"Biofuels use any old oil. You can burn anything," he added, noting demand from the biofuels sector had led to price convergence in the vegetable oils market.

The new varieties of rapeseed, known as high oleic low linolenic (HOLL), have been bred by seedmakers Dow Agrosciences, a unit of Dow Chemical and Monsanto Co. to replace hydrogenated oils. They are not genetically modified.

Hydrogenation is a process used to increase the shelf-life and stability of vegetable oils but trans fatty acids may be formed.

For humans that can mean raised blood cholesterol levels and so an increased risk of heart disease.

Evidence suggests this type of trans fat may have worse effects on the human body than saturated fats, according to Britain's Food Standards Agency.

Health concerns have prompted fast food restaurants like McDonalds Corp. and food processors to seek alternatives, and HOLL rapeseed varieties are designed to yield oils with stability and shelf-life without creating trans fats.

Oilseed processor ADM announced earlier this year it was closing its hydrogenation facility in Britain, citing a sharp drop in demand for hydrogenated oils.

UK supermarket chain J Sainsbury removed hydrogenated oils from all its products earlier this year, a step also taken by competitor Marks & Spencer.

OPPORTUNITY

"There is a huge opportunity for the new rapeseed types. As a product it is great and it is great from farmers' perspective as it has higher value," said Ian Munnery, commercial manager for farmers cooperative United Oilseeds Marketing.

He said, however, the new varieties needed to command a significant premium to warrant a switch by farmers, but strong demand for standard rapeseed from biodiesel producers was making that harder to achieve.

Palm oil, which is more stable than rapeseed oil, can be used as an alternative to hydrogenated oils but has high levels of saturated fats, which may also raise blood cholesterol.

"You are really just swapping one problem for another," Hancock said.

Monsanto sales manager Geoff Hall said the new varieties were aimed at the high temperature frying market, including fast food chains.

Monsanto markets a winter variety of HOLL rapeseed.

Britain grows mainly winter rapeseed, with spring varieties more popular in countries further north that have more hours of daylight during the growing season.

Hall said about 5,000 hectares were planted with Monsanto's HOLL rapeseed, although that total could be multiplied by a factor of 10 within the next two to three years.

Total UK winter rapeseed plantings are 596,000 hectares.