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New Vistive Contracts Offer ‘Best Ever’ Speciality OSR Growing Opportunity 2012-03-09

Expanded Vistive speciality oilseed rape contracts for 2012/13 announced this week provide growers across the country with the unprecedented opportunity of attractive premiums for high oleic, low linolenic food oil production at standard ‘double 00’ crop yield levels.

oilseed rape

Significantly increased demand for healthy oils in snack food production and other frying oil markets as well as further development in the fast food sector means UK crusher, ADM is more than doubling its annual Vistive contract requirement for the coming season.

At the same time, its closed-loop contracts for autumn 2012 planting available through Agrii/Glencore, ADM Direct and Openfields offer guaranteed 2013/14 premiums of between £25-£35/tonne on top of standard OSR quality bonuses.

Add to this the fact that the latest contracted Dekalb hybrids V275-OL and V280-OL have gross outputs at least as high as the majority of standard commercial varieties tested alongside them and speciality oilseed rape growing has never been more attractive, believes Agrii business development manager, David Neale.

“Our financial analyses for the 2012/13 winter oilseed rape crop show both varieties generating higher gross margins than today’s most popular hybrid, Excalibur at their HGCA trial gross output levels,” he points out.

“Together, the oil and Vistive bonuses add £50-70/tonne to the commodity price, pushing the crop value at current market levels to around £400/t. The varieties both have sound agronomic packages with reasonable resistance to both stem canker and light leaf spot, making them suitable for a wide range of growing conditions. At similar inputs levels we calculate they will deliver a gross margin advantage of around £200/ha over Excalibur.”

Five years of commercial growing shows Vistive crops require the same agronomy as standard oilseed rapes. However, particular care is needed when introducing them into the rotation and in preserving their identity through the production cycle to ensure the oil specification is not compromised by volunteers or other contaminants.

Pre-movement analysis of all crop parcels for oil quality by Monsanto as part of the contract provides a high degree of grower assurance and flexibility ahead of marketing. Equally, the yielding ability of the contract varieties means no disadvantage to standard crops even for parcels sold into the commodity crush if they fall short of the required oil quality.

“Wide contract availability, an attractive premium for quality and no downside on commercial yield makes this the perfect time to get into speciality food oil growing,” stresses David Neale. “Especially so since we are offering the greatest possible flexibility in movement timing, storage arrangements and forward-selling to suit individual needs.

“Overall, the 2012/13 contracts offer an excellent low-risk opportunity to establish Vistive crops in current rotations. They should really encourage UK growers to build extra safeguards against market risk by diversifying part of their OSR business from commodity production into a secure food sector with particularly good prospects.”

link Near-Record Wheat Production Expected This Year
link Wild Oat Reports Prompt Control Guidance
link Expanded R&D Programme for Vegetable Growers

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