November 9, 2020

Brazil issues regulation to facilitate imports of US GMO soybeans

Brazil's Agriculture Ministry issued a regulation to facilitate United States genetically modified (GMO) soybeans, giving legal security to imports of grains from the US by recognising the equivalence of GMO events approved in the US and Brazil, Reuters reported.

Brazil, the biggest producer and exporter of soybeans in the world, has low domestic soybean supplies after farmers sold huge volumes to China earlier this year.

This has resulted in price hikes for livestock feed and domestic meatpacking operations, contributing to inflation in food prices.

In mid-October, Brazil imposed a temporary suspension on import tariffs for soybean, soymeal, soyoil, and corn from countries not in the South American Mercosur trade bloc.

Since the suspension, one US soybean cargo was shipped to Brazil. According to latest ship line-up data from maritime agency Cargonave, the Discoverer vessel chartered by Louis Dreyfus Company (LDC) will reach Paranaguá port in Brazil on November 26 with 30,000 tonnes of soybeans.

A forecast by Abiove, Brazil's oilseeds crushing group, said the country is expected to import 1 million tonnes of soybeans in 2020, its highest import volume since 2008.

Up to now, Brazil has imported 528,000 tonnes of soybeans this year. This is mostly from Paraguay, based on trade data from the government.

-      Reuters