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Thursday 5 December 2013

China finds unapproved GMO in more US corn cargoes

By Reuters | 3 Dec, 2013, 10.14AM IST 
China already allows imports of 25 different GMO corn varieties and is considering adding other commonly cultivated varieties to the list.
China already allows imports of 25 different
 GMO corn varieties and is considering adding
other commonly cultivated varieties to the list. 


BEIJING: Quarantine authorities in China, one of the world's largest corn importers, have found an unapproved genetically modified variety of the grain in more U.S. shipments, which are likely to be rejected, traders said.

That comes after a US corn cargo was turned away in mid-November due to the discovery of the same variety and has spooked Chinese buyers who fret that other shipments could be rejected or delayed.

"We are completely lost and have no idea how to deal with the situation," said one executive with a major animal feed mill.

"Not all corn cargoes were blocked for entry, but it is a messy situation."

One cargo of about 60,000 tonnes in the southern province of Fujian was found to contain Syngenta AG's Agrisure Viptera grain, which has not been approved by Beijing, traders said on Tuesday.

Another 49 containers, equivalent to 1,225 tonnes, were found to contain the same GMO strain, also known as MIR 162, at the port of Shenzhen, they said.

Traders have said that MIR 162 is set to be approved by China soon and is already shipped to destinations such as top corn importer Japan, the European Union and Mexico.

Shenzhen's quarantine authority last month rejected one cargo of the grain from the United States containing MIR 162.

"Since this is the same GMO in the latest discovery, the shipments may have to be blocked for entry," said one trader.

Quarantine officials at Fujian, Shenzhen and Beijing declined to make immediate comment.

The U.S. supplied nearly 94 percent of China's corn imports in the first 10 months of 2013.

 Some U.S. exporters have been in talks with Chinese buyers over possible delays in shipments in the wake of the first GMO discovery, the China National Grain and Oils Information Center (CNGOIC) said in a report.

The official think-tank earlier estimated China's corn imports in December would be about 1.75 million tonnes. Total imports for the whole of 2013 were seen at 4 million tonnes.

China already allows imports of 25 different GMO corn varieties and is considering adding other commonly cultivated varieties to the list, including Agrisure Viptera, which has been pending approval for about 18 months. It is expected to get the green light later this year or in 2014, according to traders.

The possible rejection comes as Beijing gets into full swing stockpiling its domestic corn harvest in the major growing provinces in the northeast, aiming to shore up domestic prices and help farmers.

Beijing is offering subsidies to feed mills in buying domestic corn due to tight storage capacity. Domestic demand has been weakening, while the country, the world's second largest consumer, is expected to harvest a record high output this year.