December 18, 2014

China okays import of Syngenta's GM corn, officials say

The MIR 162 corn, a genetically modified (GM) plant by Syngenta AG, has been approved for import into China, according to Chinese authorities who broke the news to US agriculture industry officials.  

The development was first made known by a Syngenta spokesman who said that China may allow the GM corn into the country. However, a US government spokesman claimed that the administration has yet to be notified of the approval.

If confirmed, the decision will end years of wait for MIR 162's approval while, currently, had helped to raise US corn futures to five-month highs this week.

The price of corn-based US distillers' dried grain has also spiked in the past month.

In the meantime, US Agriculture Secretary, Tom Vilsack, is expected to discuss import barriers imposed against the country's GM crops, during a US-China Joint Commission on Commerce and Trade forum, Reuters reported.

Expectations are positive about a potential increase in US corn exports. In addition, traders believe that China stands to benefit from permitting MIR 162's import as Ukraine, a key exporter, faces difficulties in fulfilling grain contracts with the Asian giant.

In November 2013, MIR 162 was discovered in US grain shipments to China, leading to rejections of such cargoes and subsequent lawsuits against Syngenta by affected parties such as Cargill Inc and Archer Daniels Midland Co. The plaintiffs accused the Swiss agribusiness of selling MIR 162 without obtaining an import permit and misleading the farm industry about the timeline for approval.

The US agriculture industry had also suffered a loss of US$1 billion due to the fallout, according to an estimate by the National Grain and Feed Association in April 2014.