Australia offers some of the best conditions in the world for agribusiness. From farming and horticulture to aquaculture and food processing, opportunities are growing across domestic and export markets. But running an agribusiness also means managing complex legal, environmental, and social responsibilities.
Understanding these obligations early can help protect your investment and support sustainable long-term success.

What is an Agribusiness

• Agribusiness covers any commercial activity related to food, fibre, or agricultural production
• It includes farms, aquaculture ventures, ag-tech companies, processors, and exporters
• It can involve land, water, animals, logistics, manufacturing, or retail operations
• Every agribusiness, regardless of size, operates under Australian law and community expectations

The Role of ESG in Modern Agribusiness

• ESG stands for Environmental, Social and Governance
• It helps businesses operate responsibly, ethically, and transparently
• ESG is now used by banks, investors, insurers, and regulators to assess business performance
• Strong ESG practices reduce legal and commercial risk while building trust and market access
• In agriculture and aquaculture, ESG is vital for sustainability, traceability, and export confidence

Environmental (E) Considerations

• Understand how your business affects land, water, air, and biodiversity
• Follow all federal, state, and local environmental laws
• Manage soil health, water efficiency, and chemical use responsibly
• Reduce emissions from transport, machinery, and livestock where possible
• Use renewable energy and adopt energy-efficient systems
• Prevent runoff and contamination that could harm ecosystems or waterways
• Keep detailed records of environmental performance and compliance
• Aquaculture businesses must also manage water quality, waste discharge, and marine ecosystem impacts
• Consider independent sustainability certifications to demonstrate commitment to good practice

Social (S) Considerations

• Comply with fair work, safety, and employment laws at all times
• Provide safe conditions, proper training, and fair pay for all workers
• Engage with local communities, suppliers, and industry networks
• Respect Indigenous cultural heritage and traditional land connections
• Source inputs responsibly and ensure supply chains are free from modern slavery
• Treat animals ethically and follow recognised welfare standards
• Aquaculture operators should also maintain humane handling, harvest, and biosecurity practices
• Support community wellbeing through local employment and transparent communication

Governance (G) Considerations

• Establish a clear structure for ownership and decision-making
• Ensure directors and officers understand their legal duties and reporting obligations
• Maintain transparent financial management and accurate records
• Create policies for ethics, compliance, and risk management
• Regularly review governance arrangements as your business grows
• Develop a code of conduct and whistleblower policy to promote integrity
• Good governance builds investor and community confidence in your operations

Choosing the Right Legal Structure

• Common business structures include sole trader, partnership, company, and trust
• Each structure has different tax, liability, and management implications
• The right choice depends on your capital, risk exposure, and growth plans
• Seek professional legal and accounting advice before registering
• Proper structuring helps protect personal assets and manage long-term risk

Key Licences and Approvals

• Land use and zoning approvals for agricultural or aquaculture operations
• Water licences for irrigation, dam construction, or marine leases
• Livestock or fisheries movement and biosecurity permits
• Food production and export registrations under state and federal schemes
• Environmental protection licences for waste or emissions
• Import and export certifications under Department of Agriculture requirements
• Regularly review your compliance obligations as operations expand

Legal Risks in Agribusiness

• Breaches of environmental or water laws can result in large fines or loss of licence
• Biosecurity incidents may cause shutdowns and reputational damage
• Workplace safety failures can expose directors to personal liability
• Poor governance can trigger financial penalties and legal disputes
• Contract breaches in supply chains can disrupt production and trade relationships
• Land access and lease disputes can delay or stop development
• Exporters face additional compliance risks with labelling, quality, and customs rules
• Aquaculture operators face unique risks relating to marine leases, escapes, and environmental monitoring

Managing ESG and Legal Risk

• Integrate ESG principles into your daily operations and documentation
• Conduct due diligence before buying or leasing land or water rights
• Review the environmental history of the property for contamination or restrictions
• Understand native title and cultural heritage responsibilities
• Maintain strong contracts with suppliers, staff, and customers
• Create internal ESG policies and provide staff training
• Work with environmental consultants, lawyers, and accountants to maintain compliance
• Keep records and evidence of ESG actions and improvements

