BEIJING, June 9 Quarantine authorities in China
have stopped issuing permits for the import of distillers dried
grains (DDGs) from top exporter the United States due to the
presence in some shipments of an unapproved genetically-modified
organism (GMO), traders said.
Authorities have also asked buyers to re-export earlier
shipments that contained MIR 162, a GMO strain developed by
Syngenta AG that has not been approved for import by
China's agriculture ministry.
Qingdao, the country's largest port for DDGs, stopped
issuing new permits for shipments last month to any buyers who
had still not shipped out any cargoes previously denied entry by
"Now it is countrywide. Quarantine authorities stopped
issuing import permits last Friday," said one trading manager
with a major buyer.
"They asked us to take those rejected shipments away first,"
said the manager, who declined to be identified as he is not
authorized to speak to media.
Shipments denied entry over the presence of the unapproved
GMO have until now been stored in bonded warehouses.
Analysts said authorities have required buyers to remove some
250,000 tonnes of U.S. DDGs denied entry into China due to the
presence of MIR 162 and stored at major ports.
Quarantine authorities declined to comment on the matter
when reached by telephone.
Chinese importers have been reluctant to re-export those
shipments partly because it is hard to find overseas buyers.
China is the world's largest buyer of DDGs, a protein-rich
by-product of corn-based ethanol that is used as livestock feed.
China's imports of DDGs hit a record high in April at
613,678 tonnes, a rise of 252 percent from a year ago, with
buyers undeterred by government scrutiny since late December,
when authorities rejected more than 2,000 tonnes of the grains.
China has also rejected in aggregate since late last year
more than 1 million tonnes of U.S. corn due to the presence of
Expectation of falling imports have supported domestic
rapeseed meal prices, the most-active September 2014 contract
rose 2.73 percent to more than one-month high at 3,045
yuan ($490) per tonne.
($1 = 6.2379 Yuan)
(Reporting by Niu Shuping and David Stanway; Editing by Tom