2023 Cargo Road Wines EOV

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ECOLOGICAL OUTCOME VERIFICATION REPORT

HUB

Australian Holistic Management Co-operative

LANDBASE

Cargo Road Wines

AREA (ha)

37 ha

VERIFIER

Ian Chapman

MONITORS AUTHOR

Ian Chapman

DATE

21st February 2023

Page 1 of 21
Cargo Road Wines – EOV Report 2023 Page 2 of 21 Table of Contents 1. Introduction ................................................................................................................... 3 2. Short-Term Monitoring - Ecological Health Index (EHI) ................................................... 4 3. Short-Term Monitoring Results – ‘Year 4’ ....................................................................... 4 EHI Landscape Function Analysis ................................................................................................. 4 Conclusions from Short-Term Monitoring .................................................................................... 7 Short-term monitoring photos .................................................................................................... 9 4. Short-Term Monitoring (STM) – Trend Analysis ............................................................ 14 Short-Term Monitoring (STM) – Comparative Results ................................................................ 14 2023 comparison with previous years ........................................................................................................ 16 Context for Comparative Results 17 Conclusions from Short-Term Monitoring Comparison .............................................................. 18 5. Ecological Outcome Verification - Trend ....................................................................... 19 Appendices ...................................................................................................................... 20 Appendix A – EHI Indicators and Ecosystem Processes .............................................................. 20 Appendix B – Ecological Health Index (EHI) Interpretation Guide ............................................... 21

1. Introduction

The results of the annual Ecological Outcomes Verification (EOV) of Cargo Road Wines farm, carried out on 21st February 2023, are presented. This is the fifth year of monitoring for the land base. Baseline monitoring was previously carried out in ‘year 0’ and followed up with annual monitoring in ‘year 1,’ ‘year 2,’ and ‘year 3.’ This monitoring event is regarded as ‘year 4’ of the EOV monitoring and verification cycle.

The methodology used corresponds to the EOV 3.0 protocol. Ten monitoring sites were included for Short-term monitoring (STM) this year (year 4). Baseline monitoring previously included four Short-term sites and one Long-term site (LTM), while subsequent years included ten Short-term sites (STMs).

Cargo Road Wines Monitoring Plan 2023

Cargo Road Wines – EOV Report 2023 Page 3 of 21

2. Short-Term Monitoring - Ecological Health Index (EHI)

An EHI evaluation was carried out of the landbase.

Ecosystem function is assessed through the Ecological Health Index (EHI). For this purpose, biological indicators are used according to an evaluation matrix that is adapted to each ecological region. The EHI provides a robust and practical measure of the health of ecosystem processes on agricultural production land (water cycle, nutrient cycle, energy flow and community dynamics) [Xu S et al 2019].

Each indicator receives a score according to the degree of departure from the ecological area potential. The values are added together to obtain a total score at each sampling site. The possible values range from +130 to -140. These quantified variables are surveyed in the field and then processed and weighted to obtain a value per paddock, and a weighted average for the farm. Values above 30 points reflect ecosystem processes (water cycling, nutrient cycling, energy flow and community dynamics) that are beginning to approach the potential of the site. Negative values indicate that ecosystem processes are ineffective, and far from the site's potential.

Cargo Road Wines is situated in a brittle tending environment.

3 Short-Term Monitoring Results – ‘Year 4’

EHI Landscape Function Analysis

The table below shows the EHI for each of the Short-term Monitoring sites, along with an index for each of the ecosystem processes. The combination of indicators used for each ecosystem process can be found in Appendix A.

The second table shows the overall EHI, and the Landscape Function Analysis, weighted according to the area of each of the paddocks where the STM sites are located.

This data is then represented in respective bar graphs.

[Xu Sutie, et al, 2019, Ecological Health Index: A Short Term Monitoring Method for Land Managers to Assess Grazing Lands Ecological Health, Environments 2019, 6, 67, www.mdpi.com/journal/environments]

Cargo Road Wines – EOV Report 2023 Page 4 of 21

LANDSCAPE FUNCTION ANALYSIS

EHI (Ecological Health Index) Interpretation Guide

High to extreme departure from Ecoregion potential. Land degradation active. Ecosystem processes disrupted.

Moderate departure from ecoregion potential. Ecosystem processes affected.

