New Zealand-Bio Fuel Crops not wanted by farmers.

Biofuel crops could wreck export trade

A Government report on contamination risks between biofuel and brassica crops suggests existing monitoring systems will not cope if massive expansion predictions in oil seed rape are realised.

The report was contracted by the Ministry of Agriculture and Forestry after concerns of cross-contamination by brassica growers and the Grain and Seed Trade Association.

The brassica forage and seed industry has high genetic purity requirements for export markets and is worth $32 million in export earnings to New Zealand.

There are fears contamination could wipe out entire export shipments.

The industry’s existing Seed Crop Isolation Distance (SCID) scheme requires growers to "book" paddocks for intended crops on a nationwide mapping system.SCID has built-in isolation distances of 1000m for open pollinated crops and 2000m for hybrid crops.

But the system is voluntary and unlikely to include small individual growers.

The report also showed problems arose when merchants booked numerous paddocks for a single crop to ensure they got the required isolation distance, sometimes resulting in 4000 crops booked when in fact only 1000 are confirmed at sowing.

In addition, it did not deal with the issues of residual seed, volunteers from previous crops, roadside plantings or beehive movements.

The report identified cross-pollination between biofuels and brassica crops was a high risk and while existing monitoring systems such as SCID were effective, any major increase in production could cause these systems to fail. A similar increase in brassica crops would have the same effect.

The total New Zealand production of oil seed rape grown for biofuel is estimated to cover 4500ha, mostly in mid-Canterbury.

But biofuel companies expect to expand to 35,000ha across New Zealand within the next 10 years, extending into Southland, the top of the South Island and the southern North Island.

The report notes that by growing in non-traditional arable areas, farmers in these areas may not know how to manage the crop and seed loss effectively and may also not take part in the SCID system.

Brassica crops cover 3400ha across NZ, with more than half grown in mid-Canterbury.

But growers interviewed for the report said they could potentially double production as world-wide demand for crops grown under SCID regulations increased.

Biodiesel NZ has a voluntary agreement not to grow oil seed rape crops in mid-Canterbury to protect brassica growers and has indicated they will make this a requirement of their contracts with producers.

But if mid-Canterbury is excluded there are fears 30,000 extra hectares would not be an achievable target and oil seed rape crops grown in marginal land would not meet industry targets of four tonne per hectare.

The report voices further concern about the rapid expansion of an oil seed rape industry which may be only short term until more efficient, second generation biofuels are produced.

A spokesman for Biodiesel NZ said the company agreed with the report’s recommendation that more research was needed on the issue.

"Our aim is to work in partnership with the seed industry and make sure it’s protected as well as exploring options for continued expansion of biofuel."

He confirmed all growers contracted to Biodiesel NZ must be registered with SCID and the company would also not buy crops on spec to minimise risk.

Biodiesel NZ’s aggressive expansion plans had recently been reduced by up to 60% in response to the economic climate.

"Our view is that there are things that need improving and things that could be done to lower the risk and we are open to talking about them and discussing them.We don’t want to do anything to jeopardise the seed industry."

A spokesman for MAF said the department considered the risk of cross-contamination had reduced since the repeal of the Biofuels Sales Obligation requirement.

However, ongoing interest from parties continuing to produce oil seed rape for biofuels meant some risk to the seed industry remained.

The department believed it was up to the seed industry to work with stakeholders to agree how to minimise the risk from cross-contamination and to implement the recommendations of the report, including how SCID could be improved to manage those risks.

Grain and Seed Trade Association executive director Ann Harper said the report was very thorough and highlighted those risks as well as offering suggestions on how the crops could be managed.

She believed the repeal of the biofuels legislation in December had slowed the commercial impetus of the industry.