US farmers opting for conventional crops as GM plantings stagnate

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Publish time: 15th March, 2016      Source: www.cnchemicals.com/
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March 15, 2016

   

   

US farmers opting for conventional crops as GM plantings stagnate

   
   
   

Genetically modified (GM) cropplantings in the US seems to have realised its zenith after recording 94% for its share in soybean cultivations in 2015/16, a similar percentage from a year earlier, the Nikkei Asian Review reported.

   

   

However, the GM percentage for corn declined to 92% from a previous 93%. Meanwhile, farmers, especially soybean planters, are compelled to plant more conventional varieties due to special premiums which have become "more appealing amid a soft crop market," said a representative for general trading house, Kanematsu.

   

   

Other than the more time-consuming and labour-intensive process of planting and harvesting involved, non-GM products in the Chicago commodities market can qualify for premiums which have increased in recent times. Premiums for North American soybeans are usually in the mid-US$2 level per bushel, four times the level from a decade ago.

   

   

The potential rise in demand for non-GM products could also be another factor for the switch. These interests are reflected in Mitsui & Co.''s acquisition of a 50% stake in a US grain handler that deals mainly with non-GM food. Mitsui expected the market for such to grow 5% to 10% yearly, according to Nikkei.

   

   

Closer to the heart of the US sector, ADM revealed in February that it would invest in Harvest Innovations which produces foods from non-GM soybeans.

   

   

Japan''s National Federation of Agricultural Cooperative Associations, or Zen-Noh, has also partnered with a US seed company to provide American farmers the most advanced non-GM seeds.

   

   

However, sourcing from non-GM plantings remains a challenge, said Junji Torigoe, president of Sagamiya Foods.

   

   

Only a few farmers have ditched GM cultivations while associated premiums remain high.

   

   

- Nikkei