February 29, 2008

Spain and Portugal eagerly await EU approval of Argentine GMO corn
 

Feed manufacturers in Spain and Portugal are eagerly awaiting EU approval of imports of a type of GM corn from Argentina which they hope would provide them some respite from high prices.

Current EU rules only allow imports of GA21 corn if it is processed, for example as corn gluten, but not in grain form.

Approval has been expected since a meeting of EU farm ministers on 18 February.

Spain's largest feed association, the Spanish Feed Compounders' Association (CESFAC), said its most optimistic forecast was that the approval would be given anytime from 12 March to the middle of May.

Feed makers in those countries have been complaining that they have not been able to pass on the soaring costs of grain over the past year to consumers. Besides having to deal with the high cost of grain itself, buyers also had to pay more for freight charges due to rising energy costs.

On the other side of the Atlantic, Argentinean exporters have complained that they have often been shut out of the EU market due to restrictions while their Brazilian rivals have had unfettered access.

Spanish traders also favour Argentine corn as it is cheaper, compared to those from Brazil. Spanish corn imports was 6.7 million tonnes last year, 3 million of it from Brazil and 1.8 million from Argentina.

Demand for South American corn is rising now that more Spanish producers are switching from the more expensive and locally produced wheat to cheaper imported corn.