CHINA has rejected three cargoes of unapproved genetically modified US corn and American exporters are worried about shipments of dried distillers' grain being rejected for the same reason, Reuters reports.
Chinese analyst JC Intelligence reported that the type was suspected to have been found in several containers of dried distillers' grain, known as DDGs, at ports in northern and southern China.
The 4,000 to 5,000 tonnes of DDG shipments have not yet been rejected and are awaiting review by quarantine authorities, the JCI report said.
The cause is a mystery because the blocked GM type was approved by all other major importers including the highly sensitive European Union, and some analysts say the cause is the need to dispose of a massive domestic harvest.
"They had record production so time is on their side. We have vessels in the water, and they don't need them. They can drag their feet on this whole approval process," said Jefferies Bache analyst Shawn McCambridge.
DDGs, a byproduct of ethanol production, are a protein-rich animal feed exported primarily in standard shipping containers. China is the top global buyer, accounting for 40 per cent of US exports in 2012-13.
In 2010, China accused the United States of "dumping" the animal feed before ending the probe in June of 2012, said the report.
"Everyone is talking about DDGs cancellations. Cancellations are a bigger concern than corn because they won't be able to switch volumes to other destinations the way they have done with corn," said a Minnesota feed trader.
Two million tonnes of US corn bound for China face stringent testing for the unapproved GM type after several cargoes were denied entry by state quarantine authorities.
One major container exporter outside of Chicago, America's busiest rail hub, has stopped shipments. "We are now cancelling any unshipped corn. Risk is too high in corn," an exporter said.
WORLD SHIPPING
16 December 2013 - 19:24
China blocks US GM grains, some see real cause as bumper domestic harvest
CHINA has rejected three cargoes of unapproved genetically modified US corn and American exporters are worried about shipments of dried distillers' grain being rejected for the same reason, Reuters reports.
WORLD SHIPPING
16 December 2013 - 19:24
China blocks US GM grains, some see real cause as bumper domestic harvest
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