UPDATE 1-GMO approval may not help US soy shipments to EU

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Mon Nov 2, 2009 3:21pm EST

* US soy trade still stalled due to traces of GMO corn

* EU approves 3 out of 4 types of GMO corn

* Decision on fourth variety could come in November

(Adds company comments, KANSAS CITY to dateline)

KANSAS CITY/HAMBURG, Nov 2 (Reuters) - U.S. shipments of soybeans and soymeal to the European Union are unlikely to return to normal anytime soon, despite the EU expanding which varieties of biotech grain may enter the bloc, industry experts said on Monday.

This summer, over 200,000 tonnes of soybean and soymeal were refused entry to EU ports, largely in Spain, because they contained small amounts of GMO corn (maize) varieties not approved in Europe. [ID:nL6524536]

Corn and soybean are often shipped in the same containers and using the same ships.

The EU authorized three types of GMO corn on Friday but at least four types of GMO corn have contaminated the soy shipments.

"This is a positive step forward, but is by no means, an open door for biotech-derived commodities," said Rebecca Fecitt, director of biotech programs for the U.S. Grains Council.

Approval was still needed of the GMO maize type MIR604 from Swiss group Syngenta (SYNN.VX) before normal imports could resume, a spokeswoman for European grain trade association Coceral said.

"However, it is highly unlikely that imports of soybeans and meal from North America will be restarted before the other GMO event, MIR604 is authorised," the spokeswoman said.

However, some soy shipments to the EU that had been blocked as they contained small traces of the three maize types may now be freed, the Coceral spokeswoman said.

EU approval for GMO imports has been slow because of public concern about their safety. But the EU Commission, the bloc's executive arm, said in September it would seek to find a solution on quicker approvals to stop disruption of other imports. [ID:nLE636474]

An EU decision on MIR604 maize could be made in November, said Alexander Doering, secretary general of the European feed manufacturers' association Fefac.

"Normal trade cannot be resumed quite yet," Doering said.

SEED COMPANIES OPTIMISTIC

Still, U.S. manufacturers of GMO corn said they were heartened by the approvals and had high hopes the moves would further erode EU barricades to other biotech crops.

The EU approved import and processing of MON88017 and MON89034, from U.S. biotech company Monsanto (MON.N), and 59122xNK603 from Pioneer Hi-Bred, a unit of Dupont (DD.N).

"We are encouraged by this approval and look forward to continued progress of biotech approvals in the EU," said Paul Schickler, president of Pioneer Hi-Bred.

DuPont developed the maize to be herbicide and insect resistant in conjunction with Dow AgroSciences, part of the Dow Chemical Co. (DOW.N)

"We urge the commission and EU member states to similarly approve biotech crops for cultivation so Europe's farmers have access to the same technologies as other farmers around the world," said Schickler.

The approvals are a boost to North American and South American farmers growing the products, and would offer European livestock producers greater market access to feed supplies, said Jerry Hjelle, Monsanto's vice president of global regulatory matters.

"We hope for timely EU approvals for other existing and pipeline products," said Hjelle.

The approvals still fall short of opening the door to cultivation, which the biotech seed makers are pushing for. (Reporting by Michael Hogan in Hamburg and Carey Gillam in Kansas City, additional reporting by Sam Nelson in Chicago; Editing by Lisa Shumaker)

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