JOHANNESBURG: South Africa approved imports of genetically modified corn from the US for the first time after its worst drought since records began 104 years ago cut local output. The nation will allow both white and yellow GM corn from the US to be brought in, Dirk Kok, a spokesman for the secretariat of the Pretoria-based South African Cereals and Oilseeds and Trade Association, said in an interview on Monday. A call to the government’s Department of Agriculture, Forestry and Fisheries outside of normal office hours wasn’t answered. “The door is open to imports from the US,” said Kok, whose organization represents grain and oilseed traders. Local “prices will come down,” he said.
The country became a net importer of corn in the season that ended in April for the first time since 2008 this year after the drought slashed the total harvest by about a quarter to 7.97 million tons, the least in a decade. While rains in the current season are improving prospects for the next crop, concerns about supply of the white variety, used to make a local staple porridge known as pap, persist because this type is only widely produced in southern Africa and Mexico. White corn surged to a record R5 296 ($385) a metric ton in January and has fallen 27 percent since. The yellow type, used for animal feed, reached a high of R3 915 rand a ton in June and has dropped 20 percent.
The decision “is critical,” Wandile Sihlobo, the head of economic and agribusiness intelligence at the Agricultural Business Chamber, said by phone from Pretoria, the capital. “We are going to see a stronger correlation between the yellow-maize price and the US price. The reaction of the South African farmers is going to be interesting.” Maize is another term for corn. By the end of April, South Africa may import 300 000 tons of GM white corn from the US and 500 000 tons of yellow corn, he said.
South Africa imported 555 241 tons of white corn between May 1 and November 25, or 65 percent of the forecast amount for the season ending April 30, according to the Agricultural Business Chamber. Almost all of that came from Mexico.“This will allow US corn, both white and yellow, to ship into South Africa fairly easily,” Cary Sifferath, senior director of the Washington-based US Grains Council, said by phone. “In the short term, as they wait for harvest in late April to May, there could be some need for some additional white-corn imports.”
