Touted as a potential biofuel, safflower has instead left Australian farmers high and dry
Safflower was grown commercially in Western Australia last year. (ABC Mid West Wheatbelt: Jo Prendergast)
Thousands of tonnes of an oilseed crop that was promised to "open the door" to the multi-billion-dollar biofuel market has been left to sit in farm silos across the country.
Key points:
- Safflower oil can be used for cooking or as an industrial lubricant
- Farmers grew about 3,400 tonnes of the oilseed crop last year but it has not been collected or paid for
- Australian company GO Resources says it does not yet have the funds to honour its contracts with farmers
A genetically modified, super high oleic variety of safflower has been growing in Australia for several years, but the only company with the right to supply and sell it says it does not have the funds to honour contracts with farmers.
Developed by the CSIRO and the Grain Research and Development Corporation, the safflower varietal had been pitched as a potential source of plant-based alternatives to petrochemicals and cooking oil.
Australian clean technology business GO Resources holds the rights to develop and commercialise the safflower variant, as well as the exclusive management of the product's entire supply chain.
GO Resources chief executive Michael Kleinig said the company needed to raise $20 million in order to collect the 3,400 tonnes of safflower sitting in farm silos across Australia and process it.
"We had the promise of the [short-term financing] money to come to us, otherwise we would not have entered into those contracts," Mr Kleinig said.
"We are working very hard. I'm not sleeping well, put it that way.
"It's as stressful a situation for GO Resources as it is for farmers."
Go Resources' Michael Kleinig says it needs to find $20 million to honour its contracts with farmers. (Supplied: Go Resources)
A frustrating wait
The safflower was planted by about 55 farmers nationally and was planted commercially by West Australian farmers for the first time last year.
National agricultural service and supply giant Nutrien Ag Solutions partnered with GO Resources to distribute and market safflower in WA, saying "super high oleic safflower crops [was] set to open the door to the multi-billion-dollar biofuel market for Australian growers."
But farmers have grown increasingly frustrated as they await collection and payment for all the seed grown.
In WA, Mingenew farmer Ben McTaggart grew 45 hectares of safflower, equating to about 35 tonnes of seed.
He was expecting it to be collected promptly after harvest late last year, but nine months later he was still waiting for payment and collection for about 40 tonnes of safflower, contracted at about $650 a tonne.
"It is still sitting in a field bin," Mr McTaggart said.
"It is a closed loop supply chain as GO have been doing all the product development and breeding work … and because it was closed loop, all the hectares were contracted back to them."
Safflower was grown and harvested by about 55 farmers across Australia last season. (Supplied: Go Resources)
Many farmers expressed frustration at what they said was poor communication from GO, with silos currently filled with safflower needed for the upcoming harvest.
Victorian farmer Tim Rethus produced 130 tonnes of safflower last season. It is still sitting in silos on his Horsham farm and he is yet to be paid for it.
"It would be nice to have our storage back and turn it over. The longer it is sitting in our storage the more chance there is that something could happen to it," he said.
Mr Rethus said he was optimistic he would eventually see payment for the safflower.
"It's a very good product and has a great fit. It's just a case of getting value for money out of it," he said.
A 'disappointing' crop performance
Mr McTaggart said he was disappointed with the crop's performance in Mingenew last year, yielding less than one tonne per hectare in what was a record-breaking grain growing season.
"We are a bit disappointed in the communication process, we were disappointed in the performance of the crop, but that's OK, it's a new crop," he said.
"The agronomics and the genetics need to catch up to meet expectations, but that disappointment has been compounded by the marketing side of it post harvest."
GO Resources holds the rights to develop and commercialise the super high oleic safflower. (ABC Mid West Wheatbelt: Jo Prendergast)
Michael Kleinig said GO had just received a $3 million government grant for plant breeding, and the company was starting another large plant breeding program.
But he said he knew the company had lost the goodwill of farmers.
"That's something we are going to have to work very hard on when we are in a strong financial position, is go and attempt to get that back."