SHRINKING margins and return on investment are issues for most farmers.
But six years ago Kangaroo Island farmers decided to be proactive on the issue, particularly when faced with crippling freight and storage costs that were making cropping unviable.
KI Pure Grain wa established in 2009 with a mission to provide premium returns to KI graingrowers, encourage farmers to increase their grain production and encourage others to enter the industry.
While originally the focus was on supplying non-genetically modified canola to the Japanese market, KI Pure Grain chairman Neil Pontifex says it has now expanded into other areas.
"We've now got a major focus on broad beans," he said.
"They grow better than other crops on the island.
"We started growing broad beans about four years ago, from a base of virtually nothing to today nearly 10,000 tonnes being produced annually on the island. They have overtaken canola production, which is about 5000t."
He says broad beans suit KI's high-rainfall conditions.
"The beauty of broad beans is that they stand up well to waterlogging," he said. "They can handle waterlogging better than other legumes including faba beans. "Our long, cool springs also allow them to fill to their maximum size, so we're producing a big broad bean, which is worth twice as much as a smaller broad bean."
The crop is being marketed to South East Asia.
"We have formed relationships with a lot of factories that make broad bean snacks, including ones in Indonesia and Malaysia," Mr Pontifex said. "In those countries broad bean products are eaten for snacks like we'd eat chips or peanuts. Traditionally, those countries would have been supplied with products from China. But with China's growing domestic market, they are now keeping most for themselves, so that's opened the market up for us."
The broad bean market has boomed so much for KI Pure Grain that the business is now in the process of establishing a processing plant at Osborne in Adelaide's western suburbs.
"We will be able to pack and box the product here, and do everything ourselves," he said. "The business is really moving ahead in leaps and bounds and we're actually hoping to put our broad bean product out to the Australian market."
The benefits offered by broad beans to farming systems means there is a lot of interest on KI in growing them.
"It's one of the reasons why we're so excited about broad beans," he said.
"Broad bean stubble is fantastic for fattening lambs so we're getting a lot of grazier interest."
The season on KI has not been without its challenges, but it has ended up with ''excellent results''.
"We had waterlogging issues earlier on, and then we had the driest spring on record for KI," he said. "We've really had limited rainfall since August. "We were worried about the broad bean crops, because they are naturally very sensitive to a lack of rain when filling. But they have filled out very well, mostly because it stayed cool."
Canola is just beginning to be reapt on KI, with harvest starting only last week.
"While we've only just started canola, so far it has gone exceptionally well," he said.
"It's actually one of our better years for canola production. "While the oil content is down a touch on our average. Usually we'd be at between 46 per cent to 48pc oil content. This year we're between 44pc and 45pc - the yields have been very good. "While we haven't harvested any wheat yet, we're pretty hopeful yields will be good."
* Full report in Stock Journal, December 4, 2014 issue.