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January, 2003
In an attempt to remain completely biotech-free, Italy has
imposed a 0.01 percent threshold for adventitious presence in
conventional corn and soybean seeds. This represents a tightening
from similar regulations established this time last year, and the
technical difficulties involved mean that U.S. exporters probably
won’t take the risk. Since no biotech varieties are approved for
marketing in Italy, there could be criminal penalties for seed lots
that fail the tests. Meanwhile, the Ministry of Agriculture is
actively helping farmers find sources of non-biotech seeds.
Italy is among the worlds five largest importers of corn seed,
importing over $45 million or 60,000 tons in marketing year (MY)
2001/02. The $17 million in corn seed imported from the United
States last MY made Italy the fourth largest market for U.S. corn
seed exports, and made corn seed the most important U.S. seed
exported to Italy. France, the world’s largest corn seed exporter,
has long dominated Italian corn seed imports by volume and more
recently by value as well. Interestingly, French corn seed is much
cheaper: Last MY, Italy’s corn seed imports from France had an
average CIF value of roughly $500/ton, versus $2,000/ton from the
United States.
However, France may not be a reliable long-term source of
non-biotech corn seed. Three reports issued to the French government
since late November recommended that the French government invest
more in biotechnology, conclude that expected benefits outweigh
potential risks, and stated that France was willing to lift the
moratorium and let citizens decide the fate of biotechnology through
labeling and traceability. If France goes biotech, as seems
increasingly likely, then Italy will have difficulty sourcing corn
seed imports.
Perhaps Italy hopes the measure will stimulate domestic corn seed
production. While exports from France and the U.S. account for more
than half of world trade in corn seed, Italy is nonetheless among
the top 15 corn seed exporters. Over the past three marketing years,
Italian corn seed exports have increased in both volume and value.
Compared to corn seed, Italy’s soybean seed market is relatively
small when compared to corn seed imports, but it is nonetheless very
important to U.S. exports. In MY 2001/02, Italy imported $4.5
million (7,900 tons) of soybeans for sowing, three quarters of which
($3.4 million, or 5,800 tons according to Italian statistics) came
from the United States, the rest was imported from France, Canada
and Belgium. Total U.S. soybean seed exports in MY 01/02 were worth
over $50 million, but with Mexico and Japan accounting for 75
percent and 13 percent of total U.S. soybean seed exports
respectively, Italy came in as our third largest market.
Italy was our top market for soybean seed exports in 1997/98
at $16.4 million, but exports to Italy have declined steadily since
that time (falling 30% last MY) while exports to Mexico have grown
dramatically (trebling last MY). |
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