THE WA canola market is attracting increased attention from both domestic and international consumers as the 2019 harvest draws closer, according to grain marketer ADM.
For growers, the indifferent season has presented its challenges, a lot of which will not be fully realised until the seed hits the bin.
Global canola production is expected to fall in the 2019-20 marketing year by more than two million tonnes to 69.5mt (previous year was 71.9mt).
At a global level, yields have remained relatively stable, however the area has decreased by almost two million hectares to just 34.7 (36.5) million hectares.
The fall in production is almost exclusively due to the dramatic harvest losses in the EU, with production declining to about 17.5mt (previously 20mt).
Following the severity of the 2018 EU drought, the dry weather continued well into (northern hemisphere) autumn.
For Europe and its biodiesel production, at least there is a preference for canola oil over alternatives such as palm oil or soybean oil.
The simple reason being the alternatives are unsuitable for the northern winter.
As a result, it is reasonable to expect that, in addition to Australian canola (WA, SA and potentially Victoria), Canadian GM canola imports will increase into Europe this year.
ADM group manager accumulation Damian Bradford said another feature of the Australian market was the emergence of the new process referred to as "Sustainable Grain Australia".
This process, which involves collaboration of Australia's main canola buyers (ADM, Bunge, Cargill, Centre State, Glencore and GrainCorp), the Australian Oilseeds Federation and Commodity Inspection Services, is designed to simplify the sustainability certification process for Australian canola destined for the EU biodiesel market.
Mr Bradford said in the interest of creating a more efficient and less burdensome process, growers wishing to trade canola destined for Europe could now do so under one central office, using one common declaration form, while still retaining the flexibility to sell through ADM or one of the participating buyers.
Common grower sustainability declarations will be stored and managed within the myNGR system.
Growers need only to make their sustainability declaration once, which is then stored securely as part of their NGR Record.
The audit process will also be managed by the central office, which eliminates the unlikely chance of a grower requiring multiple audits from multiple buyers who support the Sustainable Grain Australia process.
- See more grains news in the Grains & Harvest 2019 special publication in this Thursday's Farm Weekly.
