South Korea quietly steps up GMO corn imports
http://greenbio.checkbiotech.org/news/2008-07-02/S [2008-7-4]
Tag : Modified Corn Starch
South Korea, the world's third-largest corn buyer, imported 330,000tonnes of GMO corn for food use for the first time in May and June,and this year's total may rise to 1.2 million tonnes, or about 60percent of the total demand from the food sector, a Korea Food andDrug Administration source told Reuters.
That is far above the 500,000 tonne volume floated several monthsago by the major buyers, who had indicated they would take ameasured approach to shifting to cheaper GMO crops rather than riska massive consumer backlash in one of only two Asian nations -along with Japan - that had stuck to non-GMO foods.
With unmodified supplies increasingly hard to find after China,once the major supplier of non-GMO corn, effectively haltedoverseas shipments, they've had little choice.
"We see sharply increased imports of GMO corn as buyers arestruggling to secure non-GMO varieties," said the source, whodeclined to be named because of the sensitivity of the issue.
But the four South Korean starch makers that supply nearly 90percent of the country's corn starch and sugar - Daesang Corp,Doosan Corn Products Korea, Samyang Genex and Shindongbang CP -have opted to keep quiet about their latest deals at a time ofheightened anxiety over food.
Tens of thousands of South Koreans took to the streets last monthin a massive wave of protests against renewed imports of U.S. beef.
"Importers have kept corn deals secret as they fear publicattention shifting back to GMO crops once beef protests die out,and losing business," said a corn trader.
GMO TABOO
South Korea, which relies on corn imports to meet 99 percent ofdemand and soybean imports to meet 90 percent, broke the GMO foodtaboo earlier this year, signing a deal to import the engineeredcorn for manufacturing starch and sweeteners.
The four firms indicated in February that they many have to buymore as prices soar, but have been coy on details.
Company officials declined to comment about their purchases onTuesday.
Global corn prices more than doubled over the past 12 months andreached a record high of above $8 a bushel last month, as demandfor the grain, used for food, feed and fuel, increased, whileflooding in the U.S. Midwest last month raised fears of reducedsupply from the world's largest corn exporter.
On Tuesday, July corn futures CN8 on the Chicago Board of Tradedropped 1.0 percent to $7.17-½ a bushel after the USDA raisedits forecast for 2008 U.S. corn plantings to 87.3 million acresfrom its March estimate of 86.0 million.
Non-GMO corn corn cargoes can command as much as a $20 or nearly 5percent premium to GMO varieties, eating into profit margins forcompanies already under pressure from competitors.
"The corn starch and sweetener market is shrinking sharply asfoodmakers are switching to cheaper alternatives such as sugar toreplace pricey corn," said an official at the Korea Corn ProcessingAssociation.
"Future purchases are more likely to depend on how consumers reactto processed food using GMO corn," the official said.
Governments around the world have been struggling with theinflationary impact of higher food and oil prices, with cornjoining a long list of staples, from rice and wheat to vegetableoils and crude oil, that have been hitting record highs.
Skyrocketing food prices are forcing South Korea, which only growsabout 25 percent of the grain it needs, to switch to GMO crops. Thecountry's consumer price inflation in 2008 is set to hit a 10-yearhigh on soaring energy and commodities prices.
© Thomson Reuters 2008
South Korea, the world's third-largest corn buyer, imported 330,000tonnes of GMO corn for food use for the first time in May and June,and this year's total may rise to 1.2 million tonnes, or about 60percent of the total demand from the food sector, a Korea Food andDrug Administration source told Reuters.
That is far above the 500,000 tonne volume floated several monthsago by the major buyers, who had indicated they would take ameasured approach to shifting to cheaper GMO crops rather than riska massive consumer backlash in one of only two Asian nations -along with Japan - that had stuck to non-GMO foods.
With unmodified supplies increasingly hard to find after China,once the major supplier of non-GMO corn, effectively haltedoverseas shipments, they've had little choice.
"We see sharply increased imports of GMO corn as buyers arestruggling to secure non-GMO varieties," said the source, whodeclined to be named because of the sensitivity of the issue.
But the four South Korean starch makers that supply nearly 90percent of the country's corn starch and sugar - Daesang Corp,Doosan Corn Products Korea, Samyang Genex and Shindongbang CP -have opted to keep quiet about their latest deals at a time ofheightened anxiety over food.
Tens of thousands of South Koreans took to the streets last monthin a massive wave of protests against renewed imports of U.S. beef.
"Importers have kept corn deals secret as they fear publicattention shifting back to GMO crops once beef protests die out,and losing business," said a corn trader.
GMO TABOO
South Korea, which relies on corn imports to meet 99 percent ofdemand and soybean imports to meet 90 percent, broke the GMO foodtaboo earlier this year, signing a deal to import the engineeredcorn for manufacturing starch and sweeteners.
The four firms indicated in February that they many have to buymore as prices soar, but have been coy on details.
Company officials declined to comment about their purchases onTuesday.
Global corn prices more than doubled over the past 12 months andreached a record high of above $8 a bushel last month, as demandfor the grain, used for food, feed and fuel, increased, whileflooding in the U.S. Midwest last month raised fears of reducedsupply from the world's largest corn exporter.
On Tuesday, July corn futures CN8 on the Chicago Board of Tradedropped 1.0 percent to $7.17-½ a bushel after the USDA raisedits forecast for 2008 U.S. corn plantings to 87.3 million acresfrom its March estimate of 86.0 million.
Non-GMO corn corn cargoes can command as much as a $20 or nearly 5percent premium to GMO varieties, eating into profit margins forcompanies already under pressure from competitors.
"The corn starch and sweetener market is shrinking sharply asfoodmakers are switching to cheaper alternatives such as sugar toreplace pricey corn," said an official at the Korea Corn ProcessingAssociation.
"Future purchases are more likely to depend on how consumers reactto processed food using GMO corn," the official said.
Governments around the world have been struggling with theinflationary impact of higher food and oil prices, with cornjoining a long list of staples, from rice and wheat to vegetableoils and crude oil, that have been hitting record highs.
Skyrocketing food prices are forcing South Korea, which only growsabout 25 percent of the grain it needs, to switch to GMO crops. Thecountry's consumer price inflation in 2008 is set to hit a 10-yearhigh on soaring energy and commodities prices.
© Thomson Reuters 2008
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