March 26, 2004

China Approves Import of Brazilian GM Soy

China will allow the import of genetically modified soy from Brazil after authorities accepted accepted Brazil's certification that its genetically modified soybeans are safe, Brazil's Agriculture Ministry said.

The certificate guarantees Brazil's beans pose no biological risk to Chinese consumers, while putting China on notice that any Brazilian soy shipments may contain genetically modified grain. Brazil, the world's second- largest soybean producer, began allowing use of transgenic seeds September for the current crop.

China, Brazil's biggest customer for soybeans, took 19.5 percent of the country's soy exports last year, compared with 15.8 percent of exports in 2002, the Agriculture Ministry said.

Soybean futures in Chicago fell 2.7 percent, their biggest decline in three weeks after Brazil's biggest grain port resumed operations as exporters and unions agreed to end a six-day shutdown. The strike reduced the nation's exports by a fifth and sent soybean prices to 15-year highs.