GMO fears halt EU import of U.S. corn gluten feed

By Michael Hogan and Ivana Sekularac

HAMBURG Dec 21 (Reuters) - Imports of U.S. gluten feed to the European Union have been virtually stopped because of concern they might contain unapproved genetically modified organisms (GMOs), traders and industry associations said on Wednesday.

"Corn gluten shipments from the U.S. are at a standstill," one trader said. "The problem of unapproved GMOs is preventing business taking place."

The EU imported about 1.0 tonnes of corn gluten feed in the Sept. 2010/Oct. 2011 crop season, German analysts Oil World estimates. This is small compared to 24 million tonnes of soymeal and 13 million of soybeans imported for animal use, but the loss of 1 million tonnes will be painful to the feed industry which traditionally works with tight profit margins.

EU policy on GMO crops has long been politically fraught, with a majority of consumers opposed to modified foods. But the EU is reliant on imports of about 30 million tonnes of GMO animal feed each year and is compelled to legalise imports of new GMO crops to secure farm feed supplies.

As of August 2011 37 GMO crops were approved for import into the EU for either human use or animal feed, according European biotech association EuropaBio. However, 90 have been approved for markets in the United States.

With consumer resistance strong, the EU approval process for new GMO crops is much slower than in the U.S. and South America. This has disrupted international trade as American farmers grow and market new GMO crop types which are unapproved in the EU and so illegal to import.

"As yet another GMO corn event (crop type) has been approved in the U.S. and not yet in Europe, trading houses are not importing corn gluten in case the new variety appears in large volumes and the ship gets refused permission to unload," another trader said.

In autumn 2009, EU imports of U.S. soybeans were interrupted for several months after ships were refused permission to unload as they contained GMO crops approved in the U.S. but not in the EU.