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Japanese consumers crave KI canola

What began as a group of farmers looking for a new export opportunity has sparked a unique collaboration on South Australia’s own Kangaroo Island.

Duncan MacGillivray, KI Pure GrainThe island – long recognised as one of the most pristine environments in the world – now boasts an enviable reputation as an exporter of high quality, GM-free canola to one of the biggest markets in the world.

Under a new business formed last year, 72 growers on the island are now represented by the KI Pure Grain brand, selling their seed and grain into key markets in Asia.

KI Pure Grain – the brainchild of several farmers on the island – began last year, and now represents 98 per cent of the island’s grain producers.

The business’ beginnings are an interesting insight into how knowing the right people, at the right time – and having a good understanding of your customers – can make a big difference.

Back in 2003, a Japanese businessman Mr Shigemi Hirata, chief executive of Hirata Industries, in Fukuoka, Japan, needed to find a new source of GM-free canola for his customers. Then Austrade Trade Commissioner, Chris Wood – a South Australian living and working in Japan – knew exactly where to take him - Kangaroo Island.

“The island has a wonderful clean, green reputation. Mr Hirata had already heard of the island and had visited himself, but needed some support to convince the growers and build the project. We were sure the tyranny of distance that always increased costs for everyone on the island could be turned around into a distinct geographic advantage,” Mr Wood said.

So after initial visits, the process of introducing Mr Hirata to the local growers began in 2004. The first shipload of 2000 tonnes of canola was sent to Japan in 2005 – increasing to 6000 tonnes this year.

Growers such as Neil Pontifex and Derek Johnson were among a group of farmers who could see the potential, but they also knew they needed expert help. 

“We needed someone to drive the business, so we could concentrate on growing the quality crops,” Mr Pontifex said. 

Enter experienced industry expert Duncan MacGillivray, who was appointed Chief Executive of KI Pure Grain in 2009.

“We had to market and develop, and also maintain the quality and food safety aspect, so we needed to have control over the whole process, from storage and handling, freight and containerisation, and our marketing.,” Mr Pontifex said.

The group purchased the island’s ABB Grain/Viterra facilities, and negotiated a freight deal with Sealink ferries to ensure the canola could meet shipment timelines.

Several farmers also travelled to Japan to meet with Hirata Industries to learn more about their customers. Hirata Industries is a specialist canola seed crusher.

The Kangaroo Island canola is listed on a “catalogue” of goods made available to around 1 million homes in Toyko alone, and is popular for cooking Tempura style.

Mr Pontifex said knowing and understanding the end-consumer had helped the farmers understand the importance of ensuring their product was perfect.

“We met groups of mothers, listening to what they wanted. It’s all about minimal chemicals, non-GM, safe food – and they are prepared to pay a premium for it,” he said.

The business is now expanding, building on canola sales, as well other products such as low-protein noodle wheat and biscuit wheat.

For further details

Contact
Duncan MacGillivray
Kangaroo Island Pure Grain
p +61 8 8227 2878
e  duncan@kipuregrain.com