Australia is on the cusp of a significant transformation, with Bega Group poised to lead the nation towards becoming the most advanced circular economy by 2030. This ambitious vision is spearheaded by Barry Irvin, the astute businessman who has been at the helm of Bega Cheese since 1991. Under his leadership, Bega Cheese evolved from a modest dairy cooperative into Bega Group, a listed food company boasting an annual turnover of $3 billion.
Irvin’s dedication to circularity was ignited by a pivotal moment when a Dutch banker illuminated the potential of circular economies. “Once you see it, you can’t unsee it,” Irvin reflected. His enlightenment came from understanding how the Netherlands was pioneering low-emission, sustainable practices. Irvin now champions circularity, describing it as a virtuous cycle benefiting the economy, society, and the environment.
For the past two years, Irvin has been rallying support from business, government, and academic leaders for Australia’s largest circularity initiative. He believes that by 2030, 30% of the Australian economy could operate on circular principles, with the potential to reach 50% within a decade. “We need to catch up with the targets set by Europeans,” Irvin asserted, highlighting the Netherlands’ goal of achieving a fully circular economy by 2050, surpassing the aim of net zero emissions.
Understanding Circular Economies
Circular economies represent a shift from linear models, where goods are disposed of after use, to systems where resources are continuously reused and recycled. “It’s about keeping materials in the economy for as long as possible at their highest value, designing out waste and pollution, and regenerating natural systems,” explained Lisa McLean, CEO of Circularity Australia. McLean emphasized that Australia’s journey to net zero emissions is unattainable without adopting circular practices.
The Bega Valley Shire Council is a proactive participant in the circularity project, operating a recycling center and a weekly organic waste collection service. Last year, the council successfully diverted 1,000 tonnes of methane-producing food and garden waste from landfills. Despite this progress, 19,000 tonnes of waste still ended up in landfills, a figure that Tim Cook, the council’s waste strategy coordinator, noted was increasing faster than the population growth. Cook believes that with community support for the circularity initiative, the proportion of landfill waste could be significantly reduced.
Advancing Circular Practices
Bega Group is already implementing circular practices across various waste streams. The company’s dairy factory boiler operates on wood waste, with the resulting fly ash used as a lime substitute on pastures. This practice alone saves the company $200,000 annually in landfill fees. Additionally, a new evaporator that extracts valuable milk minerals from liquid whey waste paid for itself within a year, and 1.2 million liters of wastewater are used daily to irrigate hay pastures.
Pia Windberg, a seaweed researcher, envisions even greater potential for the factory’s wastewater. She advocates for the development of onshore seaweed farms, which could utilize the wastewater in high-value applications. “We’ve already refined the process of cultivating a unique Australian green seaweed, and we’ve just achieved our first export,” Windberg stated. She believes this opportunity could rival the wheat industry in scale.
Establishing the National Centre for Circularity
Bega is set to further cement its role in the circular economy with the establishment of a $19-million National Centre for Circularity within the next two years. Bega Group has committed $5 million to the project, with the remainder funded by the New South Wales government. Kristy McBain, former mayor and current federal minister for regional development, expressed confidence in Irvin’s ability to drive lasting change, citing his extensive community connections.
The Bega Valley is considered an ideal location for this trial due to its manageable size and infrastructure. “There’s one council, one airport, and just two roads in and out; we can measure everything in this valley,” Irvin explained. This unique setup allows for rapid testing and validation of circular practices, enabling quick dissemination of successful strategies and lessons learned.
Irvin hopes that Bega’s pioneering efforts will inspire others. “I want to make people jealous; I want people to come to the Bega Valley and say, ‘We should be like that, we should be doing that’.” By leading the way, Bega Group aims to set a benchmark for circular economies, driving broader adoption of sustainable practices across Australia.
