China forecast to build US$1 billion GM crop market after landmark approval

Name: Why is the Chinese government so concerned about food security?
Uploaded: 2023-12-05T14:00:13.000Z
Duration: 7 min 58 s
Description: Why is the Chinese government so concerned about food security?

With approval granted to genetically modified (GM) varieties of corn and soybeans, analysts are expecting China’s market to grow substantially in coming years

Value could reach US$1 billion as gene-edited versions of staple crops replace low-yield peers as food, oil and animal feed sources

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The yield of staple crops like soybeans is expected to increase substantially with the introduction of GM varieties. Photo: Xinhua

Mandy Zuoin Shanghai

Published: 10:00pm, 5 Dec 2023

Market watchers are anticipating a rapid expansion of China’s presence in genetically modified food, as authorities ramp up their efforts to clear up public doubts following the breakthrough approval of several varieties of genetically modified (GM) corn and soybeans.

In less than a decade, GM corn and soybeans are set to create a multi-billion-yuan market in China and replace a large portion of low-yielding conventional varieties of the crops, industry observers said.

Both are staple foods, and widely used as sources of edible oils and animal feed.

A number of leading Chinese breeders now have theoretical free rein to grow dozens of varieties of the plants, as the period for public comment on the central government’s approval of commercial planting of GM varietals ended last month.

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Why is the Chinese government so concerned about food security?

GM corn and soybeans are expected to generate a new market worth 7 billion yuan (US$988.4 million) in eight years based on similar trends in the United States, according to a research note published by Kaiyuan Securities last week.

With the two major crops being given the green light, “the window for commercialisation of GM seeds has opened, and leading breeders have set sail,” it said.

Calling 2023 “the beginning of GM seed planting”, China Galaxy Securities estimated that, in terms of growing area, about 40 per cent of all China’s soybeans and corn would be genetically edited in the six years following the shift.