Borage markets could use some of the healing powers the herb possesses.
Prices have been depressed since 1999 and the short-term outlook is for more of the same. But the situation is getting ever-so-slightly better.
“We’re still facing an oversupply situation,” said Blair McCann, crop production manager with Bioriginal Food and Science Corp., one of the largest Canadian traders of borage.
He said more than half of what was produced in the fall of 1999 is still sitting in storage bins. Canadian farmers overproduced borage the same year that China harvested a huge crop of evening primrose.
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The oil extracted from both plants contains an essential fatty acid that is used to treat people suffering from premenstrual syndrome, rheumatoid arthritis, cardiovascular disease, diabetes and a variety of skin diseases.
But the market for the gamma linolenic acid produced from borage and evening primrose is small. Farmers harvested two or three years worth of demand in 1999, said McCann.
“Guys shouldn’t even be entertaining (seeding borage) without a really good contract that they know that they can deliver on.”
There has been no new production since 1999 and little crop is moving at current prices, which are below $2 a pound.
“Growers invested a lot of resources in producing that crop and they’re not going to give it away,” said McCann.
Brian Petracek markets borage oil for his company, Dandilee Spice Corp., a special crops trading firm located in Gerald, Sask. He said the first signs of optimism are emerging.
“We’re starting to see a little bit of requests now so maybe there is a light starting to shine at the end of the tunnel,” said Petracek.
“A year ago we didn’t even have any nibbles at any price, so I guess this is an improvement.”
But prices are still a long way from what he would consider attractive. He said borage has recently been fetching between $1.25 and $1.40 per lb. A “decent price” would be in the $2 to $2.50 range.
He said it’s just a matter of time before the abundance works its way out of the system. Canadians haven’t produced borage since 1999 and he doesn’t expect much activity from the Chinese either.
“I’m sure that the Chinese aren’t making any money with the evening primrose at these prices,” said Petracek.
His company is sitting on about 100 tonnes of borage – a crop that doesn’t store well. It has to be monitored constantly to ensure the herb is clean and dry, as well as free of rodents and insects.
McCann said there are quality concerns with storing the crop so long. The oil can deteriorate if the moisture content gets too high.
Although he wouldn’t say how much borage inventory Bioriginal is carrying, he did say the company will be moving most of it out this year – another positive sign for growers.
“We’ll likely be looking at some contracted production next year,” said McCann.
