April 13, 2006

China to receive first shipment of GM corn in mid-May

China's first-ever imports of genetically modified corn will arrive around mid-May, an official with Toepfer International in Shanghai said Thursday (Apr 13).

Two batches, each 100 tonnes, are scheduled to depart from the US in mid-April, according to the official.

"We want to test the market's response. Prices are not our major consideration," he said, indicating that prospective buyers will be feed processors and local traders.

Although China's Ministry of Agriculture has not granted the final permits to local traders and processors that are necessary to purchase the imports, the company expects its customers to be able to get them by the end of April, the official said.

China is a net exporter of corn, but with the rapid expansion of its corn processing industry, industry analysts expect it to be a net importer from 2007.

The government's promotion of the use of corn-based ethanol as a cleaner source of energy would also boost imports, said analysts.

The ministry completed environmental safety tests on GM corn late last year, and major international grain traders are said to be planning shipments to China.

Last year, China exported 8.61 million tonnes of corn and imported 3,975 tonnes.