February 13, 2008

Spain eyes on Argentina's GM corn to tame high grain prices

Spanish grain traders are anticipating for the EU to approve the import of a GM corn variety from Argentina to boost supply and tame record grain prices.

Currently, EU rules allow the imports of GA21 corn, only if it is processed, for example as a corn gluten. However, the EU does not allow the import of corn in the form of grain.

Argentina, in response to EU's import restrictions, banned the sale of GA21 last year.

However, a spokesman for Swiss biotech company Syngenta, which currently has the legal rights to GA21, said the industry is expecting the EU to formally approve imports of the corn variety in grain form on February 18.

Jorge de Saja, director of the Spanish Feed Compounders' Association, CESFAC, doubted that imports would arrive before May, or about three months before the domestic corn harvest starts.

Saja said that any further delays would have a bullish effect on prices, as French corn, which has so far been uncompetitive, would be able to enter the market by then.

Spanish dealers said they do not expect much corn to enter the country before the end of March as most consumers were covered until then.

Even with a bumper harvest like last year, Spain still has a deficit and needs to import grain to meet demand. Last year, corn imports soared while wheat dropped as wheat prices overtook corn for the first time in years.