Source : Perth Now news
Cattle producers have used a gathering of investors in Australia’s biggest supermarket group to defend the industry against “activist attacks”, after Woolworths was challenged on deforestation and beef sources.
The grocery giant’s chair was peppered with questions from shareholders who identified themselves to the meeting as representing various environmental groups, including the Australian Conservation Foundation and Greenpeace.
The questions targeted Woolies’ goal to directly source all of its own brand beef from “no deforestation” farms, while apparently leaving some indirect sources out of that ambition, as well as visibility across its supply chains and cattle traceability.
“We are absolutely behind efforts to minimise and eliminate deforestation,” chair Scott Perkins told the group’s annual meeting on Thursday.
“We have undertaken our own aerial surveillance and … we have not identified, in our direct supply chain farmers who supply Woolworths with fresh beef, any instances of deforestation.”
“The vast majority of our beef is sourced directly.”
Woolies shareholder and Cattle Australia deputy chair Adam Coffey used a question and answer session to defend producers, some of whom supply the meat that gets turned into one of the retailer’s most popular products in tough economic times – beef mince.
“Cattle Australia categorically does not support deforestation, but what we do support is the ongoing right of landholders to undergo routine agricultural activities in accordance with state and federal regulations,” he said.
The group was “highly concerned that activist organisations continue to make not only misleading but categorically false and damaging allegations against our beef producers”.
However, another shareholder successfully argued that not all of Woolworths’ own brand beef is “deforestation free” and asked that it make that distinction clear to consumers.
“We’ve got a bit of the supply chain that we need to work harder on to make that committment – I’m going to take away your suggestion and talk to our commercial people,” Mr Perkins replied.
The chair also voiced his respect for the right of activists to ask questions, given that Woolworths’ business touched on a large number of sustainability issues because of its size and breadth.
“Occasionally, it will be highly frustrating, and occasionally it will be manifestly not fact based but occasionally we will learn something as well … we are better off for it,” he added.
A number of shareholders also raised concerns about the endangered Maugean skate which is indigenous to Tasmania’s Macquarie Harbour, given the retailer sourced a lot of its salmon from in-water farms, where practices have been blamed for a decline in skate populations.
Meanwhile, Woolies believes it’s back on the front foot after increasing its lead over its rivals, lifting its market value and increasing investments rewards for shareholders, in a highly competitive grocery market.
Mr Perkins said he was pleased with its performance under chief executive Amanda Bardwell, who took the top job two years ago, adding that staff were “galvanised” around her leadership.
“With customers at the centre of what we do, and building on our momentum, we look forward to the balance of 2027 with optimism – with Woolies very much back on the front foot,” he added.
Two years ago, Woolworth suffered a 93.3 per cent fall in annual earnings to $108 million.
In the most recent financial year, it made a net profit of $1.1 billion as margins, sales and dividends increased.
A day before the meeting, Woolworths revealed a solid a 4.7 per cent rise in overall sales to $19.4 billion for the three months to October 4.
Its fresh food segment played a strong part, particularly in sales of cheap beef mince.
One in four customers say they are struggling to make ends meet, Ms Bardwell said.
“We have more work to do so customers continue to choose Woolworths first, particularly as we head into the key Christmas and holiday trading period,” she added.
Its shares were down three per cent to $39.54 on Thursday afternoon.
