WA’s canola seed supply chain challenged but the record 1.75 million hectare planting should be celebrated

Two of WA’s most senior canola industry figureheads have lifted the lid on their side of the State’s divisive seed supply debate, as farmers finish planting their biggest canola crop in history. The issue of late or unreliable canola seed supply was thrust into the spotlight last month when WAFarmers grains section president Mic Fels publicly labelled it a “disaster”, with some growers waiting for seed to arrive as they started seeding. A few weeks later, Williams farmer and WAFarmers grains section vice president Mark Fowler put pen to paper to detail some ways he believed the supply chain could be improved. His suggestions included creating a deposit system, diversifying seed growing locations and pro rata allocations to stop farmers from over-ordering seed at retailers and shore up supply. Grain Industry Association of WA oilseeds chair Peter Bostock said it had been an “unprecedented” year for canola production in WA, with record prices fuelling farmers to plant more hectares of canola than ever. He said the fact WA farmers had now had their biggest canola crop in the ground was something that should be celebrated. The price of non-genetically modified canola has more than doubled during the past two years, from about $600/t in May 2020 to a high of $1230/t from Kwinana in May this year. Canola plantings have also increased from 1.12 million hectares to 1.75m hectares during that time, with last year’s record 3.13m tonne canola crop worth a record $2 billion to the State’s economy. “Although there has been some level of disappointment (with seed supply)… there has also been a lot of success,” he said. “A huge amount of seed has been produced and delivered to support the biggest canola planting WA has ever seen. “It is a huge result considering all the logistical challenges the world is facing. “The huge increase in volume that has come to the market — in a year with huge opportunity — should be celebrated.” Mr Bostock said record demand for canola seed coincided with factors affecting seed supply, including seasonal issues within production crops, and logistical challenges as the industry navigated a world affected by COVID-19. Plentiful rain in March — after a bone-dry summer — added pressure urgency for canola seed. Many farmers rushed to start seeding in the first few days of April. Mr Bostock said there was also a huge increase in demand for hybrid canola seed in areas near Esperance and the eastern Wheatbelt, adding to state-wide demand and the challenge of sourcing seed. The three-week closure of the Trans-Australian railway — which connects supply chains between Adelaide, WA and the Northern Territory — in January and February also had an impact, he said. “After a dry summer, growers were looking to take less risk in their cropping programs in March,” Mr Bostock said. “The signals weren’t there to get seed to WA (urgently). “As seed production was being treated and packed, early rains came and brought forward demand — and the supply chain capacity was under a lot of pressure to move record quantities into WA.” Mr Bostock said seed companies were fielding new inquiries for additional canola seed until the middle of April. Nearly all of WA’s canola seed had been dispatched from Perth by the third week of April, which Nutrien Ag Solutions seed category manager David Clegg said in a “long-term average” was “OK”. “Given the early break of the season, late delivery has not been ideal,” he said. “As a distributor, we’re talking to seed companies to confirm what seed production supply could be like next year.” Mr Bostock said his main message was that “flexibility” in regards to canola variety choice was key, and with more than 40 canola varieties available farmers may not be able to secure volumes of the exact variety they wanted. Regarding seed production, he said the proposition of “packing up (seed production crops) and moving to WA” was not feasible. Nearly of Australia’s canola seed stocks are grown in the eastern states — with conditions there providing an opportunity for summer crops to be grown should winter crops fail. “Every seed company goes out with the intent to get seed to the growers in a timely manner,” Mr Bostock said. “But just as for growers, there are environmental factors that have a big impact a portion of the crop each year. “Other times, a supply issue is just purely a function of demand far outstripping supply.” Mr Clegg said it would be difficult to enforce the mandatory 5km buffer required between commercial crops and seed crops in WA, due to the prevalence of canola grown and high density of farmland. There was also a need to understand how variety parent lines behave in a given environment, Mr Bostock said. Mr Clegg said the deposit system suggestion sounded good in theory, but would be “hard to guarantee”. “The best thing would be to indicate the herbicide tolerance required and maturity, and then to keep an open mind to what is available after seed production,” he said. Mr Bostock said seed companies would react to the market and “radical” changes to crop programs were not good for the industry. Both Mr Bostock and Mr Clegg said 12 months was the “ideal timeframe” for placing seed orders. But they were quick to note that placing an order early did not guarantee seed. “I think getting orders in early has been part of the disappointment,” Mr Bostock said. “People feel they’re placing an order and are guaranteed seed. “Sometimes it doesn’t matter how early you order, companies don’t know what they can sell until after harvest. “It is more about genuine communication flow, and working with the people around you to support you.”