Climate Change and Agribusiness

• Climate change increases risks from droughts, floods, fires, and extreme weather
• Businesses must adapt through efficient water use, crop selection, and sustainable energy
• Failing to adapt can expose you to financial loss and legal exposure
• Regulators are increasing scrutiny on emissions and carbon reporting
• Agribusinesses can consider participating in carbon farming or biodiversity offset programs
• Aquaculture producers should plan for temperature shifts and water availability changes

Biosecurity and Animal Health

• Biosecurity protects industries from pests and disease outbreaks
• Follow national and state regulations for livestock, plants, and aquatic species
• Have clear hygiene and quarantine procedures for staff and equipment
• Maintain records of inspections, treatments, and traceability systems
• Report notifiable diseases immediately to authorities
• Strong biosecurity practices support ESG principles and market access

Indigenous Engagement and Land Use

• Identify native title interests early in any land or water development
• Comply with Aboriginal cultural heritage protection laws
• Engage respectfully with Traditional Owners and local communities
• Cultural heritage assessments may be required before works begin
• Agreements such as Indigenous Land Use Agreements (ILUAs) can provide legal certainty and partnership opportunities
• Good engagement supports both the social and governance elements of ESG

Financing and Insurance

• Banks and investors increasingly assess ESG performance before lending
• Businesses with clear sustainability and governance systems may access better financing
• Insurance providers also consider ESG risk factors in underwriting policies
• Poor compliance may affect eligibility for loans or insurance coverage
• Maintain clear policies, reports, and records to demonstrate strong governance

Contracts and Supply Chains

• Review all supplier and customer contracts for ESG and compliance requirements
• Include clauses on ethical sourcing, sustainability, and labour standards
• Set clear expectations for modern slavery and human rights compliance
• Protect your business through warranties and indemnities in contracts
• Keep supply chain documentation to show traceability of products
• Aquaculture and seafood exporters must also meet sustainability and food traceability obligations for international buyers

Technology, Data, and Innovation

• Agribusinesses increasingly rely on digital systems, sensors, drones, and AI
• Understand your data privacy and cybersecurity obligations
• Protect your intellectual property such as branding and proprietary systems
• Use technology to monitor ESG performance and demonstrate compliance
• Digital traceability platforms (including blockchain) are emerging tools to verify sustainable sourcing, particularly in seafood exports

Dispute Prevention and Resolution

• Disputes can arise from contracts, land access, or regulatory enforcement
• Keep clear written agreements and records to prevent misunderstandings
• Seek legal advice early if issues arise
• Use mediation or arbitration where possible to resolve disputes efficiently
• Include dispute resolution clauses in contracts for certainty

The Future of ESG and Agribusiness

• ESG reporting will become standard for most medium and large businesses
• Carbon and biodiversity credit markets are expanding across rural industries
• New sustainability standards will apply across supply chains and exports
• Technology will continue improving transparency, monitoring, and reporting
• Early adoption of ESG practices will strengthen long-term competitiveness

Practical Steps Before You Begin

• Seek professional legal and financial advice before investing
• Prepare a clear business plan including ESG goals
• Register the appropriate business structure
• Apply for all relevant permits and approvals
• Review land, water, and biosecurity risks
• Develop internal ESG and compliance systems
• Train your team on safety, sustainability, and governance
• Review compliance and risk management regularly

How Aquarius Lawyers Can Help

• Advising on business structures, partnerships, and joint ventures
• Drafting and reviewing contracts and compliance policies
• Assisting with environmental, biosecurity, and water law obligations
• Supporting Indigenous engagement and cultural heritage processes
• Advising on ESG reporting, governance, and regulatory compliance
• Representing agribusinesses in disputes and regulatory investigations

Key Takeaway

Starting an agribusiness in Australia means more than just producing food.
It’s about understanding your legal obligations, managing environmental and social impacts, and building responsible governance systems.

By integrating ESG principles early, you can protect your business, build market trust, and create a sustainable future for Australian agriculture and aquaculture alike.