May 18, 2006

 

China's first GM corn imports arrive at Huangpu

 

 

China's first genetically modified corn imports arrived at Guangdong province's Huangpu port Tuesday, after the government issued the final permits that local buyers needed to bring in the goods, said a trader Wednesday (May 17).

 

"Several feed producers got the permits last Friday, and then the cargo that was waiting in Hong Kong headed to Huangpu port," said Huang Yinghui, a trader with Shenzhen Hualian Grains and Oils Trading Company.

 

Hualian purchased 100 tonnes of US corn from Toepfer International, while a Guangdong-based end user bought 100 tonnes also from Toepfer, Huang said.

 

"The prices are not competitive...higher than local corn. We just want to have a try," Huang said.

 

The cargo is expected to pave the way for more of such imports in the future, said market players.

 

Local analysts expect China to become a net importer of corn probably as early as 2007, given the rapid development of industries that use it as a raw material, as well as an expanding feed processing industry.

 

The government's promotion of the use of ethanol-blended gasoline, in which corn is a major component, is also a factor.

 

"We do not have plans right now to import more GM corn, but we are closely watching the futures market, to see if more imports are necessary and if it is more profitable to import," Hualian's Huang said.

 

Meanwhile, potential local buyers of GM corn can send an application to the Ministry of Agriculture via local trading companies.

 

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

 

"In the long run, as China is going to rely more on US GM corn, local corn futures probably will track (the Chicago Board of Trade), and have less connection with local soy futures, as is the situation now," said a Beijing-based trader.