The Chinese government has suspended issuance of permits to import American-produced animal feed ingredients made from corn, according to three trading executives who talked of the development with Bloomberg BusinessWeek.
The trio, whose applications were denied, said that effective June 6, U.S. shipments of dried distillers’ grains, which are known in the industry as DDGS, can no longer exported into the country because the Chinese government has declared them to have a high risk of contaminating MIR 162, a GMO strain that China hasn’t approved, the executives – who asked not to be identified because they were not permitted to speak to the media – told BusinessWeek.
The report continued:
China is the largest buyer of the by-product produced when corn is stripped of starch for ethanol production. While U.S. corn shipments into the country plunged amid restrictions on the MIR 162 variety, imports of DDGS continued to rise because some port officials had been lenient, said Sylvia Shi, an analyst at Shanghai JC Intelligence Co.
‘Not a total surprise’
“It looks like the government is determined to stop any form of corn imports from the U.S.,” said Shi, whose company is based in Shanghai.