June 2, 2005

Argentine corn still under import restrictions by Brazilian government

A Brazilian government council in charge of bio-safety has rejected a proposal that any company could import corn from Argentina. Analysts fear that the domestic meat industry may be severely affected by this decision if government restrictions are strictly enforced. This is because a drought in Brazil's southern region has increased the need to import more corn.So far this year, analysts estimate that Brazil has imported 75,000 tonnes of corn from Argentina.

The import of NK603 corn was also prohibited by the government council until environmental and health impact studies are performed. However, imports of CRY1ab and CRY1ac corn will be permitted.

Brazil was a traditional importer of Argentine corn until government restrictions were imposed four years ago.  Brazilian domestic corn production increased greatly during the same period.