Latest news with #MeiMeiChu
Yahoo
30-04-2025
- Business
- Yahoo
China ramps up GM corn planting, but state controls, patchy trials keep industry guessing
By Mei Mei Chu and Ella Cao BEIJING (Reuters) -China will plant four to five times more genetically modified (GM) corn this year than last, analysts and executives say, building momentum in a rollout that has been slowed by tight state controls, public scepticism, and mixed trial outcomes. After decades of caution, the world's top importer of corn and soybeans has in the past two years ramped up approvals of several GM seed varieties, touting biotech cultivation, or GM technology as a way to boost food security. China's GM corn planting area is on track to increase to between 40 million and 50 million mu (3.3 million hectares) this year from roughly 10 million mu in 2024, according to CITICS Research and three seed industry insiders, all of whom spoke on condition of anonymity due to the sensitivity of the matter in the country. While not directly tied to the U.S.-Sino trade war, the push to grow more GM corn could reduce China's need for imports, giving Beijing a new lever in its tariff battle with President Donald Trump. The U.S. last year supplied 15% of China's corn imports. Even with the increase in plantings, GM corn would still only account for 7% of China's total corn acreage, compared with over 90% in agricultural heavyweights such as the United States or Brazil. China could quickly reach similar levels by embracing GM technology, however Beijing has tended towards caution in the face of ingrained scepticism from consumers and farmers. The government tightly manages seed sales and planting through controls that industry executives say make planning difficult and that have left domestic seed companies sitting on a glut of seeds. "Market adoption hinges on two key factors: demonstrated yield and cost benefits for farmers, and Beijing's ability to align commercial rollout with persistent public scepticism," said Matthew Nicol, senior analyst at research group China Policy. DISAPPOINTING TRIALS China imports over 100 million metric tons of corn and soybeans each year, mostly GM varieties for animal feed, predominantly from Brazil and the U.S., while cultivating non-GM crops locally for food consumption. Crops genetically modified for higher yields or resistance to drought and pests could boost yields by 6-13%, according to estimates from analysts and one seed official. However, several recent GMO trials resulted in lower yields, disappointing some farmers already sceptical about the technology, according to the three sources familiar with the rollout, putting progress at risk. Some regions where first-generation GM corn trials were planted during 2022-2023 saw 10-20% yield declines, the sources said. The problems arose from seeds only partially suited to local conditions, or rushed to market without enough backcross breeding - where a hybrid plant is crossed with a parent plant to develop desired traits, the three industry sources said. The results of those trials have not been made public. China's Ministry of Agriculture and Rural Affairs did not reply to a request for comment. "If seed firms fail to improve agronomic performance yields, even in trial conditions, Beijing's GM strategy could face a credibility issue, prolonging adoption timelines," Nicol said. Some farmers seeking higher yields, meanwhile, have turned to illegal GM seeds or conventional hybrid seeds, two of the sources said. "The prevalence of illegal GM corn in the northeast, as reported by industry insiders ... underscores the latent demand for advanced traits," Nicol added. The agriculture ministry this month called for provinces to crack down on illegal production and sale of GM seeds. As GM seed planting moves from small pilot plots to large-scale planting, yields could initially fall as farmers cannot devote as much time to individual plants, said Even Rogers Pay, an agriculture analyst at Trivium China. It will take time to adapt to new varieties, she added. "Regulators will hit the brakes on that plan if any significant issues arise," Pay said. "But assuming the new varieties continue to show an advantage over what was getting planted before, it's fair to expect that acreage will continue to expand. The proverbial genie is not going back into the bottle."
Yahoo
17-03-2025
- Business
- Yahoo
US meat exports at risk as China lets registrations lapse
By Mei Mei Chu BEIJING (Reuters) -Export registrations for more than 1,000 U.S. meat plants granted by China under the 2020 "Phase 1" trade deal lapsed on Sunday, China's customs website showed, threatening U.S. exports to the world's largest buyer amid an ongoing tariff standoff. The registration status for pork, beef and poultry plants across the U.S., including some owned by major producers Tyson Foods, Smithfield Packaged Meats and Cargill Meat Solutions, was changed from "effective" to "expired", according to the website of China's General Administration of Customs. Reuters reported on Friday that these registrations were at risk of lapsing. The expiration of roughly two-thirds of the total registered facilities could restrict U.S. market access and lead to losses of roughly $5 billion, adding to the challenges faced by American farmers after Beijing imposed retaliatory tariffs on some $21 billion worth of American farm goods this month. Registrations for around 84 U.S. plants lapsed in February and while shipments from these plants continue to clear customs, it is uncertain how long China will allow imports. Beijing requires food exporters to register with customs to sell in China. The U.S. Department of Agriculture has said China did not respond to repeated requests to renew plant registrations, potentially violating the Phase 1 trade agreement. Under the Phase 1 trade deal, China is obligated to update its approved plant list within 20 days of receiving updates from the USDA. China's customs department did not immediately respond to faxed questions from Reuters. In 2024, the U.S. was China's third-largest meat supplier by volume, trailing Brazil and Argentina, accounting for 590,000 tons or 9% of China's total meat imports. U.S meat shipments to China reached $2.5 billion last year, making it the second largest exporter by value. Loss of access to China would be an especially hard blow for exporters of parts like chicken feet and pork offal, which are consumed less domestically. Smithfield Foods CEO Shane Smith last week said tariffs had made it tougher for the biggest U.S. pork processor to sell all parts of a pig. Smithfield does not export material amounts of meat to China, but ships offal products, such as pig stomachs, hearts and heads, Smith said.