Light to moderate departure from Ecoregion potential. Most ecosystem processes perform above 60% of potential

Light departure from Ecoregion potential. Effective ecosystem processes - healthy land.

– EOV Report 2023 Page 5 of 21
Cargo Road Wines
Paddock Name Area (Ha) EHI Water Cycle Index Mineral Cycle Index Energy Flow Index Comm. Dyn Index Little Italy 3.5 80 95% 78% 83% 93% Quince 3.5 80 95% 78% 92% 89% Lagrein 3.8 70 85% 67% 83% 79% 2011 Riesling 3.8 65 80% 61% 67% 86% Cabernet 98 3.8 75 95% 83% 83% 86% Primitivo 3.8 70 95% 83% 83% 82% Riesling 83 3.8 85 95% 83% 83% 93% Phalaris 3.5 65 95% 78% 83% 82% Sth House 3.5 75 95% 83% 92% 82% Cherries 3.5 105 100% 100% 100% 89%
Landbase Records: EHI Landbase Weighted Average LANDSCAPE FUNCTION ANALYSIS (Weighted) YEAR AREA (HA) Water Cycle Index Mineral Cycle Index Energy Flow Index Comm. Dyn Index Year 410 Pdks 36.5 76.8 93% 79% 85% 86%
Table 1: EHI by Paddock for 2023
TOTAL
Table 2: Overall Landscape Function Analysis for Cargo Road Wines 2023
Low Medium High Very High < 0 1 - 30 30 - 60 > 60
Table 3. EHI interpretation guide

Ecosystem Function Analysis

Cargo Road Wines – EOV Report 2023 Page 6 of 21
Figure 1: EHI by paddock, 2023
0 20 40 60 80 100 120 Little Italy Quince Lagrein 2011 Riesling Cabernet 98 Primitivo Riesling 83 Phalaris Sth House Cherries Year 4 EHI 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Water Cycle Index Mineral Cycle Index Energy Flow Index Comm. Dyn Index
Figure 2: Overall Landscape Function Analysis for Cargo Road Wines 2023
Year 4 - 10 Pdks

Conclusions from Short-Term Monitoring

From the short-term monitoring conducted on 21st February 2023, it can be concluded that the ecosystem processes overall are functioning well All monitored paddocks scored within the “very high” range of >65, with one site scoring 105.

EHIs varied from +65 to +105, with a weighted average of +76.8. The live canopy abundance had the most limiting effect on the scores, while the forbes & legume functional group and bare soil indicators scored strongest.

● Water cycle was enhanced by the very good ground cover observed in most sites but limited a little by the abundance of litter.

● Mineral cycle was also enhanced by the very good ground cover and dung decomposition, while litter abundance and litter incorporation have room to improve. Invertebrate (Living organisms) presence was good.

● Energy flow was enhanced due to the lack of bare soil but limited by the lower live canopy abundance at some sites, reflecting recent grazing and vineyard slashing.

● Community dynamics were also good, with all four functional groups performing well. Cool season perennials while present were not to the reproduction phase given the time of season.

Cargo Road Wines – EOV Report 2023 Page 7 of 21
Cargo Road Wines – EOV Report 2023 Page 8 of 21 Indicator Little Italy Quince Lagrein 2011 Riesling Cabernet 98 Primitivo Riesling 83 Phalaris Sth House Cherries WC MC EF CD LIVE CANOPY ABUNDANCE 0 5 10 0 0 0 0 0 5 10 LIVING ORGANISMS (MICROFAUNA) 5 5 5 5 5 5 5 5 5 10 FG 1 WARM SEASON GRASSES 10 5 10 10 0 10 10 5 5 10 FG 2 COOL SEASON GRASSES 10 10 5 10 10 5 10 5 5 5 FG 3 FORBS & LEGUMES 10 10 10 10 10 10 10 10 5 10 FG 4 TREES & SHRUBS 10 10 5 10 10 0 10 5 10 10 CONTEXT DESIRABLE RARE SP 0 0 0 0 0 0 0 0 0 0 CONTEXT UNDESIRABLE SP 0 0 0 0 0 0 0 0 0 0 LITTER ABUNDANCE 5 5 5 0 5 5 5 5 5 10 LITTER INCORPORATION 5 5 0 0 5 5 5 5 10 10 DUNG DESCOMPOSITION 5 5 10 10 10 10 10 5 5 10 BARE SOIL 20 20 10 10 20 20 20 20 20 20 CAPPING 0 0 0 0 0 0 0 0 0 0 WIND EROSION 0 0 0 0 0 0 0 0 0 0 WATER EROSION 0 0 0 0 0 0 0 0 0 0 80 80 70 65 75 70 85 65 75 105
Table 4: Actual Indicator scores for the STM paddocks, and related ecosystem processes

