Landcorp Farming Limited

Climate Impact & Sustainability Data (2021)

Total Carbon Emissions:414,900 tonnes CO2e/year (net)

Reduced GHG emissions on farms we own (net) from 255,100 tonnes CO2e in 2020 to 236,501 tonnes CO2e in 2021
Reduced GHG emissions on all farming operations (net) from 470,893 tonnes CO2e in 2020 to 414,900 tonnes CO2e in 2021
12.5% reduction in winter cropping between 2018-2020 and improved winter grazing practice
Increased total area retired and protected in QEII covenants from 8,861 hectares in 2019 to 9,940 hectares in 2021
Increased total area in forestry plantation from 9,458 hectares in 2019 to 12,190 hectares in 2021
Five dairy farms attained full organic certification by October 2021

Further step up in employee engagement in FY2021
27 community engagement events
Increased spending on staff development by $0.5 million in FY2021
Launched branded whole milk and semi-skimmed milk products in Vietnam and Singapore
Formed new partnerships for wholesale milk supply in China
Spring Sheep won the best infant nutrition product award at the World Dairy Innovation Awards

Long-term Goals:

Medium-term Goals:

Plant business (incl. ecosystem services) delivering $15m EBITDAR
Speciality dairy business delivering 5% of EBITDAR
Reduce carbon emissions on farm in line with commitments to meet the 2021 Paris climate change targets
Establish another 1,000–2,000 hectares of commercial forestry annually

Short-term Goals:

Average 2% per annum increase in profitability in core farming businesses for the next 3 years

Covid-19 related factors impacting financial performance
Lower prices for venison on global markets and weak prices for coarse fibre wool
Labour market shortages
Need to make the business more climate and environmentally friendly
Significant change and uncertainty in the operating environment due to Covid-19, market disruptions, climate change, and environmental and human wellbeing concerns
Uncertainty over returns, costs, and supply chain functioning due to Covid-19 disrupting markets and trade links

Ongoing improvements in animal genetics and farming practice and systems, including increased use of new digital technologies
Policies that drive retention and growth to mitigate labour shortages
Training staff for greater use of digital information technologies
Focus on lifting farmgate margins for food and fibre production through quality premiums and Pāmu Foods, and increasingly from forestry and associated carbon sequestration credits
Investing in programmes to strengthen Pāmu land management and farming practices, reducing environmental impacts and enabling adaptation to climate change
Exploring opportunities to sell assets that are of higher value to other parties and recycle this capital into higher earning areas of our strategy
Managing supply relative to market demand through milk processor relationships
Phasing out winter crop on some farms and to 2% or less of the grazed areas on farms where biophysical and animal welfare considerations require feed supply security
Developing alternatives to intensive winter cropping with the same or higher level of profitability

Development of energy-efficient products; carbon credit allocations from forestry activities

Spring Sheep won the best infant nutrition product award at the World Dairy Innovation Awards