Biodiesel deal great for growers

Federated Farmers Grain & Seed welcomes the sale of Solid Energy’s agribusiness division of Biodiesel New Zealand has been concluded and a new company, Pure Oil New Zealand Limited, has been formed.

“After hearing a few weeks ago it was possible Solid Energy could simply shut the doors of Biodiesel, this is the news oilseed rape growers have been waiting for,” says Federated Farmers South Canterbury Grain & Seed Chairman and oilseed rape grower, Colin Hurst.

“Growing oilseed rape requires a significant commitment because the seeds can stay in the ground and can stop you from growing other forms of brassica for up to a decade.

“That is why it is incredibly positive for growers who have made that level of commitment, that the new owners have acknowledged the bright future oilseed rape has as a crop in New Zealand.

“As suppliers to the business, we really couldn’t have asked for a better buyer with the new company being jointly owned by two established Canterbury businesses and key former biodiesel staff.

“Federated Farmers is incredibly supportive of this bid.

“Midland Seeds and Southern Packers are each businesses with a strong reputation in food production, which makes them a great fit for this business.

“For some time, growers have felt New Zealand’s reputation as a producer of high value, sustainable and renewable food products, means the food market offered more opportunities for the rape seed oil than bio-fuels.

“With the naming of the entity, Pure Oil New Zealand, the new owners seem to be in agreement,” Mr Hurst concluded.