GrainGrowers has welcomed news that the European Commission (EC) has confirmed Australian canola meets the strict new feedstock requirements for European Union (EU) biodiesel.
GrainGrowers Economics and Trade Manager, Luke Mathews, said legislation passed last Friday by the EC had secured ongoing access to the EU for Australian canola after 1 January 2018.
"Europe is the single largest export destination for Australian canola," said Mr Mathews.
"Passing this legislation was critical for both ongoing market access and the profitability of Australian canola growers."
Mr Mathews said a report prepared by the Australian Export Grains Innovation Centre (AEGIC), the Australian Oilseeds Federation (AOF), and CSIRO had confirmed Australian canola growers met Europe's Renewable Energy Directive and Greenhouse Gas (GHG) savings requirements.
"GrainGrowers applauds this work and congratulates these organisations for ensuring market access for Australian canola in the years ahead," he said.
Mr Mathews said that canola was a crucial cash and rotational crop for Australian grain growers, particularly in southern growing regions. Australia produces 3 to 4 million tonnes of canola each year, valued at $1.5 - $2.3 billion, making canola our third most important grain, oilseed or pulse crop.
"Australia exports roughly two-thirds of its canola crop each year, generating export returns of $1-2 billion (FOB).
"In 2016, nearly 90 per cent of Australia's canola exports were destined for Europe.
"The European market is worth roughtly $1.0 billion to the Australian canola industry, with virtually all Australian canola in Europe used for biodiesel production.
"Australian canola growers will rejoice at this timely Christmas present to help secure their future market access and incomes."
T: 0408 014 843