Short-term monitoring photos

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STM 1 – Little Italy: photo 1 STM 1 – Little Italy: photo 2 STM 2 – Quince: photo 1 STM 2 – Quince: photo 2

Short-term monitoring photos (continued)

1

Cargo Road Wines – EOV Report 2023 Page 10 of 21
STM 3 – Lagrein: photo STM 3 – Lagrein: photo 2 STM 4 – 2011 Riesling: photo 1 STM 4 – 2011 Riesling: photo 2

Short-term monitoring photos (continued)

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STM 5 – Cabernet 98: photo 1 STM 5 – Cabernet 98: photo 2 STM 6 – Primitivo: photo 1 STM 6 – Primitivo: photo 2

Short-term monitoring photos (continued)

Cargo Road Wines – EOV Report 2023 Page 12 of 21
STM 7 – Riesling 83: photo 1 STM 7 – Riesling 83: photo 2 STM 8 – Phalaris: photo 1 STM 8 – Phalaris: photo 2

Short-term monitoring photos (continued)

Cargo Road Wines – EOV Report 2023 Page 13 of 21
STM 9 – Sth House: photo 1 STM 9 – Sth House: photo 2 STM 10 – Cherries: photo 1 STM 10 – Cherries: photo 2

4. Short-Term Monitoring (STM) – Trend Analysis

Four Short-term monitoring sites were installed for the baseline in ‘year 0’ with an additional six sites added in ‘year 1’. The following section analyses the results of the ten STM sites comparing results for ‘year 4,’ ‘year 3,’ ‘year 2’ and ‘year 1’ and the four STM sites monitored in ‘year 0’. The initial STM sites were numbered STM 1 to STM 4.

Short-Term Monitoring (STM) – Comparative Results

The tables below show the EHI for each monitored year, along with an index for each of the ecosystem processes. The combination of indicators used for each ecosystem process can be found in Appendix A. This data is then represented in respective bar graphs with a comparison based on 10 paddocks for years 1 and 2, and then with 4 paddocks for baseline

Cargo Road Wines – EOV Report 2023 Page 14 of 21
Year Paddock Name Area (Ha) EHI Water Cycle Index Mineral Cycle Index Energy Flow Index Comm. Dyn Index Year 0 Little Italy 3.5 0 90% 67% 50% 43% Quince 3.5 -15 85% 56% 50% 39% Lagrein 3.8 -25 60% 28% 25% 32% 2011 Riesling 3.8 -20 60% 22% 17% 43% Year 1 Little Italy 3.5 30 90% 67% 75% 68% Quince 3.5 50 90% 67% 83% 79% Lagrein 3.8 75 95% 89% 92% 79% 2011 Riesling 3.8 25 70% 44% 42% 64% Cabernet 98 3.8 65 90% 78% 83% 82% Primitivo 3.8 70 85% 78% 75% 75% Riesling 83 3.8 50 85% 72% 75% 64% Phalaris 3.5 55 90% 78% 92% 71% Sth House 3.5 60 95% 83% 92% 71% Cherries 3.5 65 95% 83% 92% 75%
LANDSCAPE FUNCTION ANALYSIS

Table 5: EHI and LFA results 2019 (Year 0), 2020 (Year 1), 2021 (Year 2), 2022 (Year 3), and 2023 (Year 4)

