The Problem

Livestock Methane Reduction - Key Global Priority

1

Reducing atmospheric concentrations of methane, the potent, yet short-lived greenhouse gas, is critical for slowing the rise of global temperatures.

source: Ruminant Methanogens as a Climate Change Target

2

Dairy and beef cattle belch out about 100 teragrams (Tg) of methane (CH4) every year. Globally, enteric methane emissions rival those from the oil and gas industry.

3

Livestock globally accounts for 14.5 percent of anthropogenic greenhouse gas emissions and cattle represents 65 percent of that amount.

(Source:FAO)

4

The Intergovernmental Panel on Climate Change (IPCC) estimated that one tonne of methane is considered to be equivalent to 28 to 36 tonnes of CO2 if assessing its impact over 100 years. A reduction in methane emissions would therefore have a big impact in reducing GHG emissions in the short term

5

In November 2021 over 100 countries representing 70% of the global economy joined the Global Methane Pledge committing to a global goal of reducing global methane emissions by at least 30 percent from 2020 levels by 2030

Source: OECD-FAO Agricultural Outlook 2022-2031

6

In Australia – 15% of the country’s emissions are linked to the agricultural sector and the Australian government has pledged to reduce methane emissions across all sectors by at least 30% below 2020 levels by 2030

Source: Decarbonising livestock: the challenges and opportunities of reducing methane emissions; Tom Shroder and Santos Amadeo SouthPole 12 December 2022

7

The Australian red meat industry has set a target to be carbon neutral by 2030 (CN30)

Source:MLA

Current Products are not delivering fast enough

The North American Meat Institute found in an annual survey that about a third of consumers who eat meat are looking for environmental claims on labels. While humane treatment of animals, such as access to the outdoors, rank highest in the survey, many respondents specifically say they want meat with a lower carbon footprint, said Eric Mittenthal, the trade group’s chief strategy officer.

CONSUMER’S CURRENT DEMAND IS NOT CURRENTLY BEING MET WITH THE AVAILABLE PRODUCTS ON THE MARKET

Livestock industry experts are calling for governments to give them to tools to meet these demands

(Source;  Food Navigator; US Senators call on FDA to give livestock farmers the tools to cut methane emissions

…and this is only the beginning of the rising demand trends

It’s also competing with the alt-protein space where 66% of consumers aged 16-40 plan to spend more on plant-based meat and dairy products in the future in order to reduce their carbon footprint.

Source: GFI: 2022 Plant Based State of the Industry Report, pg 32

Companies who can supply at volume at an economical price point for farmers will take the market majority

Sources: Cattle country fends off climate villain label By Marc Heller 03/06/2023

Investors