Media Release

Biodiesel New Zealand seeks cropping farmers for spring oilseed rape trial

23 August 2007

Biodiesel New Zealand is seeking contracts with South Island arable farmers to grow 1,500 hectares of oilseed rape in a trial that would see the crop planted by mid-October 2007.

This trial will allow the arable farming community to assess the crop's benefits and the company to learn more about processing oilseed rape, the oil's properties as a biodiesel feedstock and how the high-protein by-product performs as an animal food.

Paul Quinn, Biodiesel New Zealand's General Manager, says the company is keen to talk to experienced arable farmers in North Otago and Canterbury south of the Ashburton River and north of the Waimakariri River. The company would also like to hear from experienced Southland growers.

"We will only use contracted crops grown with seeds we supply we won't be buying any spot crops or from uncontracted growers," says Mr Quinn. "I also want to be clear that we won't be contracting crops in mid-Canterbury areas where export vegetable seed growing is most concentrated. All contracted crops will be registered with the Seed Quality Management Authority's seed crop isolation distance (SCID) scheme and it will be a condition of the contracts that growers abide by the SCID code of practice."

Biodiesel New Zealand is in discussion with the Foundation for Arable Research Incorporated (FAR) to co-operatively evaluate the potential for the development of biodiesel crops in New Zealand. FAR, an independent research and information provider to New Zealand's arable farmers, will begin its research in the autumn 2008.

"Cooperation with FAR will result in a clear understanding of the benefits and value of oilseed rape as a break crop, optimal crop management approaches, and ensure that international experience is applied here in a sound scientific manner," Mr Quinn says.

The company hopes to have the trial crops planted before mid-October, with the harvest by early March. Contract terms include prompt payment on acceptance of sample, storage increments and on-farm acceptance (no freight costs). Biodiesel New Zealand also intends to support growers with agronomy and crop management advice. The cake (plant material remaining once oil has been extracted) will be retained by Biodiesel New Zealand. There are no seed certification costs involved.

Biodiesel New Zealand has already had strong interest from arable farmers. The company has imported a specific GM-free Western European spring cultivar for the trial and this seed is limited.

"Once farmers consider the terms and what's needed to make a success of oilseed rape, we believe they will see it as a worthwhile option," Mr Quinn says. "It's also an opportunity to get in on the ground floor. We hope this will be the beginning of long-term relationships. Biodiesel New Zealand plans to increase production over the next three years. If the benefits for us and the agricultural sector are proven, there's every reason to hope that, like Europe, this crop will become a valued and accepted part of the agricultural mix in the south."

Background notes

  • Biodiesel New Zealand is an operating division of Solid Energy New Zealand Ltd. Biodiesel New Zealand currently manufactures around 1 million litres of biodiesel a year at a plant in Addington, Christchurch, by converting used cooking oil collected from restaurants and other food processing businesses.
  • The New Zealand Government has mandated that biofuels will form an increasing percentage of transport fuels from 1 April 2008, with a target rising to 3.4% of all fuel sold by (oil companies) by 2012. (The sales obligation requires 3.4 per cent of the total fuel sold by oil companies to be biofuel by 2012)
  • New Zealand currently uses 3,502 million litres of diesel per annum. Biodiesel New Zealand plans to grow BDNZ to increase production to 70 million litres per annum or around 2% of the country's total diesel use and more than half of the Government's target for biofuels in 2012.

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