Cargo Road Wines – EOV Report 2023 Page 15 of 21 Year 2 Little Italy 3.5 85 100% 89% 92% 86% Quince 3.5 100 100% 94% 92% 93% Lagrein 3.8 100 100% 89% 100% 93% 2011 Riesling 3.8 70 95% 72% 92% 86% Cabernet 98 3.8 70 100% 89% 100% 71% Primitivo 3.8 80 100% 83% 92% 86% Riesling 83 3.8 85 95% 83% 100% 86% Phalaris 3.5 85 100% 89% 100% 82% Sth House 3.5 75 100% 89% 100% 75% Cherries 3.5 75 95% 78% 100% 82% Year 3 Little Italy 3.5 60 95% 78% 75% 82% Quince 3.5 90 100% 78% 100% 93% Lagrein 3.8 90 95% 83% 92% 93% 2011 Riesling 3.8 80 95% 78% 83% 93% Cabernet 98 3.8 80 95% 83% 92% 86% Primitivo 3.8 60 80% 67% 75% 79% Riesling 83 3.8 80 95% 83% 92% 86% Phalaris 3.5 90 100% 89% 100% 86% Sth House 3.5 90 100% 83% 100% 89% Cherries 3.5 80 95% 78% 100% 86% Year 4 Little Italy 3.5 80 95% 78% 83% 93% Quince 3.5 80 95% 78% 92% 89% Lagrein 3.8 70 85% 67% 83% 79% 2011 Riesling 3.8 65 80% 61% 67% 86% Cabernet 98 3.8 75 95% 83% 83% 86% Primitivo 3.8 70 95% 83% 83% 82% Riesling 83 3.8 85 95% 83% 83% 93% Phalaris 3.5 65 95% 78% 83% 82% Sth House 3.5 75 95% 83% 92% 82% Cherries 3.5 105 100% 100% 100% 89%

2023 comparison with previous years

Cargo Road Wines – EOV Report 2023 Page 16 of 21
TOTAL Landbase Records: EHI Landbase Weighted Average LANDSCAPE FUNCTION ANALYSIS (Weighted) YEAR AREA (HA) Water Cycle Index Mineral Cycle Index Energy Flow Index Comm. Dyn Index Year 0 - 4 Pdks 14.6 -15.3 73% 42% 35% 39% Year 1 - 4 Pdks 14.6 45.2 86% 67% 73% 72% Year 1 - 10 Pdks 36.5 54.6 88% 74% 80% 73% Year 2 - 10 Pdks 36.5 82.4 98% 85% 97% 84% Year 3 - 10 Pdks 36.5 79.9 95% 80% 91% 87% Year 4 - 10 Pdks 36.5 76.8 93% 79% 85% 86%
Table 6: 2023 comparison with previous years – 10 paddock and 4 paddock
-40 -20 0 20 40 60 80 100 120 Little Italy Quince Lagrein 2011 Riesling Cabernet 98 Primitivo Riesling 83 Phalaris Sth House Cherries 1 2 3 4 5 6 7 8 9 10 Year 0 Year 1 Year 2 Year 3 Year 4 EHI -
Figure 3: EHI comparison between paddocks, Year 0 to Year 4
4 Pdks & 10 Pdks

LANDSCAPE FUNCTION ANALYSIS (Weighted) - 10 & 4 Pdk Comparison

Context for Comparative Results

The context for monitoring of Cargo Road Wines on 21st February 2023, is three years of much higher than average rainfall, which followed two years of much lower than average rainfall.

Average annual rainfall in the district for Cargo Road Wines is reported as 1174 mm. Locally reported rainfall at the landbase for 2022 was 1331, while 2021 was 1245 mm compared with 2020 of 1104 mm and 522 mm in 2019. In other words, rainfall for the previous three years was at least 224 mm above the longer-term average, following the drought years of 201819 where rainfall was up to 358 mm below the average.

The third year of very high rainfall produced some negative effects at some sites.

Cargo Road Wines – EOV Report 2023 Page 17 of 21
Figure 4: Weighted Landscape Function Analysis, Year 0 to Year 4
RAINFALL Mean Median 2019 2020 2021 2022 BOM - 737 678 442 886 1174 1276 Landbase - 880 522 1104 1245 1331 BOM rainfall data accessed on 22nd February 2023 from www.bom.gov.au - Borenore (Lynden-Brae)
station.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Water Cycle Index Mineral Cycle Index Energy Flow Index Comm. Dyn Index
Table 7: Rainfall data for Cargo Road Wines
Year 0 - 4 Pdks Year 1 - 4 Pdks Year 1 - 10 Pdks Year 2 - 10 Pdks Year 3 - 10 Pdks Year 4 - 10 Pdks

Conclusions from Short-Term Monitoring Comparison

● From the comparison of ten short-term monitoring sites conducted on 21st February 2023 (year 4) with that from the previous year (year 3), it can be concluded that the health of ecosystem processes overall has basically been maintained.

