A Taste of Wellness for Savoury and Snacks
Givaudan
Rolling the amnesty over from last year, the temporary measure - forced through because the Brazilian Congress failed to pass the new biosafety bill before the planting season - will allow farmers to plant GM soy crops, thereby avoiding a major disruption of the market.
The soy business in Brazil represents about 32 per cent of Brazilian farm trade.
The American Soybean Association reports that the measure - MP Number 223 - allows the marketing of the biotech soybean crop until 31 January 2006, a period that can be extended by 60 days. The measure prohibits the sale of biotech soybean from the 2004-05 harvest for use as seed.
President Lula waited until the last minute to release the provisional measure - the third one during his administration - because he was expecting Congress to enact the new Biosafety Bill, says ASA .
Although the Senate approved the bill and it is now back in the House, its final approval by the Congress is not expected until next year.
Soy prices reached 15-year-highs in recent months on the back of a drawdown in global stocks last year but relief is expected this year with the US department of agriculture estimating that global soy stocks-to-use ratio has moved up by two days to 90 days.
The September WASDE (World Agricultural Supply and Demand Estimates) released by the US government projects an increase in global stocks - by 1.3m mt for the end of 2004/05.