Oilseed production, Aussie style
Nick Goddard
For more than a century, Australian farmers have defined themselves as wheat farmers who include oilseeds in their rotation. Today, farmers are redefining themselves as oilseed farmers who include wheat in their rotation. For a country that produces more than 20 million metric tons (MMT) of wheat, this is a significant change—especially when oilseeds represent just over 10% of wheat volume.
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The growth in oilseeds production since the 1980s can be attributed to the hard work of Australian researchers and publicly funded breeding programs. In spite of a history in linseed, sunflower, and soybean production, it is canola (rapeseed) that today constitutes the mainstay of the Australian oilseed industry. Rapeseed varieties were introduced in the early 1960s, but the oil was high in erucic acid, the meal was high in glucosinolates, and the varieties were susceptible to the fungal disease blackleg (Leptosphaeria maculans). By the late 1970s, extensive breeding work resulted in varieties that delivered canola-quality oil and meal and stronger resistance to blackleg. By the 1980s, canola was beginning to gain a foothold in agricultural rotations, and the name “canola” was becoming known by the public with the first canola-branded cooking oil launched in 1988, followed soon by a canola margarine.
Today, canola constitutes well over two-thirds of the Australian oilseed crop. It is grown in all states and territories (Fig. 1) and is expected to produce a record harvest in 2011/12 of more than 2.6 MMT. Favorable yields and oil levels this season, underpinned by a solid price base, are leading growers already to plan for larger canola plantings next season, despite the fact that harvesting is only just underway for the current season.
Exports underpin the Australian industry
With a modest local consumption of 600,000–700,000 metric tons, export is a major focus, with Australia invariably being the number two or three canola exporter in the world (Fig. 2). Canada consistently retains the No. 1 position.
The seemingly insatiable demand for canola by the European biodiesel market is currently producing a lucrative market for Australian exporters. Despite challenges arising from the European Union’s (EU) Renewable Energy Directive, which requires growers and exporters of canola destined for EU biofuel to be certified as “sustainable,” Europe will retain its position as the No. 1 export destination for Australian canola for the coming season.
Although canola holds the dominant position, the second most-widely produced and exported oilseed crop, cottonseed, is also a significant contributor to Australian oilseed production. The primary markets for Australian cottonseed have been China and Japan.
Biotechnology gives additional choices
The most significant agricultural development in recent years has been the introduction and adoption of biotechnology. While Bt cotton (i.e., containing insect-fighting genes of Bacillus thuringiensis) has been in production for a number of years and constitutes over 90% of all production in Australia, the 2011/12 season represents only the fourth year of commercial cultivation of Roundup Ready® canola (canola that is genetically engineered to resist the herbicide Roundup Ready®). With a year-one contribution of only 1% of the national crop, penetration of Roundup Ready canola has grown to about 10% as growers realize the benefits of the technology as an additional weed management option.
The Australian oilseed industry has established a “market choice” philosophy with respect to the Roundup Ready trait, ensuring that end users can exercise their market choice as to whether seed, oil, or meal comes from nongenetically modified (GM) crops or not. The establishment of a market choice position and resultant non-GM segregation in the canola supply chain have paved the way for the future introduction of other GM crops.
A bright and growing future
On the basis of an already vibrant and growing oilseed industry, the recent introduction of canola containing high quantities of oleic acid (to serve the growing demand for more healthful frying oils by the fast-food industry), combined with the launch of canola-quality Brassica juncea varieties suited for drier inland environments, provides additional growth opportunities for both volume and value. Australia may be a relatively small player in the oilseed production stakes, but it certainly punches above its weight in terms of innovation, value, creation, and export marketing—all of which augur well for a profitable and sustainable industry.
Fats and oils processing “down under”
Integration is the name of the game when it comes to vegetable oil processing in Australia. From a market environment where crushers, refiners, and producers were distinct sectors a decade ago, today’s market is moving toward a fully integrated processing model.
As executive director of the Australian Oilseeds Federation, I believe that the industry needed to undertake some significant restructuring to remain competitive against both imported refined products and exported finished goods. As a result, the industry is transforming from an environment where a margarine or oil producer would buy refined oil from a refinery in which the crude input was sourced from a crusher, to fully integrated plants in which seeds come in the front door, and cooking oils, margarines, and shortenings go out the back door.
Ten years ago the industry was facing significant competitive pressure from overseas refinery operations that could, at times, deliver imported refined oil to an end user in Australia cheaper than a local supplier could. At that time, much of the oil was from seed that was crushed in one plant, trucked to a refinery, and then transported to a packing plant before finally being delivered to an end user. Those gross inefficiencies in the supply chain had to be eliminated if the Australian industry were to remain viable. Fortunately, industry foresaw the issues on the horizon, and during the last decade, significant investment was made by a number of operators to produce more efficient and fully integrated plants.
Today, two plants are fully integrated, with another one under construction (Fig. 3). Of seed grown in Australia, these three plants together will provide about two-thirds of the oil-crushing and -refining capacity via an integrated model. The savings from this approach are multidimensional. Not only are there freight savings, which can be significant in a country the size of Australia, but there are also working capital savings, as less inventory needs to be stored; energy savings, as oils do not have to be heated and cooled between steps; and better use of by-products, which can be incorporated into the meal.
As a relatively small producer on a global scale, we need to maximize efficiency throughout the value chain by minimizing waste and duplication. That is how we will remain a cost-efficient and competitive player on the world stage.
Nick Goddard is executive director of the Australian Oilseeds Federation. He can be contacted at nick_goddard@australianoilseeds.com.
