November 18, 2003

Cargill Cannot Operate in Brazil's Paranagua Due To Contaminated GMO Seeds

U.S. agribusiness giant Cargill Inc. would not be allowed to operate in Brazil's main soybean port of Paranagua as long as it still has soybeans "contaminated" with genetically modified (GMO) seeds stored there, a Paranagua Port Authority official said on Monday.

Companies had until November 15 to transfer such seeds to a public silo after the port authority found GMO material, which is banned in Parana state, at private terminals of the port.

The port in the southern state said Cargill had only transferred 5,900 tonnes out of 16,600 tonnes of GMO soy and now would have to remove it completely from the port as the soy would not be accepted at the public warehouse any more.

"From now on, as long as the company does not get rid of that soy, it is barred from operating in Paranagua port," port superintendent Eduardo Requiao said in a statement.

Cargill will also have to get special permission from the state authorities to transport the soy from the port, as all such movement was banned in the state at end-October.

Cargill officials were not contactable for comment on Monday afternoon.

The GMO soy from the public warehouse, where 64,000 tons had been stored before it was sealed, will be exported via special one-off shipments on November 24 and 25.

Roberto Requiao, Parana's governor and brother to Eduardo, banned planting and sale of GMO soybeans on October 27 and stopped Paranagua port from importing or exporting GMO products.

Brazil will overtake the United States and become the world's top soy exporter this year.