Oil content in canola?

[northfarmer]

I know this has been thrashed about before, but Weber refreshed my interest in this issue on his morning wire regarding the great oil content premiums Aussies will be getting on a big part of their production this year.

I remember asking this question at a canola growers meeting and getting some questionable logic as to why we are not paid on this.

Do the handlers want to make the money working the blends on this like they did with protein on wheat?

Do we grow varieties that yield the greatest oil content or register ones that produce a minimum?

Can we change agronomic practices to produce higher oil content?

Why is it different in Australia who competes with us for the Asian market?

[GDR]

It would be interesting to know oil content etc. Ours yielded well this year and weighs around 53lbs which is good but to look at it I thought it was not very plump if that makes sense.

My guess would be we shouldn't go down that road cause I bet instead of an opportunity to get more for a good product it would most likely end up being another opportunity to discount Mr Farmer cause it didn't meet the spec.

[farmaholic]

Sad, isn't it.

When the stick you use to draw the line in the sand with is grabbed from your hand and used to beat you over the head with!

[MBgrower]

I generally agree, if they were to pay premiums, then they will also introduce discounts for low oil. Ultimately the high low premium price will just be the old price , and discounts will apply to all oil content falling below the threshold level. Its the canadian way.

[malleefarmer]

Canola Oil & Admix Calculations
Oil bonification calculation
The oil bonus/penalty to the base price is calculated at:
• 1.5% of the base price for every 1% oil, or
• 0.15% of the price for every 0.1% oil, above or below the 42% oil content base.
Oil bonification is uncapped in SA, Vic, NSW and QLD. In WA oil bonification is capped at 44.5% oil ie. no further
price adjustment even if oil content exceeds 44.5%.
Admixture calculation
Glencore Grain makes payment based on the clean seed weight. Clean seed weight is calculated after deduction
for admixture per AOF as follows:
Delivered tonnes X Non Admix Percentage (i.e. 100% - admix percentage).
Example oil & admix calculations
Based on the following example data, a load of 51.84mt delivered to site ‘X’ at $600/mt, the following calculations
show how the adjustments are made for oil at 44.5% and admixture of 0.86%
Oil bonification
Delivery Site Price X 1.5% X % of oil above/below 42% base = $Bonus/Penalty applied to base
delivery site price.
Eg $600/mt X 0.015 X 2.5 = $22.50 bonus
Oil adjusted site price = $622.50 /mt
Admixture calculation
100% - Admix % X Delivered Tonnes = Clean Seed Weight tonnes to be paid
Eg (1 – 0.0086) X 51.84mt = 51.39mt
Clean Seed Weight / Paid Weight = 51.39mt
Load value
Oil adjusted price/mt X Clean Seed Weight = Load Value
Eg $622.50/mt X 51.39mt = $31,990.28*

[Oliver88]

In australia they pay the Farmer ! In canada they discount the Farmer !

I would be afraid of heading down this slippery slope if we started paying based on the oil content.
Wheat protein usually has a discount twice the amount as the premium when it is below or over 13.5% this could easily happen with oil contents.

[iceman]

Let's please not screw with canola.

KISS method keep it simple stupid

Iceman Out