May 21, 2025 | 09:05 GMT +7

  • Click to copy
Tuesday- 06:48, 24/10/2023

GMO seeds: Beijing’s approval sprouts new chapter for suppliers

(VAN) China’s food consumption has already outpaced domestic supply due to factors including increased urbanisation
Corn varieties have been developed by China National Seed Group, a unit of Syngenta Group, which was acquired by state-owned ChemChina in 2017. Photo: Bloomberg

Corn varieties have been developed by China National Seed Group, a unit of Syngenta Group, which was acquired by state-owned ChemChina in 2017. Photo: Bloomberg

China’s quest for self-sufficiency in semiconductors is widely discussed. But just as urgently, Beijing needs to address its growing imported food dependence as shortages loom. Approvals of seeds of genetically modified organisms (GMO) should boost production and suppliers.

Beijing has preliminarily approved 37 genetically modified corn seed and 14 soyabean seed varieties for planting. This marks a big change for a country long reluctant to allow local companies to grow GMO seeds commercially. Consumers have publicly opposed the technology.

But GMO seeds can increase much needed domestic yields. China is the world’s largest importer of soyabeans and corn, and should remain so for years as per capita consumption grows. Use of soyabean oil, for example, has more than quadrupled over the past two decades.

Both corn and soyabean are key ingredients in pig diets, and pork makes up nearly two-thirds of local meat consumption.

The approved list includes corn varieties developed by China National Seed Group, a unit of Syngenta Group, which was acquired by state-owned ChemChina in 2017, and soyabean varieties from local peer Beijing Dabeinong Technology Group.

Shares of the latter rose by the daily limit of 10 per cent on Wednesday. It now trades at 57 times forward earnings, a steep premium to local peers reflecting its growth potential.

China’s food consumption has already outpaced domestic supply due to factors including increased urbanisation. Also, global warming has affected farm output due to extreme weather. Rising geopolitical tensions with the US add urgency. The two largest US agricultural exports to China by value in 2022 were soyabeans at $18bn and corn at $5.3bn.

Early on, the market size of these modified seeds will probably start small. Yet the companies receiving early approvals will have a first-mover advantage over rivals. Moreover, a tightly regulated domestic market also ensures winners will not have to worry about global competitors.

HD

(FT)

Runaway rice prices spell danger for Japan’s prime minister as elections loom

Runaway rice prices spell danger for Japan’s prime minister as elections loom

(VAN) Attempts to bring down the price of the Japanese staple have had little effect amid a cost-of-living crisis.

Climate crisis threatens banana, world’s most popular fruit, research shows

Climate crisis threatens banana, world’s most popular fruit, research shows

(VAN) Fourth most important food crop in peril as Latin America and Caribbean suffer from slow-onset climate disaster.

Early nutrition research in poultry is speeding up

Early nutrition research in poultry is speeding up

(VAN) Shifting market dynamics and the noise around new legislation has propelled Trouw Nutrition’s research around early life nutrition in poultry. Today, it continues to be a key area of research.

Fears among India’s farmers rise over US food imports crossing ‘red line’

Fears among India’s farmers rise over US food imports crossing ‘red line’

(VAN) India is concerned about its food security and the livelihoods of its farmers if more US food imports are allowed.

FAO participates in ADB annual meeting, strengthens cooperation in key agricultural areas

FAO participates in ADB annual meeting, strengthens cooperation in key agricultural areas

(VAN) FAO's Director-General emphasises the need to work together to transform agrifood systems.

FAO warns: Enhanced awareness and action needed amid foot-and-mouth disease outbreaks in Europe and the Near East

FAO warns: Enhanced awareness and action needed amid foot-and-mouth disease outbreaks in Europe and the Near East

(VAN) Europe is facing its worst outbreak of foot-and-mouth since the start of the century.

Young talents need nurturing to drive rural vitalization

Young talents need nurturing to drive rural vitalization

(VAN) The central authorities, in early April, released a 10-year plan for rural vitalization.

Read more