March 18, 2008

 

Japan's resistance to GM corn challenged by record corn prices

 

 

Japan, the last major Asian importer still resisting genetically modified corn for human food use, is expected to succumb to GM products due to record prices in the US.

 

Japan has long approved GM corn for animal feed, but has shoved off the use of such products for human consumption.

 

Yet recently, US farmers have been demanding higher premiums for GM-free corn,

pressuring Japanese food makers to further resist modified crops or give in to the

cheaper alternatives.

 

The rising costs and difficulty of dealing with modified corn from unmodified have driven more tie-ups in the industry, including Oji Cornstarch's move last year to form an alliance with two smaller rivals.

 

Yoshihiko Shikakura, senior managing director at the sales department of Oji Cornstarch, a joint venture between Oji Paper and the trading company Mitsui, said they have started gathering consumer views on the possible shift to GM crops.

 

Until recently, most corn processors have used only non-GMO crops to produce corn starch and corn syrup.

 

Scant supplies could mean the price premium on non-GMO corn that processors pay to importers is set to double to US$100 a tonne next year, analysts predict.

 

Currently, US GMO corn is imported at around US$412 a tonne, doubling over the past two years on a similar rally in Chicago corn prices during the same period.

 

GMO supporters said that soft drink makers are the most likely to switch as the process to turn corn starch into syrup makes protein content in the product negligible.

 

Japan grows very meager corn of its own and imports 12 million tonnes a year for animal feed, mostly GMO crops except for about 700,000 tonnes of non-GMO for organic eggs and other quality products.

 

The country also imports around 3 million tonnes of corn a year for use in foodstuffs, almost all of which is non-GMO from the US, the world's biggest corn exporter.