Yesterday, Brazil became the first country to import flour made from genetically modified wheat. Due to the resistance of Brazilian millers and global consumers, however, larger deliveries of the new variety developed in Argentina are unlikely in the foreseeable future.
The act could spark a broad global discussion about genetically modified wheat as grain prices rise and concerns grow that weather extremes threaten food security. Genetically modified (GMO) soybeans and corn have long been accepted in world markets, but are mainly fed to livestock and not used for human consumption.
The Brazilian biosafety agency CTNBio said their unanimous import decision only applies to wheat flour. Milling companies had threatened to boycott Argentine grain. You want to take legal action to reverse the flour decision.
"The decision was made by a technical department and now it depends on what the Brazilian market wants.It looks like consumers in Brazil don't want GMO wheat, "said Gustavo Idigoras, head of the Argentine Grain Export Chamber CIARA-CEC.
Abitrigo, Brazil's Association of Grain Millers, said it would ask the president's office to convene a national biosecurity committee to review the decision. It said it was also examining legal options to suspend the decision.
The group had already threatened to stop buying Argentine wheat if sales of the drought-resistant wheat were approved in Brazil. The association promised to turn to other countries to import wheat.
“That could mean an increase in demand for US wheat if they refuse to buy wheat from Argentina. A reaction from consumers would force a decision, ”said Arlan Suderman, Chief Economist for Commodities at StoneX. "Ultimately, it comes down to the consumer. What is the consumer willing to accept?"
U.S. wheat futures hit their highest level in nearly nine years on Thursday due to tight global supplies, while European wheat futures climbed to a 13-1 / 2-year high.
US Wheat Associates, which promotes US wheat exports, has not yet issued a statement. The group had previously announced that it would only support commercialization after approval in key markets and the establishment of rules for dealing with low levels of GMO wheat mixed with non-GMO wheat.
Only a fraction of the Argentine farms have tried the drought-resistant wheat variety and the common herbicide ammonium glufosinate developed by Bioceres, whose partner Tropical Melhoramento Genético submitted the application to CTNBio.
A Bioceres employee said it would seek approval from other key markets before commercializing the GMO wheat.
Around 55,000 hectares in Argentina were experimentally planted with GMO wheat.
Argentine grain exporters have asked their government to publish which farmers are growing GMO wheat so that they can stop buying from these areas.
Santiago del Solar, who grows wheat in Argentina's bread basket province of Buenos Aires, said the final decision is in the hands of Brazilian millers and consumers.
"It's okay that regulators said yes, but we're selling wheat to the milling industry and consumers. If they don't accept GMO wheat, we still have a big, big problem," said del Solar.
Argentina exported a total of 8.424 million tons of wheat by October 19 of this year, around 50% of which to Brazil, which relies on its southern neighbors for most of its wheat imports.
Argentine farmer Francisco Santillan, who also grows wheat in Buenos Aires province, said he will wait to see if other countries approve imports of the wheat variety before starting to grow it.
"I think it is reasonable, no matter what Brazil accepts, to wait a year to see how the problem develops in other countries that buy wheat from us," he said.
Source
Hansa Terminhandel GmbH