 3500 suppliers, many of whom face their own sustainability challenges. Engel pointed out that packaging is the single largest contributor to the company’s emissions, accounting for nearly half of its total output. To tackle this, Asahi has partnered with Coca-Cola in the Circular Plastics Australia initiative, which aims to recycle PET plastic bottles and reduce the environmental impact of packaging.
The Role of Technology in Sustainable Agriculture
The focus on sustainability extends beyond just barley production and brewing operations; it also includes the use of innovative technologies in agriculture. Asahi’s partnership with PURE Grain and Barrett Burston is an example of how traceability and sustainable practices can be integrated into the supply chain. By leveraging advanced farming techniques and ensuring traceable, sustainable barley production, Asahi is able to meet its sustainability goals while providing high-quality products to consumers.
Technology also plays a crucial role in optimizing the efficiency of farming practices. Barrett Burston’s supply chain director, Dean Ganino, emphasized the importance of on-farm storage, particularly in Western Australia, where a lack of adequate storage infrastructure is a limiting factor for many barley growers. Ganino suggested that increased investment in on-farm storage could help farmers better manage their crops and supply sustainably grown barley to maltsters like Barrett Burston.
Conclusion
As the 2024-25 barley harvest gets underway, the focus on sustainability in Australia’s grain and brewing industries continues to grow. Through partnerships with sustainable growers and innovative supply chains, companies like Asahi Beverages and Barrett Burston are working to reduce their environmental impact while meeting the increasing consumer demand for sustainable products. As the industry looks to the future, the integration of technology and the continued commitment to sustainability will be key to ensuring the long-term success of Australia’s barley production and brewing sectors.