SEOUL: South Korea may import more than twice as much genetically
modified corn for food use as expected this year as starch
firms quietly stepped up buying after their first batch in
May, a government source said on Tuesday.
South Korea, the world's third-largest corn buyer, imported
330,000 tonnes 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 60 per cent of the total demand from the food
sector, a Korea Food and Drug Administration source told agencies.
That is far above the 500,000 tonne volume floated several
months ago by the major buyers, who had indicated they would
take a measured approach to shifting to cheaper GMO crops rather
than risk a massive consumer backlash in one of only two Asian
nations -- along with Japan -- that had stuck to non-GMO foods.
"There is one cargo carrying around 50,000 tonnes of
GMO corns due to arrive early this month and GMO corn imports
for food use (this year) are likely to total 1.2 million tonnes," the
source said.
South Korea, which relies on corn imports to meet 99 per cent
of demand and soybean imports to meet 90 per cent, broke the
GMO food taboo earlier this year, signing a deal to import
the engineered corn for manufacturing starch and sweeteners.
In February the four South Korean starch makers that supply
nearly 90 per cent of the country's corn starch and sugar --
Daesang Corp, Doosan Corn Products Korea, Samyang Genex and
Shindongbang CP -- indicated that they many have to buy more
as prices soar, but have been coy on details.
Global corn prices more than doubled over the past 12 months
and reached a record high of above $8 a bushel last month,
as demand for grain, used for food, feed and fuel, increased
on flooding in the US Midwest last month, raising fears of
reduced supply from the world's largest corn exporter.
July corn futures on the Chicago Board of Trade dropped 1.0
per cent today to $7.17-¼ a bushel after the USDA raised
its forecast for 2008 US corn plantings to 87.3 million acres
from its March estimate of 86.0 million.
Governments around the world have been struggling with the
inflationary impact of higher food and oil prices, with corn
joining a long list of staples, from rice and wheat to vegetable
oils and crude oil, that have been hitting record highs. Skyrocketing
food prices are forcing South Korea, which only grows about
25 per cent of the grain it needs, to switch to GMO crops.
The country's consumer price inflation in 2008 is set to hit
a 10-year high on soaring energy and commodities prices.
Avoiding GMO corn has also become increasingly difficult as
major producers switch to varieties that offer benefits such
as higher yields or drought resistance. More than 10 years
since GMO crops were first planted in 1996, global production
of crops has jumped 60-fold to cover 280 million acres in 23
countries, and people in 53 countries now eat GM foods, according
to industry data.
The world's five major grain producers, including the US,
Argentina and Brazil, provide around 95 per cent of the global
trade of biotech crops, indicating importing countries face
dwindling options in their food policy. The international biotech
industry insists its products are safe and no different from
conventional foods, an argument that has so far failed to convince
many of the EU's 27 governments.