● The indicator that fell the most was live canopy cover, which was mostly due to recent slashing, and grazing. Scores for cool and warm season grasses also fell.

● The indicator that improved the most was invertebrates (living organisms), with six of the 10 sites recording higher scores.

● The average EHI improvement across paddocks was +76.8. The paddock Cherries improved the most by 25, while the paddock Little Italy also improved, by 20 points. Both paddocks are pasture based.

● In year 4, EHIs varied from +65 to +105, with a weighted average of +76.8, compared with an average of +79.9 in year 3 and +82.4 in year 2. These are all very high scores, which overall still shows a good trend.

● All four indexes of ecosystem health (water cycle, mineral cycle, energy flow and community dynamics) have shown just slight reductions since the last monitoring.

● Energy flow fell the most, from 91% to 85%, due to the tractor bogging effect on one site, less than ideal recovery from cultivation at another (increasing bare ground), along with the recent grazing and slashing effect on live canopy cover.

● Water cycle fell from 95% to 93%, due to the same increase in bare ground, along with small reductions in litter abundance at four sites.

Cargo Road Wines – EOV Report 2023 Page 18 of 21

5. Ecological Outcome Verification - Trend

The following analysis shows whether a trend of improving ecological health has been observed at Cargo Road Wines. Robust identification of a trend must be based on like for like comparison. The following chart identifies this trend based on comparison of 4 STM sites from ‘year 0’ and 10 STM sites for the monitoring events from ‘year 1’ and beyond. Future monitoring events will continue to be carried out across 10 STM sites and will be used for future identification of trend. The number of sites was initially limited to contain costs.

The EHI trend graph shows that the overall trend line of Ecological Health is continuing to improve. Under the EOV monitoring protocol, an improving EHI result means that the enterprise operating on this land base is eligible to use the EOV seal, subject to confirmation by the worldwide EOV Quality Assurance team (and guidelines for use of the seal). Based on the improving trend observed in ‘year 4’, Cargo Road Wines is eligible to use the EOV seal.

Cargo Road Wines – EOV Report 2023 Page 19 of 21
Figure 5: EHI trend STM sites 2018-2022
-40.0 -20.0 0.0 20.0 40.0 60.0 80.0 100.0 120.0 Year 0 Year 1 Year 2 Year3 Year 4
EHI Trend - Monitored Sites

Appendices

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Ecosystem Process Indicators Max score Min Score Water Cycle Bare Soil 20 -20 Litter Abundance 10 0 Capping 0 -10 Wind Erosion 0 -20 Water Erosion 0 -20 Total 30 -70 Mineral Cycle Bare Soil 20 -20 Litter Abundance 10 0 Litter Incorporation 10 0 Living Organisms (Microfauna) 10 -10 Dung Decomposition 10 0 Total 60 -30 Energy Flow Bare Soil 20 -20 Live Canopy Abundance 10 -10 Total 30 -30 Community Dynamics Bare Soil 20 -20 FG1 - Warm Season Grasses 10 -10 List your indicators FG2 - Cool Season Grasses 10 -10 FG3 - Legumes/Forbs 10 -10 FG4 - Trees/Shrubs 10 -10 Contextually Desirables Rare Species 10 0 Contextually Undesirables Species 0 -10 Total 70 -70
Appendix A – EHI Indicators and Ecosystem Processes

Appendix B – Ecological Health Index (EHI) Interpretation Guide INDICATOR Unit

LOW MEDIUM HIGH VERY HIGH

Average score < 0 1 - 30 30 - 60 > 60

EHI

Interpretation

High to extreme departure from Ecoregion potential. Land degradation active. Ecosystem processes disrupted

Moderate departure from ecoregion potential. Ecosystem processes affected.

Light to moderate departure from Ecoregion Potential. Most ecosystem processes perform above 60% of potential

Light departure from Ecoregion Potential. Effective Ecosystem processes - healthy Land

Cargo Road Wines – EOV Report 2023
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