China to Allow Genetically Modified Seeds in Corn Production
- December 6, 2021
- Posted by: Quatro Strategies
- Category: Agribusiness
After China proposed new regulations last month that could open genetically modified (GM) seed to its $120 billion corn market, Dabeinong Biotechnology aims to gain the early mover advantage in an environment where the law prohibits the involvement of foreign firms.
With barriers on GM seed lifted, China, the world’s second largest corn producer, expects the yields to increase significantly. The move also raised hopes of a reform in the oversupplied seed market, which could eventually open up to global players.
The draft of regulations lay out the steps for approval of GM seeds, which could help open the market next year.
The Chinese government has said it would prioritize local companies, with Dabeinong’s product already approved as safe by the Ministry of Agriculture.
Dabeinong expects to have two thirds of the market share for the first two years because of early mover advantage together with the conviction of having the better technology.
Dabeinong Biotechnology was founded in 2011 as a unit of large animal feed producer, Beijing Dabeinong Technology Group. One of the senior executives of the parent company was sentenced to three years in prison in the United States in 2016 for stealing corn seeds from fields in Iowa and Illinois.
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