Corn prices in China likely to drop with entry of GM crops

Argentina is raring to export its genetically modified (GM) corn Agrisure Viptera or MIR 162 to China.

 

China recently approved importation of GM grains most of which come from the US.  Argentina, however, grows Agrisure Viptera corn, which is produced by Syngenta AG.

 

Many Chinese feed producers including those in corn-growing regions favor Argentine or US corn because of its relatively lower prices.

 

Argentina, the world's fourth-biggest exporter of corn, had for several years been negotiating for access to the Chinese market for MIR 162.

 

China imported 1.99 million tonnes of corn during the first 11 months of the year. By the end of this year, it should have imported a total of 2.4 million tonnes, according to the China National Grain and Oils Information Center.

 

China's approval covers not only the corn grain but also its byproducts including dried distillers' grains, or DDGs, for human and animal consumption.

 

With China's approval of GM corn, Chinese farmers worry that domestic prices for the crop could fall and cut own their income.

 

China's domestic corn prices are way above international prices due to high planting costs.

 

On Monday, DuPont announced that China had approved imports of its genetically modified Pioneer soy variety Plenish while last week Bayer said China had officially approved its CropScience soy variety LL55 Liberty Link after seven years of review.

 

Hu Zengmin, an analyst at the China National Grain and Oils Information Center in Harbin, said, "The supply-demand relationship for corn, rapeseed meal and soybean meal will be changed by this shift".

 

 "Feed enterprises will only choose corn with lower price tags and the selling prices of Chinese corn are very likely to drop in 2015," he said.

 

China's agricultural sector has embraced non-GM technologies for decades with government encouragement.

 

Prof. Tian Zhihong of the China Agricultural University in Beijing said imported GM corn and soybeans would not be used for human consumption because of safety concerns but only for scientific tests, animal feed, oil pressing and the biochemical industry.

 

"As this is a new technology for Chinese consumers, it is sensible that the public has different views and doubts," said Tian.