Australia canola exporters wary of China GM system
Date: 27-Feb-02
Country: AUSTRALIA
Author: Michael Byrnes
Australian exporters see only limited short-term opportunities to cash in on uncertainties over exports of genetically modified (GM) Canadian canola to China, as the March 20 date for implementation of China's GM import system approaches.
"People are reluctant to sell to China until they see something firm from the Chinese government on what their (GM) requirements are," one exporter said.
A decision by Canada last week to stop a 55,000 tonne Panamax shipment of canola leaving for China had Australian exporters buzzing this week, but they weren't rushing to fill the trade hole.
Canada's canola crop is largely GM, with segregation issues making it virtually all GM in world trade terms.
This would seem to put it particularly at risk from China's complicated new approval process, which requires all GM imports be certified safe to humans, animals and the environment. But Australia's freedom from commercial GM canola crops, with only limited GM field trials being carried out, does not automatically open the door for Australian exports to China.
Like the Canadians, Australian canola exporters are reluctant to put canola cargoes on the water to China for fear of them being blocked and left unloaded at Chinese ports, traders said.
SALES TO PAKISTAN, BANGLADESH, JAPAN
They cited a lack of exact documentation from Chinese authorities on exactly what documentation they required from exporters. They also raised serious doubts that Australian authorities would issue documents stating that cargoes were "GM-free", although they might make the lesser declaration that a cargo was not produced from a GM crop.
Also with limited supplies for export this season, Australia has refocussed canola export deals from its traditionally largest market, China, to Pakistan, Bangladesh and Japan.
Traders said Australia's canola sales to China from the latest April/March crop had been limited to around 150,000 tonnes, in three Panamax cargoes, well down on normal.
They estimate that China took 400,000-500,000 tonnes from Australia's 2000/01 canola crop. Two Panamax canola cargoes had left for China in recent weeks, with a third having either left or about to leave within days, to arrive before the March 20 deadline, traders said.
But the focus had switched to Pakistan, with sales of up to 400,000 tonnes, including some sales to Bangladesh, traders said.
Japan had bought around 350,000 tonnes of Australian canola.
This left most of the 1.1-1.2 million tonnes available for export from Australia's recently-harvested crop already placed, with probably only 100,000 tonnes on Australia's east side remaining to be allocated, traders said.
Australian exports of 150,000 tonnes to China would compare with limited exports by Canada of around 200,000 tonnes since August 1, 2001.
Australian canola exports in 2001/02 will be from a crop of 1.6 million tonnes.
This would be well down on exports of 2.0 million tonnes in 1999/00 from a crop of 2.5 million tonnes and less than exports of 1.3 million tonnes in 2000/01 from a 1.9 million tonne crop.
"From a trading point of view I would need some sort of assurance that the ship was not going to be held up, if I was doing cif into China," one trader said.
"It could be a sub-surface bargaining case," said another.
AUSTRALIA: Australia canola exporters wary of China GM system.
By Michael Byrnes
SYDNEY - China and international canola exporters are locked in a documentation duel which is grinding trade to a halt as a complicated new approval system nears for Chinese imports of genetically modified (GM) foods.
Australian exporters see only limited short-term opportunities to cash in on uncertainties over exports of genetically modified (GM) Canadian canola to China, as the March 20 date for implementation of China's GM import system approaches.
"People are reluctant to sell to China until they see something firm from the Chinese government on what their (GM) requir