January 24, 2011

 

Zen-Noh faces challenge finding non-GM corn

 

 

The National Federation of Agricultural Cooperative Associations (Zen-Noh) faces difficulty obtaining non-genetically modified corn as its key US seed supplier hinted at halting development of conventional corn.

 

Upset over the potential loss of supply, Zen-Noh has announced a tie-up with DuPont subsidiary Pioneer Hi-Bred to develop non-GM corn. The federation is also trying to develop a market for non-GM corn in South Korea to shore up demand. But that is unlikely to alter the global trend toward increasing use of genetically altered corn, which will make it harder for Japan to get non-GM varieties.

 

Zen-Noh, the umbrella organisation of Japan's farm cooperatives, announced the tie-up with Pioneer Hi-Bred on January 11. The agribusiness giant commands 50% of the US market for conventional corn. Under a five-year contract through 2015, Pioneer will develop high-yield, non-GM corn for US farmers who supply Zen-Noh. The federation will buy 500,000 tonnes a year from those farmers.

 

Zen-Noh decided on the partnership after Pioneer Hi-Bred told the organisation last February that it was reviewing its development plans for those varieties it found difficult to sell. It asked Zen-Noh to demonstrate medium- to long-term demand for non-GM corn.

 

Japan imports most of its corn from the US for use in beer, corn starch and cattle feed, making it an important customer for US growers.

 

But American farmers have largely switched to genetically modified grains as international prices have climbed on the back of growing demand in emerging markets. In 2010, GM corn comprised 86% of all varieties planted in the US Japan also saw use of non-GM corn drop to about two million tonnes last year, half the 2007 volume.

 

As supplies of non-GM corn threatened to dry up Zen-Noh has scrambled to find buyers for the product. "What counts is how much demand we can create for such corn," said one federation official.

 

Nihon Cornstarch Corp. responded to Zen-Noh's call by committing to buy non-GM corn from Zen-Noh. The Seikatsu Club Consumers' Co-operative Union, which has about 350,000 members, last June extended by five years its policy of not buying GM products. The cooperative, in principle, does not handle even those GM products approved by the government, citing concerns over their safety.

 

Japanese consumers have up to now been able to get non-GM foods easily, for a price. Sliced pork sold by the cooperative, for example, comes from pigs raised on non-GM feed. It is priced at JPY182 (US$2.20) for 100 grams, up 15% compared with September 2007. "If non-GM grains disappear, consumers would lose any choice between GM and non-GM foods," said an official with the cooperative.

 

Zen-Noh is negotiating with four South Korean corn starch makers, aiming to sell them non-GM corn. Between them, these companies purchase slightly less than one million tonnes of corn annually.

 

Amid rising hopes that genetically modified grains can help feed the world's burgeoning population, Japanese companies' ability to procure non-GM grain is being put to the test.