CARMAN, Man. — Growers of Nexera canola will soon have new options when contracting their crop.
Producers have previously signed contracts in which they promised to sell the high oleic canola to a processor.
“What has come to our attention in the last couple of years is you have a group of producers (in Western Canada) that would like to grow Nexera as their commodity canola or their canola of choice,” Jamie Denbow, market development specialist for Dow AgroSciences in Manitoba, said at a recent field trial southwest of Carman.
Read Also
First annual Ag in Motion Junior Cattle Show kicks off with a bang
Ag in Motion 2025 had its first annual junior cattle show on July 15. The show hosted more than 20…
“But they’re looking for things that the traditional contracting stream hasn’t been able to deliver … one of them being when I harvest my canola it’s my cash crop…. If I need to haul a load (to an elevator) right off the combine, I’m going to do that.”
Beginning this fall, producers can sign an agreement with Dow that allows them to grow and sell Nexera as a specialty or commodity canola.
“Up to this year, the one route that you had to produce Nexera … was to sign a production contract. That then gives you access to the seed. This year (for the 2015 growing season) we’re introducing what’s called the flexibility agreement,” Denbow said.
“So if a grower wants to use it as his cash canola … but still have access to the Nexera germplasm, this will give him the opportunity…. He can book Nexera seed through a flexibility agreement without necessarily committing that to the old Nexera stream.”
Jeff Loessin, Dow Agrosciences’ portfolio marketing leader for crop protection, said canola producers have asked for this option because they want to grow Nexera hybrids.
“Our genetic material, particularly 1012, is being recognized as being a high performing canola.”
Loessin said the flexibility contracts should also benefit the high oleic canola industry because a larger volume of Nexera will be available to tap into, if necessary.
“As food companies look at products like omega 9 oil, assurity of supply is one of the key questions,” he said.
“Frito-Lay, if they’re going to switch a line over… (they) need oil…. It really helps the whole system grow the demand for high stability oil, having this pool … that processors will be able to call on.”
Denbow said Dow reduced its Nexera production contracts for this year because of last year’s record canola yields.
It has contracted 1.3 million acres of Nexera compared to 2.1 million for acres for last year.
Denbow said processors had to “chew through” the excess supply, but demand remains strong for high stability canola oil.
“That surplus is through now, and moving into the 2015 crop, that (production) needs to expand quite dramatically.”
Loessin said Nexera will likely be higher than 2.1 million acres in 2015.
“It’s going to be north of what we did in 2012 (for the 2013 growing season).”
