September 21, 2009

China's Origin Agritech to compete in GM seed business

Origin Agritech Ltd., China's third-biggest seed producer, said it may gain government approval next year to sell corn engineered with a newly licensed gene that would compete with Monsanto Co.'s Roundup Ready crops.

The herbicide-tolerant corn is in the third phase of China's five-step approval process, said Irving Kau, vice president of finance at Beijing-based Origin Agritech.

The company plans to submit the crop to the Ministry of Agriculture for fourth-phase approval in a few months and final approval next year, he said.

Approval in China is anticipated to pass in late 2010 or 2011, and starting acreage would be small, said Kau.

Origin Agritech has an exclusive global license from the Chinese Academy of Sciences and Sichuan Biotech Engineering Ltd. to use the glyphosate-resistant gene in corn, soy, cotton, rice and canola, the company said.

Kau claimed that Origin Agritech's technology is better than the original Roundup Ready because it can withstand higher levels of glyphosate application.

The company hopes to start commercial sales of herbicide-resistant corn at 500,000 acres, rising to three million to five million acres in the following years, with the ambition to "take over the market", he said.

Origin Agritech plans to pursue licensing agreements to distribute the technology to seed producers outside China, he said, adding that working with Monsanto is not impossible.

Origin Agritech's first modified product may be corn that contains phytase, an animal feed additive used to reduce phosphorous waste in waterways. The seed is in the final phase of China's regulatory process and, if approved, may be planted on as many as 100,000 acres next year, Kau said.

Chinese farmers spend US$200 million a year on phytase for animal feed and US$1.1 billion on corn seed, he said. The company plans to combine phytase and glyphosate resistance in a double-stack corn seed once both products are approved, Kau said.