December 12, 2007

Monsanto calls South Africa's move to exclude corn from biofuels a mistake
 

The South African government's decision to exclude corn from the country's biofuel production plans will harm the corn industry, seed supplier Monsanto Co. warned on Tuesday (December 11, 2007), the South African Press Association reported.

"The fact that the government does not support the initiative for the manufacture of ethanol from corn could hold serious negative consequences for the corn industry and government's land reform policy," the company's managing director for Sub-Saharan Africa, Sus Lindeque, said in a statement.

Concerns that food shortages might occur if corn was used in the biofuel production chain were not justified, the statement said. 

"The government should realize that South Africa has the potential to produce 12 million tonnes of corn a year." he said. With 7 million tonnes for domestic consumption, 2 million tonnes for export, 1 million tonnes for surplus stock and 2 million tonnes would be available for ethanol production, he said.

By excluding corn, the government was missing an opportunity to grow the economy and fast-track its land reform program.

"The ethanol corn project is not only a huge economic boost for the commercial farmer, but also represents an ideal opportunity for the government to settle black farmers on farms through the land reform policy," he said.