November 1, 2006

Monsanto studying GM corn for Brazilian market

Monsanto is initiating research on new varieties of corn resistant to certain insects common in Brazil, creating the company's first experimental corn field in Brazil, the company's biotechnology manager, Geraldo Berger, told the local Estado newswire Tuesday (Oct 31).

Monsanto told Dow Jones Newswires that the company was currently experimenting with varieties of its YieldGard corn product, sold in the US.

Berger told the Estado newswire that the company would be working on second-generation cotton and soy seeds next year. Monsanto's Bollgard cotton seed and Roundup Ready soybeans are the only genetically modified organisms permitted for commercial use in Brazil at this time. A handful of companies are licensed to create varieties of those seeds for sale in the local market.

Berger said the company could not forecast when the YieldGard corn would be permitted in Brazil. The government's biosafety agency, CTNBio, has a backlog of field tests and commercial GMO products waiting approval. Berger gave 2010 as a "reasonable date" for GMO corn to be permitted on Brazilian farms.

Brazil become an exporter of corn this year when the government agreed to subsidise part of the transportation costs for corn. Iran is the no. 1 importer of Brazilian corn. Exports to Iran and elsewhere have risen well over 100 percent to 2.4 million tonnes between January and September, according to government numbers. Corn mainly leaves from the Paranagua Port in Parana state.

Corn is Brazil's second-largest crop behind soybeans. Brazil's climate permits two corn crops per year. The country farms 12.7 million hectares, down from 12.8 million in 2005-06 and is expected to harvest between 41.9 million and 42.9 million   tonnes, up slightly from the previous season, according to government numbers.