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Corn+Soybean Digest

Brock Online Notes

China Said To Set Zero GMO Tolerance

China is expected to define genetically modified (GM) crops and products on a zero-tolerance basis, a move that some say is negative for Brazil soybeans, OsterDowJones News reported from Beijing Friday.

There are ideas that the zero-tolerance policy "could effectively shut out Brazilian soybeans." Until now it has been thought China would turn to Brazil for non-GMO beans.

The problem is that Brazilian farmers are using increasing amounts of black-market GM soybean seed and the Brazilian government doesn't even recognize GM soybeans. That would make it impossible for Brazilian exporters to get needed safety certificates from their government.

Actually, though, a zero-tolerance policy on GMO's looks rather bearish for all soybean imports into China, including U.S. soybeans. It seems more like simply a way to cut down on imports.

Editors note: Richard Brock, Soybean Digest's Marketing Editor, is president of Brock Associates, a farm market advisory firm, and publisher of The Brock Report.

To see more market perspectives, visit Brock's Web site at www.brockreport.com.

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