3-Food: South Africa plans to import GE-free white maize from the U.S.

[GENET <genetnl@xs4all.be>]

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TITLE:  S.Africa imports US white maize, maybe more
SOURCE: Reuters, by Allan Seccombe
DATE:   February 13, 2002

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S.Africa imports US white maize, maybe more

South Africa traditionally imported maize from Argentina and the U.S., but 
the presence of genetically modified organisms (GMOs) in maize from those 
two countries put a stop to shipments, AFMA's Hansie Bekker said. The NDA 
should speed up the approval of applications to import GM maize to help 
push down local prices, he said. An application was submitted in 1999 to 
the NDA to import BT11 GM maize from Argentina, but approval had not yet 
been received.

JOHANNESBURG - South Africa will receive a shipment of about 30,000 tonnes 
of white maize from the United States in March as local buyers look for 
cheaper grain, stabilising maize meal price hikes, a trader said on 
Wednesday. "The deal is done. One cargo has been done of 25,000 to 30,000 
tonnes of white maize from the States. It should arrive here in March," 
said a trader who declined to be named. "There may be one or two more 
cargoes but it depends on what Safex (South African Futures Exchange) 
prices do," the trader told Reuters. 

Coastal millers buying U.S. white maize would save about 150-200 rand a 
tonne. "If a lot of mills exporting flour claim a rebate on import duty 
then inland millers could also save that kind of money," he said. According 
to the South Africa Grain Information Service website, the current maize 
import tariff is 137.40 rand a tonne. 

The price of maize meal has been pushed sharply higher by soaring maize 
prices and the imports would hopefully stabilise price increases passed 
onto consumers, said Hilton Zunckel, the assistant executive director at 
the National Chamber of Millers. "Maize supplies are fairly tight and we 
will cross into the new season (marketing year) with very limited stock," 
Zunckel told Reuters. "Local maize prices are high and we are following the 
rules of the market and going where prices are lower." 


U.S. BEST OPTION

Millers had looked closer to home for maize, he said, but the U.S. offered 
the best option. Kenya was reported to have white maize for export, but the 
logistics to bring it to harbours were too expensive, Zunckel said.  Mexico 
was also considered, but there was doubt whether maize export permits would 
be granted by authorities who were trying to balance their domestic supply 
and demand, he added. South Africa's National Department of Agriculture 
(NDA) was approached to get clearance for the import of white U.S. maize. 
White maize is a human staple for millions of South Africans. Yellow maize 
is predominantly used for animal feed. 

The trader said he was confident the U.S. product would not contravene 
South Africa's tight controls on imports of genetically modified (GM) 
commodities. "The white maize from the U.S. is GM free. It is not a GM 
product. The product will be tested to be less than one percent GM. 
Preliminary tests show the product to be a lot less than one percent," he 
added.

South African maize prices have soared because of a perceived shortage 
going into the new marketing year with uncomfortably low stocks after heavy 
demand for the country's maize from southern African states where crops 
have failed because of adverse weather and political turmoil. Near-month 
white maize futures contracts spiked above 2,000 rand ($174.2) a tonne at 
the start of February, but have come down to around 1,860 rand a tonne. 
South Africa produced 7.2 million tonnes of maize for the 2001/02 (May to 
April) marketing year compared to a bumper 10 million tonnes before. The 
latest crop planting data indicates South Africa may produce around eight 
million tonnes of maize in the current growing season. 

The Animal Feed Manufacturers Association (AFMA) has said its members are 
also considering importing yellow maize because of high domestic prices. 
South Africa traditionally imported maize from Argentina and the U.S., but 
the presence of genetically modified organisms (GMOs) in maize from those 
two countries put a stop to shipments, AFMA's Hansie Bekker said. The NDA 
should speed up the approval of applications to import GM maize to help 
push down local prices, he said. An application was submitted in 1999 to 
the NDA to import BT11 GM maize from Argentina, but approval had not yet 
been received.

($1-11.480 Rand)



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