Yahoo
17-03-2025
- Business
- Yahoo
US meat exports at risk as China lets registrations lapse
By Mei Mei Chu BEIJING (Reuters) - Export registrations for more than 1,000 U.S. meat plants granted by China under the 2020 "Phase 1" trade deal lapsed on Sunday, China's customs website showed, threatening U.S. exports to the world's largest buyer amid an ongoing tariff standoff. The registration status for pork, beef and poultry plants across the U.S., including major producers Tyson Foods , Smithfield Packaged Meats and Cargill Meat Solutions was changed from "effective" to "expired", according to the website of China's General Administration of Customs. The expiration of roughly two-thirds of the total registered facilities could restrict U.S. market access and incur significant losses to a roughly $5 billion trade, a fresh affront to American farmers after Beijing earlier this month imposed retaliatory tariffs on some $21 billion worth of American farm goods. Beijing requires food exporters to register with customs to sell in China. The U.S. Department of Agriculture has said China did not respond to repeated requests to renew plant registrations, potentially violating the Phase 1 trade agreement. Under the Phase 1 trade deal, China is obligated to update its approved plant list within 20 days of receiving updates from the USDA. Registrations for some 84 U.S. plants lapsed in February and while shipments from these affected plants continue to clear customs, the industry doesn't know for how long China will allow imports. China's customs department did not immediately respond to faxed questions. In 2024, the U.S. was China's third-largest meat supplier by volume, trailing Brazil and Argentina, accounting for 590,000 tons or 9% of China's total meat imports.
Yahoo
15-03-2025
- Business
- Yahoo
China access for hundreds of US meat exporters in doubt as Trump 1.0 deal nears end
By Tom Polansek, Mei Mei Chu and Laurie Chen CHICAGO/BEIJING (Reuters) - Hundreds of U.S. meat plants granted access to China in a 2020 "Phase 1" trade deal with President Donald Trump are set to lose export eligibility on Sunday, threatening roughly $5 billion in trade to the world's largest meat market amid a renewed trade war. Losing access to China would deal a fresh blow to American farmers after Beijing earlier this month imposed retaliatory tariffs on some $21 billion worth of American agricultural goods, including 10% duties on U.S. pork, beef and dairy imports. Beijing requires food exporters to register with customs to sell in China. Registrations for almost 1,000 beef, pork and poultry plants, including some owned by Tyson Foods and Cargill Inc, are set to expire on Sunday, according to U.S. Department of Agriculture (USDA) records and Chinese customs data. That's roughly two-thirds of all those registered. The companies declined to comment or did not respond to Reuters questions. China has not responded to repeated requests from U.S. agencies to renew plant registrations, the USDA said in a report last week, potentially violating an obligation under the Phase 1 deal. Registrations for some 84 plants lapsed in February and while shipments from affected plants continue to clear customs, the industry doesn't know for how long China will allow imports. "The risk involved in shipping product with a looming expiration date is high," Joe Schuele, spokesperson for the U.S. Meat Export Federation told Reuters. "The situation is certainly dire if [registrations for] these plants are not renewed. The situation has the attention of every exporter." The USDA has made the expirations a priority issue in discussions with Beijing, Schuele added. Shanghai port has also imposed stricter inspections and documentation for U.S. meat cargoes, the Federation told members in a bulletin seen by Reuters, with some containers subject to full unpacking and inspection, raising processing time and additional fees. To be sure, there are no signs to suggest that Beijing is imposing a blanket ban. Several hundred plants have had their registrations renewed until 2028 or 2029, according to a senior diplomat based in Beijing. The U.S. was China's third largest meat supplier last year after Brazil and Argentina, accounting for 590,000 tons or 9% of total imports. The USDA and the Office of the U.S. Trade Representative did not respond to questions from Reuters on Thursday. China's Commerce Ministry and customs department did not respond to faxed questions. China's foreign ministry redirected questions to other agencies without naming any. The "Phase 1" trade deal, signed in 2020, ended the first U.S.-China trade war with a pledge from Beijing to boost its purchases of U.S. goods and services, including meat, by $200 billion over two years. China didn't reach the target, which was agreed shortly before the pandemic hit. That year, 1,124 beef, poultry and pork processing plants or logistic facilities were registered with Chinese customs for export, according to USDA, gaining access to the world's largest meat importer. There are 1,842 facilities certified today, but slightly less than half will remain if Sunday's batch of registrations lapse. China is obligated under the Phase 1 deal to revise its approved plant list within 20 days of receiving updated lists from USDA's Food Safety and Inspection Service, according to the Meat Institute, an industry group for U.S. meat processors. It is unclear whether the current delays constitute a violation of the deal. The potential impact from lapsed licenses could total up to $4.13 billion for the beef industry and $1.3 billion for pork, the U.S. Meat Export Federation said in a daily bulletin. Loss of access to China would be an especially hard blow for exporters of parts like chicken feet and pork offal, which are consumed less domestically.
