The way to net zero for red meat processors

Australia’s red meat processing sector could achieve net zero emissions by 2045 without sacrificing profitability, new modelling from the Australian Meat Processor Corporation has shown.

Investments in energy efficiency, solar photovoltaic, battery storage, heat pumps, bioenergy systems and electric boilers have been called out as key enablers for pathways to reduce the sector’s carbon footprint. All serve to strengthen the resilience of the processing business at the same time.

AMPC’s just-released Decarbonisation Pathways Update gives processors practical guidance to compare opportunities, weigh trade-offs and plan with confidence.

AMPC’s Sustainability Manager Matthew Deegan outlined the scale of the opportunity and the practical barriers processors face at two industry conferences, the 2026 Australasian Renewable Heat Conference and the Australian Renderers Association 18th International Symposium, both held in Melbourne this month.

Australia’s red meat processing industry handles more than 50 million head of cattle, sheep and goats and processes more than 3.5 million tonnes of red meat. It supports more than 189,000 full-time equivalent jobs across the wider economy and generates $78 billion in sales. 
While processing accounts for only around 2 per cent of whole-of-industry red meat emissions, processor decarbonisation is high cost and they take this task very seriously, Mr Deegan said.

“Processors are agile managers and already manage a raft of risks including climate-related financial disclosures alongside animal welfare, workplace health and safety, food safety, biosecurity and environmental licensing obligations,” he said.

“However, there are still barriers to achieving this decarbonisation task, such as regional electricity network constraints, urban encroachment, the need for flexible commercial contracts and practical grant funding support which further complicate long-term energy investments.”

Largest emissions source
AMPC’s latest Environmental Performance Review showed that electricity represents 31 per cent of processor energy use but accounts for 52 per cent of surveyed emissions.

Thermal energy accounts for more than 50 per cent of processor sector energy and contributes a further 30 per cent in emissions, while wastewater and refrigerants add 17 per cent and 1 per cent respectively.

Average emissions intensity was reported at 343 kilograms of carbon dioxide equivalent per tonne of hot standard carcass weight, which is an all-time low since reporting began, and average energy intensity was 2,897 megajoules per tonne. 

Grid decarbonisation is expected to make electrification increasingly attractive, with Mr Deegan’s presentation showing grid emissions for the National Electricity Market falling by 82 per cent by 2030. 

However, grid decarbonisation alone would not be enough to eliminate processing emissions, particularly for facilities with substantial thermal energy requirements or with grid network constraints, he said.
“Natural gas remains the sector’s most common thermal fuel. Hot water used in processing and cleaning can account for up to 20 per cent of thermal energy demand, while steam used in rendering can represent about 70 per cent,” Mr Deegan said.

“Good progress is being made and bioenergy has now overtaken coal in the sector’s energy mix, although technologies such as heat pumps still require greater confidence building around demonstrated performance, and efficiency integration to reduce capital cost and enhance payback.”

Big steps already taken
Despite these challenges, the sector has recorded substantial gains.
On-site energy intensity has fallen by 30 per cent to its lowest level since 2010, while coal use has decreased by 27 per cent since 2022. Solar photovoltaic adoption has increased by 400 per cent since 2020, although solar still supplies less than 1 per cent of total electricity consumed by processors.
Mr Deegan said red meat processing emissions overall had fallen by about 45 per cent from 2005 levels, compared with a national reduction of 28 per cent.

Funding critical
The modelling indicates that an estimated $1.2 billion in investment across the full processing sector would be needed to support the transition to net zero.

Mr Deegan’s presentation also identified the absence of a current Australian Carbon Credit Unit method for anaerobic digestion as a barrier to further biogas investment. 
The central message for processors is to begin with a clear baseline, implement proven efficiency opportunities and develop a staged, site-specific pathway.

Read more here. 

Watch a video explainer here.