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China, US reach no accord in distiller's grain dispute, cargo blocked
DESPITE talks with US officials, China will not accept American distillerˇs dried grain (DDGs), because of its genetically-modified content though it meets stringent EU standards.
The largely containerised commodity is worth US$1.3 billion in trade so far this year, two industry sources told Reuters.
US Department of Agriculture (USDA) and Chinaˇs General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), have met to discuss testing procedures for DDGs exported to China, but could not agree on methods.
"There is no agreement. It will be good if both sides apply same testing methods, which should be economic and efficient," said one source familiar with the discussion.
China has turned away 1.25 million tonnes this year after discovering the presence of an unapproved genetically-modified (GMO) strain known as MIR 162, developed by Syngenta.
Cargill is taking legal action against the Swiss-based seed maker, claiming that Syngentaˇs failure to win Chinese approval has cost the American grain giant millions of dollars.
China DDGs must beMIR 162 free. The rule originally applied to shipments departing after July 24, but the cut-off date was then postponed to August 18.
The Chinese side prefers polymerase chain reaction (PCR) testing, which is more sensitive to genetic material, but is also time-consuming and expensive, said the source. Both sides would continue talks, but there is no scheduled timetable, he said.
Said one Chinese buyer: "Since there is no agreement, we are considering not paying supplier for the cargoes already on the way."
The largely containerised commodity is worth US$1.3 billion in trade so far this year, two industry sources told Reuters.
US Department of Agriculture (USDA) and Chinaˇs General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), have met to discuss testing procedures for DDGs exported to China, but could not agree on methods.
"There is no agreement. It will be good if both sides apply same testing methods, which should be economic and efficient," said one source familiar with the discussion.
China has turned away 1.25 million tonnes this year after discovering the presence of an unapproved genetically-modified (GMO) strain known as MIR 162, developed by Syngenta.
Cargill is taking legal action against the Swiss-based seed maker, claiming that Syngentaˇs failure to win Chinese approval has cost the American grain giant millions of dollars.
China DDGs must beMIR 162 free. The rule originally applied to shipments departing after July 24, but the cut-off date was then postponed to August 18.
The Chinese side prefers polymerase chain reaction (PCR) testing, which is more sensitive to genetic material, but is also time-consuming and expensive, said the source. Both sides would continue talks, but there is no scheduled timetable, he said.
Said one Chinese buyer: "Since there is no agreement, we are considering not paying supplier for the cargoes already on the way."
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