September 3, 2009

EU faces a shortage of soy which could soon cost its food industries billions of dollars due to EU tough policy on imports of genetically modified organisms (GMOs), industry groups say.

The EU animal feed industry fears it will be unable to buy millions of tonnes of US soy as planned in the next seven months unless the EU modifies its zero tolerance policy on tiny residues of non-approved GMOs in other grain and oilseed shipments, bringing higher animal feed prices for farmers.

Shipments of US soy and meal were blocked at European ports this summer after traces of banned GM corn varieties were discovered in them.

The problem is dust and other traces of non-approved GMO maize from previous shipments left in ships, trucks and railway wagons used to transport soy, which means the soy and soymeal themselves break the EU's zero tolerance rules on certain imports of GMOs.

The risk of shipments being rejected because of the zero tolerance rule on GMOs not permitted in the EU is too high for operators to attempt to import US soy, said Klaus-Dieter Schumacher of EU grain trade lobby Coceral.

But low soy crops in Argentina and Brazil this year means the EU needs 5 million to 6.5 million tonnes of US soy imports between October and March 2010, Schumacher said.

He said the EU industry may face a supply gap of about 4 million tonnes of soymeal and 1 million tonnes of soyoil, which would have repercussions all along the food chain.

The EU council of agriculture ministers is due to meet on September 7 and feeds groups are pushing for the EU to introduce a small tolerance level of banned GMOS in other shipments immediately to allow US soy imports from October.