Australia’s biggest beef retailer is standing by its decision to rate the land clearing risk posed by the cattle industry as “low” after Woolworths’ annual general meeting turned into a free-for-all attack on the group’s supply chain sustainability credentials.
However, chairman, Scott Perkins, told shareholders while there was just a one to two per cent risk of deforestation caused by beef production, the supermarket chain was looking at a “postcode by postcode” analysis of cattle properties, including drone mapping, to confirm the European Union’s low risk assessment of Australia’s pastoral industry.
Woolworths’ 1130 supermarkets and other affiliates, including its strongly performing PFD food services business, lead the meat game in Australia, responsible for at least a third of all grocery sales.
Activist shareholders and environmental campaigners at the AGM blasted the group’s links to Tasmania’s contentious farmed salmon industry; its use of wooden pallets sourced from NSW forests, and the credibility of its decision to accept the revised EU assessment of Australia’s beef industry as a low risk to deforestation.
Also drawing flak was Woolworths’ recent announcement that it would keep selling cage eggs instead of moving entirely to free-range or barn-laid this year, as promised; the sale of “killer” tobacco products in its supermarkets, and extensive use of single-use plastic packaging.
Wilderness Society representatives used the four-hour meeting to quote contested claims that Queensland’s beef industry was responsible for “decimating” the equivalent of a football field of native vegetation every two minutes, and 80pc of land clearing in NSW was for pasture development.
“It’s incredibly likely that beef from this destruction is ending up on your shelves,” said Wilderness Society Queensland campaigns manager, Hannah Schuch.
Speakers addressing directors and management argued the retailer appeared to have backtracked on its no-deforestation commitment for its Australian beef supplies, announced last year.
Are you not concerned customers may see through this bull if you cannot show that your beef supply chain is not killing koalas?
Ms Schuch said the EU’s recently downgraded risk rating was “deeply flawed” and had come about after very hard lobbying by the beef industry and government.
“Are you not concerned customers may see through this bull if you cannot show that your beef supply chain is not killing koalas?” she asked.
Mr Perkins said Woolworths intended to report on any land clearing risks in more detail and its efforts to mitigate them.
It would include a locally relevant definition of deforestation after seeking additional evidence and engaging with the beef industry.
As research, certification standards and global regulations continued to evolve, the group intended to review its policy, guidance and approach to support its no-deforestation goal.
It was working with the cattle sector, multi-stakeholder forums, the federal government and farm sector service providers to understand land management practices and develop fresh beef traceability solutions.
Mr Perkins said there were some “tricky industry issues” relating to pastoral grazing country and what was claimed to be cleared, but there was no question, beef production continued to be one of the five key industries Woolworths scrutinised as part of its no-deforestation goal.
That goal was part of its net-zero target, validated by science-based targets for the beef, palm oil, soy, cocoa, and timber/wood fibre industries.
Woolworths supported industry-wide progress on the assessment of deforestation risk and validation of deforestation-free supply chains, including improved product traceability.
Since 2020, the retailer had taken various actions to support deforestation-free beef supply chains, including regularly engaging with non-government organisations to understand all perspectives.
“We take any instances of deforestation identified in our supply chain seriously, and these will be addressed on a case-by-case basis,” Mr Perkins said.
However, Ms Schuch argued Woolworths appeared to be trying to confuse investors with claims that it had deforestation under control.
“In reality, it lacks public science-based plans and systems to ensure the beef and timber products on its shelves will be free from forest destruction by the required December 31 deadline,” she said.
The critics failed to prevent the defeat of a series of special shareholder resolutions, including an attempt to amend the company constitution to compel management to “stop winding back their no-deforestation commitment” and acknowledge its Tasmanian salmon was not responsibly sourced.
The deforestation resolutions effectively sought to push Woolworths to declare beef a high-risk commodity and reconsider its reliance on “dodgy” timber harvesting certifications for wood and paper products.
The seafood resolution argued Woolworths’ sourcing policy fell short of global best practice and the company had not identified serious biodiversity threats in its farmed salmon supply chain.
A succession of angry shareholders said Woolworths’ “responsibly sourced” Macquarie Harbour salmon was wrongly promoted using certifications which were inadequate according to about 80 global conservation groups.
The Aquaculture Stewardship Council regarded none of Macquarie Harbour’s 11 salmon farming sites as compliant with its standards.
Meanwhile, responding to questions about Woolworths breaking its cage-free egg sales promise, Mr Perkins said this year’s nationwide egg shortage, caused by avian influenza, had forced the retailer to revise its commitment.
He said less than 20 per cent of the eggs it sold were now produced by caged hens, and there was “no question about the destination” of caged egg production and customer preferences.
Similarly, he replied to a shareholder’s criticism of Woolworths’ cigarette sales policy, which research suggested was responsible for about 1600 deaths annually, saying sales were in significant decline.
“There are customers who still want to make that choice to smoke, but we are prepared to see sales fall to zero.”