Yahoo
14-03-2025
- Business
- Yahoo
China access for hundreds of US meat exporters in doubt as Trump 1.0 deal nears end
By Tom Polansek, Mei Mei Chu and Laurie Chen CHICAGO/BEIJING (Reuters) - Hundreds of U.S. meat plants granted access to China in a 2020 "Phase 1" trade deal with President Donald Trump are set to lose export eligibility on Sunday, threatening roughly $5 billion in trade to the world's largest meat market amid a renewed trade war. Losing access to China would deal a fresh blow to American farmers after Beijing earlier this month imposed retaliatory tariffs on some $21 billion worth of American agricultural goods, including 10% duties on U.S. pork, beef and dairy imports. Beijing requires food exporters to register with customs to sell in China. Registrations for almost 1,000 beef, pork and poultry plants, including some owned by Tyson Foods and Cargill Inc, are set to expire on Sunday, according to U.S. Department of Agriculture (USDA) records and Chinese customs data. That's roughly two-thirds of all those registered. The companies declined to comment or did not respond to Reuters questions. China has not responded to repeated requests from U.S. agencies to renew plant registrations, the USDA said in a report last week, potentially violating an obligation under the Phase 1 deal. Registrations for some 84 plants lapsed in February and while shipments from affected plants continue to clear customs, the industry doesn't know for how long China will allow imports. "The risk involved in shipping product with a looming expiration date is high," Joe Schuele, spokesperson for the U.S. Meat Export Federation told Reuters. "The situation is certainly dire if [registrations for] these plants are not renewed. The situation has the attention of every exporter." The USDA has made the expirations a priority issue in discussions with Beijing, Schuele added. Shanghai port has also imposed stricter inspections and documentation for U.S. meat cargoes, the Federation told members in a bulletin seen by Reuters, with some containers subject to full unpacking and inspection, raising processing time and additional fees. To be sure, there are no signs to suggest that Beijing is imposing a blanket ban. Several hundred plants have had their registrations renewed until 2028 or 2029, according to a senior diplomat based in Beijing. The U.S. was China's third largest meat supplier last year after Brazil and Argentina, accounting for 590,000 tons or 9% of total imports. The USDA and the Office of the U.S. Trade Representative did not respond to questions from Reuters on Thursday. China's Commerce Ministry and customs department did not respond to faxed questions. China's foreign ministry redirected questions to other agencies without naming any. The "Phase 1" trade deal, signed in 2020, ended the first U.S.-China trade war with a pledge from Beijing to boost its purchases of U.S. goods and services, including meat, by $200 billion over two years. China didn't reach the target, which was agreed shortly before the pandemic hit. That year, 1,124 beef, poultry and pork processing plants or logistic facilities were registered with Chinese customs for export, according to USDA, gaining access to the world's largest meat importer. There are 1,842 facilities certified today, but slightly less than half will remain if Sunday's batch of registrations lapse. China is obligated under the Phase 1 deal to revise its approved plant list within 20 days of receiving updated lists from USDA's Food Safety and Inspection Service, according to the Meat Institute, an industry group for U.S. meat processors. It is unclear whether the current delays constitute a violation of the deal. The potential impact from lapsed licenses could total up to $4.13 billion for the beef industry and $1.3 billion for pork, the U.S. Meat Export Federation said in a daily bulletin. Loss of access to China would be an especially hard blow for exporters of parts like chicken feet and pork offal, which are consumed less domestically.
