Bunge and Archer Daniels Midland, two of the largest grain processors in the country, say they will not accept delivery of a new genetically engineered soybean strain from Monsanto because of marketing questions, reported Bloomberg. The European Union has not approved the strain, called Roundup Ready 2 Xtend, for import. Until the strain is approved by all major importers, ADM will not accept it at any of its facilities, said a spokesman. For the same reason, Bunge decided at the end of March not to accept the new variety.
“This is the latest tussle between grain traders and seed companies amid a patchwork of global regulations and approvals for different seed varieties,” said Bloomberg. China rejected shipments of U.S. corn two years ago because they contained a Syngenta variety that was approved by U.S. regulators but not by China. The rejections led to lawsuits accusing Syngenta of driving down corn prices. Monsanto said EU approval should be imminent, said Bloomberg. Three trade groups representing exporters and soy processors wrote Monsanto last week, asking how it would make sure the new soy variety is segregated from the rest of the market.