A poll of canola buyers has downplayed the market’s concern over genetically modified crops, but this might be a bit of bravado.
The claim that buyers are not interested in GM-free canola is true only if you overlook the European market, estimated to import 550,000 tonnes of GM-free canola this year.
And even if the Canadian canola industry attempted to segregate GM from non-GM canola, there is little chance the system would work.
Europe’s extremely low tolerance for GM seed in non-GM grain is practically unattainable for Canadian growers because of pollen drift and the possibility of contamination during handling.
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Once a country goes down the GM path, it’s difficult to deviate from the track.
That’s why before Canada commits itself to another GM crop, it must carefully consider the implications.
The StarLink corn imbroglio shows how sensitive world markets are to the GM issue.
StarLink is a variety of corn that the United States approved for livestock feed but not for human consumption because of a possibility it would cause an allergic reaction in people.
StarLink was grown on less than one percent of U.S. corn fields, but because farmers were not given adequate instructions on the need to segregate it, the variety became generally commingled with the U.S. corn crop.
Traces of StarLink have been found in a host of food products such as taco shells, tortillas, chips and tostados, leading to a massive recall of food from American grocery shelves.
America’s largest corn customer, Japan, has not approved import of StarLink under any circumstance and buyers there were miffed at the mixup.
After a few days of confusion, exports to Japan continued on the condition that the U.S. would begin testing shipments to ensure there is no StarLink contamination.
The South Korean market also was shaken by the matter.
Grain market analysts say it appears the pace of American corn exports has slowed since the StarLink fiasco emerged. Buyers might be picking up alternative stocks from South America.
The U.S. can ill afford this. The USDA’s forecast of strong exports offset the price-depressing influence of a record large cro-10-P. If the export forecast has to be reduced, prices will fall.
While Canadian farmers can expect no problems selling their GM canola next year, they must appreciate that the global debate over GM food is far from settled.