One-two punch R&D
Nick Goddard and Matt Miller
Australia tends to “punch above its weight” on the global stage when it comes to research and development (R&D) in fats and oils. Nowhere was this more evident than at the Australasian Section of the AOCS Biennial Conference held in November 2011.
The week-long event, conducted in both Melbourne and Adelaide, included a two-day short course on the production of margarine, dairy blends, and spreads. It also featured an intensive two-day workshop on lipid oxidation and antioxidants and a symposium that focused on the new olive oil standard. These satellite events all preceded the two- day scientific conference, Fats and Oils—Industry, Innovation and Health, at which the best and brightest oil chemists, nutritionists, and other scientists presented their latest research.
Fats vs. carbohydrates
The conference had a strong emphasis on nutrition, highlighting the many health benefits of fats and oils. In contrast to an environment where fat is still demonized and ill-informed blanket dietary advice to eat less fat is still propagated, one paper presented by one of Australia’s leading nutritionists highlighted the risks of replacing fats with carbohydrates (an inevitable consequence of a low-fat diet). In his study, Bill Shrapnel, a consultant for Shrapnel Nutrition Consulting Pty. Ltd. of Beecroft, New South Wales, Australia, demonstrated that in combination, the effective exchanges of carbohydrate for polyunsaturated fat, long-chain omega-3 fats, monounsaturated fat, and protein would be expected to increase coronary disease risk via several mechanisms as total carbohydrate intakes increased. He suggested this implies that there may be a progressive increase in coronary risk as carbohydrate intakes increase across the Acceptable Macronutrient Distribution Range (AMDR). He also suggested that there may be a case for lowering the upper and lower boundaries of the AMDR for carbohydrate intake and increasing and the upper and lower boundaries of the AMDR for fat as a strategy for chronic disease prevention.
Plant-based omega-3 fatty acids
With canola being the primary oilseed grown in Australia, there was significant interest in research developments aimed at producing canola-based sources of long-chain omega-3 fatty acids. Australia’s Commonwealth Science and Industrial Research Organization (CSIRO) is researching this concept through its Food Futures National Research Flagship in conjunction with the CSIRO Plant Industry Division. Surinder Singh, group leader of the oilseeds group in the Plant Industry Division at CSIRO, shared the latest data on the significant amounts of eicosapentaenoic acid (EPA) and do-cosahexaenoic acid (DHA) that have been achieved in genetically modified canola, and how such plant oils will be able to meet the growing demand for sustainable sources of omega-3 fatty acids. This work recently won the CSIRO Research Achievement Medal, which recognizes exceptional research of CSIRO scientists and teams.
Olive Oil Standard
The hot topic symposium on the new Australian olive oil standard was a highlight of the meeting. Paul Miller, president of the Australian Olive Association, gave a compelling address on why the standard was needed. He explained that, owing to the increase in price and demand for high-quality olive oils, there is a growing propensity to label products falsely or misleadingly as being olive oil of high standards. Leandro Ravetti, a senior horticulturist and olive specialist from Modern Olives (Lara, Victoria, Australia), demonstrated the development of two new methods in which measurements of pyropheophytins and diacylglycerols may indicate that low-temperature deodorization has taken place. These analytical methods also show excellent correlation with the organoleptic assessment currently used to determine the aging/degradation of extra virgin olive oils. Rodney Mailer, who recently retired from his job as a research fellow at Australian Oils Research in Wagga Wagga, New South Wales, Australia, shared case studies of adulteration that had occurred in Australia and overseas, further highlighting the need for the new standard.
Developing industry leaders
A focus of the Australasian section of AOCS is to help develop future researchers and industry leaders. To this end, a number of student prizes were awarded at the conclusion of the Conference. Will Bignal from CSIRO/University of Tasmania won the Bryce Bell Student Prize for oral communication for his work on boosting the content of EPA and DHA in lamb toward becoming a significant dietary source. The judges were impressed with Bignal’s work in supplementing sheep with omega-3 fatty acids, which combined traditional selective breeding techniques with genetic markers and lipid analysis. The Rod Mailer Student Poster Prize was awarded to Kim Jye Lee Chang from the CSIRO/University of Tasmania for his work on screening a large collection of novel heterotrophic protists (thraustochytrids) for the production of biodiesel and long-chain omega-3 oils. Finally, the Shimadzu Encouragement Award was won by Ramez Alhazzaa from CSIRO/University of Tasmania for his work on omega-3 fatty acid production in the Australian fish species barramundi, Lates calcarifer.
Nick Goddard is executive director of the Australian Oilseeds Federation. He can be contacted at nick_goddard@australianoilseeds.com. Matt Miller is a research scientist at the New Zealand Institute for Plant & Food Research and secretary of the AOCS Australasian Section. He can be contacted at matt.miller@plantandfood.co.nz.
Australia at a Glance
Basic Statistics
Area: 7,692,024 km2, World’s sixth-largest country in land area
Capital: Canberra
Major cities: Sydney, Melbourne, Brisbane, Adelaide, Perth
Population: 22.7 million (2011)
Urban population: 88% of total population
Population growth: 1.4% per annum (March 2010 to March 2011)
Gross domestic product (GDP): US$1,507 billion
GDP per capita (PPP): US$66,984
GDP real growth: 1.8% per annum (2010–2011)
Total exports: US$318 billion (2011 forecast, International Monetary Fund)
Export commodities: iron ore and concentrates, coal, gold, crude petroleum, natural gas
Currency: dollar (A$)
Exchange rate: A$0.95 = US$1.00
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inform magazine is an AOCS member benefit providing international news on fats, oils, surfactants, detergents, and related materials.
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