China may begin purchasing corn from Argentina as China's demand increases and Argentina's genetically modified varieties gain approval, according to Norberto Yauhar, Argentina's agriculture minister.
Argentina has already been listed as an approved supplier, but must demonstrate to China that its genetically modified corn is sourced from approved varieties. A second challenge may involve Argentina's supplies, as the country's output has been reduced by drought, according to Yauhar. Argentina’s corn harvest may shrink to about 21.5 million metric tons in the year that ends Sept. 30, from 23.6 million metric tons in the previous year, while exports will drop to 14 million metric tons from 16 million metric tons, according to the U.S. Department of Agriculture.
Corn imports by China may advance 35 percent as an increase in meat demand boosts consumption of grains to feed chickens and pigs. Corn consumption rose 53 percent in the past decade as demand grew 41 percent for poultry and 27 percent for pig meat, according to the USDA.
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