Reuters | 31 Dec 2002
TOKYO - U.S. corn sales to Japan, the world's biggest importer of the grain, could suffer after traces of the banned StarLink biotech variety were found in a cargo from the United States last week, a major Japanese grain importer said yesterday.
A previous discovery of StarLink about two years ago prompted Tokyo to cut purchases of U.S. corn sharply, sending importers scrambling to find other supply sources.
"We still can't know, but the possibility that things could become the same as two years ago is high," a senior source at the trading house told Reuters.
StarLink genetically modified corn was detected in a U.S. corn shipment bound for Tokyo's food supply in a vessel docked at Nagoya harbour last Thursday, renewing fears that major trading partners may once again turn their backs on U.S. crops.
The return of StarLink corn comes as the United States tries to convince reluctant trading partners that genetically modified crops are safe for consumers.
Japan's Agriculture Ministry said on Friday that trace amounts of StarLink had been detected.
It said the fate of the corn itself remained undecided but that Japan would take steps to beef up its monitoring of U.S. corn imports. The Health Ministry issued a similar statement.
Late in 2000, tests by a Japanese consumer group revealed traces of StarLink in domestic food and animal feed imports from the United States, leading to a big drop in Japanese buying of U.S. corn until a new testing protocol could be signed.
At that time, there were some increases in corn imports from China, Argentina, Brazil and South Africa in order to replace some of the U.S. corn imports.
The Japanese trade source said the worry could be finding an alternative source to Japan's massive U.S. corn imports, given that no one supplier can replace the 16 million tonnes a year Japan imports for both animal feed and human consumption.
The United States is the dominant supplier, representing more than 90 percent of Japan's total corn imports.
Crops in South America will not be available until March or April next year, so some Japanese importers might seek corn from China to replace their needs from the United States.
"Whether we could locate an alternative source at this time is a concern," the source added.
Japanese commodities markets are closed until January 6 for the New Year's holiday.
U.S. exporters said the vessel on which the StarLink corn was found, The North King, was chartered by Japanese trading house Mitsui. Mitsui officials in Tokyo were unavailable for comment.
The United States is the world's largest producer of crops that are genetically modified to make them resistant to pests, or to withstand herbicides used to kill nearby weeds.
The return of StarLink corn could renew a widespread international backlash against U.S. grain exports as it did when it was first discovered in the United States two years ago.
U.S. corn purchases from Japan have only started to return to normal this year, while South Korean food processors have continued to shun U.S. corn for food use.Reuters:
