NTERVIEW-Monsanto aims to plant Bt corn in China
SHANGHAI, Oct 19 (Reuters) - U.S. biotechnology firm Monsanto hopes
to raise its acreage of genetically modified cotton and launch Bt
corn in China in the next few years, a senior executive of the
company in China said on Thursday. The New York-listed firm also
hoped to increase transfers of advanced farming technology and
management to ill-equipped Chinese farmers, Monsanto's government and
public affairs director David Shi told Reuters.
That would help the farmers prepare for foreign competition after
China enters the WTO, possibly within the next few months, and
increase demand for Monsanto's products in China.
"So far we only have Bt cotton, but we are interested in planting
corn too," Shi said. "We have been conducting Bt corn field tests for
about three years now."
Bt crops contain the bacterium Bacillus thuringienesis proteins and
are resistant to corn borers, bollworms and other pests that damage
cotton plants.
China planted 3.86 million hectares of cotton in 1999, down 15
percent year-on-year. Shi said 20 percent of it was genetically
modified and Monsanto's Bt cotton made up four percent of the total
acreage.
"In a few years, we expect half of China's cotton to be genetically
modified and Monsanto is aiming to plant 35 percent of the Bt
cotton," he said.
NO MORE BOLLWORMS
Shi said most of China's cotton planting centred around the Yellow
River and Yangtze River basins in the east and Xinjiang in the west.
"Xinjiang doesn't have so much of a bollworm problem, so most of the
Bt corn is planted in the eastern provinces like Shandong and Hebei,"
Shi said. "We already have permission to grow Bt corn in those two
provinces."
Monsanto was exploring Bt corn planting, which Shi expects happen in
the next two to three years.
"We already have the seeds available and are waiting for approval for
commercialisation," he said, adding that one of the vexing problems
was bio-tech safety.
Shi said China was aiming to capture more of the grains and meat
exports market, but foreign consumers were worried whether Bt corn
was fit for human consumption and animal feed, he said.
Other unresolved issues include consumer requests for labels on
genetically modified products, which companies were reluctant to do
because of the extra costs involved.
The controversy over the safety of genetically modified foods has
grown fierce, with firms like Monsanto saying biotechnology offers
better and hardier crops. Sceptics argue that the long-term effects
remain uncertain.
"Growers and companies have lots to benefit from genetically modified
crops, but consumers are still worried. They are unwilling to take
the extra risk, although we think the risk is very, very small," Shi
said.
Monsanto also hoped to cash in on Chinese membership of the WTO, Shi
said.
PITTING WITH FOREIGN GRAINS
China contributed less than one percent to Monsanto's 1999 sales of
$9.15 billion, up from $7.24 billion a year ago, Shi said.
Monsanto sees huge potential in the world's most populous country,
especially after it enters the WTO, but Shi declined to give any
growth figures.
China will have to cut duties on agricultural products once it
becomes a WTO member and that will threaten its vast army of farmers
producing grains like corn and soybeans which are more expensive and
of poorer quality than imports.
"Production efficiency is still pretty low in China and domestic
grain prices are normally higher than international prices," Shi
said.
"But once China opens up and relaxes on imports, then imported grains
will pose a threat to local grains," he said.
"Chinese farmers now earn only 400 yuan per mu (1/15 hectare). But
with our Bt technology, they could earn 300 yuan more per mu," he
said.
((Shanghai Newsroom: (86) 21-6355-4009; Fax 21-6355-5015
reutersh@uninet.com.cn)
Copyright 1999 Reuters Limited.