By Nao Nakanishi
SINGAPORE, Sept 7 (Reuters) - Gene-spliced Starlink corn, the subject of a massive food recall last year, continuesto haunt some Asian consumers who have little intention to switch back to U.S. maize any time soon, industry officials say.
Though U.S. grains officials say the probability of Starlink contamination in the new crop is very very small, starch makers in Japan or South Korea are unfazed.
They say they do not want to take any risk, with consumers in their countries now more averse than ever to any genetically modified organisms (GMOs), not only Starlink.
``We don't consider buying U.S. corn for another year or so,'' said Kim Bong-Chan of South Korean starch producer Samyang Genex Corp .
``Customers in Korea have bad feeling to all GM products...We think corn from the U.S. or Argentina contain GM corn,'' said Kim, who is manager of the company's planning development team.
Reiichiro Sakamoto from Japan's Oji Cornstarch Co. Ltd agreed, saying: ``We don't import U.S. corn...In practice, we can not use any GM corn, not only Starlink.''
Both Oji and Samyang now buy corn from China, Brazil or South Africa. They are also reluctant to buy from Argentina, the world's number two corn exporter known for other GM maize.
Kim and Sakamoto, the vice director of Research and Development Laboratory, were one of about 100 participants at a
conference on biotechnology organised by the U.S. Grains Council.
US DAMAGE SMALLER THAN FEARED
Starlink, made by European drug giant Aventis SA , triggered a U.S. food recall last year after its traces were discovered in food, such as taco shells. Washington allows it only for animal feed due to possible allergic reactions.
In South Korea, Starlink is also only allowed for animal feed, while in Japan, the world's top corn importer, it is not permitted for animal or human consumption.
U.S. grains officials say, however, damages from Starlink in terms of trade volume for the United States, the world's top exporter, so far had been smaller than initially feared, and is hopeful that it will become even less in the new season.
``The probability (of Starlink contamination) is less than last year, quite a bit less,'' Chris Schaffer of the U.S. Grains Council told Reuters.
``We have 230 million tonnes of corn coming from next month. Out of that 230 million tonnes, there should be very little to no Starlink. No Starlink is grownknowingly,'' he said.
While Starlink trimmed U.S. share in Japan's 16 million tonne market to about 90 percent from the usual 95 percent last year, the country maintained its share in South Korea that imports some eight million tonnes per year.
Due to falls in Chinese exports, the United States sold more corn into the South Korean feed market, which has offset a drop to 50 percent in the share of the two million tonne starch market from the usual 90 percent, he said.
SEGREGATION COSTS A LOT
But Asian corn buyers have complained over high costs needed to avoid GMOs, such as Starlink, including costs for tests and segregated shipment.
Some are also worried whether they can get hold of enough non-GMO corn in the future, particularly as it is uncertain whether China will continue exportingthe grain.
``We're worried about the supply of Starlink/GMO-free corn,'' said Kim of Samyang Genex. It was fine the past year as the cattle herd in the world shrank due to the mad cow disease that raged in Europe, but things might change.
Sakamoto of Oji Cornstarch said: ``Prices for U.S. corn have gone up by more than 50 percent because of IP (Identity Preserved) Handling. And still there's no guarantee (that it contains no Starlink).''
``South African corn is expensive. But it isn't that bad...With U.S. corn, we are always worried that it might not pass (the quarantine),'' he said.:
