Biotech ban may limit US trade
The United States is expecting record harvests but EU rules against biotech-derived crops may force Europe to turn to South American sources to make up the differences.
“Unfortunately, without a workable approval process for grains derived through biotechnology, the EU is limited in its potential sources for corn,” says Ken Hobbie, US Grains Council president and CEO. “They are likely to turn to South American sources, reducing the amount of feed grains from those origins available to other importers.”
According to reports, the EU corn crop will be down 8.7 million metric tons (342.5 million bushels) compared to 2006, with the majority of the loss in Romania and Hungary where drought is blamed for harvests estimated to be 50% lower than last year. Untimely rains in France, Germany and the United Kingdom damaged much of the wheat crop in those countries, already stressed by earlier heat waves.
The USDA has estimated the EU will need to import 6 million tons (236.2 million bushels) of corn and 1 million tons (39.4 million bushels) of sorghum, increasing competition for these grains on the international market. (farmersguardian.com)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.