BEIJING, China - November 2, 2010 - China's quarantine bureau confirmed on Tuesday it had discovered traces of an unapproved genetically modified organism (GMO) in a U.S. corn cargo and had refused it entry into China.
"A genetically-modified element which is not approved by the Agriculture Ministry has been identified in the cargo and according to the relevant State Council regulation, the cargo will be returned," an official with the Shenzhen Entry-Exit Inspection and Quarantine Bureau said, confirming an earlier Reuters report.
The official declined to identify the buyer of the cargo, but said the unapproved GMO strain was MON89034.
One trading manager at a feed mill in Guangdong said the cargo belonged to Chinese Overseas Shipping Company, Ltd. (COSCO), which bought on behalf of several feed mills in the province.
The cargo arrived at the port of Chiwan in September and was discharged into silos at ports, but feed mills were not allowed to take the goods, said the manager, who is one of the end-users.
"We have paid COSCO for delivery at port in Guangdong, but now we are not allowed to take the goods," said the manager, who declined to be identified.
China, the world's second largest consumer, has booked the largest volume of U.S. corn in a decade after tight supply drove up domestic prices higher than U.S. prices in the first half of the year.
The official said the cargo was most likely resold to the overseas market. COSCO bought the cargo from a Japanese trading house, Mitsubishi Corp, according to three trading sources.
Traders from both companies could not be immediately reached for comment, and both companies had earlier declined to comment on the Reuters story.