Quantcast

U.S. Farmers Increase Planting of GMO Corn Banned From China Markets

Food

Archer-Daniels-Midland Co. (ADM) and Bunge Ltd., two of the world’s largest grain traders, are intent on increasing corn exports to China, however, U.S. farmers have plans of their own. 

The wide-scale planting of GMOs that aren’t approved by key importing countries will chip away at the competitiveness of U.S. grain and feed exports.
Photo courtesy of Shutterstock

Six months after China started rejecting shipments of corn made with genetically modified organisms (GMOs), Bunge stated it wouldn't accept deliveries of the variety developed by Switzerland’s Syngenta AG, reports Bloomberg.

ADM plans on testing the GMO corn, and may end up rejecting it as well. Regardless, farmers will soon begin planting the crop this spring due to its high yield for the U.S. market. 

Bloomberg reports:

Exporters and farmers going in two different directions on GMO corn underscores a new set of challenges faced by international agricultural commodity traders. Even as demand continues to grow in line with the global population, China and other countries have been slower than the U.S. to approve new types of crops amid concerns about food safety and threats to biodiversity from [GMOs]. China’s curbs on some modified corn threaten to block millions of tons of imports and in so doing cut into the profits of international trading houses.

“It’s a significant issue for major North American traders,” said Andrew Russell, a New York-based analyst for Macquarie Group who recommends buying ADM and Bunge shares. “Anything that puts Chinese growth potential at risk is a significant issue.”

Traders rerouting shipments originally destined for China to other markets may lose $30 to $50 a ton, said Tim Burrack, an Iowa corn and soybean farmer who’s also the former chairman of the U.S. Grains Council’s trade committee.

Bunge isn’t buying the Syngenta GMO corn, an insect-repelling variety known as Agrisure Viptera, or another modified variety from the Swiss company called Agrisure Duracade. On Feb. 21, ADM executives said they wouldn't accept Duracade until the GMO is approved by China and other major importers. The company also hasn't committed to Viptera.

The wide-scale planting of GMOs that aren’t approved by key importing countries will chip away at the competitiveness of U.S. grain and feed exports. 

Corn containing Duracade will be planted on 250,000 to 300,000 acres this spring, which will be harvested in the autumn, according to Reuters

ADM shares have dropped 1.9 percent this year in New York while Bunge has fallen by 4.2 percent. Syngenta has seen a 4.6 percent decline in Zurich.

As China cuts back on GMO imports, U.S. growers are seeking to boost yields to counter a 34 percent plunge in corn prices over the last year. The U.S. Department of Agriculture has projected farm income will fall 27 percent over the course of 2014—a four-year low.

Since January, Syngenta has sold out of its Duracade variety, part of a broader trend toward modified crops.

However, that brings up another problem for farmers and traders. If different types of grain are not separated, then traders risk cross-contamination of non-GMO crops with crops containing modified organisms.

Even if farmers carefully separate their grain, such contamination can still occur in several ways, including inadvertent mixing and cross-pollination by bees or wind.

Ultimately, that’s a risk many farmers have come to accept as they plant Viptera and other strains in hopes of increasing their yield for the U.S. market. 

"While American farmers search for imaginary yield gains from GMOs, they need to be mindful of the fact that contamination of their neighbor's organic and non-GMO fields will not be tolerated by our nation’s trading partners or the American public," said Dave Murphy, founder and executive director of Food Democracy Now!.

--------

Related Content:

 

EcoWatch Daily Newsletter

Pexels

By Gavin Van De Walle, MS, RD

Medium-chain triglyceride (MCT) oil and coconut oil are fats that have risen in popularity alongside the ketogenic, or keto, diet.

Read More Show Less
Pexels

By Bijal Trivedi

The Centers for Disease Control and Prevention (CDC) released a report on Nov. 13 that describes a list of microorganisms that have become resistant to antibiotics and pose a serious threat to public health. Each year these so-called superbugs cause more than 2.8 million infections in the U.S. and kill more than 35,000 people.

Read More Show Less
Sponsored
Rool Paap / Flickr / CC BY 2.0

By Franziska Spritzler, RD, CDE

Inflammation can be good or bad depending on the situation.

Read More Show Less

By Joe Vukovich

Under the guise of responding to consumer complaints that today's energy- and water-efficient dishwashers take too long, the Department of Energy has proposed creating a new class of dishwashers that wouldn't be subject to any water or energy efficiency standards at all. The move would not only undermine three decades of progress for consumers and the environment, it is based on serious distortions of fact regarding today's dishwashers.

Read More Show Less

By Emily Moran

If you have oak trees in your neighborhood, perhaps you've noticed that some years the ground is carpeted with their acorns, and some years there are hardly any. Biologists call this pattern, in which all the oak trees for miles around make either lots of acorns or almost none, "masting."

Read More Show Less
Sponsored

By Catherine Davidson

Tashi Yudon peeks out from behind a net curtain at the rooftops below and lets out a sigh, her breath frosting on the windowpane in front of her.

Some 700 kilometers away in the capital city Delhi, temperatures have yet to dip below 25 degrees Celsius, but in Spiti there is already an atmosphere of impatient expectation as winter settles over the valley.

Read More Show Less

The Dog Aging Project at the University of Washington is looking to recruit 10,000 dogs to study for the next 10 years to see if they can improve the life expectancy of man's best friend and their quality of life, as CNN reported.

Read More Show Less
Warragamba Dam on Oct. 23 in Sydney, Australia. Sydney's dams have been less than 50 percent full as drought conditions continue across New South Wales. Brook Mitchell / Getty Images

While Sydney faced "catastrophic fire danger" for the first time earlier this week, and nearly 130 wildfires continue to burn in New South Wales and Queensland, Sydney now faces another problem; it's running out of water.

Read More Show Less