China is Largely Increasing the Import of Corn from Ukraine

China has imported 2 million tons of corn from the Ukraine so far this year, already close to the total amount of corn imported in 2014 according to customs statistics. In 2014, China imported 2.598 million tons in total, 20.4% less than that of 2013. The main reason is China reduced its importation of corn from US. However to fill the supply vacuum created, more and more Ukrainian corn is being shipped to China. During 2014, there was 1 million tons of Ukrainian corn imported, up a staggering 785% from 2013 import tonnage. Ukraine has already become China’s second largest corn supplier, only after the US, a trend which will no doubt cause the US agricultural and biotech sectors to sit up and take notice.

In 2009-2010, most of the corn imported in China was of US origin but from 2014 China has taken a marked change in direction. The change is mainly due to the loan-for-grain agreement signed between the Chinese and Ukrainian governments in 2012, under which China is to provide a $3 billion loan to the Ukraine in exchange for supplies of grain. Another important reason is the controversial issue of GM foods. Corn from the Ukraine is non-GMO while those of US are not. Chinese traders are keenly aware of the regulatory and food safety issues posed by GMOs which is a prickly issue at a domestic level in China, making Ukrainian corn an easier choice for many importers.