In an area of Western Australia (WA) known as the ‘Wheat Belt’, there is an ecosystem that is under threat. In December 2015, the Australian government recognised this fact and made the Eucalypt Woodlands of WA protected as a “nationally threatened ecological community”[1];. The area was listed as ‘critically endangered’ and it is not hard to see why – it is estimated that there has been a near 90% decline in the prevalence of the Eucalypt Woodlands in the Wheat Belt, largely due to land clearing[2].
Prior to receiving this protected status, just 12% of the woodlands were actually protected. This provided opportunities for entrepreneurial farmers to try to turn vast acres of the woodlands into lots for agricultural production with little thought for the potential damage that may be done to the ecosystem. Of course, there is room in the Wheat Belt for farming to be done in a sustainable manner. Not all farms are willing to change their practices, but there is one company which was founded in 2015 precisely with regenerative farming in mind: Wide Open Agriculture (ASX: WOA).
WOA’s core business is the distribution of premium grass-fed beef and lamb to food services in WA as well as the marketing of fresh and processed healthy food products. Their purpose is to be a company that “strives to empower communities, regenerate ecosystems and inspire others”[3]. They 100% own and operate 3 subsidiaries which allows them to control every step in the supply chain, which starts with their subsidiary ‘Land for Reasons’. This business unit purchases farmland and then leases it out to farmers who they intend to have long term relationships with. By owning the land that their product comes from, WOA ensures that the farming is being done in a way that is restoring biodiversity, soil and water quality.
Consumers around the world are becoming increasingly aware of the impact their consumption decisions have on the environment. We have seen this manifest in many ways, including the rise to prominence in the US of bio-food companies such as Impossible Foods and Beyond Meat that offer plant-based meat as alternatives to meat. In WA, the cause that is dearest to the hearts of community members is the state of the Eucalypt Woodlands. They want to know that the beef and lamb they purchase from local companies has been produced in a way that has not damaged their local ecosystems. WOA fills this desire and their brand ‘Food for Reasons’ looks to tap into this sentiment.
WOA is a young company but one with great potential. In July 2019, the company announced that they had commenced domestic sales of regeneratively produced meat. Their first month sales amounted to AUD 40,000 to 20 customers. They also stated that online sales are due to start in August of this year. This is a company that is just getting going but is well worth keeping an eye on.
[1] Department of the Environment, Australia – http://www.environment.gov.au/cgi-bin/sprat/public/publicshowcommunity.pl?id=128
[2] ABC Australia, https://www.abc.net.au/news/2015-12-17/eucalypt-woodlands-listed-as-critically-endangered/7039212
[3] 2018 AGM Presentation, WOA
Jarryd is an experienced Investment Adviser at Emerald Financial Group
Latest posts by Jarryd Russell (see all)
- Number of allied health professionals rising - January 9, 2023
- International Bank of Australia approved to launch Australia’s newest payments bank - November 7, 2022
- Novatti partnership allows more businesses to accept payments on the go - October 31, 2022
Leave a Comment
You must be logged in to post a comment.