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Canola makes a comeback in Australia
Editorial by Peter Reading, Managing Director, Grains Research & Development Corporation (GRDC), Australia

Sixteen new canola varieties released this year, and more undergoing trial in preparation for 2007, are offering growers greater choice by providing higher yields, blackleg resistance and higher oil content.

Australian plant researchers claim productivity growth to meet rising demand is dependent on new high-yield canola varieties – particularly those that flourish in low-rainfall areas.

With the support of the Grains Research & Development Corporation (GRDC), South Australian Research and Development Institute (SARDI) researchers are selecting improved lines from New South Wales and Victoria to trace material suitable for these regions, while the CSIRO is working to establish dual purpose (grain/graze) varieties specific to high rainfall areas.

The developments are providing renewed grower confidence in canola, which has recorded an erratic performance in traditional cropping belts over the past five years.

While southern Victoria has witnessed record plantings and canola has remained an essential element in crop rotations, in Western Australia, plantings have declined in the eastern low-rainfall areas in the wake of drought conditions, late autumn breaks and plummeting prices.

A situation analysis of the Australian canola-breeding sector conducted by grain consultant David Hudson indicated that supply chain and grower confidence had waned due to yield inconsistency and unreliable production in established growing areas, such as southern New South Wales.

High up-front production costs have also had an impact, although researchers argue that growers’ failure to minimise risk through split fertiliser applications has aggravated the situation. They claim a good nitrogen response at sowing occurs when soil nitrogen is low, and advocate deep soil nitrogen testing as close as possible to sowing time to effectively measure soil nitrogen levels.

Canola’s comeback can largely be attributed to the fact that many growers have missed its benefits, including weed control, disease resistance and carry-over nitrogen. Farmers from lower rainfall areas concede that efforts to cut back, or eliminate, canola from rotations in recent years have produced lower wheat yields in continuous cereal programs.

Their response is consistent with expert opinion. After the 2005-06 Australian harvest in 2005-06 (1.44 million tonnes), researchers warned canola’s economic value was derived from its break-crop effects, with crops planted after canola recording substantially higher yields.

Capitalising on new opportunities generated by research developments will improve profitability and also go some way towards meeting forecast domestic and international demand for Australian oilseeds, estimated to reach 5.5 and 1.8 million tonnes respectively by 2020.

Anticipated growth of the pharmaceutical and biodiesel industries could see demand jump by an additional 17.5 million tonnes by 2020, exceeding current production of two to three million tonnes per annum.

The average oil content of last year’s Australian canola crop was the highest since 1996 due to a strong performance in the eastern states. But despite this success, and industry initiatives to capitalise on the potential of new canola varieties, the Hudson report advised that external market-driven changes required further development in this area and industry realignment under a unified strategic approach. It further recommended that the GRDC must exert positive professional influence over the allocation of national funds to optimise the canola industry’s long-term interests.

The GRDC is exploring future research opportunities and is committed to the ongoing delivery of research and development outcomes that enable growers to compete in the face of new challenges and market shifts.

June 2006

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