Premium for 150,000 Tons of Aussie Canola
(20 August - Cropchoice News) -- A Reuters report from Down Under claims that Australian farmers have started cashing in on European demand for non-GMO canola. According to the story, European buyers paid an extra $750,000 (US) on recent orders for 150,000 tons of Aussie canola. Reuters quotes a "well placed" Australian grain dealer as saying "We believe
that we're starting to see the early stages of the much-waited premium for non-GMO canola."
Australia is Canada's main competitor in the international canola market. But unlike Canada, Australia has not approved the commercial planting of any GMO grains, which simplies life for the Aussies. They have no need to segregate.
Some US companies, including snack food giant Frito Lay, are also looking for industrial-size supplies of non-GMO oil, which are reported to be difficult to find in North America.
Although some US grain industry groups continue to say the demand for segregation is low, the Australians are interpreting this as a sign that the US is unable to segregate - "Problems being experienced in the U.S. of separating GM grains could have short-term benefits for Australia," the Australian Wheat Board told Reuters.