Sustainability motivations and challenges in the Australian agribusiness

Abstract

The research aimed to explore the sustainability actions in the Australian horticulture and dairy industries and the influences on firms adopting sustainability. The research adopted a neo-institutional lens and examined the environmental, social, and economic issues faced by these two industries in their operations and their supply chains. The research adopted a qualitative approach with four case studies. Interviews were conducted with decision-makers in the focal firms as well as those in key supply chain partners. One key finding was that motivations differed in the take up of environmental and social sustainability actions, with business imperatives and mimetic influences found in the former, whilst reputation and normative influences were evident in the latter. Environmental actions focused on actions to reduce their carbon footprints such as environmentally friendly packaging, water efficiency, managing waste, and monitoring spray programs. In the dairy industry environmental actions are also related to animal welfare. Social actions predominantly focused on “giving back to the community”. And the adoption of automation was the main economic action. The horticulture sector demonstrated more concern about sustainability in its supply chain, especially in regard to environmental considerations due to economic interdependencies and industry and competitive pressures. Another key finding was regarding sustainability challenges. A key social sustainability challenge was found to be the treatment of temporary backpacker labour which has the potential to seriously damage Australia's clean and green image. In terms of environmental sustainability, severe water shortage and the associated costs were found to be the most challenging. International competitive pressures were highlighted as a key challenge and the need to be sustainable economically was at the forefront of many concerns. In terms of the supply chain, processing firms (upstream) were found to exert a positive and substantial pressure in terms of sustainability practices of their supply chain, whereas, in the dairy sector, the duopoly of retail giants had a significant albeit negative influence on the supply chain's uptake of sustainability practices. Managers' values and links to the local and regional communities played an important part in the adoption of sustainability initiatives and their influence on the supply chain. • Supply chain sustainability actions were predominantly environmental. Environmental actions related to carbon footprint, use of environmentally friendly packaging, water efficiency, managing waste, and monitoring spray programs and animal welfare. • Social actions predominantly focused on “giving back to the community”. The adoption of automation was the main action adopted to bring about economic sustainability. • The horticulture sector demonstrated more concern about sustainability in its supply chain. • The uptake of sustainability practices was influenced by supply chain partners. In horticulture, this influence was positive and coming from upstream, whereas, in dairy, the influence was negative and coming from downstream. • Managers' values and links to the local and regional communities played an important part in the adoption of sustainability initiatives and their influence on the supply chain.