NATIONAL CHALLENGES AND OPPORTUNITIES

Project snapshot: Revenue opportunities and social licence risks from consumers’ changing environmental, social and governance expectations

  • 4 pages

  • Published: 11 Mar 2025

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Consumer expectations about Australian agriculture are evolving, especially for its social licence, and the environmental, social and governance (ESG) attributes of food products. When coupled with concerns about animal welfare, long food supply chains and globalised markets, these expectations have implications for on farm practices and the broader agriculture sector.

This project, led by ACIL Allen Consulting, analysed the influence of changing consumer expectations, ESG and social licence to operate on the sector. It also identified where consumers will pay more for certain products that have favourable ESG attributes.

Importantly, the report shows how producers and emerging industries can take advantage of these changes to maintain market access and the prices they receive for their products. Case studies in the report explain the role of different food standards and certifications, the reasons producers should adopt them, and the process for becoming certified.

The report’s recommendations focus on ways producers can better understand market needs, and quantify the value that consumers place on some product attributes. They also show how to assess value flow from certification practices, and to identify threats to social licence.