A new Canterbury venture aiming to tap into the growing market for edible oils will process its first commercial crop early next year.
Up to 20 South Island farmers, mainly in South Canterbury, are growing oil seed rape or canola to supply the company Eco Oils 2008.
There has been a resurgence of interest in canola production in the South Island, mainly driven by Solid Energy's move into biofuel production.
Eco Oils managing director Robin Brooks said he initially investigated growing oil crops for biofuel but decided the edible oil market was a better bet economically.
He said there is a niche in the market for New Zealand produced oil as all the vegetable oil is currently imported.
Mr Brooks said the company will provide cold pressed oil which retains nutrients, and no chemical extraction or additives will be used.
Robin Brooks said the fact that New Zealand canola oil will be GE-free has also attracted interest.
