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Dow Agro to offer Nexera as ‘commodity’ canola

Nexera identity-preserved canola, such as this crop near High Bluff, Man. in 2013, will be available for growers to direct to the regular commodity market in 2015. (

Growers of Dow AgroSciences’ identity-preserved Nexera hybrid canola may be able to grow it off-contract next spring and drop it into the regular commodity market, through a new deal on offer from the seed and ag chem company.

Dow on Thursday launched what it calls the Flexibility Agreement, which, unlike the company’s Nexera Canola Contract, will not provide eligible growers with a premium for growing Nexera varieties.

Under the Flexibility Agreement, Dow said, a grower can grow Nexera hybrids in 2015 with “full flexibility to market and sell the production as commodity canola” to one of the five Nexera canola contracting companies: ADM in Lloydminster, Bunge’s Canadian crush facilities, Louis Dreyfus, Richardson Pioneer and/or Viterra.

“Growers told us they would grow additional acres of Nexera canola hybrids, if they could have increased marketing flexibility,” Dow said on its website Thursday.

However, the Flexibility Agreement also allows a grower to convert that Nexera production to a Nexera delivery contract to be crushed for specialty “Omega-9” canola oils and get the Nexera premium price — that is, if an authorized Nexera canola contractor requires more Nexera canola for an Omega-9 crush.

In that case, Dow said, a grower must be willing to store the Nexera production “until a premium opportunity exists” — and the company has “no obligation” to pay a premium to growers who sign a Flexibility Agreement “if market opportunity does not exist.”

“For several years, growers have asked us for the opportunity to grow Nexera canola without the commitments associated with a production contract, allowing increased marketing flexibility,” Dow’s Nexera canola leader Mark Woloshyn said in a release Thursday.

The new agreement, the company said, offers “a win-win opportunity for growers who wish to access our top-yielding Nexera canola hybrids but with the increased marketing flexibility to sell their Nexera canola production back to an authorized Nexera canola crusher as commodity canola.”

The agreement would also offer growers already using InVigor or Roundup Ready varieties “an easy opportunity to add Nexera.”

Dow launched Nexera canola varieties in 1999 as the first identity-preserved canolas in Western Canada.

Nexera premiums are based on the varieties’ status as the only hybrid canolas that produce Omega-9 oil, marketed to end-users in the food industry as an “heart-healthy” oil with long shelf life and zero trans fats.

“Dependent on demand”

Dow said it will make the Flexibility Agreement available at the same time as it makes its Nexera Canola Contracts available through authorized Nexera canola contracting companies.

Dow also said it plans to monitor the acres signed up through the Flexibility Agreement, “balanced with Nexera canola hybrid seed availability.” Thus, Flexibility Agreements “will be dependent on grower demand.”

The Nexera Canola Contract, however, will still be available and would still guarantee Nexera growers a premium and delivery schedule for their Nexera production. If Nexera growers wish, they can still sign a Nexera Canola Contract and “consider” a Flexibility Agreement for any additional canola acres they’d like to seed.

Dow on Thursday also offered a rebate for growers who sign a Flexibility Agreement, worth $50 per bag, making Nexera “competitive with leading commodity seed offers.” — Network


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