Oilseed move confirmed

The move has been welcomed by growers group chairman Jeremy Talbot. "It takes away a bit of the uncertainty... I wish them every success and hope they will be able to pay good prices for [oilseed rape] going forward."

With feed wheat contracts for 2013/4 crops available at $400/t, delivered Christchurch oilseed rape contracts will "need to have at least an eight in front of them" for next season, says Talbolt.

PONZ says it has taken over all Biodiesel New Zealand's contracts with growers for the current season's crop as part of the deal, and that the wide range of skills and expertise among its shareholders will strengthen the Biodiesel New Zealand business model and ensure the new business reaches its full potential.
"The future of OSR as a crop option in New Zealand looks as bright as its yellow flower," it said in a statement issued this week.

Murney told Rural News the hope is to add value to the oil produced and currently sold into the commercial food industry by developing a premium, probably bottled, culinary oil for the domestic market and beyond.

Yields have improved in the four years since Biodiesel was formed and the crop has the advantage of an early harvest. Company storage and drying facilities mean the crop is moved early off farm, and it is a break crop opportunity to reduce disease and weed pressure in subsequent cereals and grasses.

Murney says PONZ is committed to assisting growers to increase returns and intends to invest in improving yield with additional research and development activities. Technical agronomy support will be ongoing, mainly through Lasham's input who, as a UK ex-pat agronomist, has over 20 years' experience with the crop. Rural News understands another Biodiesel agronomists left the company during the sale process.

Besides producing oil, residual meal from the cold-press process is a high protein, high energy, animal feed used in the pork and dairy industries.
Murney declined to comment on the price paid for the formerly state-owned business.