A manufacturer of sweeteners and starches made from corn will not buy Syngenta's new GM corn MIR 162 due to China's rejection of the crop
China has turned away 1.25 million tonnes of U.S. corn and DDGs this year after discovering the presence of an unapproved GMO strain known as MIR 162, developed by Syngenta.
Last week, agribusiness giant Cargill Inc and another company sued Syngenta for selling MIR 162 without first obtaining import approval from China, a major buyer.
1. Ingredion bans new GMO corn at plant, mulls fate of second type
2. China, U.S. fail to reach agreement in distiller grains dispute: sources
1. Ingredion bans new GMO corn at plant, mulls fate of second type
By Tom Polansek
Reuters, 17 Sept 2014
http://www.reuters.com/article/2014/09/17/us-syngenta-seed-ingredion-idUSKBN0HC2JA20140917
Ingredion Inc, manufacturer of sweeteners and starches made from corn, will not buy a new variety of genetically modified corn developed by Syngenta AG, according to a notice on the ingredients supplier's website on Wednesday.
The Illinois-based manufacturer did not say why it will not accept the genetically modified Agrisure Duracade corn, which has been shunned by the world's biggest commodity traders because it is not approved by major importers.
Ingredion, which sells high fructose corn syrup and corn starch, also is evaluating whether it will accept another GMO variety of Syngenta corn, Agrisure Viptera, company spokeswoman Claire Regan told Reuters. Her comments came after the company temporarily posted a notice saying that one of its delivery plants would not buy Viptera corn.
Last week, agribusiness giant Cargill Inc [CARG.UL] and another company sued Syngenta for selling Viptera corn seed, known as MIR 162, without first obtaining import approval from China, a major buyer. The companies said they suffered combined damages of more than $131 million linked to China's rejections of U.S. crops containing the trait.
Regan said she could not immediately comment on the company's reasons for reviewing its policy on Viptera.
Ingredion on Wednesday took down the message on its website that announced it would not accept Viptera corn at its facility in Argo, Illinois following an inquiry from Reuters, saying the message had been "communicated in error".
"We are still evaluating our policy on Viptera corn," Regan said, adding that corn containing the trait is "still in the field". Harvest has started in parts of the Midwest and will accelerate in the coming weeks.
Regan said she did not know whether Ingredion had accepted Viptera corn, which was approved by U.S. authorities in 2010, from the last year's harvest.
Earlier, a grain merchandiser at Ingredion's Argo facility said the company had not accepted Viptera corn from the 2013 harvest and had told grain elevators it would not accept the trait this year either.
The latest announcement was "just a reminder that we don't want to have anything to do with it," merchandiser Trevor Acklin said about Viptera. He referred subsequent questions to Regan.
Still, Ingredion will not accept Duracade corn, which is being harvested for the first time this year, at the delivery location in Argo, according to its website.
The ban puts Ingredion in the company of major traders like Archer Daniels Midland Co and Bunge Ltd, which have said they will not handle Duracade corn because it is not approved by China or the European Union, both major importers. Ingredion's decision further limits the potential markets for farmers who planted Duracade.
Syngenta has teamed with grain merchant Gavilon, owned by Japanese trading house Marubeni Corp, to help farmers find approved markets for the GMO crop, which was cleared by U.S. authorities last year. Other buyers, including Mexico and Japan, have approved Duracade imports.
(Reporting by Tom Polansek; Editing by Diane Craft)
2. China, U.S. fail to reach agreement in distiller grains dispute: sources
Reuters, Sept 17, 2014
http://www.reuters.com/article/2014/09/17/us-china-usa-ddgs-idUSKBN0HC0VK20140917
China, the world's top buyer of distiller's dried grains (DDGs), has failed to settle a row with the United States on how to eliminate genetically-altered content from a product worth $1.3 billion in trade so far this year, two industry sources said on Wednesday.
Officials from the U.S. Department of Agriculture (USDA) and China's quality watchdog, the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), met late last week to discuss testing procedures for DDGs exported to China, but could not agree on methods for shipments already on the way or signed for, the sources said.
"There is no agreement. It will be good if both sides apply same testing methods, which should be economic and efficient," said one source familiar with the discussion.
The dispute has seen China turn away 1.25 million tonnes of U.S. corn and DDGs this year after discovering the presence of an unapproved genetically-modified (GMO) strain known as MIR 162, developed by Syngenta.
International trader Cargill and another firm are currently taking legal action against the Swiss-based seed maker, claiming that Syngenta's failure to win Chinese approval for the strain has cost them millions of dollars in losses.
China's quarantine authority requires U.S. DDGs shipments to be certified MIR 162 free. Those that do not meet the requirement would be rejected.
The rule originally applied to shipments departing after July 24, but the cut-off date has now been postponed to Aug. 18.
The Chinese side prefers polymerase chain reaction (PCR) testing, which is more sensitive to genetic material but is also time-consuming and expensive, said the source. Both sides would continue talks but there is no scheduled timetable, he said.
China's quarantine authority has stopped issuing import permits to those companies delivering cargoes found to have contained MIR 162.
"Since there is no agreement, we are considering not paying suppliers for the cargoes already on the way," said one Chinese buyer.
China's imports of U.S. DDGs is expected to rise 57.5 percent on year in 2014 to 6.3 million tonnes, said the China National Grain and Oils Information Centre (CNGOIC). The official think-tank said buyers have booked many cargoes before the deadline of Aug 18.
Imports in the first seven months of the year rose 187 percent to 3.91 million tonnes, according to official Customs data.
(Reporting by Niu Shuping and David Stanway; Editing by Michael Perry)